Monmouth/Ocean: Home of the Housing ATM

From the Asbury Park Press:

Borrowers used houses to get cash

Proponents had once touted subprime loans as a way for some consumers to afford the American dream of homeownership.

Yet new government data now show a nightmare scenario that economists have suspected: that most of the borrowers with low credit scores turned their homes into a virtual credit card.

Monmouth and Ocean counties led the nation last year in the percentage of borrowers extracting cash from their houses, usually through refinancing or home equity loans.

A staggering seven out of 10 high-risk borrowers in both counties — those with low credit scores — refinanced loans to obtain extra cash, Federal Reserve data for the end of 2007 showed. Those are the highest percentages in the nation among large counties with more than 2,000 subprime loans. New Jersey had five counties in the top 25.

Such mortgage debt will continue to weaken the housing market at the Shore and around New Jersey this year, experts and consumer advocates say.

“It’s no secret that we live in a credit-dependent society,” said Brett Lopes, vice president of Intercounty Mortgage in Hazlet. “In the same way that people don’t handle credit cards correctly, they perceived their house was worth more and more and they used it like a credit card.”

Forty percent of the 10,800 subprime loans provided to homeowners in Monmouth and Ocean counties were given without full documentation of income, and the average credit score was about 610, far below the top score of 850.

Forty percent of subprime borrowers at the Shore are also behind on their loan payments. Eleven percent are in foreclosure.

The nearly 79,973 subprime borrowers in New Jersey owe an average of $250,614 on their loans, the fifth highest balance in the United States. That’s about $20 billion in subprime loans.

There were 12,376 foreclosure lawsuits filed in New Jersey Superior Court in the first three months of this year, state officials said Friday. If foreclosures continue at that rate for the year, there would be nearly 50,000, double the number from just two years ago.

Foreclosure lawsuits are usually filed after homeowners have missed several payments.

There were 36,358 foreclosure lawsuits filed in state Superior Court last year, up by 46 percent from 2006, according to state data.

In Monmouth and Ocean counties, 5,102 foreclosure lawsuits were filed last year, up 42 percent from 2006. Local figures for 2008 were not immediately available.

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116 Responses to Monmouth/Ocean: Home of the Housing ATM

  1. grim says:

    From the Morning Call:

    Where’s the bottom?

    Sheets of uncovered insulation flap in the breeze from unfinished townhouse units in Allentown. Workers at a closed roofing plant near Quakertown are looking for new jobs. A manufacturer of construction trucks says sales are down. For more than a year, ”for sale” signs have lingered in front yards across the Lehigh Valley.

    Now, as the housing downturn lengthens here and nationally, other indications are that it’s not just the real estate market that has slowed down. It’s the economy. And it’s not just people who need to sell their homes who are feeling the pain.

    The unfinished development, the plant closure and the drop in sales highlight the ripple effects the Valley’s residents will feel as the nation continues to struggle with a slow home market. Companies that supply products to home builders are facing tough economic conditions. But nearly all companies will grapple with lower consumer spending this year.

    While the Valley has seen a softer housing downturn, home sales have been slowing here since the second half of 2006. As the traditionally strong home-selling season of spring and summer is poised to start, some of the factors that fueled the Valley’s housing boom have changed.

    The influx of more affluent buyers from New Jersey has slowed. Free-flowing credit that allowed people to buy with little or no money down has tightened. Even creditworthy borrowers are having trouble qualifying for mortgages. Foreclosures, meanwhile, are on the rise.

  2. grim says:

    From the Philly Inquirer:

    Short sales an alternative to foreclosure

    Some homeowners struggling with mortgage payments are opting for a dose of strong medicine to cure their financial ills: a short sale, in which the lender agrees to accept less than what is owed, to remove the house from the books.
    In a short sale, both the homeowner and the bank lose money. But the seller’s credit isn’t damaged as badly as it would be with a foreclosure, in which the lender seizes and sells the property – typically at an auction that begins with a bid equal to the outstanding loan balance, accrued interest, and any fees connected with the sale.

    The number of short sales occurring in this region isn’t known – these transactions are recorded no differently than any other sale. But about 20 percent of home sales nationwide now are short sales, according to the results of a survey commissioned by the newsletter Inside Mortgage Finance.

  3. grim says:

    From Newsday:

    Homeowner: mortgage banker inflated house’s value

    When George Cornielle paid $812,500 for his East Massapequa high ranch in 2005, he said he was told by his mortgage banker that it was a good deal — and that he could afford it.

    Now, just over two years later, Cornielle is in foreclosure, unable since last November to make his $4,100 monthly mortgage payment.

    Underneath Cornielle’s financial situation is another story, one told in court papers. When he initially applied for a loan to buy the house, Cornielle said in court papers filed last month, the loan application he signed was blank. When he saw it later, the application said he earned $14,500 a month and had two children. The reality, Cornielle said in the court papers, is that he earned less than $4,000 a month — and has one child.

    Cornielle is suing the Garden City mortgage bank — HTFC Corp. — and its owner, Aaron Wider, along with the bank that now holds his loan, GMAC Mortgage Corp. The lawsuit alleges that the appraisal of the East Massapequa house that valued it at $830,000 was fraudulent. The fair market value at the time, the lawsuit says, was $425,000.

  4. grim says:

    From the Record:

    Hard times put homeowners in danger of losing it all

    A faltering real estate market and rising economic woes have doubled the percentage of North Jersey homeowners at risk of losing their homes, threatening a more serious crisis that could ripple across the state’s economy.

    Roughly 1 out of every 90 North Jersey homeowners fell into default on their mortgage payments in 2007, compared to 1 in 220 in 2005, and a rising number are losing their homes to foreclosure, according to an analysis by The Record.

    Virtually no community has gone unscathed. More than 1 in 50 homeowners face default notices in some of the poorest areas, with rates climbing in middle- and upper-income towns.

    The numbers are still tiny compared with those in California, Florida, Nevada and other areas. But the problem will grow if the economy continues to slow and more homeowners fall behind on their payments, according to David Berson, a housing economist with the PMI Group Inc.

    “It’s a pretty good bet that foreclosure rates will rise in New Jersey,” Berson said.

