From the Press of Atlantic City:
New Jersey foreclosure pipeline remains clogged
The number of homes entering foreclosure across the nation is at its lowest level in years, but a persistent backlog has left New Jersey stuck at year’s end with the nation’s second-largest percentage of homes in some stage of foreclosure.
Nearly 7 percent of New Jersey homes are in the foreclosure pipeline, behind only Florida at 7.1 percent, according to real estate data provider CoreLogic.
New Jersey also has the country’s second-highest number of homes — 10.6 percent — that are at least 90 days behind on mortgage payments.
For the most part, the high foreclosure numbers stem from a drawn-out foreclosure process and a severely backlogged pipeline of cases.
“The rest of the country, about 75 percent of the U.S., will have cleared out their foreclosure backlog by summer 2014,” said Jeffrey Otteau, of the Otteau Valuation Group, an East Brunswick, N.J.-based real estate consulting group. “New Jersey will probably be digesting, working and chopping through all of this until spring 2015.”
New Jersey’s foreclosure process typically takes a long time — 200 to 400 days on average, according to a study by Legal Services of New Jersey. But the process is now taking an average of about 1,000 days in part because of a past freeze on foreclosures and a subsequent logjam.
“You had a slow drip in the bathtub, but it had nowhere to go,” said Sam Khater, deputy chief economist for CoreLogic. “After a while it builds up, and that’s what happened in Jersey.”
The state’s well-off suburbs close to New York City have fared relatively well, Otteau said. But the state’s urban centers, including Newark and Trenton and its rural and exurban areas, including Sussex County in the north and Cumberland County in the south, have been hardest-hit by foreclosures.
Foreclosures due to damage from Superstorm Sandy, which devastated parts of Ocean and Monmouth counties in 2012, have also contributed to the uptick, Otteau said.
…
“Nobody’s paid any attention at all to New Jersey until recently,” said Robert C. Hockett, a professor of law at Cornell University.
Good Morning New Jersey
So, the foreclosure process in NJ is pretty much working as designed. Why is this news?
Every day there are new REO properties hitting MLS. For the next several years there will be a higher than historically normal number of homes being sold at sheriff sales in NJ. The problem will slowly work it’s way through the system and I will be busy for years to come.
Repost from yesterday.
Haha, this was priceless. It is titled Castles that cost less than an apartment in NYC.
http://www.pinterest.com/pin/63050463507036198/
5- fast Eddie, did you see this? I can only imagine what your posts would be like if you took your search to nyc. This post is no different than you questioning why this out of date home is 800,000 with 20,000 in taxes in the Bergen county locations that you are looking in.
6- they just took castles and compared them to apartments. With the way you look at real estate, you should never be able to get over this. What’s the old saying….location location location. That’s all that matters in real estate and that is why a crappy house is 700,000 in wood cliff lake.
3 – Problem is, if we were processing the pipeline at a rate similar to most other judicial foreclosure states, we’d be pumping them through at 10-20x the volume (and we would have been doing that for years).
Michael,
I love the townhouse in the Bronx in a war zone for just under 5 million. I’d rather push a dull steak knife in my neck than consider buying that f.ucking headache for whatever reason. With 5 million, I’d spread it over a basket of funds and individual stocks and call it a day. Unless you can afford a property management company to collect your rent every month, forget it. That, on top of the overhead and maintenance cost through natural causes or as a result of the activities of the “tenants” and you have yourself a colossal money pit. This is not for the amateurs.
Michael,
Bergen County is not Manhattan. Let me repeat it: Bergen County is not Manhattan. I know there are certain cheerleaders that would like to think otherwise but they’re just trying to justify their overpaid purchase. If one buys in Manhattan, that means they have the assets to do so.
On the other hand, a lot of pretenders convinced themselves they wanted to be hoodwinked and swindled. So, they diligently found a house tour guide, previously employed as a nail technician, to justify the loan the
huckstersbank was lending them (cough…) to fulfill their dream. Unfortunately, those of us who thought there was a process in place have had to put plans on hold while the children soiled their pants.But, again, as the saying goes, don’t hate the playa, hate the game. And I’m more than willing to play because I’ve been totally convinced, thanks to guys like you. As a result, the asking price on my house is now 30% higher than I originally expected. Thank you Michael, for opening my eyes to realize that someone else is going to fund my lifestyle move.
Bad enough losing a game at home that we had a chance to win or draw.
Fact that it gives Fabian bragging rights is especially odious.
Grim – had the best whiskey I have ever tasted the other night…you gotta try it. Stranahan’s Colorado Whiskey.
http://www.stranahans.com/
http://www.yelp.com/biz/stranahans-colorado-whiskey-denver-2
Just not enough energy going forward for us today. Wonder why Ben Arfa didn’t start.
Another year of Rex Ryan? I should have stayed on vacation.
haha, NYC apartments are funny. These people make high six figures, and confine themselves to the crappiest living conditions found inside the likes of Neward & Elizabeth. Oh but its all good. They eat at fancy restaurants down the road. I’d much rather have space to put my legs without worrying about tripping my wife.
Ah yes Ben, those Manhattan idiots making “high six figures” are just living in squalor… And your house in NJ is amazing, and you bought at the bottom, and you’re the smartest guy in the room.
Amazing.
The Guns of Montclair
http://www.northjersey.com/news/237317421_The_guns_of_Montclair.html?mobile=1&ic=1&iphone=1
9- fast Eddie, I have given up on you understanding real estate price to location. You clearly think all dirt is equal in value.
Also, the reason your house is now 30% more than you expected is due to the fact that your real estate appraisal skills are clearly about that percentage off. Welcome to reality.
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