The settlement with five major mortgage lenders is expected to bring $762 million in relief to New Jersey homeowners. Some critics are questioning how far the money will go. .

Speaking at a hearing in Plainfield on foreclosures, Senator Bob Menendez says it remains to be seen how many people will benefit from the settlement.

“That’s gonna depend upon how the guidelines to implement the settlement take place.”

Professor Alan Mallach with the National Housing Institute shared the Senator’s concern.

He gives the example of a family in the east ward of Irvington that bought a house for $200,000 before the housing crisis.

“And those houses are now worth [$30,000.] Those homeowners are not likely to benefit because the sheer size of their ‘underwaterness’ is going to be too big for this program to handle.”

Mallach says considering the large numbers of Americans who are “underwater,” or owe more than their houses are worth, the settlement could be just “a drop in the bucket.”