A lots of people have asked me,  can we expect a new wave of foreclosures coming into the marketplace in the next six months to maybe even 24 months from now due to the fact that there’s a lot of people that are a little behind on their mortgage?

The question is if there are serious mortgage delinquencies in New Jersey?.  According to Black Knight, technology company that tracks mortgage data, they came up with some numbers:

The amount of borrowers delinquent that are actually applying for some kind of modification or loan worker with their lenders fell by 340,000 people in the month of July, that’s a 9% decrease from the month previous month of June.  That is good news.

However, homeowners that are 60 to 90 days, or even over 90 days behind in the mortgage payments or our serious delinquent that went up by 376,000 In the month of July, that’s a 20% increase from June which is concerning a bit.

There’s over 2 million people that are actually in some kind of modification or workout plan  with their  lender, aAnd that’s the highest level since 2010,  we know what happened back then.

85% of these people are in some kind of forbearance or workout plan and obviously in some kind of economic distress, we know that the economy haven’t  fully recovered and especially people that work in the hospitality, leisure and the food industry,

That situation is similar in many other industries where, the economy for them to have not fully recovered, we also know that in some cases households with two income earners where one of them haven’t been fully employed yet, or maybe had to stay home to school and take care of their kids.

Also, according to Black Knight, among the top five States with the most delinquencies are;

Mississippi, Louisiana, New York, Hawaii, and New Jersey, but they also have the top five States with the most serious delinquencies which are  also Mississippi and Louisiana, Nevada, Alaska, and again New Jersey.

There’s some good news as we know in the last five years or so values in homes have skyrocketed and lots of homeowners have a lots of equity in their homes, among other factors that can help them steer clear of foreclosure.

(Check this video to see the difference between now and the last great recession) So there might be a way out of this situation, even when the lender cannot offer a suitable solution.

If you or anyone you know and care about need to be pointed the right direction and/or need any kind of advice, or a referral to a professional that can be of assistance,  feel free to reach out to us at (973) 216-1945.