Foreclosed Homes Should Go To Families, Not 'Flippers,' NJ Lawmakers Say

ESSEX COUNTY, NJ — A trio of Democratic state lawmakers in New Jersey say they have a plan to even the playing field for families – or their relatives – who want to buy their homes back after a foreclosure.

On Monday, Assembly members Britnee Timberlake (District 34), Cleopatra Tucker (District 28) and Verlina Reynolds-Jackson (District 15) gave an update on the “Community Wealth Preservation Program” bill, which has been released from the Assembly Community Development and Affairs Committee.

The legislation now heads to now heads to the Assembly speaker for further consideration.

Timberlake represents Montclair, Orange, East Orange and Clifton. Tucker represents Bloomfield, Glen Ridge, Irvington, Newark and Nutley.

According to a joint statement from the three lawmakers, the bill would reduce the loss of family wealth brought on by foreclosures and create equity in the purchase process for the people who actually live in a community – instead of those who just want to “flip” foreclosed homes.

Here’s what the bill would do if it becomes law, according to Timberlake, Tucker and Reynolds-Jackson:

“The bill (A-1834) would offer homeowners in foreclosure, or their next of kin, the opportunity to purchase back their home at a foreclosure sale and thereby preserve their family wealth. It would also create an avenue for people who want to live in the community instead of just selling the property by establishing a special regulated program that reduces the required deposit amount from 20% to 3.5% and expands the number of days all the purchase price dollars are due from 30 to 90 days.”

According to Timberlake, the legislation would also level the playing field for people who want to purchase an abandoned home to restore and live in for a minimum of seven years, instead of someone who wants to simply sell the home for profit.

The bill would require anyone who purchased property with financing to occupy the residence for an 84-month period and subject investors who misuse the program to flip properties to steep fines, the lawmakers said.

Timberlake said that New Jersey leads the country in housing foreclosures, many of which take place in urban areas of the state.

“Black and Brown wealth is hemorrhaging through the loss of foreclosed property, and the people who live in the community often do not have deep enough pockets to even participate in the foreclosure process,” the assemblywoman said. “This bill is a creative opportunity for families to save their wealth at the time of a foreclosure sale.”

Tucker said that the current process for buying foreclosed houses is stacked in favor of companies that have the money to purchase property at sheriff sales and resell it for a profit.

“By enacting the changes detailed in this bill, we can give people vested in the community a better chance of securing a home at these sales,” Tucker said.

Reynolds-Jackson agreed with her peers.

“Making housing accessible and affordable is critical and the ‘Community Wealth Preservation Program’ can do that for many New Jerseyans who want to own a home and join a community,” Reynolds-Jackson said. “We know what barriers stand in the way of a homeowner’s success at sheriff sales, and with this legislation, we can make a difference.”

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