Several settlements have been brokered with mortgage servicers over the last few years over questionable mortgage practices. Now, the fourth largest mortgage service in the country, Ocwen Financial Corporation and Ocwen Loan Servicing, the subsidiary of Ocwen Financial, has agreed to a $2.1 billion settlement. An estimated 1,900 New Jersey residents could receive a portion of the settlement and possibly stop foreclosure if they are in danger of losing their homes.
The recession and collapse of the housing market caused plenty of financial damage to New Jersey residents. Then Hurricane Sandy blew through the state and became the second most costly natural disaster in the United States. More than a year has passed since Oct. 29, 2012, and thousands of people still cannot get back into their homes after the devastating storm. Filing Chapter 7 bankruptcy could give some families the opportunity to eliminate debt and rebuild their financial lives to get back on their feet.
New Jersey drivers may not consider that owning and driving a car can influence their credit scores. Traffic tickets, car payments, drunk driving charges and accidents can all put a consumer into a financial bind. When the financial struggle becomes insurmountable, bankruptcy could provide much-needed relief.
The housing crisis may be over, but that has not stemmed the flow of foreclosures around the country and in New Jersey. Numerous homes are still not worth what their owners owe on them. An estimated 2.3 million homes are still in danger of foreclosure, and many of their owners may be contemplating bankruptcy protection in the aftermath of the recession.