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.
Not only did the crash of the housing market take its toll on New Jersey, but Hurricane Sandy only served to add to an already distressed market. Far too many homeowners in the state are currently over 90 days delinquent on their mortgages. Due to a myriad of factors, New Jersey reported a startling 71 percent increase in the number of foreclosures filed in 2013.
Another factor that could move the state to the top of the foreclosure list is the length of time it takes for the process to be completed. In Florida, which is the state currently holding the number one spot, it takes approximately 883 days to foreclose a mortgage. It currently takes around 1,002 days in New Jersey for a foreclosure to be settled.
It seems as if many homeowners are helpless in their attempts to stem the flow of unpaid mortgage debt. Once a family has exhausted all of its options with its mortgage lender, a foreclosure may be looming. Filing for bankruptcy could give a homeowner the time and space needed to find a resolution to his or her housing issues. Some filers may attempt to work with their mortgage lender under the supervision of the Bankruptcy Court while others may choose to walk away altogether. Since some bankruptcy filings can ensure that a home will be protected, either of these situations could potentially provide a clean slate upon which a homeowner could rebuild his or her financial life.
Source: nj.com, NJ may soon lead nation in foreclosures, Tom De Poto, Jan. 30, 2014