From CBS:
Home Foreclosures On The Rise At The Jersey Shore
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.
“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
Okay…so if appreciation has returned to normal rates of 4 – 6 percent per year, why are foreclosures up 110%? Everyone should be able to sell and get out, at least breaking even.
Even the ever Pollyannaish NAR has abandoned the “returning to more normal appreciation” mantra and now admits prices will continue to drop.
Renting,
I was just going to comment on that. This Brasslett character doesn’t make much sense………
“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.
Where’s Diane Turpin when you need her?
CNBC segment discussing the latest S&P/Case-Shiller results for March 2007
Case-Shiller Going Negative
http://www.paperdinero.com/BNN.aspx?id=206
CNBC segment discussing the latest S&P/Case-Shiller results for March 2007. Features a short interview with David Blitzer, Chairman of the S&P index committee in which he suggests that “There is no sign that we are at a bottom”. Check out the PaperMoney S&P/Case-Shiller/Futures Tool to better visualize the changes to the CSI indices.
Originally aired on: 5/29/2007 on CNBC
Running Time: 2 minutes 10 seconds
its going up 4,5,6 % after it fallss 25% or more.
boo hoo for the big money investers! what about a mom who is on a fixed income trying to save her home for her daughter and because she doesn’t have any credit cards nobody in the state of nj is willing to help her. so after having invested 11 years and it being the only home her daughter knows because all her income is fixed and its only her to mortgages that’s behind the rules of this stupid state will only let her get something that will cost her even more to get her even more behind when she gets sick again. tell me what is wrong with this picture and why are those investers whining?