Senator RICHARD J. CODEY
District 27 (Essex and Morris)
Senator DIANE B. ALLEN
District 7 (Burlington)
Senators Gordon, Greenstein and Ruiz
Memorializes Congress and the President to authorize and encourage lenders to permit homeowners to remain in their homes as renters during and after foreclosure.
CURRENT VERSION OF TEXT
A Concurrent Resolution memorializing Congress and the President of the United States to authorize and encourage lenders to permit homeowners to remain in their homes as renters during and after foreclosure.
Whereas, Across our nation, more than four million families have been forced out of their homes since the onset of the current mortgage foreclosure crisis; and
Whereas, In the wake of the "robo-signing" settlement between major banks and government officials over shoddy foreclosure practices, many experts expect foreclosures to increase in the coming months, as banks and loan servicers that had delayed initiating foreclosures in anticipation of the settlement file new complaints; and
Whereas, Unlike the earlier waves of foreclosures that impacted speculators of investment properties and borrowers who had taken risky mortgages and were unable to refinance when low introductory interest rates reset to higher rates, the current wave of foreclosures are affecting average homeowners with standard mortgages who had decent credit ratings, but lost their jobs during the economic turndown; and
Whereas, U.S. Census reports indicate that rental vacancies for the first three months of 2012 have fallen to the lowest level in 10 years and homeownership has fallen to the lowest level since 1996; and
Whereas, High unemployment, income stagnation, and new tighter lending standards make it more difficult for foreclosed homeowners to qualify for a mortgage while rising demand for rental units has pushed rental prices to the second-highest rate on record; and
Whereas, Foreclosures of residential properties often require homeowners and their families to vacate their homes and relocate into different communities, or seek refuge in shelters, or become homeless, detaching them from their sources of support, such as schools and houses of worship; and
Whereas, Recent reports document the secondary effects of foreclosure upon homeowners and their families, including its adverse impact on children's health and education, and on the physical and mental health of children and adults alike; and
Whereas, When foreclosed residential properties remain vacant for extended periods of time, the vacancies destabilize entire neighborhoods, increase policing, depress property values, and reduce revenues to municipalities; and
Whereas, When foreclosed homes remain vacant, the property owners suffer financial losses which reverberate throughout the economy; and
Whereas, In many cases, if lenders were authorized and encouraged to lease foreclosed residential properties back to their prior owners, lenders would be assured a revenue stream, homeowners and their families would have a safe place to live and benefit from the continued social support of their communities, and neighborhoods would remain intact, thus reducing their vulnerability to blight; now, therefore,
Be It Resolved by the Senate of the State of New Jersey (the General Assembly concurring):
1. The Legislature respectfully memorializes the United States Congress and the President of the United States to enact legislation authorizing and encouraging mortgage lenders to lease back foreclosed homes to the prior owners of those homes.
2. Duly authenticated copies of this resolution, signed by the President of the Senate and the Speaker of the General Assembly and attested by the Secretary of the Senate and Clerk of the General Assembly, shall be transmitted to the President and Vice President of the United States, the Majority and Minority Leaders of the United States Senate, the Speaker and Minority Leader of the United States House of Representatives, and every member of Congress elected from this State.
This resolution respectfully memorializes Congress and the President of the United States to enact legislation authorizing and encouraging lending institutions to lease back foreclosed residential properties to their prior homeowners.