Let families - not house-flippers - get the first crack at NJ foreclosures | Editorial

Star-Ledger Editorial Board

26 September, 2022

One part of the solution is to help families preserve home ownership after foreclosure and provide them with a chance to compete with institutional investors who have dominated the real estate market since the great recession.

A bill that Gov. Murphy conditionally vetoed last week does exactly that, but his response was measured and thoughtful. And his CV message reflected an understanding that a house is more about a family’s sanctuary than extracting equity and moving on to the next investment, so with thousands of New Jersey homeowners facing such peril every month, we urge lawmakers to get a revised bill back on the governor’s desk quickly.

The bill known as the Community Wealth Preservation Program, authored by Assemblywoman Britnee Timberlake (D-Essex), allows homeowners or their next-of-kin the first chance to buy back their home at a sheriff’s sale, reduces the required down payment (from 20% to 3.5%) and gives them more time to arrange financing. The next chance to make a bid would go to non-profits and renters, provided they commit to living at the property for seven years.

That gives them a decided advantage over other investors – usually LLCs, backed by large-scale investors -- who are intent on flipping them for profit.

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Let families - not house-flippers - get the first crack at NJ foreclosures | Editorial