From the Record:
Even affluent towns see rise in foreclosures
Home foreclosure actions nearly tripled in North Jersey’s wealthier communities last year, as housing distress continued to spread beyond the modest neighborhoods that have been the most afflicted.
In a sign of how rising unemployment, especially in the finance sector, has hit higher-income residents, towns from Englewood Cliffs to Saddle River to Wyckoff saw large percentage increases in the number of homeowners facing possible loss of their property — although the numbers remain small.
An analysis of 2008 foreclosure activity by The Record revealed that lenders were at various stages of retaking nearly 370 homes in upper-income towns, where the typical single-family home sold for more than $620,000 in 2007. That was up 177 percent from about 130 cases in 2007 — at a time when foreclosure activity overall throughout Bergen and Passaic counties doubled. And rising jobless numbers means foreclosures are likely to increase in the months to come.
…
“There’s an old adage — the bigger they are, the harder they fall,” said Robert Stemple, a Re/Max agent in Saddle River. “When you have a million-dollar house, you probably have a large monthly payment.”The trend continued in the first quarter of 2009, with the biggest percentage gains again in the highest-priced areas. Lenders filed roughly 90 foreclosure proceedings in those communities, out of nearly 1,900 more in Bergen and Passaic combined, according to the analysis of data provided by RealtyTrac, a California company that monitors foreclosure activity.
…
For many of these households, there is a lag between a job loss and missed mortgage payments. After all, higher-income homeowners are more likely to have severance payments, savings or even 401(k) plans they can tap for several months to pay the mortgage if they lose their jobs.Sylvine Marabotto of Consumer Credit Counseling Service in Cedar Knolls said she recently spoke with a homeowner who had lost a well-paying job after 25 years. His severance is about to end.
“We are certainly seeing people who have been able to pay for six or seven months, but they’ve run out of places to look for money,” Marabotto said. “They just can’t do it anymore.”
…
“When their reserves run out and they can’t find a job, or they can’t find a job at the same level they were earning, they won’t be able to afford their homes,” Fedder said.Some of the biggest jumps in foreclosure activity came in towns such as Saddle River, where the number of properties facing foreclosure quadrupled, from 15 in 2007 to 60 in 2008, and Wyckoff, where it rose from nine to 23. In Closter, 55 homeowners got hit with foreclosure notices in 2008, compared with 18 in 2007.
By year’s end, one in 108 homes in high-end towns faced possible foreclosure, compared with one in 300 during 2007.
…
But about three dozen homes in high-end towns were sold at sheriff’s auction last year, among the 577 sales overall. Bergen County Sheriff Leo McGuire said he has auctioned a number of homes with mortgages over $1 million and even the occasional property with a mortgage exceeding $2 million.
First!
Why do people do this?
Weeeeeeeee they are foreclosing on my million $ home, weeeeeeeeee
All the more reason to pay off your house. The bank can’t take it if you don’t owe them money. (Of course, nothing can stop the town.)
Back from Mexico, safe and sound, no sniffles or sneezes. A melee at Cancun airport as all now must be checked for fever before boarding a plane, even though there isn’t a single verified case of grippa porcina in all of Quintana Roo. Ludicrous idiots with ludicrous masks all over the f’ing plane too, as if anything could possibly help on a long flight.
“Even affluent towns see rise in foreclosures”
double speak
affluent = foreclosures.
let me vreak it down for the wee at heart. The so called “affluent” never twas. So called affluent towns neve twas.
cheap credit & getting in over your head either knowingly or unknowing via fraudulent inducement is the reality.
its all about illusion.
shattering.. as we speak.
God Bless the USA & LBJ
:)
SAS
“Roseland lays off 19 in April
Without state aid, taxes could increase by nearly 25%”
http://www.recordernewspapers.com/articles/2009/05/02/the_progress/news/doc49f9b6ae58684947161413.txt
“38 GC teachers receive pink slips”
http://www.hometownlife.com/article/20090503/NEWS08/905030576
-layoff notices to teachers in the Garden City Public Schools.