    The rate of distress across North Jersey more than doubled in the most modestly priced communities, such as Ridgefield Park, Paterson, West Milford and North Bergen. In communities at the market’s low end, where the typical home sells for less than $375,000, the default rate rose from about 1 out of 100 in 2005 to 1 out of 35 in 2007.
    In the wealthiest areas, where homes generally sell for at least $600,000, about 1 in 300 homeowners went into default in 2007, compared with 1 in 500 in 2005. A scattering of middle- and upper-income areas, including Closter, Franklin Lakes and Kinnelon, now have rates greater than 1 in 200.
    More than 90 percent of North Jersey homeowners who fell behind on mortgage payments managed to stave off foreclosure and keep their homes. But the rate of defaults that went to foreclosure rose from 6 percent in 2005 to 7 percent in 2007, and to 10 percent in the first two months of 2008.

    Joan Sudol was out of work and facing foreclosure when she signed up for a new adjustable mortgage that she hoped would save her Cresskill home. But the interest rate, which started at 8.75 percent, jumped to almost 11 percent. That pushed her monthly payments to $3,000.

    “I was working about 90 hours a week — two full-time jobs — just to pay the mortgage,” said Sudol, a nurse and single mother. Even so, she couldn’t keep up.

    On Feb. 29, the house where Sudol raised her four children for a decade was auctioned to pay off her mortgage debt of more than $450,000. It was one of 19 properties sold that day in the weekly sheriff’s auction at the Bergen County Courthouse.

    For many owners in foreclosure, the loose lending standards that fed the housing boom allowed them to buy homes they couldn’t afford. Now, many of these homes are worth less than what they paid.

  5. grim says:

    (cont)

    Another North Jersey homeowner refinanced his mortgage to pay off about $50,000 in credit card debt. He said the lender, Ameriquest, made it seem like “such a great deal.” Ameriquest, which is now defunct, has been the subject of several investigations and lawsuits alleging improper lending practices. (Sudol, the Cresskill nurse, also had a mortgage with Ameriquest.)

    “It was easy money,” said the homeowner, an airplane mechanic who asked to be identified only by his first name, Chris.

    But repayment was anything but easy. The interest rate on Chris’ mortgage rose to 14 percent, and now his Bloomfield home is in foreclosure. He can’t sell it to pay off the debt because he owes more than the house is now worth.

    While most of North Jersey’s foreclosure stories take place in working- and middle-class households, higher-priced houses have also popped up recently in sheriff’s auctions. These homeowners “might have overextended themselves” to trade up during the housing boom, said Sean Maher, an economist with Moody’s Economy.com.

    “Now that home values have declined, they don’t have any equity built up in this house,” Maher said. “They might not have a reason to hold onto this house, and they let it slip into foreclosure.”

  6. grim says:

    From the Record:

    Few bargains to be found at sheriff’s auctions

    Every Friday at 2 p.m., as many as 60 people file into the wood-paneled jury room at the Bergen County Courthouse, hoping to snag a bargain in real estate. Every week, most leave empty-handed.

    This is the sheriff’s auction, when foreclosed properties are auctioned to pay off homeowners’ mortgage debt. While the casually dressed audience hopes to buy properties at deep discount, that rarely happens ” especially now that the housing market has gone south. In many cases, the unpaid mortgage on the property is larger than its market value, and the property usually ends up going back to the lender.

    “We’re not really seeing any great opportunities,” said one real estate investor who is a regular at the auctions, speaking on condition of anonymity. “A lot of times the bank is owed a lot more than what the property is valued.”

    When this investor started out four years ago, he and his partners were able to pick up properties at 70 percent to 80 percent of their market value. They couldn’t inspect the property first, but in a rising market it was worth the risk. They could often do a few inexpensive renovations, such as a low-end kitchen upgrade, and flip the property quickly at a nice profit.

    In Passaic County, the is smaller. In recent weeks, fewer than 20 potential bidders typically attended a Tuesday afternoon sale in a windowless, wood-paneled courtroom. But as in Bergen County, most of the properties go back to the lender. Usually in each county, only one or two properties each week draw any bids other than the lender’s.

    “You rarely get the opportunities at the auction,” Laube said.

    Moreover, he warned, “the auction is no place for beginners.” Bidding is very risky, because buyers can’t examine the house in advance and have no guarantee that the title is clear and that there are no other liens on the property.

    In one notorious case last year, a Saddle River home was auctioned for $2.6 million to a next-door neighbor who didn’t know there were 150 live cats, as well as more than 20 dead cats and dogs, inside. The buyer successfully petitioned a judge to void the sale.

    The rise in foreclosures also has led to an increase in pitches from companies selling would-be investors foreclosure information, which is taken from public records.

  7. grim says:

    From the Star Ledger:

    Firms are paid to undo deals they arranged

    Last October, New Jersey taxpayers paid the McManimon & Scotland law firm $68,160 to help arrange a $650 million state bond deal.

    This month, the firm rang up more fees for helping the state back out of that deal after it went bad.

    McManimon is one of four professional firms that collected a second helping of pay from taxpayers last week as New Jersey began the complex process of extracting $3.4 billion in public funds from the fractured “auction-rate” market for municipal securities.

    So far, New Jersey paid more than $3 million in professional fees to replace $617 million in auction-rate bonds with other short-term debt. The state has not yet computed how much each firm will get in fees, but officials expect a sizable piece of the new business will go to the same firms who helped steer New Jersey into the auction-rate market in the first place.

    “If I were the taxpayers I would be smarting over the prospect of the very same bankers who put us in auction rates now reaping these huge underwriting fees to refinance,” said Sen. Barbara Buono (D-Middlesex), chairwoman of the Senate Budget and Appropriations Committee.

    With the higher interest rates, agencies across New Jersey have already absorbed $7 million in extra interest costs. And some more expected costs were revealed in the past two weeks:

    NJ Transit expects to pay an extra $3 million in interest this year on $361 million in auction-rate bonds that were used to finance the River Line light-rail line. That’s more than the River Line collects in fares for the year.

    The state Transportation Trust Fund, which Transportation Commissioner Kris Kolluri says is chronically underfunded, is paying an extra $200,000 a week in interest since its $345 million in auction-rate holdings soured, department officials reported during a budget hearing last week. That adds up to $1.6 million in extra interest payments since February, enough to resurface five miles of highway.

