No light at the end of the foreclosure tunnel. Bad loans continue to rise for NJ banks

The Record reports that

“Toxic loans held by New Jersey-based banks continued to climb in the second
quarter even as bad loans at U.S. banks declined, according to new government
data.”

“The Federal Deposit Insurance Corp. said Tuesday in its quarterly industry profile that loans more than 90 days past due or no longer accruing interest at New Jersey's 117 banks and thrifts rose to 3.61 percent of total loans as of June 30, up from 2.91 percent a year earlier. Those banks' combined seriously delinquent debt climbed in each of the past four quarters.”

Even the once vaunted Hudson City Savings Bank is feeling the pain. As the Record notes,

“Paramus-based Hudson City Savings Bank, the largest thrift based in New Jersey
and a high-end residential mortgage lender, had 123 foreclosed properties on its
books at the end of June, up from 52 a year earlier.”

Why?

“A weak economy, persistent high unemployment and a slow foreclosure process
have all contributed to the recent rise in bad loans throughout the state, said Bill Brewer, partner at the Livingston office of Crowe Horwath LLP, a community bank auditor. "Banks have had a hard time moving this stuff off the books," he said. "The banks have the capital to withstand this, but it is a continuing problem.’"

Read more of the whys and wherefores here.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Stephen's Title Agency, LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-227-4724 - Fax 973-556-1628

E-mail Stephenstitle AT comcast.net - www.stephenstitle.com