Foreclosures Increasing in New Jersey?

January 01, 2013

Each month, we hear the latest news about the state of our economy. Factors such as the unemployment rate and home sales can show us if we are headed toward a rebound, or toward a longer recession. Many of the indicators are starting to show a very slow economic recovery, but families across New Jersey are continuing to struggle with financial challenges.

New Jersey foreclosure statistics

These struggles are most evident in the housing market. According to CoreLogic, a firm that releases a monthly report on the housing industry, New Jersey is experiencing an increase in foreclosures during 2012. The report shows an increase of one percent over 2011 foreclosure rates within the state. Nationally, foreclosures have decreased 17 percent over the same time period.

Officials have been examining these numbers to try to understand what is really happening with New Jersey foreclosures. One of the reasons for the increase may be related to the length of the foreclosure process. In New Jersey, all foreclosures must go through the court system. While this may offer significant protections to homeowners, and ensure that proper procedures are filed, it can quickly lead to a backlog of cases. This will lead to a much longer process - as much as 900 days in some foreclosures.

While foreclosures may be falling across the U.S. overall, they seem to be higher in New Jersey because they are still dealing with the backlog of foreclosures filed several months ago.

Chapter 13 bankruptcy may help

For homeowners struggling to make payments on their mortgages, Chapter 13 bankruptcy may be an option, especially if the individual wants to remain in the home. In Chapter 13, a person's debts are consolidated and the filer makes monthly payments under a plan lasting three- to five-years. The payment plan can include past-due mortgage payments.

This type of bankruptcy is often used when a homeowner has some equity in the property. Filing for Chapter 13 bankruptcy protection places an automatic stay on all collection actions. This means that any foreclosure proceedings must stop while the bankruptcy is ongoing. During the bankruptcy process, debtors will work with the trustee to create a plan that allows them to stay current with their mortgage payments.

If you are struggling with financial problems, it is important to speak with an experienced bankruptcy attorney as soon as possible. Waiting too long to discuss your situation can eliminate some of the options that may be available to you. Debts will continue to increase, and creditors will continue collection efforts against you.

Talk to a lawyer

Filing for bankruptcy will give you time to rebuild your financial future. Each person will have different goals in the process, and it is important to work with someone who can help you create a plan that is focused on your needs. You do not have to continue to struggle making ends meet.

Article provided by Scura, Mealey, Wigfield & Heyer, LLP
Visit us at www.scuramealey.com