A report released last week by RealtyTrac, a real estate information company and online marketplace for foreclosed and defaulted properties, said foreclosure rates in New Jersey jumped in August 2014. According to the report, the foreclosure process began on 4,500 homes last month alone, marking a year-to-year increase of 115 percent over last August.
While the news is naturally unfortunate for affected homeowners, it is good for people who are looking to buy a house. For prospective buyers, it means New Jersey’s housing market is flush with reasonably priced foreclosure and defaulted properties. In fact, according to the report, New Jersey has the fourth-highest overall foreclosure rate in the entire country.
If you’re looking for the most foreclosures in NJ, head south. Four of the five counties with the highest foreclosure rates are in the southern half of the state — Atlantic County, Cumberland County, Salem County and Camden County.
In fact, Atlantic City has the second highest rate in the country of foreclosures in a metropolitan area. According to the report, one in every 292 housing units in the city had a foreclosure filing in August alone. The report also noted a 71-percent year-over-year increase in scheduled foreclosure auctions.
New Jersey’s skyrocketing foreclosure rates appear to be in stark contrast to the rest of the country, whose filing rate for August was down nine percent from last year’s rate. So, why the sharp contrast in foreclosure rates? According to the New Jersey Association of Realtors CEO Jarrod Grasso, the answer is not all that remarkable.
“New Jersey has a judicial foreclosure process, which takes much longer to carry out and has caused (foreclosure) backlogs in courts around the state,” he told NJ.com. “We know that many homeowners have faced foreclosure in the last few years, so it makes sense that the cases are now starting to be processed.”
Either way, while the long-term numbers are indicating that the housing crisis appears to finally be leveling out here, NJ is far from being in the clear. Whether you are buying or selling a house in New Jersey, it is never a good idea to go through the process alone. New Jersey’s real estate laws are complex, and the advice and counsel of a seasoned professional is priceless.
Joel R. Spivack, Esq. has counseled New Jersey and Pennsylvania residents on financial, bankruptcy and real estate matters for more than 20 years. He will review your sales contract and negotiate the terms and final price, as well as help smooth out inspection issues, financing issues and titling concerns. Contact the Law Office of Joel R. Spivack today, toll free, at 866-286-5288, or visit him online at www.spivackrealestate.com.