-Thirty-eight teachers have been notified that they will be laid off as the result of the state’s weak economy and its effect on enrollment.
moving to Penn for lower taxes?
not so fast chap.
“Teacher pension ‘tsunami’ expected across Pennsylvania”
http://www.pittsburghlive.com/x/pittsburghtrib/news/pittsburgh/s_623405.html
“Atlanta in ‘a fight for our survival’”
http://tinyurl.com/dy9hql
Reposting, since I assume this gets buried…
chicagofinance says:
May 3, 2009 at 11:04 am
BC Bob says:
May 3, 2009 at 8:45 am
“145, sean, you missed my post last thursday. one economist/fund manager called chris something on bloomberg radio said he thought the recession was ending by the end of april – one month behind me.” Chi, Patiently waiting for your comment regarding the above along with the possible ramifications for the lurkers.
Bost: Did you read my comment to Vic? I am not agreeing or disagreeing with you. I just do not support throwing an idea out there as if it is common sense, as both clot and you did. You also have to bear in mind that from my perspective, your opinion and clot’s opinion are held in higher regard. I attempted to fist you in the anus because you are credible. I would consider it a complement.
That said, just in the same manner that clot views the economy through his job, I am guessing that you view pricing action through the prism that you are most familiar, which is Forex. So I understand that much of what you see working day-to-day in your shop is going to assist you in building an opinion about stuff….fair enough…
You want my opinion…..as a fundamental guy, the broken record is always….RISK–> REWARD….well one of the completely new themes I’ve heard kicked around is not just a 2D graph (risk/x – return/y, but rather a 3D one……what is the Z-axis? Liquidity. So when we saw everything crash land over the last 9 months, we viewed just as a much a “liquidity” event as everything else.
What is my point? (stop laughing…or cursing)
In the same way that the market funneled almost straight down as liquidity was drained, the reverse can also occur / may be in the process of occurring.
If you’ve noticed, the last two market downdrafts have commenced right after the mid-quarter point when the hedgies began to act on their redemptions. So other than the October barf, we had the Nov 15 to Thanksgiving bowel cleanse, and the February 15th to early March colostomy bag removal. If this “liquidity” trend is worth noting, then you could argue that you would be holding your breath coming up on May 15th. Otherwise, the main driver right now is the “return to liquidity” trade leading into mid-May. Note, it is a broad opinion and I am not trading actively off of it. Also, I think hedgie redemptions are likely slowing, because #1 it is mostly done; #2 the weakest of the stronger hands are out; #3 the fear is transition to being out of an updraft as opposed to being stuck in a downdraft…..
Stupid kids
http://www.liveleak.com/view?i=08e_1241196019
foreclosure fever-its everywhere. I am ahem.. selling in ct and looking in the tri-state area, something smaller and maintenance free ;)
was out in california visiting and looked at entire communities that have been abandoned. unfortunately places you have no interest in living. brentwood.fairfield.etc.
I did here about some dream home raffles. one was in marin county, another now is right in the city.
My in-laws purchased tickets. they are going to opt for the cash award 1.8m, hope they know how to share ;) not sure about the actual site but here is a story at trendhunter.
http://www.trendhunter.com/trends/your-trend-keeping-the-dream-alive-link
do they not raffle houses in NJ? PA? or New England anywhere?
Florida cutting state employee pay 2%:
http://m.news-press.com/apps/pbcs.dll/article?AID=/20090503/NEWS0120/90503017/-1/WAP&template=wapart
chi (9)-
I would largely agree with you, up to the your point about market moves correlating with liquidity events. I think the economy is now so damaged that the dominant factor moving forward is rampant, deep and spreading insolvency. Based on the money supply as it stands, you’d think we’d be on the cusp of hyper-Weimar. Instead, we are simply staring at our navels, as the velocity of money has dwindled to nothing.
Then again, what do I know? I’m a Realtard who talks a contrarian game.
As I mentioned before, guests and lurkers at this blog should only rely upon bi’s opinion as reasoned market commentary.
