HARP

Although Jerry Green had provided a link to nowhere in his blog about the HARP program, I was able to learn that Reverend DeForest Blake "Buster" Soaries is or was a Republican who has served as Secretary of State of New Jersey under Governor Whitman and ran unsuccessfully for Congress in 2002. None of the above should be considered as negative for this highly respected minister.

From researching the web; I extracted this portion of a recent article from the New York Times ; "A second initiative, in New Jersey, is spearheaded by the Federal Home Loan Bank of New York, which lends money to roughly 300 local banks in New York, New Jersey, Puerto Rico and the United States Virgin Islands to finance mortgages. Under this new initiative, called the Housing Assistance and Recovery Program, or HARP, the Home Loan Bank lent $6 million to Magyar Bank, based in New Brunswick, N.J.The First Baptist Church of Lincoln Gardens, in Somerset, N.J., which provides counseling services through its First Baptist Community Development Corporation, identifies homeowners who are in danger of foreclosure, then negotiates with the lender to buy out the loan. Using proceeds from the Federal Home Loan Bank, Magyar Bank puts up 70 percent of the remaining balance. HARP representatives expect that lenders who hold the distressed mortgages will write off much of the remaining 30 percent, rather than incur a foreclosure.After the loan has been transferred, the homeowners become renters of their home, making payments to First Baptist, which holds the new mortgage from Magyar Bank. The rent level depends in part on what the family can afford. (boldface mine)

The program initiated in Middlesex County has been extended to Mercer County. It was first announced at a press conference on May 1 ,2008. Jerry's Committee was 6months late hearing about it.

Unfortunately, there is difficulty finding who really owns the mortgages since almost all were sold into the secondary market and then re bundled into securities packages which were sold publicly. This creates a legal problem for HARP.

I am curious about the $700,000.00 "facility" that Green mentions. Was it a single family house? Not likely because most home lenders would require a certified home inspection prior to the sale.It was seem to be a commercial or rental type property. Anyhow the term "facility" is intriguing. Assemblyman would you please give more information, including if possible who are the principles if it were a business deal..

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10/12/08 A slight correction in grammar 2nd paragraph.needed because of poor proof reading.