In many states, families whose home loans are being foreclosed are given an average of 30 days to vacate the home. However, as the people who live here already know, New Jersey is not like other states. In our state, when a homeowner is unable to stop foreclosure, they may get to stay in their home during the foreclosure process, which could take up to 1,000 days.
Now that most of the legal inquiries regarding foreclosure practices and filings have been resolved in New Jersey, more foreclosures are starting to take place. For homeowners who had hoped to stop foreclosure, their home may be back up for auction. Atlantic county saw the greatest increase in foreclosure auctions in May of this year, and one county had only one.
There is evidence that foreclosures in New Jersey are beginning to drop. Of course, some of that drop may be due to lenders halting foreclosures after Hurricane Sandy. However, there are still many homeowners that are still struggling with delinquent mortgage debt and are still in danger of foreclosure.
New Jersey residents may need to be aware of yet another consequence of the proliferation of foreclosures that have been processed since the housing bubble burst. There are many homeowners in New Jersey that believe their foreclosures are complete and they are no longer responsible for any debt associated with their prior home. Unfortunately, some lenders failed to complete the foreclosure process in a manner that causes the homeowner to remain liable for the property.
The generation of students coming out of college may still be paying for their credit cards long after graduation. Some projections indicate that the newest generation of credit card users could still be paying for their credit card debt when they die. Some in New Jersey may decide to file bankruptcy long before that happens.
There may be plenty of baby boomers in New Jersey that wish they could afford to retire, but just don't feel they can due to their financial situation. When the recession hit, many baby boomers believed that the equity in their home was like having a savings account. Now, some of those same people are facing foreclosure and bankruptcy due to circumstances out of their control.
Gary Dourdan was once part of the cast of the television show "CSI: Crime Scene Investigation," a program he worked on for eight years. New Jersey fans of the show may find it hard to believe that the actor has filed for bankruptcy protection, though it appears to have been a responsible action to finally achieve debt relief from longstanding financial issues.
Many New Jersey residents may not know that debt owed for back taxes generally cannot be discharged in a bankruptcy. However, there are some notable exceptions under the Bankruptcy Code that may allow certain tax debts to be removed.
It appears that Americans are paying less on mortgages, credit cards, and other loans. New Jersey residents who are still facing foreclosure and bankruptcy may not agree, but overall, it appears that families are getting back on their financial feet. The question then becomes whether or not people are willing to start spending again.
As we enter the last quarter of the year, Congress has yet to renew the Mortgage Forgiveness Debt Relief Act, which is set to expire on Dec. 31. This law provides that any amount of debt forgiven by a lender on a home mortgage loan is not taxable as income for those that qualify under the terms of the law. The expiration of this statute would mean that thousands of New Jersey homeowners would have to pay federal taxes on any amounts forgiven by their lender as a result of a loan modification, short sale, or foreclosure.