Glut of Sheriff’s Sales Stems from Moratorium

COURT HOUSE – Reading the Sheriff’s Sales among recent legal notices in the Herald might have made some question why there was a great increase in those sales. 
Such sales take place under the Sheriff’s Department as a final method for financial institutions to recoup money from mortgages that have fallen into default.
To learn the reason, the Herald inquired of County Sheriff Gary Schaffer and County Clerk Rita Fulginiti, whose office records mortgages and real estate transactions.
“We were given a heads up that sales would be increasing in the last quarter of 2013,” stated Schaffer. “The moratorium did really back things up.”
The moratorium Schaffer referenced took place, according to Fulginiti, “From late 2010 through September 2011. There was a moratorium on foreclosures in New Jersey instituted by the New Jersey Supreme Court.”
She added that the court “required lenders to greatly improve their record-keeping procedures.”
Since the ban was lifted, Fulginiti noted “Lenders have proceeded very cautiously into the foreclosure process. It is apparent to me that foreclosure documents are more carefully reviewed and vetted before they are filed.
“It seems that now the system is finally catching up on many of these properties which have been in arrears for a long time. Many factors have contributed to what we are seeing including downward real estate values and loss of casino jobs.
“Our foreclosure-related documents in 2011 were 862, 2012 had 833, 2013 had 1,272, 2014 had 1,409, and 2015 had 1,245,” Fulginiti stated.
The clerk noted her office does not differentiate primary residences and investment properties in foreclosure filings.