    The state has issued about $2 billion in auction-rate bonds in connection with the school construction program, including the $617 million remarketed last week. The full cost is on track to exceed $33 million, or about the cost of a new elementary school.

    In addition to the extra interest and the $3 million already paid in fees, agencies could be on the hook for another $24 million in costs from extracting funds from the auction-rate market.

  8. grim says:

    From the NY Times:

    Sign of Distress: More Who Can’t Pay Their Bills

    Like a ship that keeps springing new leaks, new numbers keep appearing that show an economy in distress.

    Here’s another sign that the ship is listing: The American Bankers Association recently reported that in the fourth quarter of 2007, consumer credit delinquencies reached their highest level since 1992.

    In other words, more people were 30 days or more overdue on their home equity loans, auto loans, personal loans and several other types of installment loans. (Bank cards were not included in the mix because their balances can fluctuate.)

  9. grim says:

    Salt,

    I’ve noticed that my local rag has changed the way they run the “weekly transfers”. They’ve replaced “weekly” with “recent”, and expanded the section to be a full page (Wow! A full page, the market must be HOT).

    They run the same page every week, most listings are months old. Was one from as far back as November.

  10. grim says:

    Salt,

    Seems to be some lag in those listings..

    316 Highland closed almost a month ago, 3/19.

    25 De Camp was two weeks ago.

    12 Woodlawn was almost three weeks ago

    4 Glenrock closed more than a month ago, 3/12

    Where do they get their data from? Is this agent driven? Based on the filing date of the deed? I’m not saying that they are doing anything nefarious here, only that their data appears to be stale.

  11. grim says:

    Super example of proper pricing off of yesterday’s GSMLS Hot Sheet.

    MLS# 2488150 – 30 David Road, Cedar Grove NJ

    Purchased: 9/20/1999
    Purchase Price: $233,500

    Listed: $249,900
    Sold: $270,000

    Under contract in just over two weeks.
    Multiple bids? Absolutely.

    Even in an over asking situation, at $270k, this property was priced on a 2% trendline (based on the ’99 purchase).

  12. hughesrep says:

    Most of the foreclosure listings I look at in Monmouth / Ocean are HELOC’d to the hilt, especially in the 350-500K range.

    Here is a fun one, although who knows what the story is.

    http://www.zillow.com/HomeDetails.htm?zprop=39604116

    For sale at $1.25 mill. The bank is foreclosing on it Tuesday for about $450K. Was purchased in 2001 for 470K.

  13. grim says:

    REO in Franklin.

    42 Newport Ave

    Purchased: 4/21/2004
    Purchase Price: $240,000

    MLS# 2323359
    Listed: 9/24/2006
    OLP: $320,000
    LP: $304,000
    DOM: 365
    Expired

    MLS# 2447569
    Listed: 9/25/2007
    OLP/LP: $305,000
    DOM: 20
    Withdrawn

    Foreclosed

    MLS# 2470188
    Listed: 1/2/2008
    OLP: $229,900
    LP: $219,900
    DOM: 55

    Sold: 4/11/2008
    Sale Price: $207,500

    14% under 2004 purchase price.

  14. bairen says:

    Most of Monmouth/Ocean county sucks. (I grew up in Monmouth and Atlantic Counties). I would rather live in North Carolina then in NJ south of Rt 22 or south of the Driscoll Bridge.

    Go walk around Monmouth Mall in Eatontown. I was there last summer, got into my car it was July 2007, walked into the mall it was 1988.

  15. crossroads says:

    hughesrep,
    just to let you know thats waterfront and they’re not making anymore waterfront property ( insert sarcasim)

  16. njpatient says:

    Clot
    “Attention-hog”

    I just want to be loved. Is that so wrong?

  17. Pat says:

    http://www.buffalonews.com/businesstoday/businessfinance/story/322311.html

    Sallie Mae, the nation’s largest student lender, said Friday it would no longer offer lower-cost consolidation loans to college graduates, saying the federally backed business had become unprofitable.

  18. crossroads says:

    i grew up in Monmouth county and summers are nice but winter there is nothing to do. no snow no ice but still cold.

  19. Shore Guy says:

    # 13 I remember swimming off our boat just off that property years ago when it was just woods leading to the water at silver bay. Right now it looks like a waterfront rabbit warren. Nothing like a paved-over lot.

    # 15 The Monmouth Mall is just SAD. It is filled with people who think it is the height of culture ans fashion but it is anything but. Maybe 30 years ago it was great compared to what else was around; however, now it is just tacky and filled with folks who lack a clue about how clueless they are.

  20. meter says:

    Tom’s River = cancer cluster.

  21. Shore Guy says:

    # 19 As far as I am concerned, the BEST time down the Shore (and by Shore I mean the area within easy walking distance of the boards and the sand, in essence east of “Main St. or rt 71, whichever one is easternmost at any moment) is November until April. At that time of year it is chilly, but peaceful. One can enjoy the beauty and serenity of the place. During the summer, the only time i like being on the beach is from between 5 a.m. and 9 a.m. and then after 6:30 or 7:00 p.m.

    The rest of the so-called Shore (anyplace one needs to get into a car to get to the beach) tends to be ugly, crowded, with poor shopping, and too much hassle in daily living to justify any premium in housing costs.

  22. Shore Guy says:

    # 21 Better living through chemicals. Maybe that is why the Barnegat Bay no longer freezes.

  23. bairen says:

    #22 Shore guy

    Bingo! I like October. Too cold for the beach, but fine for a stroll on the beach or boards.

  24. Shore Guy says:

    # 21 Toms River, and all of the non-barrier island parts of Ocean County for that matter, is the most overrated place. The topography is ugly, the shopping is dreadful, the job opportunities there are nil, the commute to decent job opportunities is oppressive, the housing stock generally sucks, and the prices for what one gets is seriously out of wack. The whole area has historically benefited from retirees selling “up north” and relocating so they can have easy access to boating for about 10-15 years before relocating to Florida to die. The area has very little of worth to offer any sub 60 year old person who must work for a living.

  25. crossroads says:

    shore guy

    I agree w/ you that winter is best time at the shore for adults. However growing up there as a child there is nothing to do. no skiing no skating, well they have built rinks in recent years but there were only 2 when I was growing up and lakes and ponds rarely freeze.
    I lived in Sea Bright for a few years and winter was the best time for all the reasons you mentioned.

