Foreclosure listings in New Jersey are quickly becoming unmanageable. Due to the rapid increase of foreclosure listings in the State of New Jersey, new legislation is being introduced to check out the loan officer before any more mortgages are being offered. This is due to the predatory practices of certain lenders who will approve loans for people who truly should not qualify. Predatory lending is a definite cause resulting in New Jersey having an overwhelming foreclosure rate.
New Jersey is also suffering from foreclosure woes due to ARM’s (adjustable rate mortgages) now hitting their peak. Many homebuyers took advantage of low introductory interest rates offered with ARM’s as a way to qualify for the mortgage. The rule of thought was to qualify since the interest rate and corresponding payments were low. This would buy the homewoner time to get more financial backing. However, the state of the economy in New Jersey, as well as across the country did not play into the hands of these same homeowners. Now the introductory rate has expired and higher payments are becoming due. These same homeowners are finding themselves not is a financial situation to be able to afford these higher payments.
Don’t misunderstand, many people still can qualify for a mortgage and are in the housing market. This is where a fully detailed foreclosure listing can produce some incredible deals, and in New Jersey these deals are readily available. So, if you are one of the many people in the New Jersey housing market, look to foreclosure listings as a means to find your next real estate investment.
Foreclosure listings are simply an index of properties which the homeowners have defaulted on the loan and the lender has now regained possession of the property. These homes are being sold for the amount of money still owing on the property. Many times the home is being sold for 10% to as much as 50% lower than their market value. The lender allows the home to be sold under market value for several reasons:
1. Lenders are not real estate agents, they truly do not like homes in their possession. If the home is in their possession, they are not earning any money from it.
2. The Lender wants to dispose of the property as quickly as possible, so they are willing to sell it for what remains “owing” on the property.
3. Lenders do not want to care for maintenance and other homeowner issues for the foreclosure properties.
Properties found on foreclosure listings can save you quite a bit of cash and reward you with instant equity. Find your New Jersey foreclosure listing, and save time and potentially thousands of dollars today!