The bittersweet truth about foreclosed properties in New Jersey
In the recent years the New Jersey foreclosure homes market has dipped. However, the sub-prime market is looking good. This is a good sign, as this will help the lenders to provide credit to the people.
The fact that the prime market has declined is because of the decline in the delinquencies and the improvement in the job market. There has also been a decline in the 30 days delinquency. The percentage has dropped from 4.81 percent to 4.42 percent. Similarly the percentage of loans going for the foreclosure stage has also decline from 1.15 percent to 1.12 percent.
Though the sub-prime market has also declined but it is still higher than the prime market. And this has somewhat balanced the number of foreclosed properties. The prime mortgage in New Jersey is at 2.39 percent down from 2.61 percent. And the sub-prime sector has dipped from 10.15 percent to 8.21 percent.
With the increase in the housing prices, the households are facing payment difficulties for their mortgages. But at the same time they can sell their houses, yet retain a bit of equity for their own usage. Moreover, if the income of one of the spouse suddenly stops, then the foreclosure is most likely to happen.
The Plainfield county and the Middlesex county are the two most active region in New Jersey in regards to the foreclosed properties. Plainfield alone had about 400 such properties and it is now planning to refurbish and sell 197 such properties. They are planning to make 21 one-family houses and 48 two-family houses for the time being. It is trying to create a model for these foreclosed properties, which will be a benchmark for other pre foreclosure homes or foreclosed properties. The prices fro the one-family houses vary from $129,900 to $139,900 while the ones with two-family houses will be between $169,900 and $179,900. This is more of a private-public initiative.
But county after county in New Jersey are still seeing the rise in foreclosed properties and it is disrupting the life of the homeowners and tenants. But with public and private initiative the properties can be saved. The increase in such foreclosed properties has also created increased cost for the police and the justice department. Also, the type of property that gets foreclosed also varies from county to county and so is the lawsuit trend.
The Middlesex County has about 1,544 foreclosure proceedings. And most cases the loss of job, pay cut or increases in the mortgage rate are the primary reason. But, whatever pros or cons are there in the foreclosure process, the state of New Jersey will remain the favorite destination for the foreclosed property buyers.
