In the last quarter of 2007, the rate of foreclosure homes in New Jersey was a record high and the brunt of it was being taken by the homeowners. More and more borrowers had started to sink deeper under the overwhelming weight of their mortgage debts and that too in a weakened economy. As a result of this, lenders had to send notices to several homeowners and many found themselves suddenly stranded without a home.
According to the Mortgage Bankers Association in New Jersey, there was a rise in the number of new houses foreclosure by 0.68%, which is considered to be the highest percentage change in New Jersey since 1979. One of the reasons being that borrowers or homeowners had taken loans to buy real estate property at inflated prices. As a result, they were unable to sustain themselves and couldn’t avoid the foreclosure wave.
According to the chief economist of Cherry Hill-based Commerce Bancorp, Joel Naroff: the people who had bought homes within the period of 2005-06 had no other options but to stretch and unfortunately they had to stretch quite a lot. The maximum impact of foreclosures by state was seen in North Jersey with Passaic County being at the top. January 2008 saw filings for 714 foreclosure homes in the county, which is a huge jump from 227 filings in January 2007. Bergen County followed at the second place recording 276 foreclosure filings in January 2008, which is more than the 138 recorded in January 2007.
The most obvious reason contributing to the high number of foreclosure homes in New Jersey is the adjustable-rate mortgages, which are still being preferred over other mortgages.
According to the chief economist of Cherry Hill-based Commerce Bancorp, Joel Naroff: the people who had bought homes within the period of 2005-06 had no other options but to stretch and unfortunately they had to stretch quite a lot. The maximum impact of foreclosures by state was seen in North Jersey with Passaic County being at the top. January 2008 saw filings for 714 foreclosure homes in the county, which is a huge jump from 227 filings in January 2007. Bergen County followed at the second place recording 276 foreclosure filings in January 2008, which is more than the 138 recorded in January 2007.
The most obvious reason contributing to the high number of foreclosure homes in New Jersey is the adjustable-rate mortgages, which are still being preferred over other mortgages.
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