Foreclosures Tick Up in New Jersey, with Warren County Hit Hardest
ATTOM, a leading curator of real estate data, released its Q3 2023 U.S. Foreclosure Market Report, showing an increase in foreclosures nationwide, with New Jersey among the states most impacted.
In New Jersey there were 4,711 properties with foreclosure filings in Q3 2023, up 7 percent from a year ago. This gave New Jersey the highest foreclosure rate in the nation, with one in every 794 housing units facing foreclosure.
Several factors are driving increased foreclosures in New Jersey:
- Home prices remain high after rapid appreciation during the pandemic, making payments unaffordable for some homeowners. The median home price in New Jersey is $390,000 as of September 2023, up 15% from a year ago according to the New Jersey Realtors Association.
- Mortgage rates have shot up, with 30-year fixed rates around 7% compared to 3% just a year ago. This adds hundreds of dollars to monthly payments.
- Pandemic-era moratoriums on foreclosures have ended, allowing pending filings to move forward.
- Some homeowners continue feeling economic impacts of the pandemic and are struggling with payments.
The cities with the highest foreclosure rates in New Jersey during Q3 2023 included Atlantic City (one in 584 housing units), Trenton (one in 651 units), Camden (one in 712 units), and Newark (one in 724 units).
Homes foreclosed in the third quarter took an average of 1,593 days to complete the process, much higher than the national average of 770 days.
Housing counselors recommend struggling homeowners in New Jersey reach out to their lender or a counselor to discuss options as soon as possible, such as mortgage modifications, forbearance, or other alternatives to foreclosure.
Warren County, New Jersey has the highest foreclosure rate in the state, with 32.41% of housing units having a foreclosure filing in Q3 2023, according to ATTOM Data. Bergen County, New Jersey has the lowest foreclosure rate in the state, with 10.23% of housing units having a foreclosure filing in Q3 2023, according to ATTOM Data.
Factors like economic conditions, unemployment, home prices, and demographics contribute to the county-level differences. As foreclosures rise statewide, resources and support remain available for New Jersey homeowners facing financial hardship. Addressing the situation early and understanding all options are key to avoiding foreclosure.
| Rank | County | Foreclosure Rate |
|---|---|---|
| 1 | Warren | 32.41% |
| 2 | Union | 31.19% |
| 3 | Sussex | 29.97% |
| 4 | Somerset | 28.75% |
| 5 | Salem | 27.53% |
| 6 | Passaic | 26.31% |
| 7 | Ocean | 25.09% |
| 8 | Monmouth | 22.65% |
| 9 | Middlesex | 21.43% |
| 10 | Mercer | 20.21% |
| 11 | Hunterdon | 18.99% |
| 12 | Gloucester | 16.56% |
| 13 | Atlantic | 15.94% |
| 14 | Essex | 15.34% |
| 15 | Cumberland | 14.11% |
| 16 | Cape May | 13.89% |
| 17 | Camden | 12.67% |
| 18 | Burlington | 11.45% |
| 19 | Bergen | 10.23% |
