new jersey foreclosure

New Jersey Foreclosures Lead the Nation

January 6, 2015 By Shaffer & Gaier

South New Jersey Foreclosure Attorneys

As of November 2014, information released by the Mortgage Bankers Association indicates New Jersey leads the nation in foreclosures. For the most part, the foreclosure crisis that followed the 2008 financial meltdown has abated and returned to levels seen before the 2008 recession. In New Jersey, however, one in six home mortgages is either delinquent or in foreclosure. While the percent of mortgages in foreclosure or delinquent is slightly less than this time last year (8 percent and 7 percent respectively in November of 2013), New Jersey is still posting foreclosure rates substantially higher than the national average.

Why Foreclosures are Higher in New Jersey

Part of the reason why New Jersey’s foreclosure rate is so high at this time is due to how foreclosures are handled in New Jersey. Under state law, foreclosures must go through the courts, which inevitably prolong the process. Additionally, due to a near halt in foreclosure activity in 2011 after questions regarding allegations of abuse and fraud in the mortgage industry, the system now has to play catch up.

Interestingly enough, most of the troubled mortgage loans are ones that were made prior to 2007. According to Mike Fratantoni, the chief economist for the Mortgage Bankers Association, 74 percent of delinquent loans were made before the beginning of the 2007 sub-prime mortgage crisis.

Mortgage Troubles? Contact Foreclosure Attorneys at Shaffer & Gaier

If you’re facing foreclosure or the bank has already initiated foreclosure actions against you, it’s important that you understand your legal rights and protections. In some cases, foreclosure can be avoided if you bank is willing to refinance your home. If this isn’t an option, short-selling your home can help you avoid bankruptcy and other unwanted financial complications.

To learn how we can help you, contact the foreclosure attorneys at Shaffer & Gaier today. We have offices in Haddonfield, New Jersey, Philadelphia, Pennsylvania, and Fort Lauderdale, Florida.

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Despite Housing Market Turnaround, Foreclosures High

March 3, 2014 By Shaffer & Gaier

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.

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PA and NJ FORECLOSURES ROSE IN 2013

January 27, 2014 By Shaffer & Gaier

In 2013, Pennsylvania foreclosures rose more than 18 percent—and New Jersey foreclosure rose by 25.5 percent—even though, nationally, the foreclosure rate rose by a relatively small 5.9 percent.

New Jersey was ranked 13th nationally in foreclosure rate, with 1.1 percent of all homes in foreclosure, just above the national average of 1.04 percent. The 3.5 million filings in the Garden State were 44 percent above 2012 and 123 percent higher than 2011. It is still well below the rough years between 2009 and 2010 when foreclosures skyrocketed as the economy plummeted. Pennsylvania was ranked 18th nationally in foreclosure rate at 0.84 percent in 2013. The 5.6 million filings last year were 12.5 percent above 2012 and 44 percent higher than 2011. But unlike New Jersey, the number of filings in 2013 do not represent a drop-off from the height of the recession. In fact, while filings were down in Pennsylvania by 9 percent from 2010, they were 4 percent higher than 2009 and 25 percent higher than 2008.

An explanation? Both states resolve foreclosures through the state judicial systems, which tend to process foreclosures less quickly. The states may still be dealing with a backlog of cases going back to 2010, it has been reported.

Contact Shaffer & Gaier

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.

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Foreclosures Surge in DC Area After Federal Budget Cuts – Could Pass New Jersey in Foreclosure Rates

November 11, 2013 By Shaffer & Gaier

According to reports released by the Bipartisan Policy Center, this year’s across-the-board budget reductions have led to “sequester pain.” Federal agencies award more than $500 billion a year, or roughly $1.4 billion dollars a day, to tens of thousands of contractors, with late payments, halted work and canceled solicitations accumulating, to the detriment of companies and their workers. Initial foreclosure filings for September climbed 144 percent since August in Fairfax County, Virginia; they more than doubled in Prince William, Loudoun and Fauquier counties. New Jersey’s 55 percent monthly increase in foreclosure starts is the highest in the United States. Virginia is the second-highest in the US with a 52 percent monthly increase in foreclosure starts. Virginia is likely to see another surge, and may surpass New Jersey, as an estimated 800,000 federal workers, including Defense Department inspectors and auditors who help certify invoices, were furloughed when the shutdown began at the beginning of October. Full article.

In September, the number of properties that received a foreclosure filing in NJ was 55% higher than the previous month – and 55% higher than the same time last year. Home sales for August 2013 were down 4% compared with the previous month, and down 2% compared with a year ago. The median sales price of a non-distressed home was $298,000. The median sales price of a foreclosed home was $185,000, or 38% lower than non-distressed home sales.

Contact Shaffer & Gaier

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Little Known Foreclosure Abuses

October 4, 2013 By Shaffer & Gaier

In early 2012, the nation’s five big banks settled with state and federal regulators over widespread foreclosure abuses, including the seizure of homes without due process. Many of the abuses keep coming to light, but one little-known and rarely-discussed violation is becoming more widespread as banks foreclose on more homes.

After a homeowner is delinquent in their mortgage, the lender is allowed to hire a property management company to determine whether the homeowner had abandoned his or her home. If so, the management company is allowed to secure the vacant property, within reason. It does not always happen that way, and the nation’s largest property management company, Safe Guard, has been accused of breaking Illinois law, with allegations that it broke into homes despite evidence of occupancy, even damaging and removing personal property in the process. There are also charges that Safe Guard changed locks, cut off utilities and bullied occupants into leaving their homes when they actually had a legal right to stay there.

In mid-September, 2013, the Illinois attorney general filed a lawsuit against Safe Guard to hold it accountable for these violations. Under the 2012 Foreclosure Settlement, lenders became responsible for supervising and auditing the contractors, including ones like Safe Guard. There is certainly profit motive for the bank to take control of these vacant homes, since the sooner the house can be sold and the more the home is worth, the better. The banks are not able to make any money on occupied homes that haven’t yet forged their way through the foreclosure litigation process.

The bottom line is that eviction is only permissible after the legal process has concluded. In New Jersey and Pennsylvania, this means after a Final Judgment of Foreclosure has been entered and the property has been sold at a lawful Sheriff’s Sale.

For its part, Safe Guard claims that its work meets the highest standards in the industry. As these abuses keep coming to light, it remains to be seen how it will all affect the nearly 3 million homeowners who are in or near foreclosure.

Contact Shaffer & Gaier

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