Data released in late January notes that New Jersey may become the nation’s leader in the number of foreclosed homes by summer 2014. Mark Fleming, a chief economist for the online analytic firm CoreLogic.

Since the real estate bust in fall 2008, Florida had the highest percent of foreclosed homes, with New Jersey coming in second. By 2013, slightly over 10 percent of Florida homes with mortgages had undergone foreclosure. In contrast, New Jersey’s rate was slightly over 7 percent. It seems that New Jersey is going through the process much slower than Florida.

In fact, in the past year, while Florida competed 119,000 foreclosures, New Jersey’s completed just 5,138. It evidently takes about 1,002 days to resolve foreclosures in the Garden State, while the Sunshine State completes them in 883 days.

Foreclosure Backlogs in New Jersey

New Jersey’s struggles escalated when the state Supreme Court ordered the six largest banks to review their procedures for lending money. Filings at that time fell from 58,000 in 2010 to 6,000 in July 2011, creating a significant backlog.

It will be just a matter of time before New Jersey gets to the top of the list. The good news is that home sales have reached their highest levels since 2005, up about 18 percent in 2013.

Contact Shaffer & Gaier: Protecting Homeowner Rights

The law firm of Shaffer & Gaier protects the rights of those who are facing foreclosure or seeking mortgage modifications in New Jersey and Pennsylvania. To set up a free initial consultation, contact our office online or call our foreclosure hotline at 855-289-1660. Or call our office location in Philadelphia at 215-751-0100, or in New Jersey at 856-429-0970.