  26. crossroads says:

    oh and Ocean county stinks!.

  27. bairen says:

    Ocean County is awful. Ugly houses, lousy jobs, congested roads, people are stuck in the 1980’s. Jackson, Toms River, Brick like a living hell.

    I would much rather live in Tampa or Charlotte then Ocean County.

    What’s funny is that Monmouth County people claim to be from Central Jersey (they don’t want to be associated with South jersey.)

  28. JBJB says:

    Wow, a lotta hating on Monmouth this morning. I find this odd, I guess it depends on what parts of Monmouth you are talking about. As someone who is not a native Jersian, I find Eastern Monmouth Co (Colts Neck, Red Bank, Middletown, Little Silver, Fair Haven, Rumson) to be one of the nicest spots in all of NJ. Prices and taxes are reasonable, and you don’t have swarms of people living on top of you like NNJ. Eatontown (and the mall) is certainly a dump but is not really indicative on Monmouth (maybe more of an Ocean crowd), but there are plenty of really nice places to shop, eat, and drink in E. Monmouth. Lots or parks and open space as well.

    We have cased E. Monmouth vs. NW Bergen for almost a year now trying to figure where to settle/buy and can say (our opinion) that E. Monmouth is much nicer from a standard of living standpoint and certainly a better value. I guess each to his own and all of that.

  29. Frank says:

    Inventory up by 2000 units this week. Looks like the market is dead.

  30. gary says:

    Monmouth County is beautiful. Horse farms, antique shopping, roadside stands, beautiful homes, scenic drives, etc. It is LIGHT YEARS beyond anything Ocean County can possibly dream for. My family has had a 2nd home in Bayville since the late 70’s so I’ve been from Brick to Tuckerton to Lakewood and back about 600,000 times.

    My wife and I had our Wedding reception at Doolan’s in Spring Lake and as usual, the food was fabulous. We bought our first home in Ocean County and lived there for 3 years before we mercifully bought our current home. I couldn’t wait to get out of that bland, boring, culture-less wasteland of nothingness.

    Monmouth County, on the other hand, might be one of the most picturesque and beautiful Counties in the state with all the extras to boot.

  31. Sean says:

    I would hate to hear waht you folks have to say about Long Island.

  32. Salty Steve says:

    (11) grim,

    Thanks for thoughts. You’re right about the fact that there is no indication about when these properties ACTUALLY transferred.

    I’ve been using the listing to get an idea of selling prices for properties that i’m not quite “interested enough” in to make an offer. It’s been helpful in that regard.

    One observable from this week is that Rose Arbor townhouses in morris plains have tipped below 400k. They probably peaked around 440k or so..

    enjoy…

  33. gary says:

    What I’m basically saying is Ocean County S*cks with a capital “S”.

  34. I have to agree with Gary & JBJB.
    Ain’t no party like a Monmouth party!

  35. teddy33 says:

    Wont Ocean county benefit from all of the casino employment expected to increase in the next 5-10 years? Atlantic county is even cheaper. I recently discovered Hamilton (Atlantic) twp and it is a very new area with newer housing for under 200, and many new retail centers with all the latest chain stores. Now if you dont work in the casino industry, living down there is too much of a commute. However, Ocean & Atlantic and even Cape May county are places you can live well on a modest wage in New Jersey.

  36. lostinny says:

    Patient
    A very happy belated birthday to you!
    Also, if you, or anyone else knows how on earth I can refinance my student loans, please pass the info along. My company will not allow a refi, only a consolidation. Since I’m not planning on going back to school anytime soon, that’s out of the question. My interest rate is 7.25 and has not changed at all since I consolidated in 2001. And it S@cks- also with a capital S.

  37. Shore Guy says:

    # 32 Most of Long Island is Ocean County with better access to NYC.

    As for Monmouth vs. Ocean County, Monmouth is far superior to Ocean. Nevertheless, to say that Clots Neck and Rumson (Deal or Loch Arbour for that matter) are representative of the county as a whole strikes me as somewhat disingenuous; these towns are the very best of what the county has to offer and the lives of those who live there bears little resemblance to the lives of most people living in the county.

    The area of Monmouth within a 1/4 mile of the beach is FAR SUPERIOR to what Ocean County can offer; notwithstanding the attractiveness of Bay Head and Mantoloking, which seffer from the congestion of Point Pleas and Brick and proximity to the deadly-ugly towns north of Seaside.

    As locations for second or third homes the true Shore communities have much to offer. That said, the folks living west of the Barnegat Bay and those living west of 35 or 71 pay a premium for living near a resource they cannot fully enjoy. A large percentage must also make a hellish commute for the honor.

    There are in fact a few good places to eqat a high quality meal in Monmouth County (Ocean is a culinary black hole where quality is measured by QUANTITY) but not as many as one would think based on the population and the income of many towns. I don’t know whether it is a matter of people being tapped out paying for overpriced housing or a preference of goiung into the City for a good meal. Either way, there is not an overabundance of quality eateries in Monmouth (Although Tim McLoon is doing his part, and Moonstruck is pretty good).

  38. 3b says:

    Happy Birthday NJ

  39. chicagofinance says:

    JBJB Says:
    April 13th, 2008 at 10:04 am
    Wow, a lotta hating on Monmouth this morning. I find this odd, I guess it depends on what parts of Monmouth you are talking about. As someone who is not a native Jersian, I find Eastern Monmouth Co (Colts Neck, Red Bank, Middletown, Little Silver, Fair Haven, Rumson) to be one of the nicest spots in all of NJ. Prices and taxes are reasonable, and you don’t have swarms of people living on top of you like NNJ. Eatontown (and the mall) is certainly a dump but is not really indicative on Monmouth (maybe more of an Ocean crowd), but there are plenty of really nice places to shop, eat, and drink in E. Monmouth. Lots or parks and open space as well.

    We have cased E. Monmouth vs. NW Bergen for almost a year now trying to figure where to settle/buy and can say (our opinion) that E. Monmouth is much nicer from a standard of living standpoint and certainly a better value. I guess each to his own and all of that.

