A recent report showed a spike in foreclosures all over the country. The sharp increase was mostly due to bank repossessions. While this data may seem surprising, given the steady growth of the economy in recent years, many experts saw this spike coming. There was a consistent rise in scheduled auctions in the past year. Even so, April saw a 3 percent increase in foreclosures over March. It was also the highest month in a year and a half.
While the nation’s economic recovery seems like it should have helped the situation, it did quite the opposite. The number of people who were able to afford buying homes steadily increased, while the number of available homes did not. This created a shortage and drove up prices. At the time, new homeowners felt they could afford the increased mortgages. The banks repossessed on many of those houses, the effects of which is just now being felt.
Even though the trend was felt all over the country, a few states in particular led the pack in foreclosures. Florida had the most foreclosures, followed by Nevada and Maryland. Unfortunately, New Jersey came in fourth, with Atlantic City having the most out of any metropolitan area in the country.
Families all over New Jersey faced financial hardship over the past year, leading to them being unable to afford their homes. As such, many have turned to qualified attorneys who can help them get a fresh start by declaring bankruptcy. Others who are facing foreclosure should seek legal counsel to find out what their best options are.
Source: Reuters, “Rising bank repossessions push up U.S. foreclosure activity in April,” Elvina Nawaguna, May 21, 2015