Dealing with Foreclosures: A Look at New Jersey

by on Foreclosures

New Jersey Road Sign

Over the last few years many housing markets have started making significant progress toward recovery with foreclosure prevention and assistance programs proving to be beneficial for helping the real estate market move forward. However, not every state has rebounded as quickly as some others. Specifically, many judicial foreclosure states are still struggling to catch up with non-judicial foreclosures states – which have led the way in real estate market recovery.

One state that continues to struggle is New Jersey. In fact, Florida comes in at the top on the list of states with the highest number of foreclosed homes with New Jersey coming in a close second. Although nationally the number of homes in the foreclosure process fell 17% from October 2011 to October 2012, New Jersey is still experiencing a rise in the number of homes in the foreclosure process. Specifically, 7.7% of New Jersey’s homes are in some stage of the foreclosure process.

New Jersey Seeks to Turn Foreclosures into Affordable Housing Opportunities

Many states have to be creative when determining the best way to help their local real estate markers make progress. Some states have created their own foreclosure assistance programs and have fueled money from the bank settlement agreement to help keep struggling homeowners in the homes. Now, New Jersey is adding to the proposed solutions aimed to address the local real estate market dilemmas with a bill that would turn foreclosures into affordable housing by utilizing state money.

The great thing about this plan is that it would not only would it help improve the local real estate market by utilizing the foreclosures in the area, but it would also providing an affordable option for those looking for a place to call home.

Although getting bi-partisan agreement on the bill has proved to be rather difficult, the bill has passed the state Assembly and the Senate so far.

The question is, should other states with a real estate market that continues to struggle look to New Jersey and provide similar programs?

We will only know the answer to that question if the bill passes and then we can pay attention to the real estate market in New Jersey to see if the bill is assisting with the desired progress toward recovery. If so, states like Florida may need to consider mimicking the program to help advance their local real estate markets.

In short, New Jersey is attempting to pass a bill that – if it proves to be successful – may become a model for other states looking to advance their current real estate market by reducing the number of foreclosure homes on the market.