“COMMUNITY WEALTH PRESERVATION PROGRAM”
BY DHIREN SHAH
What is the worst time for a homeowner? When they do not have the financial means to save their home from bankruptcy. Their dream home is snatched out of their hands and their belongings may end up out on the street by order of the Sheriff.
Why does it have to be so harsh for someone in dire straits to face confusion when handling a bad financial situation. Right now, the law states that for a home available due to a bankruptcy, if anyone wants to buy it, they can get it at a Sheriff’s sale with 20% down by certified check and the rest of the money paid within 30 days.
Assemblywoman Britnee Timberlake understood the situation, as she is in the real estate business. She authored a wonderful resolution, which has passed both the houses (Senate and Assembly) of New Jersey. The only step left is for Governor Murphy to sign the bill.
Why is he delaying signing this bill for the benefit of needy people? No one knows… Is it for the benefit of the banks and large corporations who are in the money business? Murphy worked at Goldman Sachs before becoming Governor.
Bill A-793 “the Community Wealth Preservation Bill” was sponsored by Assemblywomen Britnee Timberlake, Cleopatra Tucker and Verlina Reynolds-Jackson. The purpose of the bill to preserve the community and its wealth and community members may take pride for their community.
Assemblywoman Britnee Timberlake and Assemblywoman authored Bill A-793 “the Community Wealth Preservation Bill” has passed with the Assembly and the Senate.
Why did our elected officials approve the bill? Because it is helping families who are on the verge of losing their home. Banks are shrewd, charging an enormous number of penalties and interest for homeowners who missed their payments at least twice. Once this vicious cycle starts, a homeowner does not have a way of getting out of it.
For the first time, there is a bill which helps homeowners or renters by allowing them to own the home with only 3.5% cash down. In response to my question on how it works, Ms. Timberlake gave a good example. If a homeowner owes $400,000 (principal, interest and penalties combined) and the bank places it on the sheriff’s auction starting at $200,000, (usually the bank’s starting auction is 50% of what the owner owes to the bank) the owner will get that house under the bid process. However, the key is that the homeowner must be approve for the loan with 3.5% down (which is right now 20%) and instead of 30 days, the sheriff must get the balance of the loan, with the help of government programs, within 90 days.
Suppose the homeowner cannot raise that money or cannot be approved. Then the kin of the homeowner can raise that money with 3.5% down. If the home is rented, the tenant, instead of losing their rented home, gets the same 3.5% down payment to buy the home. And finally, a neighbor or person living in the same community can buy the house as well. The stipulation for the neighbor or the tenant is that they have to live in that house for 7 years.
This bill protects the people who have suffered economic hardship. The majority of their houses go to investors, who know how to work and take advantage of the laws. While practically minting money, they are evacuating homeowners and families, and most of the time it is nothing but a sad story. I am happy that Miss Timberlake thought about the real people rather than the money people. The bill is supported by the Urban Mayors Association with Mayor Baraka at the helm.
If you have any comment or want to support this bill, write to localtalknews@gmail.com.
