In recent months, the rate of foreclosure across the country slowed significantly after major lenders were accused of “robo-signing” foreclosure documents. After the process was adjusted, the backlog of foreclosure cases surpassed four million, increasing the process significantly. While New Jersey homeowners are still experiencing an average wait time of 984 days, it appears the wave of foreclosures will surge once again.
According to a recent report from CNBC, judges across the state and country have helped speed up the process through various rulings. Currently, foreclosure filings are down by 14 percent nationally from this time last year — the smallest year-over-year decline in the last 12 months. Some states have already begun recording swells in foreclosure activity.
An increase in default notices in August translated into a surge of foreclosure auctions in November, resulting in the highest number of foreclosure auctions in nine months. Experts believe that, as lenders continue refilling paperwork that was affected by robo-signing, homeowners could begin seeing the effects in early 2012 in the form of short sales or bank repossessions.
As the holidays approach, the news of a wave of foreclosure filings may worry some New Jersey residents who are struggling to keep up with a mortgage. However, Fannie Mae announced that, while processing will be ongoing through the holidays, it will hold off on evictions until 2012.
Facing foreclosure, especially during the holidays, can be frightening and overwhelming. Often, it can seem like there is no way out. However, that is not always true. Those who have found themselves facing unmanageable debt and a possible foreclosure may find it helpful to speak with an experienced New Jersey attorney.
Source: CNBC, “New Foreclosure Wave is Coming,” Diana Olick, Dec. 15, 2011