New Jersey's rate of foreclosures or serious delinquencies is now the No. 2 worst in the nation, second only to Florida, according to a report from the Mortgage Bankers Association.
The state's court system may be partly to blame because it slowed the foreclosure process after a national robo-signing controversy revealed that uncontested foreclosures were processed without any human review.
Meanwhile, the state’s economic outlook was downgraded from “stable” to “negative” by Standard & Poor’s on Tuesday.
The analysis is unlikely to affect New Jersey’s AA bond rating, which is already among the lowest in the nation.
But it does counter Governor Chris Christie’s message at appearances across the state in which he touts the “Jersey Comeback” and said the state could afford to give its residents a tax cut.
The New Jersey legislature's non-partisan budget analyst called Christie's state revenue projections "aggressive" on Wednesday and said mid-year budget cuts may be necessary.
Assembly Republicans and the governor say the dire budget forecast is a political move by Democrats intended to stall making tax cuts.