MALONE TO CORZINE: WHO ARE THE LUCKY 1,000?

GOVERNOR’S PLAN TO HELP 1,000 HOMEOWNERS FACING FORECLOSURE LACKS DETAILS 

Assembly Republican Budget Officer Joseph Malone today asked Governor Jon Corzine to explain exactly how the state will determine which families facing foreclosure will be helped by his plan to spend $25 million and have the state assume a portion of their mortgage debt.

“According to the Governor’s plan there will be enough funding to help only about 1,000 homeowners statewide,” said Malone, R-Burlington, Ocean, Monmouth and Mercer. “Governor Corzine needs to explain what the criteria will be for selecting these 1,000 homeowners, where those houses are located, and what this means to the rest of the state’s taxpayers.”

In his economic plan outlined in a speech Thursday, Governor Corzine announced plans to spend $25 million to help 1,000 people who are about to lose their homes. The proposal calls for lenders write off 12.5 percent of the loans with the state assuming responsibility for another 12.5 percent.

Malone noted that thousands of New Jersey residents are facing foreclosure at and that many other middle class families who are not currently facing foreclosure are struggling to pay their bills – meaning that many residents will be left out in the cold by this plan. He also questioned what community organizations will be given funds to help purchase these properties and how those nonprofits will be chosen.

“The fundamental question is whether the Governor’s approach is even the right approach for dealing with this crisis,” Malone said. “I have seen no details from the Governor to convince me that this plan will do anything to help the hardworking middle class families in this state. This appears to be a handout to a limited number of people, while the majority of the state gets left holding the bill.”

#####