ACR54

Sponsored by:

Assemblywoman MILA M. JASEY

District 27 (Essex and Morris)

Assemblyman RALPH R. CAPUTO

District 28 (Essex)

SYNOPSIS

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

Introduced Pending Technical Review by Legislative Counsel.

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 General Assembly of the State of New Jersey (the Senate 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. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Clerk of the General Assembly or the Secretary of the Senate 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.

STATEMENT

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.