Atlantic City is now gaining quite a reputation for being the one with the highest foreclosure rate in the United States.
According to RealtyTrac, one in every 307 homes in Atlantic City was in foreclosure as of August.
RealtyTrac also reported that Atlantic City has the biggest year-over-year increase in zombie foreclosures, with a 133 percent increase in zombie foreclosure.
Zombie foreclosures are those that belong to homeowners who are facing foreclosure, and chose to simply walk away, leaving the property with no one to take care of. These homes are not actually foreclosed, therefore the lender can't gain possession over the property.
Due to the high foreclosure and zombie foreclosure rates, Atlantic City is also facing other problems, such as vandalisms and other criminal activities.
"We're seeing break-ins. We're seeing vandalism. We're even seeing squatters in some of these properties," Levinson said. "Not to mention they are eyesores when a property is left to deteriorate."
The values of other homes are also in jeopardy because of the undesirable neighborhood that the abandoned homes are causing.
In a report by NJ, a letter was sent to the Department of Community Affairs and the New Jersey Housing and Mortgage Finance Agency, from Senate President Stephen Sweeney joined with Senator Jim Whelan and Assemblyman Vince Mazzeo, as a response to the alarming rise in foreclosure rates.
The letter wants the Department of Community Affairs and the New Jersey Housing and Mortgage Finance Agency to help distressed homeowners in Atlantic City. Senator Sweeney and his colleagues also want to know what assistance has been provided through state and federal programs to help the homeowners facing foreclosure.
"We request that your agencies send representatives to Atlantic County to provide in-person assistance to distressed homeowners. Representatives should provide guidance to homeowners and assist them in registering for mortgage modification programs," the letter stated.
Atlantic County has set an Oct. 23 deadline for proposals to develop the vacant properties registration program.
