new jersey foreclosure rate
Homeowners Being Sold Short Via Deceptive Short Sales
All across the country, reports of foreclosure rates on the rise are finding their way into local television reports, periodicals, and newspapers. Lately, homeowners who are in danger of banks and lending institutes foreclosing on their property, are being afforded the opportunity to short sell their homes for less than what they owe on their mortgages. According to a NY Times article, current government funded incentives have nearly quadrupled the number of short sales made across the country, in comparison to figures from 2008.
Reportedly however, fraudulent activity regarding short sale practice is becoming more prevalent. In some cases, lenders sell homes to “straw buyers,” or those individuals who are actually affiliated with the lender, for less money. Thereafter, the lender turns around and sells the home for a higher, more market-friendly price. This is done unbeknownst to the original homeowner who authorized the short sale, in the first place.
In other cases, homeowners may purposefully default on their home loans and short sell their house to a friend, who would pay less than the amount due on the loan. Thereafter, the homeowner would continue to live in the house and pay the monthly mortgage payment, which is less than the previous monthly payment. At that point, the homeowner’s friend, who purchased the home, may transfer ownership to the original homeowner via the quitclaim deed process. Nationwide, the state of New Jersey ranks eighth in terms of the number of fraudulent short sales, with 3.3.% of all those sales being deemed suspicious. Furthermore, the article warns against real estate agents who claim to be foreclosure specialists.
If you are thinking of short selling your home, or selling real estate in New Jersey, your best defense against fraudulent activity involves retaining the services of an experienced bankruptcy protection lawyer. At the Law Offices of Robert Manchel, our skilled New Jersey foreclosure resolution attorneys will see to it that you are not taken advantage of during an already difficult time. For more information about your rights and options, please call 866-503-5655 today.
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New Jersey Drops: July Foreclosure Figures Higher than June, But Lower than ’09
You hear about it on the news and read about it in the papers. Everyday across the country, more and more people are receiving notices of foreclosure in their mailboxes, and more and more people are finding themselves packing up their belongings and surrendering their homes to banks and mortgage companies. According to the New York radio station WNYC, the number of foreclosures was on the rise in July, but is down overall compared to 2009 figures. The online news article points out specifically that the number of foreclosures filed in New Jersey declined nearly 22% in July, while annual figures declined overall by 7%.
Reportedly, the number of homeowners in the U.S. who received some sort of foreclosure filing, either in the form of a default notice, home auction announcement, or bank repossession declaration, rose 4% from the time period of June to July. This translates to a little more than one out of every 400 households across the country. And while these numbers are 10% lower than similar figures recorded the year prior, the number of homes repossessed by banks unfortunately rose to almost record levels.
Homeowners who are in danger of losing their house to foreclosure have options to save their property. Loan modifications are one of the more common options utilized by individuals on the fringe of foreclosure, but this method doesn’t always work out for the best. For others, filing for chapter 13 bankruptcy protection can also save a family home, in addition to offering relief from other financial hardships. Unlike chapter 7 bankruptcy in New Jersey, chapter 13 bankruptcy allows an individual to stop the foreclosure process.
The details and differences surrounding chapter 7 and chapter 13 bankruptcy can be relatively complicated, but generally speaking, individuals who do not qualify for chapter 7 often file for chapter 13 bankruptcy protection. However, only chapter 13 will save a home from foreclosure. For more information about your options in filing for bankruptcy, please contact the New Jersey bankruptcy attorneys at the Law Offices of Robert Manchel. Call us today at 866-503-5655.
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