The Mortgage Bankers Association’s National Bankruptcy Survey for the second quarter of 2011 (the “Survey”) found that New Jersey has an 11.36% rate of “seriously delinquent” mortgages. As many community association boards, managers and legal counsel may see, when unit owners are not paying their mortgages, they are usually not paying their association fees. When more than one of every 10 New Jersey mortgage loans are either in foreclosure or are more than 90 days in arrears, it follows that associations are also experiencing a high rate of delinquencies.
Other states with high rates of mortgage defaults were Florida and Nevada. The Survey found that Florida had the highest mortgage delinquency rate with 18.68%, and Nevada had the second highest rate with 14.3%. States with the lowest mortgage delinquency rate were North Dakota with 1.6% and Alaska at 2.24%. There will likely be a surge in foreclosure filings now that Courts have allowed major mortgage servicers to resume their foreclosure filings.