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.
New Jersey is ranked number two for all foreclosure filings across the nation. It came in number five on the list of states with the most completed foreclosures. This means that lenders repossessed 34 percent of the homes in the state.
Part of the reason for such an incredible increase is the resolution between the government and numerous mortgage lenders regarding abuses that permeated the mortgage industry. The second major reason is that all foreclosures must go through the court system, which caused the process to slow to a crawl. Even with an increase in programs designed to help homeowners, unemployment in the state has not improved enough to stem the flow. Due in part to the closing of four major casinos in the area, Atlantic City had the highest foreclosure rate in the state since thousands of people lost their jobs.
As homeowners struggle to keep their homes, many are turning to the bankruptcy courts to stop foreclosure proceedings, if only temporarily. Filing for bankruptcy allows homeowners much needed time and space to restructure their financial lives and determine whether they want to keep their homes. New Jersey homeowners who are unsure of which way to turn could benefit from the advice and assistance of someone who understands the types of bankruptcy and which one would best achieve their goals.
Source: northjersey.com, “Foreclosure activity up 71% in NJ, RealtyTrac says“, Kathleen Lynn, Jan. 15, 2015