A nonprofit lender & investor purchased hundreds of defaulted FHA-insured loans in New Jersey across 9 counties hit hard by Hurricane Sandy, in a manuever that is quietly becoming more common in numerous states across the United States. The NJ Star-Ledger has details on the $180 million sale:
Wayne Meyer, the president of New Jersey Community Capital, said the group plans to work with borrowers to reduce the principal balance on those loans, as well as ensure the homeowner can afford to pay the modified mortgage.
Of the 651 mortgages included in the sale, Meyer said the loans are roughly $270,000 on average, while the market values of those properties are about $180,000. "Our goal is to bring that mortgage down to $180,000," Meyer said.