Foreclosures in New Jersey have dropped to their lowest levels in three years, according to NorthJersey.com. Compared with a year ago, New Jersey foreclosures are down 50 percent. Across the United States, foreclosures are down 27 percent.
However, it’s not all good news – the numbers are expected to bounce back. Currently, foreclosures have been postponed while lenders work on problems regarding their legal procedures. It has been alleged that because so many homeowners are defaulting on their mortgages currently, lenders have been “robo-signing” foreclosure forms, which means bank employees signed affidavits and other legal documents without ensuring they were accurate. In December, the New Jersey Chief Justice ordered six lenders to show why their foreclosures shouldn’t be frozen. Those lenders; Ally Financial, Bank of America, Citibank, JP Morgan Chase, Onewest Bank, and Wells Fargo; will appear in court later this month to defend their actions.
The high foreclosure rates in the U.S. have been attributed to primarily two reasons: homeowners who weren’t as qualified as others to hold a mortgage began to default, and the economic crisis has caused unemployment to skyrocket, leaving homeowners with the inability to stay current on their mortgages. As the job situation improves, however, foreclosure rates are expected to decrease.
Are you currently facing a foreclosure in New Jersey? If so, contact New Jersey foreclosure resolution lawyer Robert Manchel. He has many years of experience in working with mortgage companies to determine solutions for his clients other than foreclosure. Mr. Manchel can also guide you through the foreclosure process if it becomes necessary. Call Robert Manchel today at 866-503-5655 to learn more.