How far will 2.1 million go? Even thecrappiest houses in the worst neighborhoods go for 200k.

What a waste.

Jersey City gets $2.1M from HUD to help with foreclosures

by Paul Koepp/The Jersey Journal
Friday October 03, 2008, 7:03 PM

Help is on the way for Jersey City homeowners facing foreclosure.
The federal Department of Housing and Urban Development has announced it is giving the city $2.15 million as part of its Neighborhood Stabilization Program, a nearly $4 billion effort to prop up the areas hit hardest by the subprime mortgage meltdown.

"We are pleased that the federal government has recognized the need to assist homeowners in Jersey City who are facing tough economic times," Mayor Jerramiah T. Healy said in a statement. "We plan to be proactive and utilize these funds for homeownership retention."

According to HUD statistics based on a national delinquency survey by the Mortgage Bankers Association, 6 percent of mortgages in Jersey City are in some stage of foreclosure, above the statewide average of 4 percent and the national mark of 4.8 percent.

The city was selected for the grant, along with Bergen County, Newark, Paterson and Union County, because a significant number of subprime mortgages have been issued here. The announcement was made Sept. 26.

The money is not part of the $700 billion bailout package signed into law by President Bush today.

Overall, $64 million will be doled out in New Jersey. The state's "abandonment risk" is considered low by HUD because most foreclosed properties are resold, but Jersey City's risk level is "medium."

City officials have been holding seminars in each of the city's wards to educate residents buying their first home about available programs and resources available to them, and will have a public meeting in the coming weeks to determine how to use the money.