13
as a high school janitor, i dosagree
Based on the money supply as it stands, you’d think we’d be on the cusp of hyper-Weimar
We are still leveraging (read money supply contraction/destruction, i.e deflation)on such a large scale, in the trillions to 10’s of trillions of dollars, while money supply is almost an order of magnitude behind.
The money currently being created is also not being allowed to circulate which further prevents it from having any inflationary effects.
Inflation will come in the future, but not while we are still deleveraging on the order of trillions of dollars
affluent or affluenza?
oh Lord please bless our chemicals.
anectdata:
another relative loses their job (high level partner position at a BigName accounting firm.)
No recession here, nothing to see, keep on moving…
sl
more anectdata:
approx 30% of the folks I saw on my overnight shift last night had no insurance ie are all “self pay” patients.
sl
More on the politics of mortgage mods. Cramdown is defeated for now and it looks like the banks may get a pass via a safe-harbor provision.
http://www.tnr.com/story_print.html?id=2589dfdd-029a-4b99-905f-2c881ddf5870
“approx 30% of the folks I saw on my overnight shift last night had no insurance ie are all “self pay” patients”
does that mean the qulaity of care change? or do they wait time for a room change?
survery says: yes
SAS
sas 21
Your bias is obvious and your lack of understanding of what I do is pitiable, at best.
Try painting your picture with a less tunnel-visioned, more accurate brush. You know nothing of what I do.
sl
sl,
don’t take my post personal. I wasn’t talking about you as an individual. Its the system/culture of medicine twas in reference. i.e the state of affairs.
everything i say, can be proven on the large scale. perhaps nine in your day in, day out.
SAS
affluenza! ha. funny. we joke about that all the time.
Haven’t been on the website in a while. Bought a house back in august of 2008 in Livingston.
Still happy with it. have 2 kids, 1 year old and 2 year old.
will probably live here for at least the next 10 years.
Will likely love it regardless of the cost.
I could go on, but if nobody cares, I won’t bore you.
I grew up in mendham. the town has completely gone to sh;t and you could not pay me to live there.
nothing is selling. took my parents 3yrs to sell their home and they got out pre-lehman..thank God.
I have friends who pay 50k/yr in property tax and they can’t even go to Kings supermarket for milk with out getting harassed by the nazi-cop shop that tickets every towny for 1mph over or a cell phone dig…etc.
The town councils of Mendham Borough or Twp, COULD NOT GIVE A RATS A$$ about the taxpayer/citizen… they raise taxes every year and piss money away like it grows on trees.
the small biz’s in town are all suffering and sales are down. the old school middle class residents of the 1980s are nearly gone. all you have left are delusional yuppies and uber rich.
there are no normal people left.
another radical change is that 20yrs ago, you’d see ONE dem political sign in the entire town…there were dozens of Obama signs, as the EssexCountyFication of Morris County continues, the explosion of facist, tax and spend politics infects Mendham and westward.
they blows money on the schools, but the H.S. is infested with druggies… meantime you gotta pay $10k/yr in tax on your POS cape.
ya’ll need to wake up and get out of NJ…it is the Titanic and it is going down fast.
Went out to dinner with Gator and Junior tonight with a buy one get one free entree from the Enterntainment book. Dinner with tip worked out to $20. Best of all, waiter told us to keep the coupon to use it again next time. Could not believe how many empty storefronts now exist on Bloomfield Ave. in Montclair. Meanwhile, town keeps on spending my money like there is no tomorrow. Catch all you clowns tomorrow.
“yall need to wake up and get out of NJit is the Titanic and it is going down fast”
Don’t tell Bill Clinton or he will move here.
This must be the slowest day ever. Strange, considering the weather outside is less than optimal.
Clotpoll says:
May 3, 2009 at 5:38 pm
chi (9)- I would largely agree with you, up to the your point about market moves correlating with liquidity events. I think the economy is now so damaged that the dominant factor moving forward is rampant, deep and spreading insolvency. Based on the money supply as it stands, you’d think we’d be on the cusp of hyper-Weimar. Instead, we are simply staring at our navels, as the velocity of money has dwindled to nothing.
clot: I am not disagreeing with you. More importantly, I am certainly not building any type of case positing that liquidity in this system is anything other than an artificial construct with limited sustainability. I thought I made such a point in saying quad shot espresso with half sugar.
