TRENTON, NJ – New Jersey has a foreclosure crisis and it’s getting worse. In a recent survey, New Jersey was found to have the highest foreclosure rate in the nation at nearly twice the national average. On top of that, New Jersey’s foreclosures remain active more than most all other states.
One in 596 homes in New Jersey are in foreclosure. The national average was one in 1,121 properties.
New Jersey is at the top of the list when it comes to tax rates, cost of living, and housing expenses nationwide, contributing to its placement at the top of the foreclosure list as inflation soars out of control in the U.S.
NEW JERSEY — ATTOM’s Q3 2023 U.S. Foreclosure Market Report reveals a notable increase in U.S. property foreclosures. The quarter saw 124,539 properties with foreclosure filings, marking a 28% rise from Q2 and a 34% increase year-over-year. September alone experienced an 11% increase from August and an 18% rise compared to September 2022.
Foreclosure initiations reached 68,961 in Q3, slightly down from Q2 but up 3% from last year, approaching pre-pandemic figures. Significant annual increases in foreclosure starts were recorded in North Carolina (53%), Louisiana (47%), Pennsylvania (24%), Alabama (18%), and Nevada (16%).
Rob Barber, CEO of ATTOM, attributes the rise to processing backlogs and the lingering financial impact of the pandemic. While the number of new cases filed by lenders shows a slight year-over-year increase, it also indicates a possible stabilization in the upward trend.
Metropolitan areas with notable foreclosure starts included New York, Chicago, Houston, Los Angeles, and Philadelphia. However, cities like Salt Lake City and Chicago saw declines in foreclosure starts.
Nationally, one in every 1,121 properties faced foreclosure in Q3. New Jersey reported the highest rate, with one in every 595 housing units undergoing foreclosure. Other states with high foreclosure rates included South Carolina, Delaware, Nevada, and Maryland.
Lenders repossessed 11,020 properties in Q3, a 9% increase from Q2 and 5% year-over-year. California, Illinois, Pennsylvania, New York, and Ohio led in completed foreclosures.
The average foreclosure process duration dropped to 778 days, the shortest since Q2 2020. Louisiana, Hawaii, New York, Nevada, and New Jersey experienced the longest timelines, while Texas, Montana, Wyoming, Missouri, and Michigan had the shortest.