Mortgages Still in Trouble Despite Upturn

As with so many things, the mortgage market right now presents both good news and bad news. The good news is that it appears as if the worst of the foreclosure crisis is past in most of the nation. In the vast majority of states, the foreclosure rate has dropped to almost normal historical levels. Further, late payments on mortgages are dropping, indicating that homeowners are slowly becoming more able to pay their mortgage payments on time.

The bad news, however, for those of us in New Jersey, is that the Garden State is still struggling. Not only does New Jersey still host more late payments on mortgages than most of the nation, but it currently has the second-highest rate of properties in foreclosure, behind only Florida.

One major reason for the excessive problems in New Jersey is the foreclosure process itself. In New Jersey, foreclosures must be handled by the courts. The mortgage industries have recently gotten in trouble for filing hundreds of foreclosure complaints at once. This process overloaded the courts and forced the foreclosure process to slow dramatically in order to try to process the influx.

The courts are now finally beginning to recover and process all of the documents filed. Once the majority of the papers are handled, New Jersey’s foreclosure numbers should begin to decrease. Hopefully they will fall to near historic levels in the next few years, but there is certainly a long way to go before that point is reached.

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