March 20, 2013
/24-7PressRelease/ -- New Jersey legislation aims to reign in debt buyers
Article provided by David Alan Ast, P.C.
Visit us at http://www.davidastlaw.com
For a time at the end of 2010 and beginning of 2011, it looked like the U.S. housing market was starting to show signs of recovery from the foreclosure crisis that hit the country after the 2006 real estate bubble burst. However, a recent government report suggests that mortgage lenders will be aggressively resuming foreclosureactivity in New Jersey and across the U.S., after having paused due to legal troubles both on a national level and in New Jersey.
Foreclosure Statistics
A report the Office of the Comptroller of the Currency issued in December 2011 showed that while the number of foreclosures for the third quarter of 2011 was down by 11.8 percent from the third quarter of 2010, mortgage foreclosures increased by 21 percent from the second quarter to the third quarter of 2011. According to data from CoreLogic, at 6.4 percent, New Jersey had the second-highest inventory of foreclosed homes at the end of 2011.
The jump in foreclosures in the third quarter of 2011 returned U.S. foreclosure rates to the levels they had been prior to the slowdown at the end of 2010. Nationally, lenders began new foreclosure proceedings on 347,726 homes in the third quarter of 2011. Experts believe that foreclosure numbers will remain near this level for the first few quarters of 2012. The report revealed that there are almost 1.6 million "seriously delinquent" loans in the U.S., where the payments are more than 60 days past due or the borrower is bankrupt and the payments are more than 30 days past due.
Reasons for the Increase
Experts suggest that the reason for the increase in foreclosures has to do with the February 2012 national settlement of the "robo-signing" scandal of 2010. After the allegations that banks were improperly foreclosing on homeowners and not reviewing the paperwork accompanying foreclosure filings to ensure accuracy, many of the largest lenders suspended foreclosures until they could review their processes. Now that the reviews are complete, the lenders are able to continue foreclosures that had been stalled and to commence foreclosures against other homeowners in default.
Additionally, some experts suggest that lenders have worked through the backlog of the most seriously delinquent borrowers who have negotiated a mortgage modification as an alternative to foreclosure or have agreed to a short sale or deed in lieu of foreclosure. Now the lenders claim that they have exhausted alternatives for the remaining homeowners in default and are beginning to foreclose.
Consult an Attorney
Facing foreclosure can be an overwhelming prospect. Those who are at risk of losing their homes to foreclosure should contact an experienced lawyer who can discuss their options with them.
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