Estimated NJ foreclosures: 60,000
Estimated helped by the program: 16,000
Actual helped by the program: 854 (5% of estimate)
No, really: $12,500,000 (~$15,000 per case)
Just for reference, according to RealtyTrac, there were 6,043 Notices of Delinquency, 1,396 Notices of Sheriff Sale and 877 Sheriff Sales in August.
From the NJ Office of the Attorney General:
Statewide Mortgage Foreclosure Mediation Program Launched
Initiative aimed at helping thousands of homeowners facing foreclosure
A new state-supported mortgage foreclosure mediation program is in place to help the thousands of New Jersey homeowners facing foreclosure throughout the state, Gov. Jon S. Corzine, Chief Justice Stuart Rabner and Attorney General Anne Milgram announced today.
Gov. Corzine signed legislation in December supporting the program with $12.5 million in state funds.
Planners anticipate as many as 16,600 homeowners will participate in the foreclosure mediation program this year. It is estimated that as many as 60,000 homeowners may go through foreclosure this year.
From the Record:
A state initiative to help troubled homeowners has aided only a small percentage of the estimated 60,000 homeowners who face foreclosure this year, a study from the National Consumer Law Center said Wednesday.
The study looked at foreclosure mediation programs in 14 states, including New Jersey. The study said mediations were completed in 854 New Jersey cases from mid-January, when the program started, to the end of June.
The report said that New Jersey provides “considerable financial support for foreclosure mediations” – paying for housing counselors, attorneys and outreach.
David Wald, a spokesman for the state attorney general, defended the mediation effort.
“We think we have a pretty effective program,” he said, adding that it has helped more than 500 homeowners keep their homes so far this year.