It's no secret to Essex County homeowners that foreclosure activity is on the rise again in New Jersey. The increase is a result of foreclosure processors at last getting to the backlog caused by earlier judicial delays. While many homeowners know what leads to foreclosure - debt, etc - what becomes of these foreclosed upon homes after they're emptied?
In many cases investors buy up these homes, taking advantage of distressed processes. The homes are then turned into single family rentals that the investors hope will appreciate over time. Such an investment makes sense, as many people have been turning toward renting rather than buying homes over the last year.
While foreclosure in New Jersey is a judicial process, many completed cases have been kept on hold rather than moved on to finalization. This is due to issues with procedures being followed, as well as suspicions of robo-signing. This has brought on the wave of foreclosures the state is experiencing now, and isn't suspected to return to close to normal until sometime in 2013.
Many Essex County homeowners who have faced foreclosure are often unable to return to owning a home, or don't want to take on that expense while they are still recovering financially. In some cases, homeowners facing the loss of their home are able to stop foreclosure through bankruptcy protection or other debt management alternatives. Some of these individuals find moving to renting beneficial in managing debt as they embark on a plan to return to financial stability. Regardless individuals facing foreclosure should inform themselves of all options available and act in a way that is best suited for their situation.
Source: pressofAtlanticCity.com, "Rise of the renter: More New Jersey homeowners forced out by foreclosures," Brian Ianieri, Aug. 22, 2012