The housing recovery in New Jersey seems like it has been dangling like a yo-yo as foreclosures stop and start due to the state of the economy, a high unemployment rate and underemployment.
The Garden State’s unemployment number sat at 9.1 this October; in addition, 3.8% of NJ mortgage holders are considered “seriously delinquent” on their payments (90 days or more). It’s a vicious cycle for New Jerseyans who have bills to pay and no means of paying them, not to mention a real threat that they might lose their homes so close to the holidays.
The Foreclosure See-Saw
Foreclosures slowed down in 2011 due to investigations on lenders who had potentially “robo-signed,” pushing homeowners irresponsibly through the paper work without checking accuracy. Come August, the foreclosure process was back in action; however, according to CNN Money:
“Happy holidays struggling homeowners! Fannie Mae, Freddie Mac and several large mortgage lenders have pledged not to foreclose on delinquent borrowers during the Christmas season.”
Whether this severely affects the NJ foreclosure process or not, it could certainly delay the inevitable for Jersey’s residents. On the contrary, perhaps it’s merely the holiday season, but some optimism has been spotted in the holiday halt on foreclosed homes as experts mention a potential “Christmas miracle.” Some say home owners, during the holidays, find a way to come up with the money for their outstanding payments.
Despite the halts on foreclosures, the holidays are only delaying the process which most likely will occur. Until New Jersey can get back on its feet again and lower numbers like unemployment and mortgage holder delinquencies, foreclosures will continue to spread, despite the sporadic halts.
Looking for legal advice? Contact Ralph A. Ferro Jr., Esq., New Jersey Bankruptcy Lawyer.