NJ Ranks 13th in Foreclosures [AUDIO]
NEW JERSEY 101.5
New Jersey’s foreclosure rate is moving in the opposite direction of the nation’s as lenders deal with a backlog of delayed filings.
Foreclosure filings – default notices, scheduled auctions and bank repossessions – were reported on 133,919 U.S. properties in October, a 28 percent decrease from a year ago, according to RealtyTrac.
In New Jersey, though, foreclosure filings jumped nearly 29 percent from the same time last year. One in every 929 housing units received a foreclosure notice last month.
“The foreclosure rate in New Jersey ranks #13 among all the states in October, and if you look at a year ago, the New Jersey rate was at #23,” explained Daren Blomquist, RealtyTrac Vice President.
Blomquist said all the states that are lagging in recovery have a common denominator – a judicial foreclosure process which requires each foreclosure become a case that gets reviewed by a judge.
The process had been susceptible to delays and actually came to a halt in New Jersey at one point for legal reasons, but early last year, a lifted moratorium and a $25 billion settlement sent the process into overdrive.
“The backlog of delayed judicial foreclosures continues to make its way through the pipeline,” Blomquist said.
New Jersey has experienced a year-over-year increase in foreclosure activity for 19 of the past 20 months.
Blomquist said in a housing market where one of the challenges is a lack of inventory, buyers can see the upside of increased foreclosure activity – more inventory to choose from.