Gov. Jon Corzine has proposed that the federal government purchase mortgages at market value. Under this proposal, the mortgages would be restructured, and the houses may be bought outright. This proposal, which Corzine announced on "Meet the Press", comes at a time when our economy is being directly impacted by the stock market plunge. Increased levels of unemployment will bring the credit crisis to the forefront.
On a later appearance in "Eyewitness News Up Close," the governor announced that New Jersey would be buying homes. "We're going to do some on-the-ground purchases of homes," Corzine said. He promised that this move would protect neighborhoods from the effect of the exorbitant number of foreclosures in the area. These foreclosures are decreasing neighborhood property values.
This plan is part of Corzine's economic stimulus package created to boost NJ's economy. The governor suggests loaning community organizations money to purchase property that is in danger of foreclosure. These organizations would purchase the homes and rent them back to the residents.