Politics & Government

Democrats Rally Around State's Foreclosure Crisis

All Democratic U.S. Senate candidates and gubernatorial hopeful Sen. Barbara Buono speak out about state's home foreclosures.

Written by Keith Brown

Grace Alexander came to the U.S. from Guyana 20 years ago to pursue the American dream.

She worked three jobs. She saved her money. And while the world was worrying about the supposed Y2K computer glitch, Alexander was buying a home on Palm Street in Newark.

Along with the four generations of her family who live there, Alexander calls the two-story house her "castle," her "little piece of the pie," her "American dream."

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But when the national economy took a downturn, Alexander lost two of her jobs. Her bills mounted. It wasn’t long before she couldn’t pay her mortgage. She’s received no help from her lender, despite numerous attempts.

"I’ve been battling for Bank of American for nearly four years now," Alexander said during a press conference outside her house Tuesday morning.

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Her story is emblematic of a growing foreclosure crisis in New Jersey, according to the phalanx of Democratic elected officials flanking Alexander on her front stoop.

U.S. Reps. Frank Pallone (D-6) and Rush Holt (D-12), Newark Mayor Cory Booker, state Assembly Speaker Sheila Oliver (D-34) and state Sen. Barbara Buono (D-18), Democratic gubernatorial candidate, and Newark City Councilmen Ron Rice Jr. and Darrin Sharif lent political weight to Alexander’s story and the plight of foreclosure facing thousands of New Jersey residents.

There have been 88,000 foreclosures in the state since 2008, with twice that many in the pipeline due to a substantial backlog, according to New Jersey Communities United, a nonprofit community organization that helped organize the event.

The typical foreclosure costs local governments more than $19,000 for increased costs of safety inspections, police and fire calls, trash removal and maintenance, according to the organization.

"We have to remember the banks are the ones who caused this crisis in the first place," Pallone said. "And Bank of America has been the worst."

Buono took shots at Gov. Chris Christie as she and other Democrats called out Christie's administration for being too slow to distribute $300 million in federal housing assistance. Buono said the money was designed to help homeowners like Alexander remain in their homes.

"Having a home means something," Buono said. "It means security. It means success."

Booker said that foreclosures can affect entire neighborhoods, and that Newark has spent millions in policing and maintenance of foreclosed homes.

"Poverty is not just a problem for poor folks," Booker said. "This is an issue for all of New Jersey."

Oliver lambasted Christie for touring the Jersey Shore, which was in parts devastated by Hurricane Sandy, while ignoring places like Newark, where people also are suffering. 

"Grace need not be in the position that she’s in," Oliver said. “We have resources; we have the capability. And as our governor walks up and down the coastline, and I do not negate that it’s important for him to walk up and down the coastline, it’s important for him to walk the streets of Vailsburg, West Ward, Newark, New Jersey.’’

Holt turned righteous anger toward the banking industry.

"They say it’s a moral hazard, that’s the term they use, if we help people whose mortgages have gotten in trouble. It will only encourage more people to get in trouble," Holt said. "The banks should be helping people, not punishing them."


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