New Jersey Short Sales and Foreclosures 2025: What the Data Tells Us
New Jersey’s distressed property market is once again making headlines. As foreclosure filings rise nationwide, the Garden State remains among the hardest hit — and for homeowners, agents, and investors alike, that means opportunities and challenges ahead.
Foreclosures Rising Across New Jersey
According to ATTOM’s Mid-Year 2025 U.S. Foreclosure Market Report, 0.18% of all New Jersey housing units had a foreclosure filing in the first half of 2025 — placing the state among the ten highest in the nation.
While that number might seem small, it represents thousands of families and properties under financial stress. By September 2025, data from Safeguard Properties (via ATTOM) showed one in every 3,814 housing units statewide faced a foreclosure filing. The hardest-hit counties were Cumberland, Salem, and Sussex, where older housing stock and slower job growth have amplified economic pressure.
At the start of the year, New Jersey’s foreclosure rate was even higher — one in every 3,442 homes compared to the national average of one in every 4,618 (January 2025, ATTOM data via the New Jersey State Bar Association).
These figures show a steady pattern: New Jersey’s homeowners are experiencing distress at a faster pace than most of the country.
National Trends Help Explain Local Pressure
Nationwide, the third quarter of 2025 brought more concerning numbers. ATTOM’s Q3 2025 report showed foreclosure filings up 17% year-over-year, with foreclosure starts rising 16% and REO (bank-owned) repossessions jumping 33%.
This increase reflects a backlog of delinquent loans now moving through the system after several years of pandemic-era forbearance and legal slowdowns. For markets like New Jersey — where judicial foreclosures can take months or even years — those delayed cases are now catching up.
Short Sales as a Way Out
For homeowners facing default, a short sale remains one of the most effective alternatives to foreclosure. By selling for less than the loan balance (with lender approval), sellers can avoid the long-term damage of a foreclosure on their credit while often walking away debt-free.
Agents who understand this process can save deals that might otherwise fall apart. Working with a specialized short sale negotiation team can help ensure the lender approves the sale quickly and that all closing timelines are met.
At Crisp Short Sales, we handle the lender communications, document prep, and negotiation from start to finish — helping real estate agents close complex short sale transactions faster and with less stress.
For homeowners exploring their options, we also offer guidance on starting a short sale, including how to qualify, what paperwork is required, and how the approval process works.
Why This Matters for 2025
As foreclosure activity continues to climb, short sales are poised to make a comeback. Many lenders now prefer short sales over foreclosure because they minimize losses, keep properties occupied, and speed up recovery of non-performing loans.
New Jersey’s market — with its high home values, longer foreclosure timelines, and dense legal oversight — is uniquely positioned for this shift. That makes short sales not just a safety net for homeowners, but also a valuable strategy for agents and investors navigating a changing market.
For anyone seeing early signs of distress — missed payments, hardship letters, or default notices — acting early can make all the difference. Connecting with a trusted short sale expert before foreclosure proceedings begin can preserve more options and improve outcomes for everyone involved.
The Bottom Line
Foreclosure rates in New Jersey remain among the nation’s highest, but that also means opportunity — for homeowners to resolve debt with dignity, for agents to help clients through difficult transitions, and for investors to participate in rebuilding communities.
If you’re navigating any part of this process, reach out to Crisp Short Sales. Our team specializes in turning distressed situations into closed deals — with empathy, expertise, and proven results.