    JBJB: kind of thinking the same thing…seriously…anyone who is putting a hating down on Monmouth doesn’t appreciate what the ferry service has done. If you look at any place that is within a 30 minute drive of Belford or Atlantic Highlands, then you can see a nice chance for some serious cash infusion.

  40. Sean says:

    re (13) and the Shore.

    Many from the shore communities view us bennies as elitists. I know a few people who moved down there and never looked back, to the point where they will only cross the Driscoll bridge for funerals.

    Ocean County has changed to a bedroom community from what it once was. There are quite a few people I know who commute from there, to all over N J and NYC for work. They trade their health (commuting long distances is a health risk physically and mentally) for the shore lifestyle.

    I actually spent many summers back in the 1970s in that Tom’s River development on Starboard drive. My family owned a small summer home with a boat there. That development was always retirees and summer homes. I know with the construction boom down the shore over the last two decades many old homes were knocked down and McMansions were put up on those small lots. When those small homes when up to 500k a few years back, I could not believe people would pay so much for those tiny houses, which were not really designed for year round living.

    Monmouth has nice areas but even the commute from there sucks, even colts neck.

    For now I am happy to visit the shore a few times a year, I will usually rent in a BnB in Spring Lake for popular weekends and my family lately has been renting a nice beach front place for a week in August in Ocean City, but other than that I could not live there year round, it is too much Wiskey Tango for me to stomach.

    I guess you could call me a bennie elitist too.

  41. Shore Guy says:

    # 40: “anyone who is putting a hating down on Monmouth doesn’t appreciate what the ferry service has done. If you look at any place that is within a 30 minute drive of Belford or Atlantic Highlands, then you can see a nice chance for some serious cash infusion.”

    Don’t get me wrong, I love Monmouth County. My point is that most of what is described as “Down the Shore,” is not and the lack of amenities that people put up with in Ocean County because it was “down the Shore” has gotten to be oppressive with the population growth of the past 35 years.

    As for the ferry service. It is great. Nevertheless, the owners are trying to sell the boats and no local group is stepping forward to take over the business. The boats cannot be counted on to be there in the future and any RE deal made with the expectation of ferry service has a high chance of bitting a buyer in the hind quarters.

  42. chicagofinance says:

    Shore Guy Says:
    April 13th, 2008 at 10:59 am
    # 32 Most of Long Island is Ocean County with better access to NYC.

    There are in fact a few good places to eqat a high quality meal in Monmouth County Either way, there is not an overabundance of quality eateries in Monmouth (Although Tim McLoon is doing his part, and Moonstruck is pretty good).

    Shore: you are kidding…as an example, I would say that Middletown, Red Bank, Fair Haven, Rumson combined would stand up to anything in NJ, then you can throw in Avenue in Long Branch. The best restaurant in NJ is in Middletown.

    The only complaint is that these places are too expensive for the quality. You are paying the same or approaching NYC, but not quite the full package.

  43. Stu says:

    Can anyone do me a favor and tell me what 90 Church Road, Morganville NJ sold for?

  44. Shore Guy says:

    # 41 “the shore lifestyle”

    People may delude themselves into believing they are living “the shore lifestyle,” but unless they are living on a lagoon (and are an avid boater) or are east of 35, 71, Main street in the area south of Monmouth Beach, or are in Monmouth Beach/Sea Bright, they are NOT living “the shore lifestyle.” Traffic in Toms River, Brick, Wall, Middletown, yadda, yadda, is worse than north of the bridge, and I prefer driving in Manhattan to driving in those places.

    I LOVE THE SHORE, note the name, and love walking to the boards and the beach. Nevertheless, my love of the area does not blind me to the serious downsides of living “doen the Shore.” What was quaint as a vacation place becomes hellish when turned to year-round living; just ask anyone who travels Fisher Blve, in Toms River, to get to Hooper, to Brick Blvd, to fight to get to the Parkway, to Fight to get to a decent income north of The Bridge.

  45. chicagofinance says:

    FYI – I’ll tell you something else. I went to opening day at Shea. I left Flushing at 4:45PM. I took the 7, E and then the NJ Coast train home. Checking my mailbox at 6:37PM.

  46. chicagofinance says:

    Some good places….nothing special, but solid….

    http://www.thymesquarerestaurant.com/

  47. chicagofinance says:

    more solid…a little short on service…

    http://www.djardore.com/listing.aspx?a=737&sid=8&sn=NJ

  48. chicagofinance says:

    nice place….overpriced considering stupid strip mall and nowhere location in a middle class area….

    http://www.annasitaliankitchen.com/

  49. chicagofinance says:

    snob central…very nice albeit overrated garbage frog POS…

    http://www.davidburke.com/fromagerie.html

  50. Shore Guy says:

    #43″ Shore: you are kidding…as an example, I would say that Middletown, Red Bank, Fair Haven, Rumson combined would stand up to anything in NJ,”

    I think Rumson and Fair Haven are lovely, as is Colts Neck, Deal, and some other little spots. It seems I did not make my point clearly. I have never liked Long Branch or Middletown, call me an elitist, but they just never appealed to me.

    As for dining in the area, ther is, scattered about, a small number of very good places to eat — but nowhere near the number one would expect for the apparent wealth of the area. Your statement of the cost vs. New York, I believe, echoes my thesis, that people who are going to be charged a NYC price might as well stay in The City and eat and get the whole package. If I am going to pay the price of a meal at Aquavit, I would prefer to have one of Marcus’ meals than something I can get in Monmouth County — not that i feel obliged to pay $150 for lunch. Still, if I am, the entire package, as you put it, better be worth it.

  51. Shore Guy says:

    In moderation, not sure why, no bad words or links of any kind

  52. chicagofinance says:

    more than one link may put you in mod

  53. Shore Guy says:

    no links

  54. Shore Guy says:

    lets break it up into two parts:

    Shore Guy Says: Your comment is awaiting moderation.
    April 13th, 2008 at 12:12 pm
    #43″ Shore: you are kidding…as an example, I would say that Middletown, Red Bank, Fair Haven, Rumson combined would stand up to anything in NJ,”

    I think Rumson and Fair Haven are lovely, as is Colts Neck, Deal, and some other little spots. It seems I did not make my point clearly. I have never liked Long Branch or Middletown, call me an elitist, but they just never appealed to me.

