In the next two years, over 7,000 New Hampshire families are expected to lose their homes to the growing mortgage crisis, driving down home values even further for 57,000 additional families, yet today New Hampshire Senator John Sununu voted to block the Foreclosure Prevention Act. Sununu followed the Republican party line, voting against the bill that would have worked to keep struggling families in their homes, assisted communities harmed by foreclosures recover, and helped families avoid foreclosures in the future.
“While John Sununu is busy carrying water for special interests that refuse to help struggling homeowners, New Hampshire families are carrying the burden of the growing mortgage crisis,” DSCC spokesman Matthew Miller said. “Instead of listening to Granite Staters who needed his help, Sununu has proven again today how out of touch he is with his constituents and their needs.”
New Hampshire homeowners are seeing their home equity vanish before their eyes. Home prices were down 8.9% in the fourth quarter from a year prior, more than at any time since records began being kept. Ten percent of all homeowners now have mortgages for more than their homes are worth. [Wall Street Journal, 2/27/08; New York Times, 2/22/08]
Accelerating foreclosures are driving home values down further. In the next two years, without intervention, 7,422 New Hampshire homes are expected to go into foreclosure. Each foreclosure costs every home within 1/8 of a mile 0.9% of its value, meaning that the wave of foreclosures will cost 57,628 neighboring homeowners $203 million in lost wealth. [Center for Responsible Lending,