A cooling real estate market has lead to a tremendous amount of home foreclosures at the Jersey shore.
From April ’06 to April ’07, foreclosures nationwide jumped 65-percent.
Home foreclosures at the Jersey shore are up 110-percent over last year.
“I think it’s very similar to the dot.com boom,” Steve Brasslett, CEO of Ivy League mortgage said.
Brasslett said buyers who wanted to sell quick are in over their heads for several reasons.
“Every deal was a record breaker and then the market became saturated. Eventually it dropped and the door closed. Investors couldn’t sell homes for what they bought them for, so they were unable and had no intention of making mortgage payments,” said Brasslett.
A unit at Flagship Condos in Ocean City went back to the bank Wednesday at a Cape May County sheriff’s sale.
“The bank didn’t want to buy it back, but they have taken it back through foreclosure action,” foreclosure specialist, Adam Palmisciano said.
Mortgage brokers say homes of all shapes, sizes and prices are going into foreclosure. A brand new two-story home in Ocean City is up for foreclosure because more than half a million dollars was owed to the bank.
Brokers said homes were appreciating much more in the early 2000’s up to the summer of 2005 than they are today.
“By as much as 20 percent, that’s outrageous. It’s going back to moderate pace of appreciation by 4, 5 or 6 percent,” Brasslett said.
Adjustable rate mortgages offered by lenders also put buyers in a pinch because they offer payments they could afford at the time, but not since they have risen.