That said, regardless of the future implications, we are viewing massive artificial stimulus, and it is working. Did I give an order of magnitude? No, but bear this in mind. As little a two months ago, we were off on the S&P 500 from the high. Yeah it has bounced 30%, but for absolute analysis, we can use the same denominator and see that we have only just retraced 12-13% of that 44%. Not very meaningful or impressive given that it merely reclaimed or “reflated” a weeks worth of liquidity starved returns.
I think our differing opinions amount to this:
clot: sh!t’s broke; these returns are bullsh!t
chi: sh!t’s broke; these returns are explainable
From “No Shelter” to bomb shelter or duck and cover:
Afghanistan is now a side show and the locus of anti-Taliban efforts needs to be Pakistan, but can’t be without sparking an overthrow of the government there.
Keep an eye out for press reports about degredation and concerns about problems with the “national command authority.” A Taliban takeover of Pakistan’s “special weapons” and their lack of certain safety and arming devices makes it possible for the weapons to be used should the government fail. One must wonder what the folks of Deli would do.
May you live in interesting times.
salty (25)-
I love to hear stuff like this. Nothing wrong at all with anyone making a smart purchase of a house for all the right reasons.
Congratulations. And I’m glad you’re enjoying your home and your community.
Clotpoll says:
May 3, 2009 at 11:09 pm
salty (25)- I love to hear stuff like this. Nothing wrong at all with anyone making a smart purchase of a house for all the right reasons. Congratulations. And I’m glad you’re enjoying your home and your community.
clot: WTF? Did Mrs. Clot just blow you?
Clot/Salty,
WTF? Someone buying a house as a, shudder, home — someplace to live and bring-up their children? Get with it, gentlemen. Isn’t a house supposed to be an overlevereged short-term investment?
chi (30)-
I think your “quad shot of espresso/sugar” thing pretty much nails it.
Maybe we can find agreement at the point at which we might agree by saying that shit’s broke…and these returns are explainable AND bullshit.
Chifi,
Somewhat appropriately, I read that and spit-out my drink I was laughing so hard.
Bottom line: we cannot ignore this information; even if we don’t like it…..selection bias…
http://www.bloomberg.com/apps/news?pid=20601103&sid=aW.1fpDTC4DM&refer=us
Shore Guy says:
May 3, 2009 at 11:13 pm
Chifi, Somewhat appropriately, I read that and spit-out my drink I was laughing so hard.
Shore: sorry ’bout the mess
Only 38 comments in 12 hours.
some house p0rn:
http://www.pbase.com/cameraguy/homes_of_plainfield_new_jersey&page=all
North Plainfield house p0rn:
http://www.pbase.com/cameraguy/historical_homes_of_north_plainfield_nj&page=all
Never assume a town/neighborhood can’t fall from grace.
Anyone knows details of MLS# 2677861? I’ve come across many listings from this agent, and they almost always seem to be missing one thing or other (e.g. very frequently year built, and sometimes addresses, or something like that).
The property looks pretty fancy — and is relatively lower than other comparable listings.
Realtor link is: http://www.realtor.com/realestateandhomes-detail/Green-Brook-Twp_NJ_08812_1108832113
Never mind… The front of the house had “233” sign, and the description included “tree top” section (West End Ave), so, Google Street View showed #233 W. End Ave.
We used to live in the Green Brook apartments a couple of streets below this place (in North Plainfield) — and used to wonder about climbing up the streets as a sign of progress. Never imagined these houses will come near an affordable range for us. I remember going to an open house by mistake (we were looking at a 2/3BR TH open houses) into a similar house in 2003, and was intimidated by the list price of over 650k.
May be the property is priced to sell and attracts a bidding war? It is priced close to an REO property, 10 Red Bud (539k vs 525k; 2001 vs 1996; less land vs more land; Tacky blue vs normal!).
S
salty,
ye i like Fleur de sel myself.
in any case, glad you have joyous memories in ye home and evermore.
lets hope property taxes don’t burden too much.
SAS
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