Since the housing market crashed and the recession began, New Jersey has been one of the hardest hit states for foreclosures. Since 2011, foreclosure filings in the state rose each year — that is, until 2015, when they actually declined. Even so, the number of foreclosures being filed due to delinquent mortgage loan debt remains high.
Lenders were persuaded to postpone filing foreclosures in 2011 in the interest of homeowners’ rights, so when filings resumed in 2012, they rose nearly 316 percent. In 2014, new filings increased 15 percent over 2013, which saw an increase of 75 percent over 2012. Even with the improvements made in 2015, there were still 35,733 borrowers against whom foreclosure proceedings were filed. However, researchers suspect that some of those filings are actually cases that were re-filed because the previous cases were dismissed for various reasons.
Last year, new foreclosure filings dropped an impressive 27 percent, not including filing on condominiums, and each of New Jersey’s 21 counties all saw a decline. Sources report that this indicates that the housing market is on the mend and the economy is stabilizing. According to these numbers, New Jersey is now on its way to reaching recovery levels similar to those seen around the country.
Even so, thousands of homeowners in the state are still struggling to keep up with their mortgage loan debt despite an improving economy. If foreclosure is imminent or is already on file, filing for bankruptcy could help. During the proceedings, the foreclosure must be stayed unless the lender receives specific permission to resume court proceedings. Furthermore, it may be possible for a homeowner to keep the home or surrender it. Either way, filing provides options that homeowners may not otherwise have.
Source: northjersey.com, “New N.J. foreclosure filings dip for first time since 2011“, Richard Newman, Jan. 5, 2016
