What is going on in New Jersey (as in the Garden State) that homeowners are struggling with their finances (aka mortgage payments)? Foreclosures are still prevalent in this beautiful state and yet homeowners are still in denial. Raising their hand and pointing at themselves proclaiming, “I am behind on my mortgage — — for months or even years” is unlikely. Every other real estate article remind homeowners that a loan modification is the first step, yet no one really tries. Some homeowners try relentlessly but are denied. The next step is short selling their home. But it feels so embarrassing for them but the fact remains, New Jersey homeowners struggling with foreclosure need help.
I recently read on www.nj.com that over 40% of NJ homeowners are facing a financial struggle of some kind. I believe it and believe the percentage is even higher. Recently NJ Senator Menendez held a round table discussing the NJ foreclosure crisis.
“More than 35,000 New Jersey families faced foreclosure in 2015. These are real families that have lost jobs, seen their life savings pillaged by the economic crisis, and have been confronted with excruciatingly difficult choices about debt and their children’s futures,” said Sen. Menendez, Ranking Member of the Senate Subcommittee on Housing, Transportation and Community Development. “And beyond the household itself, high volumes of foreclosures in a community can in short order lead to devastating impacts for the neighborhood at large, blight and crime weighing down the values of neighboring homes.”
New Jersey Foreclosure Stats
- According to RealtyTrac, 1 out of 594 homeowners face foreclosure
- Foreclosure rate 2015 reflected 1.91% while the national average was 0.82%
- According to CoreLogic, approximately 5.1 million homeowners are in foreclosure or 10% of homeowners.
I get the feelings of shame.
Every single time I work with a distressed homeowner, I really get it. Let’s face it, anyone that lived in New Jersey during the last housing crisis saw their housing and financial portfolio decline. Unless you knew about asset allocation and knew to exit quickly, you saw your housing values decline. Retirement was NOT an option.
Imagine saving like a nut for the mortgage down-payment and pouring blood, sweat and tears into the home and just one set back like divorce, over burdened medical bills and/or losing the high roller job triggers the downward spiral. Truth is, the cycle begins and feelings of despair overshadowed by false hope soon is a stark truth — there is no other choice but to sell the home to avoid foreclosure. Homeowners have fallen behind for so long that they’ve thrown in the towel and now react unemotionally. True or False? I’d venture to say true and false. By the time I speak with the homeowner, they vacillate from feelings of distraught to those of stoic conviction.
What do I do? I function as a real estate professional and the rest of the time, I’m an unofficial and non-certified therapist. Easing their mind with cheerleader chants is false hope, so I stick to the raw facts and work through the short sale application process. The thing is I might take it too personally. It’s impossible not to, it’s their home. Their children grew up there and they’d grown fond of their neighbors and community. It’s not easy to face reality. The road traveled can be a long one but in the end when they come to terms that this might have been a blessing for them. Maybe the home they had bought during the housing bubble was truly too expensive for them. When they soul search, when it’s all over they are relieved to start over. I’m thankful to have helped them and no matter how many times they thank me, they’ll never really understand how grateful I am to help them. And to the home buyer/investor that purchases the home — they too will have no idea how appreciative the homeowner is.
Now is not the time to pretend it’s not happening. Foreclosures are real in the State of New Jersey and probably in your state too. Raise your hand, come out of hiding and let’s get help for you.
