NJ Foreclosures Hit 2-Year High In These Regions

Two regions in the Garden State have hit the highest amount of first-time foreclosures in two years, according to a new report.

The 23 percent increase year-over-year from 2024, according to the latest report from Property Shark, is part of a broader metro New York area increase of six percent, with a total of 1,718 first-time filings.

The sharpest jump up in New Jersey, and second-highest in the entire region, was seen in Somerset County, NJ where 54 percent more foreclosures were logged. The most drastic drop came in Suffolk County, NY, with a 43 percent year-over-year reduction.

Of the New Jersey markets, 10 out of the 12 recorded a rise in foreclosures. This is after nine near-consecutive quarters of decline. Morris County was the leader in the North Jersey market foreclosures with a 50 percent year-over-year hike.

“Foreclosure activity continued its upward trend in the first half of 2025, with increases in both starts and completed foreclosures compared to last year,” says Rob Barber, CEO at property data and analytics research firm ATTOM. “While the overall numbers remain below pre-pandemic levels, the persistent rise suggests that some homeowners are still facing financial challenges amid today’s housing and economic landscape.”

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In New Jersey, Essex County saw the highest number of first-time foreclosures with 173 in Q2.

Property Shark says their data accounts only for first-time foreclosures to avoid over-reporting the number of distressed properties in New York City. The report covers residential properties (single and two-family homes, condos, and co-op units) in Bergen County, Essex County, Hudson County, Morris County, Passaic County, Sussex County, Union County, Hunterdon County, Middlesex County, Monmouth County, Ocean County and Somerset County.

The increased cost challenges to own property in New Jersey are also reflected in the latest property tax data available from Realtor.com. New Jersey leads the nation with a $9,413 median property tax price tag tacked on to homeownership. This is almost three times the national average in 2024. The median tax bill for the entire country was reported at $3,500.

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