Foreclosures are often part of a Chapter 13 bankruptcy filing, and more New Jersey residents may have included their delinquent mortgages as part of their bankruptcy cases. New data shows that New Jersey has the second highest inventory of property foreclosures in the country.
The first decade of the 21st century brought many home foreclosures with it, with an average of 21,000 home foreclosures per month in the years between 2000 to 2006; additionally, there have been 4 million foreclosures completed since the year 2008. New Jersey is only second to Florida in the number of inventories of property foreclosures, with 7.3 percent of the real estate properties in this category. Alaska and North Dakota had the lowest inventory of foreclosed properties. Properties that are severely delinquent, in a foreclosed state or owned by a mortgage company number over 2 million in the nation; however, an overall decline in the number of foreclosures signals a hopeful trend for a sluggishly recovering housing market. Foreclosed properties, in fact, were reported to be 17,000 less than one year earlier, and month-by-month figures are slowly declining.
Nevertheless, the future for homeowners in states like New Jersey with high inventory foreclosure may still be beset with repossessions, overwhelming debt, Chapter 13 bankruptcies or enforcement proceedings. Homeowners do not want default payments as they want to keep assets, stop foreclosures and revise their debt repayment plans by working with lenders, and foreclosure and Chapter 13 can be daunting. A bankruptcy attorney with knowledge and expertise, however, may be able to assist clients with the bankruptcy process.
Source: 24/7 Wall Street, “Home Foreclosures, Shadow Inventory Continue to Fall,” Paul Ausick, Jan. 3, 2012