Foreclosures Surging in New York-New Jersey Market
The epicenter of the U.S. foreclosure crisis is moving to New Jersey and New York, threatening a housing rebound in one of the country’s most densely populated areas.
New Jersey has surpassed Florida in having the highest share of residential mortgages that are significantly delinquent or in foreclosure, with New York third, a Mortgage Bankers Association report showed last week. By contrast, hard-hit areas such as Arizona and California have some of the lowest levels of soured loans after enabling banks to quickly foreclose after the 2007 property crash.
The number of New York and New Jersey homeowners losing their houses reached a three-year high in 2013. Banks in these states have been slowly working through a backlog of delinquent loans that enabled borrowers to skip mortgage payments for years. Now these properties are poised to empty onto a market where affluent Manhattan suburbs neighbor blighted towns that are struggling most with surging defaults.
Source From Business Week