Million Dollar Home Foreclosures Increasing in New Jersey

New Jersey residents know that home foreclosures are common in a struggling economy. However, statistics show that the housing crisis is not limited to low income neighborhoods. A recent phenomenon in New Jersey has indicated that even the wealthy are being impacted by this poor economy with many multi-million dollar homes now facing foreclosure.

Although million dollar home foreclosures are rare, they are increasing. RealtyTrac, a California-based company that follows the foreclosure market, reported that the number of foreclosures on property with mortgages over $1 million has doubled since 2007.

The overall numbers are still minimal, accounting for less than two percent of foreclosures nationally. However, in New Jersey, the sheriff's office in Bergen county reports that over 70 foreclosures of properties costing more than a million dollars have been auctioned off since January of 2010.

The reasons for the foreclosures on the costly homes are similar to those on lower priced homes. Overall, all households took on too much debt during the housing boom, usually in the form of home equity loans or mortgages.

The mortgages often promised low payments in the beginning that increased over time. When the recession hit, people found themselves without jobs and unable to make the higher mortgage payments. Getting to the point of foreclosure simply took longer for higher income families, since most had initial savings to fall back on.

Additionally, owners of million dollar homes also have less access to government assistance. For instance, households with mortgages above $429,619 dollars do not qualify for a state run program which helps unemployed homeowners keep their homes.

Options When Facing New Jersey Foreclosure

Bankruptcy may be a practical solution for homeowners who are facing financial difficulties and are fearful they will lose their homes. There are numerous benefits that bankruptcy provides. First and foremost, filing for bankruptcy means creditor harassment immediately stops.

Additionally, bankruptcy prevents banks from repossessing homes. It also gives homeowners the time they may need to determine what the best option is for them. For example, a Chapter 13 bankruptcy payment plan may provide a homeowner the means to save their homes. In some cases, bankruptcy can even completely eliminate second or third mortgages.

Bankruptcy has helped millions of people make a fresh financial start. If bankruptcy sounds like the appropriate solution for your financial needs, an experienced bankruptcy attorney can provide valuable assistance.

An attorney can provide guidance through the bankruptcy filing process and explain how the federal bankruptcy laws are designed to help. The attorney's knowledge and skill will ensure a smooth process and successful results.