From the Record:
North Jersey banks repossessed more properties
In banking, OREO is not a cookie, and there’s no sugary frosting in the middle.
It’s an acronym for one of the industry’s most unpleasant statistics, Other Real Estate Owned, which means repossessed homes and commercial properties. And it has been on the rise in North Jersey.
Repossessed homes and commercial properties held by the 10 largest commercial banks based in Bergen and Passaic counties nearly doubled to $53.3 million from $27.3 million in the past year, according to The Record’s analysis of financial reports filed quarterly with the government.
These include properties that banks acquired in sheriff’s auctions because the bids made were too low to cover the loans. They also included properties where distressed owners voluntarily signed over the deeds.
An increase of that size is “certainly not good,” said Rick Weiss, an analyst with Janney Capital Markets. “I think the rate [of bad loans] going in is probably slowing, but things aren’t being cleared out fast enough.”
…
Bauer said recently that 12.7 percent of New Jersey banks were “troubled or problematic” as of the end of 2011, up from 7.8 percent at the end of 2010. The ratio of troubled or problematic banks declined nationwide during that time to 11.1 percent from 13.2 percent.John McWeeney, president of the New Jersey Bankers Association, said New Jersey-based banks “are still relatively strong compared to other areas of the country” and their capital levels are “solid.”
…
Wayne-based Valley National Bank’s holding company said in a filing with securities regulators that its increase in OREO last year was largely due to one commercial property with a value of $3.5 million, which the bank acquired in the third quarter. The dollar value of Valley’s OREO rose to $21.7 million last year from $18.3 million.At Edgewater-based Mariner’s Bank, OREO increased to $8.7 million from $1.5 million, attributed entirely to repossessed commercial properties.
Community Bank of Bergen County’s OREO increased more than tenfold to $6.4 million from $604,000, with residential mortgages accounting for more than $5 million of the year-end total at the Maywood bank.
“A lot of what you are seeing now is loans that went bad in 2008 and 2009,” said Nicholas Ketcha, a managing director of FinPro in Liberty Corner. “It’s taken that long to get the properties to where they can take control.”
From the NYT:
Buyer Confidence: Portent or Blip
MORE than 200 people showed up for an open house at a town house in Cobble Hill, Brooklyn, last month, and the crowd, filled with stroller-pushing parents and young children, was so lively that an ice cream truck pulled up to join the happening.
The house, at 214 Kane Street, went into contract quickly, after the owners sifted through 14 offers, nearly all of them above the $1.875 million asking price.
In the West Village a few weeks earlier, more than 300 people lined up on a Sunday afternoon to see a sunny fifth-floor walk-up with two bedrooms, 15-foot ceilings and a $997,500 price tag. Eleven offers later, it went into contract about 20 percent above the list price.
Even though the most recent market reports show Manhattan real estate prices holding steady, as they have for more than two years, other signs indicate that the New York City market may finally be willing to stop flirting with recovery and commit wholeheartedly.
To start with, open house traffic for some properties has reached levels not seen even at the height of the market in 2007 and 2008. But buyers haven’t just decided to start looking at properties again; they’re actually buying. Bidding wars have become more common.
On the development front as well, sponsors say the pace of sales has picked up with the warmer weather. The number of new building permits for residential units, which dwindled to a trickle in 2010, has seen an impressive increase. For the first two months of 2010, no residential building permits were issued. For the same period in 2011, permits were issued for 52 units. This January and February, the number increased nearly 800 percent, to 457 units.
…
“If you were not cognizant of the underlying state of the American economy and you lived in New York — in this bird cage we call home — you would think everything is just rosy,” said Jeffrey E. Levine, the chairman of Douglaston Development. But given that the federal debt looms large and higher interest rates are around the corner, he said, “there’s no way of knowing if the recovery is as broad or as deep as we’d like it to be.”
Jonathan J. Miller, the president of the appraisal firm Miller Samuel, warned that buyer exuberance could be short-lived. With Wall Street bonuses much smaller than in years past, the surge in buying is not likely to last long, he said.
“Also, once we hit summer, we’re going to see a lot more distressed properties hitting the market,” he said. “Even though Manhattan is not a hotbed of foreclosure, the world around us will be, so there’ll be more negativity in the air.”
Looks like I will sit another year out “waiting” (some would say perpetually, libtard!) LOL. Seriously there is no hurry lets see which side of the coin these foreclosures take.
Will they be a slow dribble that the market consumes quickly as the economy improves or will price of fuel & other factors make buyers hesitant. In the former I still see flat to marginal price pressure to the down side , in the latter another 10% drop in my area by next spring (covers my rent to wait). Keep in mind I am in Vernon so there is no proximity to NY to help, jobs up here are few and far between, salaries below the mean for NJ. What say you ?
PS Grim will stop in flooring store today check on Alloc if you are interested?
from yesterday:
Grim: of the 22 windows, 2 are picture windows. quote was 8.5K
It’s all turning to shit. Most of today’s buyers are tomorrow’s tapped-out suckers.
Repossessed homes and commercial properties held by the 10 largest commercial banks based in Bergen and Passaic counties nearly doubled to $53.3 million from $27.3 million in the past year, according to The Record’s analysis of financial reports filed quarterly with the government.
If you need help with the big words, let me know.
[5] Gary,
I need help with the big words.