  55. Shore Guy says:

    As for dining in the area, ther is, scattered about, a small number of very good places to eat — but nowhere near the number one would expect for the apparent wealth of the area. Your statement of the cost vs. New York, I believe, echoes my thesis, that people who are going to be charged a NYC price might as well stay in The City and eat and get the whole package. If I am going to pay the price of a meal at Aquavit, I would prefer to have one of Marcus’ meals than something I can get in Monmouth County — not that i feel obliged to pay $150 for lunch. Still, if I am, the entire package, as you put it, better be worth it.

  56. Shore Guy says:

    second part is trapped in cyberspace

  57. Shore Guy says:

    As for dining in the area, ther is, here and there, a small number of very good places to eat — but nowhere near the number one would expect for the apparent wealth of the area. Your statement of the cost vs. New York, I believe, echoes my thesis, that people who are going to be charged a NYC price might as well stay in The City and eat and get the whole package. If I am going to pay the price of a meal at Aquavit, I would prefer to have one of Marcus’ meals than something I can get in Monmouth County — not that i feel obliged to pay $150 for lunch. Still, if I am, the entire package, as you put it, better be worth it.

  58. Shore Guy says:

    i found a word it thought was bad and changed a sentence around a bit.

  59. Shore Guy says:

    As for dining, Here ia a link to the dinner menu of the place I mentioned: http://www.aquavit.org/pdf/diningroomdinnermenu.pdf

  60. SG says:


    Get-rich real estate books also hit a slump

    And now that subprime mortgages have wound up as one of the worst Wall Street investments since Studebaker stock, I’m not seeing a lot of books land in my in-basket that promise to turn me into a real estate tycoon.

    Indeed, the few property investment tomes I see these days have a definite funerary air.

    Making Big Money Investing in Foreclosures Without Cash or Credit, proclaims one title.

    Finding Foreclosures: An Insider’s Guide to Cashing In on This Hidden Market, shouts another.

    Honestly, with all the headlines, foreclosures are anything but “hidden” these days. And good luck landing a deal without cash or credit. What are you supposed to do, trade for the houses with livestock?

    I’ll admit I’m suspicious of authors who claim they can make you rich. My experience has been that the smartest entrepreneurs are too busy to spend their time writing financial advice books.

  61. SG says:


    Real estate slump puts big plans for Boca on the back burner

    Boca Raton – They were touted as neighborhood-changing projects. Hundreds of condos, shops, restaurants and offices — even a hospital. All promising to spark more redevelopment and bring jobs to the city.

    Then came the downturn. Now, it’s uncertain whether these stalled projects will get built.

  62. Shore Guy says:

    # 60 “And now that subprime mortgages have wound up as one of the worst Wall Street investments since Studebaker stock, I’m not seeing a lot of books land in my in-basket that promise to turn me into a real estate tycoon.”

    I don’t know, “Lose Your Shirt and any Chance of Retiring in Comfort by Through Foolish and Undercapitalized Real Estate Speculation” has a ring to it.

  63. njcoast says:

    As a 40 year resident of Deal/Allenhurst I’ll vote September (after Labor Day) and October as the best months at the shore.

    Mr. C’s Restaurant at the Allenhurst Beach Club is the best kept secret of the shore- open 10 months a year and the bar sits right above the ocean’s edge and a great place for storm watching. Brandl in Belmar also gets my vote.

  64. Sean says:

    njcoast is it true that the shiekdom of Deal is not part of the United States?

    The police there will arrest any of us foreigners that dare to tread on their beaches or swim in their water.

  65. njcoast says:

    #64 Sean

    Not true. The beaches at Deal Esplanade and Darlington Ave. are packed with “foreigners” in the summer. Darlington Ave beach is home to surfers year round. The owners of the beachfront properties there could not be nicer.The beach is free and there is access at both streets. Just be aware there are no facilities. After Labor Day on a weekday many times you can have the whole beach to yourself.

  66. Shore Guy says:

    Ahh, Deal. Or actually Big Deal (east of 71) and Little Deal, the rest. I hate the look of so many of the new places that have gone up in Big Deal. They are not McMansions, they are real mansions but the style is just out of place.

  67. twice shy says:

    Darlington beach is posted no swimming, in case folks don’t know. The only hassle with surfing there is a 2 hr. parking limit, which the police mostly enforce in the summer. I’ve been ticketed, but they don’t tow, so $35.00 or whatever ain’t bad for a decent swell. At least you don’t officially pay for parking or a beach tag.

  68. Shore Guy says:

    # 69 “$35.00 or whatever ain’t bad for a decent swell”

    Sounds like something I heard Elliot Spitzer say.

  69. crossroads says:

    I have to add to the culinary debate. since I left monmouth county I can’t find a good bar burger. I use to go to Ichabods, the globe in Rd Bank and barnacle Bill’s in Rumson on the river. Nevermind Rods down in Sea Girt. Thats what I miss fat burger cold beer ( mmm beer ) unless at Barnacles then we get the L.I. iced tea ( mmmm L.I. iced tea

  70. grim says:

    Speaking of the shore.. Just got back from another bike ride, did I mention I’m out of shape?

    I’ll set a goal for myself, bike down to LBI (Beach Haven) from Clifton on the Friday of Memorial Day Weekend. Should be able to do it in 6 or 7 hours (105-110 miles or so). Not that it’s really any faster to drive down to LBI on Memorial Day weekend.

    Or maybe the weekend before..

  71. JBJB says:

    Shore

    Agree on Long Branch, but Middletown has its highs and lows. Lincroft, Navesink, Chapel Hill, or the Oak Hills section are all very nice, other parts of Middletown I agree due leave something to be desired.

    As for the beaches, well, we came here from So. California so we have high standards, but we seem to enjoy Belmar the most. Actually, it’s not that some of the beaches aren’t nice, just that the climate doesn’t allow full appreciation (compared to So. Cal.)

  72. crossroads says:

    just got back from a ride myself. my goal is to beat my High Point time of last year.

  73. Shore Guy says:

    #70 Grim,

    Combo bike?

  74. grim says:

    I’m in no shape at all to race. Didn’t even renew my license this past year. Maybe I’ll do a few towards the middle or end of the season. All depends on how many miles I can get in. I’ve really got to touch base with the old team too (Montclair). Ended up dropping out of the race scene to promote races with Ray, not that I wanted to, but running races usually meant that I couldn’t.

