It’s not hard to recall the nation’s unprecedented housing collapse that first garnered a prominent spotlight back in 2008, is it?
The ripples flowing from that debacle still reverberate in New Jersey and many other pockets of the country. Legions of homeowners with a personal stake in the matter have faced years of challenges. Some of them have had their lives upended via lender foreclosures and linked hard-ball tactics.
Recollecting the historic national housing collapse
The catalysts that contributed to the woes of millions of Americans striving to keep up with home loan payments were many and varied. One flat evil, though, was especially pronounced. That resided in the bad-faith actions of many lenders – including some of the country’s largest banks – luring in prospective homebuyers with faulty mortgage products.
The bottom line: Legions of individuals and families taking out mortgages found themselves unknowingly linked with debt that they ultimately could not deal with.
The national ramifications of that grew to be overwhelming, even for many long-time homeowners who had impeccable payment histories. Hundreds of thousands of people fell materially behind on their debt obligation, sinking into so-called “underwater” status. Many simply walked away from their homes and the hard-earned equity they had amassed in them.
The often problematic crisis-linked behavior of lenders
A strong – and often glaringly adverse – spotlight fell on many lenders interacting with challenged homeowners. Many refused to act in good faith to restructure or otherwise modify existing loans. Foreclosure actions spiked sharply across the country, most notably in New Jersey.
The aftermath of the crisis continues to play out. We relate a few key details concerning one major lender (with a major New Jersey presence) in our next blog post.