NEWJERSEYNEWSROOM.COMForeclosure filings are down 86 percent in 2011 from last year in New Jersey, but housing attorneys fear this is only the calm before the deluge.
Lenders will be looking to file an estimated 28,500 foreclosures, and another 55,000 mortgage loans are currently more than 90 days behind, according to LPS Applied Analytics.
Chief Justice of the New Jersey State Supreme Court Stuart Rabner announced in December that he would place a moratorium on foreclosures from major banks (Bank of America, Wells Fargo, JP Morgan Chase, One West Bank, Citigroup, and Ally Financial) unless they could document the accuracy of their foreclosure processes. According to totalmortgage.com, Rabner said these banks were being singled out due to a “public record of questionable practice”.
The New York Times reported that the banks admitted last fall that they had been illegally processing foreclosures by filing false court documents, but they said any delays in repossessions would be minimal. In April, the Office of the Comptroller of the Currency gave the banks 60 days to reform their foreclosure procedures.
According to nj.com, bankers in New Jersey have told the CEO of the New Jersey Bankers Association, that it now takes almost three years to complete a foreclosure. Retired Superior Court Judge Richard Williams will be reviewing the material from the banks and will report on whether they satisfied enough changes, but he has no deadline. LPS says it would take 49 years to clear up the foreclosures and delinquencies in New Jersey at their current rate.