The Foreclosure Transformation Act threatens all homeowners in New
Jersey with massive wealth destruction. The essence of the Act is that
the State needs to sell bonds, create a new bureaucracy, buy homes out
of foreclosure and convert or sell them to people who will use them for
low-income housing, rehab centers or other social welfare purposes which
destroy the character of their neighborhoods they are in. The stated
goals of reducing the supply of homes for sale and supporting home
prices will fail on both counts.
The uses for these converted properties, as contemplated by this Act, are simply not considered desirable by neighbors even if they are considered otherwise socially beneficial. Location matters and prices reflect that reality.
When you put homeless shelters or rehab centers next door, trust me, homeowners will prefer an abandoned foreclosure every time, because that house will ultimately be bought by someone and recover its value. With this Act and its 30-year deed restriction on converted housing, you will cause the value of all properties to crash, and then to stay down.
What happens next is even worse -- current homeowners will rush to sell their homes before the value goes to zero. It will be a fire sale environment, as this Act will achieve precisely what it purports to prevent – an oversupply of homes on the market, sharply reduced demand among homebuyers, and a massive housing price drop.
Read More: New Jersey Assembly Appropriations Committee
Thank you
ziad k abdelnour
The uses for these converted properties, as contemplated by this Act, are simply not considered desirable by neighbors even if they are considered otherwise socially beneficial. Location matters and prices reflect that reality.
When you put homeless shelters or rehab centers next door, trust me, homeowners will prefer an abandoned foreclosure every time, because that house will ultimately be bought by someone and recover its value. With this Act and its 30-year deed restriction on converted housing, you will cause the value of all properties to crash, and then to stay down.
What happens next is even worse -- current homeowners will rush to sell their homes before the value goes to zero. It will be a fire sale environment, as this Act will achieve precisely what it purports to prevent – an oversupply of homes on the market, sharply reduced demand among homebuyers, and a massive housing price drop.
Read More: New Jersey Assembly Appropriations Committee
Thank you
ziad k abdelnour
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