Foreclosures in New Jersey have been at a trickle over the past couple years due to a number of issues including Notice of Intent letters. Recently, just as things were starting to gain speed foreclosures have once again been halted by the majority of lenders. The impact of Hurricane Sandy has caused many lenders to issue a moratorium of 90 days within the state.
With the way foreclosures currently stand in New Jersey, a recent article in the Press of Atlantic City cites Darren Blomquist, vice president of foreclosure-information service RealtyTrac as saying it will take at least 17 months to clear through the present backlog.
Here is a timeline of Hurricane Sandy’s impact on foreclosures:
October 30th: HUD grants a 90 day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration (FHA) issued home mortgages
November 9th: Fannie Mae and Freddie Mac announce a 90 day moratorium for those who live in federally announced disaster area.
November 13th: U.S. Senator Robert Menendez calls on the New Jersey Attorney General to issue a moratorium that would:
- suspend foreclosure sales and evictions
- delay the initiation of any foreclosure action
- waive late payment charges
- put a hold on credit reporting for borrowers with homes located in eligible disaster areas.
According to CNN Money private lenders JPMorgan Chase, Citibank and Wells Fargo are all offering to postpone payments for up to 90 days for customers in disaster areas. Citibank has also moved to suspend foreclosure sales within the federally declared disaster areas. However despite offering payment options for current mortgages, no official statements have been made by Bank of America, JPMorgan Chase or Wells Fargo in regard to the foreclosure process after Hurricane Sandy. It is expected foreclosures will see a considerable slow down until the 90 moratorium first implemented by Freddie Mac and Fannie Mae is lifted.