Like most states, New Jersey is among those seeing record numbers of foreclosures, particularly in areas with high numbers of subprime loans, such as Newark.
From The Associated Press, April 3, 2009:
A real estate tracking service says the number of homes being repossessed in New Jersey jumped 53 percent to 1,294 dwellings during the first two months of this year compared with the same period last year.
. . .
The problem is intensifying because thousands of adjustable rate mortgages that were issued at the height of the housing boom are beginning to tick over to higher loan repayment rates. The adjustable rates are a hallmark of subprime lenders, who used them to get people into homes they might not otherwise have been able to afford.
The city already has 2,500 homes in various phases of the foreclosure process. Newark officials estimate that 2,258 adjustable rate mortgages, which typically begin with low rates, are set to move upward in December.
Subprime borrowers are most in need. Luckily, the majority of subprime loans contain errors, omissions, or violations of TILA, HOEPA, or other federal and state laws. That means that, with proper legal representation and a thorough loan audit to uncover violation, there is hope for these borrowers. Particularly if the loan is a federal “high cost” mortgage (which subprimes are likely to be), the borrower has an arsenal of legal remedies that a well informed lawyer can pursue.
With record numbers of subprime foreclosures, come record numbers of folks in need of the services of qualified and informed professionals knowledgeable in lender liability law. Become one.