Often overlooked in the repossession debate is the 5 year divestiture rule. It doesn’t surprise me that banks were slow to take repossession because, in addition to the capital impairment, repossession started the clock running on the 5 year divestiture requirement. And the Fed says that it will not waive this rule under the new rental program.
With extensions, banks can hold onto foreclosed properties for up to 10 years
RE analysis from the brig.
http://luxuryhomesnj.com/blog/1st-the-good-news-in-westfield-real-estate/
Yes, Scott is an agent, but he is also pretty realistic. Not a rah, rah kind of guy and his observations conform to mine.
The market is a joke. Those buying off of FHA are putting down less than most of us would put down on a new car 15 years ago.
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The only reason to purchase now is if you are a believer in QE to infinity and have faith in your ability to successfully appeal your property taxes. The deflationists will be fundamentally right in the end but they ignore important issues. The currency crisis will end with a meeting of the major economies (plaza accord style) in which currencies are revalued against eachother. The dollar will take a massive hit. Whatever currency backs with gold will be the winner. BRICS or otherwise.
Iceland has forgiven mortgage debt. The black swan lives.
http://www.dailypaul.com/226437/video-iceland-forgives-mortgage-debt-for-population
Hi everyone. Long time no post. I own a house now and it has sucked the life and money out of me. No time to post, too much stuff to fix. Should have kept renting.
Anyway, can anyone recommend a place that makes and installs frameless shower doors and custom mirrors? Angie’s list isn’t much help as only a handful of companies in NY get high marks. Has anyone ever used or heard about Galossi? I have heard the best things about Fred Riley (Custom Design Shower and Mirror) and Michael’s Glass Company but both of them are based out of Philly area and don’t really want to travel to Central/Northern NJ to do just one set of doors/mirrors.
Funny, the way Black Swans have become commonplace events.
Sort of like 500 year flood zones that are underwater every time it rains hard.
Good Morning New Jersey
Good morning.
Baby decided she didn’t want to sleep anymore at 4:45AM.
I’m starting to think having kids is like buying a house in 2006. It felt really good while I was doing it but I’m paying for it now.
At least the baby is really cute.
My mortgage payment…not so cute.
Brain classic “I’m starting to think having kids is like buying a house in 2006. It felt really good while I was doing it but I’m paying for it now.”
PS figured you liked the”brain” typo so…………
my niece is a little over a year now with those big browns looking at you and arms raised to be picked up then she rests her head on your chest, you forget about everything else
Brian,
Enjoy it now. Only gets harder.
Anyway, can anyone recommend a place that makes and installs frameless shower doors and custom mirrors?
Call Craig at 973-907-3293, tell him Jim Bednar sent you. This dude built the Apple store in NYC.
He did the custom glass doors (frameless, ultra minimalist) for my super chic modern bathroom. Very high end worksmanship, very good prices. He can do the low iron stuff (Starphire) if you want as well, but it costs a small fortune. He did alot of custom glass work for my cousin, who recommended him to me.
Nom 23 “Enjoy it now. Only gets harder.” (It felt really good while I was doing it but I’m paying for it now.”)
in my experience it does not work out that way! LOL
Better get your basements ready for your kids to live in them.
Meat, consistent if anything.
Nom little ones little problems, wait till they start driving.
[28] mike,
Told her she can drive whenever she wants. After all, I can’t tell her what to do with her own car. ;-)
Is this coming summer season the summer of recovery or was that last year? I sorta forget… everything looks so muddled and twisted.
Gary 30 Not the summer of recovery but the summer of George. Still muddled and twisted http://www.youtube.com/watch?v=ZPS3qLtaFtw
Spent yesterday down the shore looking at prime waterfront Bay Head, Point Pleasant, and Brick. Asking prices seem to have come way down, and there are lots and lots of rentals. The beaches were pretty nice too kids playing, poeple already playing volley ball in Belmar. Should be a nice summer even with $5 gasloine.
Speaking of kids……Antonio Cromartie just had his 10th…..
grim, thanks
>>Call Craig at 973-907……
The website is rather minimalist too. Does he have a showroom or album where he can show you the options or do you basically have to come to him knowing exactly what you want already? I know 90% of what I want but would not mind looking at the various hardware he might use.
(Do you have a flickr/imgur etc album with your bath remodel pix you care to share?)
Anyone have recommendations for assisted/independent living senior residences in Bergen or eastern Passaic county? Starting to investigate places for mom. Pets permitted a must.
#27 Mike
and tiresome.
Jill 35 We investigated some places in the Union County and shore area , finally deciding to leave her home with a caretaker best decision we ever made. Than again everybody’s situation is different.
this isn’t news, but it is evidence of the fact that the Buffett Rule is already a stone-cold failure, even if you buy the Joint Tax Committee’s estimate of elasticity.
http://www.reuters.com/article/2012/03/20/us-usa-tax-buffett-idUSBRE82J17E20120320
BTW, I know it is old, but Fabius won’t read anything from the WSJ, so I found a Reuters link.
cersmchxn (36)-
You got the market here cornered on tiresome, bitch.
Please tell us again how the bankster puppet minstrel and his Chicago handlers are gonna lead us out of a structural debt deflation/collapse of epic proportions.
I think the only thing I want to invest in this year is Springsteen tickets at Met Life Stadium this autumn. At least I will get value for my money there.