From Businesswire:
New York, New Jersey Lead Northeast in Foreclosures
The nation’s foreclosure epidemic has infected even the rural Northeast as consumer credit woes, creative mortgages, and high energy costs tighten the squeeze on homeowners.
…
“That sub-prime ARM or interest-only home loan may have been the perfect solution several years ago, but now that mortgage payment has adjusted upward. A 2 percent rate increase can double a monthly payment overnight,” says McGee. “Combine that rate shock with soaring costs of living, and the slowdown in home appreciation rates and sales, and many homeowners can’t pay up and don’t have enough equity to refinance or sell. Foreclosure is their only option.”The Northeast Region includes Connecticut, the District of Columbia, Delaware, Maryland, Pennsylvania, Vermont, Rhode Island, Massachusetts, New York, and New Jersey.
Foreclosures in New Jersey — 23,272 so far — are up 62.6 percent over 14,311 for all of 2005. New York foreclosures are down slightly over 2005 totals (21,736 to date vs. 23,374 total for 2005). Massachusetts foreclosures already are up 122.9 percent (18,924 to date vs. 8,489 for all of 2005).
New Hampshire foreclosures to date are a low 753, but that’s a 181 percent increase over the 268 for all of 2005. The majority of this year’s foreclosures come from Hillsborough and Rockingham counties, both in the southeastern corner of the state.
Foreclosure is their only option.”
They are trapped, like a herd of elephants trying to escape through a small door, all at the same time.
I am as excited as anyone that foreclosures are increasing, yet another mark of a correction in NJ… but this fruit is hanging too low. yes, the numbers in 2006 are impressive compared to 2005, but historically (since, say, 1995) foreclosures are still quite low. with mortgage rates below 7.5-8%, i just dont see the HISTORIC foreclosure rates getting all that exciting.
But I thought the New York Metro area will always hold it’s value ;-)
Right now we’re only seeing the worst of the worst. People are still stretching and thinking something’s going to happen and they will turn the corner. For most, of course, that’s not going to happen. The banking system is about to get a real hard lesson in what lowering standards means to the industry, some very big fish are going to get eaten.
curiousd Says:
November 13th, 2006 at 8:24 am
“I am as excited as anyone that foreclosures are increasing…”
While it may be a sign of a correction, nevertheless, a little cold considering people are losing their homes.
evan,
fair enough… i meant more that i am happy to see the #s ‘returning to the mean’… similar to cancellations and HB margins… not happy to see people on the street.