November 1, 2026 | NJ House Partners
New Jersey has one of the highest foreclosure filing rates in the country. But a new county-by-county ranking reveals that the risk is far from equal across the state.
For homeowners in Bergen, Passaic, Essex, and Morris counties, the bigger question isn’t whether New Jersey has a foreclosure problem. It’s what these numbers actually mean, and what options homeowners have if they begin falling behind on their mortgage.
The figures deserve attention. They also deserve some perspective. This article compares first-half 2026 foreclosure filings with an October 2026 county risk index; those measures cover different periods and should not be treated as current monthly foreclosure rates.
At a glance: New Jersey foreclosures rose in the first half of 2026. Bergen County ranks lower in the private county risk index, while Passaic faces greater measured pressure. Homeowners behind on payments should contact their mortgage servicer promptly and explore counseling, legal advice, and the equity available in their property.
New Jersey Recorded 8,269 Foreclosure Filings in the First Half of 2026
According to ATTOM’s July 16, 2026, Mid-Year Foreclosure Market Report, New Jersey recorded 8,269 properties with foreclosure filings during the first six months of 2026.
That represents a 21.14% increase compared with the same period in 2025, placing New Jersey seventh nationally for foreclosure filing rates.
Approximately one in every 459 New Jersey housing units had a foreclosure filing during that six-month period.
A property with a foreclosure filing is not necessarily a completed foreclosure or a newly filed court case. ATTOM includes default notices, scheduled auctions, and bank repossessions in this measure.
Nationally, foreclosure activity increased by approximately 21% during the same period, meaning New Jersey’s increase was roughly in line with the country as a whole.
This is an important distinction.
Foreclosure activity is increasing, but that does not mean we’re experiencing a repeat of the 2008 housing crisis.
In fact, ATTOM’s August 2026 report emphasized that foreclosure activity, while elevated compared with a year earlier, remained below historical norms.
Still, for the homeowners behind those statistics, the financial pressure is very real.
Which New Jersey Counties Have the Highest Foreclosure Risk?
The 2026 New Jersey Foreclosure Risk Index from NestCash, a private real estate investment and data company, compares all 21 counties using market conditions, mortgage cost burden, serious mortgage delinquency, and unemployment.
The results reveal significant differences across North Jersey.
| County | Statewide Risk Ranking | Risk Score |
|---|---|---|
| Passaic | 3rd | 57.8 |
| Essex | 5th | 48.6 |
| Hudson | 10th | 41.3 |
| Bergen | 15th | 32.8 |
| Sussex | 16th | 32.5 |
| Morris | 21st | 8.5 |
Rankings run from highest to lowest relative risk among New Jersey’s 21 counties. These composite scores are not foreclosure rates or the probability that an individual home will enter foreclosure. Source: NestCash’s 2026 New Jersey Foreclosure Risk Index, published October 2, 2026.
Passaic ranks in the index’s elevated-risk category. Its main pressure point is affordability: 40.8% of mortgaged homeowners spend more than 30% of income on housing, the highest share in the state.
Morris has the lowest relative score, and Bergen is also toward the lower-risk end. Essex’s moderate score is sensitive to the unemployment measure: using current unemployment data lowers its score to 40.6, within the lower-risk category.
But there’s an important limitation to these rankings.
A county’s relatively low foreclosure risk does not mean every homeowner in that county is financially secure.
A homeowner in Franklin Lakes, Fair Lawn, Paramus, or Hackensack can still face mortgage trouble, even when their county has a relatively low risk score.
The rankings describe broad economic conditions. They cannot predict what will happen to an individual property.
Why Can Someone With Substantial Home Equity Still Face Foreclosure?
One of the biggest misconceptions about foreclosure is that it only affects homeowners who owe more than their properties are worth.
That simply isn’t true.
Consider a hypothetical Bergen County homeowner whose property is worth $650,000 and whose outstanding mortgage balance is $300,000.
On paper, that homeowner has approximately $350,000 in gross equity.
But suppose their circumstances change.
A job loss, divorce, unexpected medical expense, business setback, or significant increase in household expenses could make the monthly mortgage payment difficult to maintain.
The property might still have substantial value, but that equity doesn’t automatically pay the mortgage.
