NJ Bill Would Help People Rebuy Foreclosed Homes: Sen. Nia Gill – Montclair, NJ Patch

MONTCLAIR, NJ — Homeownership is one of the best ways to build generational wealth, but for many people in the Garden State, the dream is simply out of reach, New Jersey Sen. Nia Gill says. And that’s why the lawmaker has introduced a bill that would create what she calls a “Community Wealth Preservation Program.”

According to Gill, who represents the state’s 34th District, S-2130 would help struggling homeowners repurchase houses that have been foreclosed on and put into a local sheriff’s sale. Read the bill’s full text here.

Here’s how it would work, Gill said:

“The bill would revise sheriff foreclosure sale procedures to allow certain bidders to provide a 3.5 percent deposit, instead of the 20 percent deposit which is currently required. To receive the reduced deposit rate, the bidder would have to occupy the home as their primary residence for at least 72 months. Under the bill, a successful bidder who finances the purchase of the property would be required to complete eight hours of homebuyer education and counseling through a program provided by the U.S. Department of Housing and Urban Development.”

The bill was released from committee by a vote of 5-0 on Thursday.

“This legislation will make homeownership more accessible by removing the barrier large down payments place before individuals, whether they are looking to repurchase their home which has been foreclosed or purchase their first home at a sheriff’s sale,” Gill said.

The 34th District includes the municipalities of Montclair, East Orange, Orange and Clifton.