Between the Great Recession and Super Storm Sandy, the New Jersey housing market was hit particularly hard in comparison to the rest of the country. While foreclosures dropped in 2014 for the nation as a whole, they rose to 71 percent in the state. That means that an abundance of homeowners were unable to stop foreclosure proceedings from being filed by their lenders.
A New Jersey man facing foreclosure decided to fight his mortgage lender in an effort to keep his home. Recently, the judge decided that the lender was not entitled to proceed with the foreclosure because it waited too long to pursue an action to collect the mortgage debt. The statute of limitations to bring an action for foreclosure is six years.
Even though it has been several years since the housing market crashed, new foreclosures are still being filed here in New Jersey. Homeowners who may still be dealing with unpaid mortgage debt and facing foreclosure are filing some papers of their own. Homeowners seem to be fighting back by filing complaints aimed at debt collectors and mortgage companies.
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.