Years after the official end of the recession, many New Jersey residents are still facing the threat of losing their homes. Some homeowners became desperate enough between 2006 and 2009 to believe a company's promises to stop foreclosure. Recently, the architects of what federal officials believe was a lease buyback scam were arrested, which may leave many homeowners wondering what happens next.
On Dec. 31 of last year, the Mortgage Forgiveness Debt Relief Act, which made it possible for many homeowners to avoid paying taxes on debt forgiveness due to foreclosure or short sale, expired. Many are hopeful that Congress will renew the Act, which became law in 2007. Even though the law appears to have sufficient support, Congress has yet to make a determination regarding renewal of it. This has -- and may -- cause numerous homeowners in New Jersey and across the country to file for bankruptcy after a short sale of their homes.
Many New Jersey homeowners remember July 2009. The housing market had collapsed and hundreds of thousands of homeowners across the country were either behind on their mortgage debt or in foreclosure. It was during this time that one woman received a heart stopping letter from her mortgage company telling her that if she didn't pay them a certain amount by within two weeks, she could lose her home.
Multiple news reports have highlighted the fact that New Jersey is experiencing a surge in foreclosure filings. You may be one of thousands of homeowners in the state who is concerned about being able to keep your home. Help could be on the way, if a bill up for a vote in the State Assembly passes.
For some time now, New Jersey has held steady at being number two in the nation for home foreclosures. However, the state holding the number one spot is beginning to pick up the pace of finalizing foreclosure proceedings. This could mean that the amount of unpaid mortgage debt in New Jersey could cause the state to eventually lead the nation in foreclosures.