  75. gary says:

    Question: In your opinion, what percentage of take home pay should go towards mortgage, property taxes and insurance?

  76. val says:

    Hi there…this is a great website grimster

    I’ve been renting and saving to buy a condo in Hoboken (maybe Jersey City). It has been very frustrating to save money and have prices rise faster than I can save. I will put MINIMUM 20% down.

    Big problem – prices for newish condos in Hoboken are NOT crashing to 2004 prices. It doesn’t seem like they ever will. Very frustrating to see friends do zero down or use parents money to buy places when you try to do it the old fashioned way.

    So should I wait for Hoboken prices to crash…..or should I accept reality and pay current prices. I’m looking in $500k to $700k area.

    PS reason I want to move to Hoboken is I can’t stand my commute any more (from Summit but use New Providence station).

  77. crossroads says:

    Grim
    what races were you involved in promoting?

  78. crossroads says:

    I see Hincape missed again. top ten though

  79. val says:

    “chicagofinance Says:
    June 2nd, 2006 at 4:39 pm

    JM or anyone:

    If anyone could provide me with HTB closes for 2006 after February 1st – unit and price. I will be eternally grateful!”

    1500 Washington St Apt 2L recently sold for $787,900.

    “Seriously, I would offer some kind of barter!!!!”

    Okay. Let us know how we should interpret this recent comp.

  80. Shore Guy says:

    # 77 I never feel good above 1/3, and prefer 1/4 or less.

  81. lostinny says:

    Grim-
    Wow I know I’m out of shape but I’m sure even in the best shape of my life I couldn’t have biked that far. I was happy that I did some cardio kickboxing for 20 minutes today.

  82. HEHEHE says:

    Val-Val-The-Hoboken-Realtor’s-Pal!!!

  83. stu says:

    Grim,

    With absolutely no training, I rode my old ten-speed from Philadelphia to Atlantic City in a little more than 4 hours, which was approximately 75 miles. I managed to finish in the top 10% of all riders and this was after a terrible start. As they started the race, my chain popped off and then one of the links was jammed inside another link. Needless to say, I ended up starting in virtually last place with greasy and bloodied fingers. The expansion joints on the Ben Franklin Bridge are kind of scary at 35 miles per hour. Surprisingly, my legs were actually fine the next day, but I couldn’t sit down for two days since my behind hurt so much. It did help that some of the roads were closed for it was a bikeathon, but I would bet that someone who trained could easily do Clifton to Beach Haven in six hours. The real question is, what route would you take?

    ChiFi: Nicholas does rock, but their menu never changes. You can only do a prefixed tasting menu twice before it gets boring. Though, the service there is unbelievable. Red Bank really is a pretty cool town. It’s a shame that their schools are so terrible. What were you doing down there that you had so much time to sample so many restaurants?

    Still would like to know the sale price of 90 Church Road in Morganville if anyone could be so kind to post it.

  84. NJGator says:

    That article is right on. We have friends in Monmouth that bought their house 5 years ago. After making a 100k profit on their previous home, they bought a 400k home with less than 20% down. They’ve since borrowed or refied at least 5 times since then…most recently with 2 loans, the primary one being for more than their 2003 purchase price. Scary!

  85. Shore Guy says:

    #85 ” Clifton to Beach Haven in six hours. The real question is, what route would you take”

    From the causway over the bay north, I would guess Rt.9, the question is north of TOMS River do you go for the direct route (continuing up 9) or head down 37 to connect with 35 north (much more attractive trip) and then 36 north to cross the river?

  86. Shore Guy says:

    # 86 NJG

    I know someone who did the same thing and now, despite renting out his various bedrooms and living in his own basement, he is likely to lose the house. It is very sad. Of course, he did have some killer vacations (to Vegas, imagine that), a HUGE TV, and some other toys.

  87. alia says:

    just wanted to wish njpatient a happy birthday, and feared it would get lost during the open discussion.

    happy birthday, belated! :)

    alia
    now happy parent to two whole children. eep.

  88. chicagofinance says:

    val Says:
    April 13th, 2008 at 3:08 pm
    “chicagofinance Says:
    June 2nd, 2006 at 4:39 pm

    1500 Washington St Apt 2L recently sold for $787,900.
    Okay. Let us know how we should interpret this recent comp.

    val: details…please….because, this one as we know is not moving….
    http://newyork.backpage.com/CondosForSale/_1_060_000_3br_hoboken_3_br_condo_hudson_tea_building_direct_nyc_views/classifieds/ViewAd?oid=2558052

  89. chicagofinance says:

    FYI – you know that Toll threw every trick in the book to get this one moved…..I think my call was the market value was $725,000….you do the math and figure out what happened….

  90. bairen says:

    This looks like an interesting house in Long Hill Township. 339k built in 1793 on .9 of an acre.

    http://www.weichert.com/search/realestate/PropertyListing.aspx?MlsName=GardenStateNJ&MlsNumber=2498910

    What does “Seller addedndum must accompany all offers.” mean?

    Is it a shared driveway or something worse?

  91. Fiddy Cents on the Dollar says:

    Stu :83

    90 Church St sold on 3.25.08 for $469K. It had been on the market since June of 2007 starting at $494K.

    Late ’60s Colonial, 5 beds, on 1/2 Acre. Capital items replaced include furnace, roof, and central air. Taxes are $8500.

  92. stu says:

    Thanks Fiddy!

  93. Shore Guy says:

    # 92 It is a shame it is not closer to the highway.

  94. Outofstater says:

    So, is Wachovia in the same shape as WaMu? Bloomberg is reporting that the WSJ is reporting a $7billion infusion from “an investor group.”

  95. njpatient says:

    Thanks for the birthday wishes, all.

    Alia, how old are the little ones now?

  96. All Hype says:

    reinvestor101 Says:
    What has caused our problem here is a few radicals not willing to believe. Their unwillingness to believe has stalled the markets and has resulted in reduced availablity of credit. It has nothing to do with the government but has more to do with people like you undermining the markets with negative talk. The Fed is doing everything it can (as it should) to counter this influence. It’s not trying to prevent solvent people from buying a damn house, but trying to create a scenario where they can.

