From the Record:
About 15 percent — or one in every seven — homes sold in New Jersey during the second quarter were in some stage of the foreclosure process, RealtyTrac reported Wednesday.
That compares with about 24 percent of homes sold nationwide during the quarter, according to the California-based RealtyTrac, which tracks the foreclosure market nationwide.
RealtyTrac said distressed sales made up a smaller part of the market than a year earlier, but that was in part because the number of regular sales increased as a result of the federal home buyers’ tax credit, now expired.
James J. Saccacio, RealtyTrac’s CEO, predicted that the end of the tax credit could drive more buyers back to distressed sales. Those can be bank-owned properties or short sales, in which a lender agrees to accept less than is owed on the mortgage so a seller can get out from under an unaffordable mortgage.
Such sales can be a good deal for buyers, according to RealtyTrac. It estimated that in the second quarter, homes in the foreclosure process sold, on average, for 26 percent less than non-foreclosure sales.
The best deals came in bank-owned properties, which sold at a 34 percent discount.