“New Jersey officials estimate 50,000 to 100,000 previous cases are still pending.”
Of course there are a number of reasons for such a sorry condition. However, two causes that stand out are:
1. Our huge property taxes which in many instances amount to the equivalent of second mortgages and:
2: The New Jersey economy is more stagnant than the national economy – in spite of the “New Jersey Comeback” fairy tale.
The potential consequences of this housing trend in our state are to be measured in both human and fiscal terms. In the first, we will have more homeless families, more broken homes, more children living in poverty, etc.
In the fiscal area, as more homes are foreclosed, property values tend to decrease, bringing more homeowners to give up on their de-valued homes, when their pre-recession mortgages sink deeper under water.
To a degree, the approaching wave of foreclosures could have a snowball effect on the economy of New Jersey. That is foreclosures trigger more foreclosures and additional economic strains: Less consumption, more pressure on social services, less tax revenue, etc
With housing one of the main residual industries in the state, this phenomenon will stall any significant growth that other niches of the economy may achieve.
Abolishing property taxes for primary residences and some commercial property in New Jersey, as I propose (please refer to Pages for details) is almost a matter of survival for our state. Zero property tax would have a lifting effect on property values almost immediately.
I am not proposing such drastic reforms as I have been doing for 2 years because I want to make a mess of things: They are desperately needed. That is the only reason.