And if the homeowner cannot resolve the missed payments, foreclosure proceedings can move forward.
This is where understanding the property’s current market value and available equity becomes especially important.
A homeowner with meaningful equity may have options that are unavailable to someone whose mortgage debt exceeds the property’s value.
Foreclosure in New Jersey Is a Process, Not a Single Event
New Jersey is a judicial foreclosure state. The New Jersey Courts foreclosure FAQs explain the court process and common filings.
That means mortgage lenders generally must pursue foreclosure through the court system rather than simply taking possession of a property after missed payments.
The process can involve a notice of intention to foreclose, a court complaint, judgment, and eventually a sheriff’s sale.
Importantly, receiving a foreclosure notice does not mean the homeowner has already lost the property.
Depending on the circumstances and stage of the proceedings, homeowners may be able to explore several alternatives:
- Mortgage reinstatement: Bringing the loan current by paying the required arrears and eligible costs.
- Loan modification or other loss mitigation: Working with the mortgage servicer to seek more manageable terms.
- Foreclosure prevention counseling or mediation: Seeking assistance through New Jersey’s established homeowner programs.
- Selling the property: If sufficient equity exists and the sale can be completed in time, a voluntary sale may allow the homeowner to satisfy debts and retain remaining net proceeds.
- Short sale: When the property is worth less than the total amount owed, requesting lender approval to sell for less than the debt, subject to the lender’s terms.
None of these options is guaranteed, and deadlines matter.
New Jersey’s Housing and Mortgage Finance Agency offers free foreclosure prevention counseling, including assistance for eligible homeowners experiencing payment difficulties before a foreclosure complaint is filed.
Homeowners should also consult a qualified New Jersey foreclosure attorney about their legal rights and any applicable court deadlines.
Why Timing Matters More Than Most Homeowners Realize
Having equity is one thing. Having enough time to access it is another.
As a North Jersey real estate professional with more than 20 years of experience, including residential property appraisal, REO properties, and distressed sales, I’ve seen how complicated these situations can become.
A property’s estimated market value is only one piece of the puzzle.
Mortgage balances, property taxes, condominium assessments, other liens, legal costs, property condition, and the time required to complete a sale can all affect the outcome.
And homeowners should not assume that a scheduled sheriff’s sale will automatically be postponed while they try to sell.
The earlier someone evaluates their options, the more flexibility they may have.
Waiting until the last possible moment can eliminate otherwise viable solutions.
A Foreclosure Filing Doesn’t Necessarily Mean the Homeowner Has No Options
The foreclosure statistics are worth watching, particularly as New Jersey homeowners continue dealing with high ownership costs.
But they should not be used to suggest that every homeowner is in financial trouble or that a statewide housing collapse is imminent.
Bergen County’s housing market is different from Essex County’s. Morris County is different from Passaic County. And even within the same municipality, two homeowners can have entirely different financial situations.
What matters most to an individual homeowner is not a statewide ranking.
It’s understanding the numbers associated with their own property.
NJ Home Equity Checkup: Know Your Equity Before Making a Decision
Behind on mortgage payments? Facing foreclosure? Or simply concerned about whether you can continue carrying the costs of your home?
Before making a major financial decision, it helps to know what your property may actually be worth in today’s market.
Through NJ House Partners, I offer a complimentary, confidential, no-obligation NJ Home Equity Checkup for North Jersey homeowners.
Your checkup can help you understand:
- Your home’s estimated current market value.
- Your approximate equity based on the mortgage information you provide.
- Estimated selling costs and potential net proceeds.
- Whether selling may be a practical option worth considering.
There is no obligation to list your home, and no pressure to make a decision.
The purpose is simply to give you useful information so you can evaluate your options.
Your Home. Your Equity. Your Options.
Request Your Complimentary NJ Home Equity Checkup
Kevin Hill is a REALTOR® with Keller Williams Valley Realty, serving Bergen County and surrounding North Jersey communities. His background includes residential appraisal, traditional home sales, and distressed property transactions.
This article is for general information only and is not legal, tax, or financial advice. Homeowners facing foreclosure should contact their mortgage servicer, a qualified attorney, or a HUD-approved housing counselor. A real estate sale may not stop foreclosure proceedings unless the necessary payoff, approvals, and closing requirements are satisfied.