What to Do: When Facing Mortgage or Tax Foreclosure

Andréa L. Maddan

22, October 2024

There are many circumstances that could lead to failure to pay mortgage payments or property taxes. Unfortunately, in far too many cases, default on a mortgage or taxes leads to mortgage or tax foreclosure—where creditors seek to reclaim the property subject to the default.  

As of July 2024, there have been over 7,000 filings related to mortgage foreclosure in New Jersey (which is a decrease from previous years). Each year, more than 1,000 properties in New Jersey proceed through tax sale foreclosure.[1] In March 2024, New Jersey ranked the third highest in the country for foreclosures.[2] Facing foreclosure is an incredibly difficult and emotional experience that no one anticipates or wants to go through. Faced with foreclosure, whether due to personal circumstances or unfair lending practices, many homeowners find themselves confused about the process and their rights. While it may seem like the situation is out of your control, there are steps you can take to obtain support, explore options, and regain stability. Understanding your obligations and rights as a property owner, in particular, the right to assert defenses, and the resources available to you, can make all the difference in the result.  

Foreclosures have had a devastating effect on the racial wealth gap in America. Expanding the dissemination of information to prevent foreclosure is critical to securing economic equity, providing stability for present and future generations, and preserving long-standing communities. On a Federal level, the Consumer Financial Protection Bureau has been advocating for homeowners to remain in their homes and avoid foreclosures. This memorandum seeks to further and expand those efforts by offering additional insight into the residential mortgage and tax foreclosure processes and to stress the importance of asserting all rights, and accessing all available resources, so that New Jersey homeowners know what to do when facing default. 

Continue reading the memo in its entirety below:

What to Do: When Facing Mortgage or Tax Foreclosure

1 Report of the Judiciary Working Group on Tax Sale Foreclosures

https://www.njcourts.gov/sites/default/files/sccr/reports/tax-sale-forclosure-rpt.pdf

2 https://www.sofi.com/learn/content/foreclosure-rates-for-50-states/