    LMAO!!!! Man you made my day! I had to copy this from the last post. I never thought that a few angry bloggers could bring down the entire NJ housing market. God I feel all-poerful right now!!!

  97. Anxious... but waiting says:

    OT
    Can someone give me Total listing history and total DOM on MLS 2506909.
    I know I’ve seen it before, I just don’t have the info anymore…
    Thanks..
    Tan

    Also, anyone have any thoughts on Duplexes… Pro.. Con…

  98. Confused In NJ says:

    Senator Menendez sent me an EMAIL advising he is sending $ millions of tax payer dollars to Poland to build a Warsaw Jewish Memorial Museum. I replied back to him that the USA is Bankrupt and he needs to address the National Debt. Also, it was the Germans who should pay for the Museum, not the Americans. Guess he doesn’t know WWII History, either.

  99. Arr Elle says:

    To #98 Confused in NJ

    I received the same Newsletter. We have a crises right here in New Jersey. Unemployment rate is about 4.8%, high property taxes, etc. I don’t recall Senator Menendez asking the tax payer’s permission,if it’s okay to send money to Poland to build a museum???

    Just wondering

  100. stu says:

    Isn’t buying the Jewish vote a good use of your tax dollars?

    Disclaimer: I am a Hebe and think Menendez should be hung.

  101. alia says:

    njpatient:
    #1: 4 years, 4 days
    #2: 16 days

    :)

  102. JBJB says:

    Funny story. Was in the local Whole Foods here in Monmouth Co on Monday, behind me in the express line was Queen Latifah. I guess she lives in Rumson? The young girl behind the register almost had a seizure. Even though I’ve seen her a million times on TV, I’m not sure I would of recognized her if the cashier hadn’t pointed her out.

    I mean, if Monmouth is hip enough for Queen, it’s hip enough for anyone!

  103. SG says:

    NYTimes article,


    Housing Woes in U.S. Spread Around Globe

    DUBLIN — The collapse of the housing bubble in the United States is mutating into a global phenomenon, with real estate prices swooning from the Irish countryside and the Spanish coast to Baltic seaports and even parts of northern India.

    That reality is spreading. Once-sizzling housing markets in Eastern Europe and the Baltic states are cooling rapidly, as nervous Western Europeans stop buying investment properties in Warsaw, Tallinn, Estonia and other real estate Klondikes.

    Further east, in India and southern China, prices are no longer surging. With stock markets down sharply after reaching heady levels, people do not have as much cash to buy property. Sales of apartments in Hong Kong, a normally hyperactive market, have slowed recently, with prices for mass-market flats starting to drop.

    In New Delhi and other parts of northern India, prices have fallen 20 percent over the last year. Sanjay Dutt, an executive director in the Mumbai office of Cushman & Wakefield, the real estate firm, describes it as an erosion of confidence.

    This is not the first housing downturn to cross borders, but its reverberations have been amplified by the integration of financial markets. When faulty American mortgages end up on the books of European banks, the problems of the United States aggravate the world’s problems.

    Consider Britain, which had one of Europe’s most robust housing markets, with less of an oversupply than in Ireland or Spain. Then last summer came the subprime crisis across the Atlantic.

    Within two months, mortgage approvals dropped 31 percent, compared with the previous year. And by March, average housing prices had fallen 2.5 percent, the largest monthly decline since 1992.

    “The boom in house prices was actually much bigger here than in the U.S.,” said Kelvin Davidson, an economist at Capital Economics in London. “If anything, people should be more worried than in the U.S.”

  104. RentinginNJ says:

    What does “Seller addedndum must accompany all offers.” mean?

    It means the listing agent didn’t bother to spell check the listing information

  105. njpatient says:

    Congrats, alia!

    2 isn’t so bad. You can still play man-to-man defense!

  106. stu says:

    Nikkei is down about 3%, Wachovia found a 7 billion infusion, Citi and Merrill will announce at least 15 billion in writedowns, financial companies report earnings, (or lack thereof) U.S. markets tanked on Friday and weekend S&P futures point to a 2% decline in 11 hours.

    Who thinks the market will rally tomorrow?

  107. Arr Elle says:

    To 102 JBJB

    From what I’ve read and heard yes Queen Latifah lives in Rumson. Thanks for the celebrity spotting! (smile)

  108. stu says:

    NJGator and I are one and done on the legacy front. Little Ryan better make enough dough to support two wrinkled bottoms.

  109. Roy G Biv says:

    Once again there are nice and not so nice people in every Congested Urban & spacious rural area. things many times are what you make them. Quotes of “It s…” are so shallow.

  110. Shore Guy says:

    # 102 Hanged. Hung is what his wife hopes he is, hanged is what you wish for him.

  111. ithink-ithink says:

    Fiddy, the bit on the house in long hill is that it’s semi historic, there’s a photo of it back in the day somewhere online. However a drive by will also show you that you can touch the passenger door of a car from the front door.

  112. jcer says:

    Val, I live in dwtn JC and yes the pain is still here unfortunately realtors keep spewing the same Hoboken and Dwntn JC prices rose 4% year over year and the market is still strong. The reality is less rosy, market is slow and prices are dropping, but the realtors would sooner die than admit this. The only thing keeping the gold coast safe is Manhattan, if the manhattan condo/coop market becomes illiquid, HOB prices will drop. I think the issues the financial companies are having will have a big effect too. Most people in the Hoboken age bracket are not making 250K a year anymore, and if they can’t sell their high priced 1 bedroom in Manhattan they can’t overpay here. Between layoffs, the credit standards tightening, and market slowness I do not see how this can continue. Keep in mind the realtors here are the sleaziest I have met anywhere and will manipulate the market, I have met a few that are ok but most give me the willies.

  113. FH NJ says:

    #29

    I couldn’t agree more. I grew up in Middletown, on a farm, ridding horses. A couple of miles from the beach, all back roads, no hwy traffic. Husband uses the boat to go dwntn, I use the train bc I work mdtwn.

    Bought in 99′, sld in 05′, and still renting.

  114. Jamey says:

    38

    EVERYBODY knows that ALL people who make sweeping generalizations are complete idiots…

    The bitterness… OY! Sounds more like sour grapes from folks who got priced out of certain markets, than actual “concern” for what’s become of the NJ Shore….

Comments are closed.