The crash of the housing market back in 2008 is still affecting millions of homeowners across the country. Many New Jersey residents who hoped their homes would increase in value when they bought them before the housing crisis are still struggling with declining home values. For some of them, bankruptcy could be the only way to stop foreclosure.
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.
As if to add insult to injury, Hurricane Sandy has further devastated the New Jersey housing market. Homeowners that were struggling with housing debt before the hurricane may be suffering even more than they were before. Many families no longer have a habitable home, if any at all, to return to after the storm.
In an effort to stop foreclosure on homes in these difficult economic times, the U.S. Treasury's Hardest Hit Fund has been allocated $112 million to help 18 states, as well as Washington, D.C., that have been badly affected by the economic downturn.