New Jersey is Near the Top of the List with Foreclosure Rate Problems in the Country
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New Jersey is near the top of the list with foreclosure rate problems in the country. One of the victims is Richard Redy who is waiting for the foreclosure notice to knock any day. In his early sixties Redy a resident of Brielle became unemployed in 2009 when the downturn began to hit construction – his line or work.
He still has not found another job. He was compelled to stop his mortgage payments even after the lender agreed to lower it to $1,800 from $2,800; even this much was beyond his capacity. He is now clinging on to his funds to help him move out.
Redy explained that when your bread is taken away from your mouth for no direct lapse on your part, days are really tough. He should have been now in his prime earning years. To have all that snatched from him has a sobering effect and is leaving him with a feeling of emptiness. Many residents of New Jersey Area feeling the same – empty inside and out.
According to a recent report one out of ten residents of New Jersey House owners having a mortgage are in some stage of foreclosure. Experts opine that the figures are going to worsen. The second quarter report of the Mortgage Bankers Association indicated that the foreclosure rate has gone up by 11.36% in New Jersey (either in foreclosure or gravely delinquent).
It ranks third highest in USA. The number is inclusive of 8% who are already in the foreclosure zone and another group of 3.39% who are lagging behind in their housing payments by a minimum of three months. Florida and also Nevada rank higher than New Jersey.
Appraiser Jeffrey Otteau referred to the report as “stunning”. He had apprehended that foreclosure figures would increase because of the lifting of the moratorium – but not to this extent. He said, “It will really stretch out the housing recovery. That is what you’re heading to … It is alarming”.
Otteau said that the neighbourhoods where people from the low-income group reside have been worst affected both in the suburbs and cities. During the boom the people ran away from the high costs of houses but now they are struggling with high fuel costs and joblessness. This will make housing value to further fall by another perhaps 10% in some localities.
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