According to California-based RealtyTrac, the leading online marketplace for foreclosure properties, New Jersey ranked No. 14 in foreclosure rate for 2009. More than 63,000 homes in NJ received at least one foreclosure filing last year, per RealtyTrac (www.realtytrac.com).
According to the data released, these foreclosures represented 1.81 percent of housing units statewide, an alarming 103 percent increase from 2007 (www.realtytrac.com). Clearly homes in NJ did not escape the seemingly endless real estate crisis.
RealtyTrac reported nearly 4 million national foreclosure filings in 2009 and suggested the numbers might have been worse if not for delays in processing delinquent loans.
“After peaking in July with over 361,000 homes receiving a foreclosure notice, we saw four straight monthly decreases driven primarily by short-term factors: trial loan modifications, state legislation extending the foreclosure process and an overwhelming volume of inventory clogging the foreclosure pipeline,” said RealtyTrac CEO James J. Saccacio (www.realtytrac.com).
But one homeowner’s misfortune can certainly present opportunities for those with enough capital and fortitude to purchase foreclosed properties.
A quick computer search will reveal many attractive homes in NJ that have been hit with default notices. The downside to purchasing foreclosures includes the work involved with finding the property you desire.
Public records and certain specialty publications are a great place to start, but make no mistake the process takes time and effort. Furthermore, a foreclosed home may require significant repairs if maintenance has lapsed due to the previous owner’s economic hardship.
But if you can get past the research, risk and considerable paperwork required, foreclosures can offer the right buyer a significant discount.
According to a recent article by Bankrate.com, bargain-hunters shouldn’t expect to steal foreclosures. In most markets, these homes can be had “for as cheap as 30% or 40% below market, but most foreclosures sell for 5% below market,” said John T. Reed, editor of Real Estate Investor’s Monthly (www. msn.com).
If you are seeking out homes in NJ, don’t rule out the foreclosure market – especially considering the fact that the nation’s second-wealthiest state also ranks among the top 20 in foreclosures.
For those highly motivated and risk-averse buyers, foreclosures represent considerable opportunities
