U.S. foreclosures returned to pre-pandemic levels. Here's how prevalent they've been throughout New Jersey, according to data from ATTOM.
New Jersey had the nation's second-highest rate of foreclosure filings in the first half of this year, according to data from ATTOM
NEW JERSEY — Foreclosure activity in the United States returned to pre-pandemic levels, and New Jersey residents are among the most impacted, a new report shows. The Garden State had the second-highest rate of foreclosure filings in the nation during the first half of this year, according to analysis from real estate data curator ATTOM.
From January through June, 0.24 percent of all housing units in New Jersey entered foreclosure filings, the report says. That's twice the national rate of 0.12 percent and behind only Illinois (0.26 percent) during that span. Foreclosure filings in the state increased 245 percent from the first half of last year, with 9,177 housing units entering the foreclosure process from January through June.
The spike in New Jersey foreclosures comes as the state's housing-market vulnerability, the nation's worst inflation since 1981 and the end of many pandemic-assistance programs compound economic difficulties in a state that consistently has among the highest costs of living.
Nationally, foreclosure filings increased 219 percent from the first six months of last year, hitting 164,581. The U.S. for the most foreclosure filings in one year since 2018, when records showed 362,275 filings.
The federal and New Jersey government instituted foreclosure moratoriums for much of the pandemic. But the federal moratorium expired at the end of July 2021, while New Jersey's ended New Year's Day.
The state opened a $10 million, federally funded program in February to help homeowners at risk of foreclosure. The Emergency Rescue Mortgage Assistance (ERMA) program allows eligible homeowners up to $35,000 for expenses related to mortgage payments or foreclosure prevention. But that hasn't stopped lenders from foreclosure filings on New Jersey properties in large numbers.
"Foreclosure activity across the United States continued its slow, steady climb back to pre-pandemic levels in the first half of 2022," said Rick Sharga, executive vice president of market intelligence at ATTOM. "While overall foreclosure activity is still running significantly below historic averages, the dramatic increase in foreclosure starts suggests that we may be back to normal levels by sometime in early 2023."
Atlantic City-Hammonton has seen the second-highest rate of foreclosures among metro areas in the first half of this year. With 0.33 percent of its housing properties entering the process, the Atlantic City area trails only Cleveland (0.4 percent of units with foreclosure filings), according to ATTOM.
Here's how New Jersey's other metro areas fared in the first half of this year:
"It's important to note that many of the foreclosure starts we're seeing today — in fact, much of the overall foreclosure activity we're seeing right now — is on loans that were either already in foreclosure or were more than 120 days delinquent prior to the pandemic," Sharga said. "Many of these loans were protected by the government's foreclosure moratorium, or they would have already been foreclosed on two years ago. There's very little delinquency or default activity that's truly new in the numbers we're tracking."
Foreclosure Surge Hits NJ Hard, 2nd-Highest Rate In U.S.: Report | Across New Jersey, NJ Patch
New Jersey had the nation's second-highest rate of foreclosure filings in the first half of this year, according to data from ATTOM
NEW JERSEY — Foreclosure activity in the United States returned to pre-pandemic levels, and New Jersey residents are among the most impacted, a new report shows. The Garden State had the second-highest rate of foreclosure filings in the nation during the first half of this year, according to analysis from real estate data curator ATTOM.
From January through June, 0.24 percent of all housing units in New Jersey entered foreclosure filings, the report says. That's twice the national rate of 0.12 percent and behind only Illinois (0.26 percent) during that span. Foreclosure filings in the state increased 245 percent from the first half of last year, with 9,177 housing units entering the foreclosure process from January through June.
The spike in New Jersey foreclosures comes as the state's housing-market vulnerability, the nation's worst inflation since 1981 and the end of many pandemic-assistance programs compound economic difficulties in a state that consistently has among the highest costs of living.
Nationally, foreclosure filings increased 219 percent from the first six months of last year, hitting 164,581. The U.S. for the most foreclosure filings in one year since 2018, when records showed 362,275 filings.
The federal and New Jersey government instituted foreclosure moratoriums for much of the pandemic. But the federal moratorium expired at the end of July 2021, while New Jersey's ended New Year's Day.
The state opened a $10 million, federally funded program in February to help homeowners at risk of foreclosure. The Emergency Rescue Mortgage Assistance (ERMA) program allows eligible homeowners up to $35,000 for expenses related to mortgage payments or foreclosure prevention. But that hasn't stopped lenders from foreclosure filings on New Jersey properties in large numbers.
"Foreclosure activity across the United States continued its slow, steady climb back to pre-pandemic levels in the first half of 2022," said Rick Sharga, executive vice president of market intelligence at ATTOM. "While overall foreclosure activity is still running significantly below historic averages, the dramatic increase in foreclosure starts suggests that we may be back to normal levels by sometime in early 2023."
Atlantic City-Hammonton has seen the second-highest rate of foreclosures among metro areas in the first half of this year. With 0.33 percent of its housing properties entering the process, the Atlantic City area trails only Cleveland (0.4 percent of units with foreclosure filings), according to ATTOM.
Here's how New Jersey's other metro areas fared in the first half of this year:
- Trenton: 0.23 percent of housing units with foreclosure filings (10th of 223 in the nation)
- Philadelphia-Camden-Wilmington: 0.22 percent (16th in nation)
- New York-Newark-Jersey City: 0.13 percent (71st in nation)
- Allentown-Bethlehem-Easton: 0.11 percent (99th in nation)
"It's important to note that many of the foreclosure starts we're seeing today — in fact, much of the overall foreclosure activity we're seeing right now — is on loans that were either already in foreclosure or were more than 120 days delinquent prior to the pandemic," Sharga said. "Many of these loans were protected by the government's foreclosure moratorium, or they would have already been foreclosed on two years ago. There's very little delinquency or default activity that's truly new in the numbers we're tracking."
Foreclosure Surge Hits NJ Hard, 2nd-Highest Rate In U.S.: Report | Across New Jersey, NJ Patch
