Answers For Owners Blog

New Jersey Foreclosure Numbers

2008-01-31T17:53:57Z

It is no surprise that Nevada, Florida, Michigan, California and Colorado are at the top of list of states with the highest foreclosure rates in 2007. I was interested to see how us here in New Jersey stacked up:

New Jersey
Households in some stage of foreclosure in 2007: .902%
2007 foreclosure filings: 53,652
Percent change from 2006: 34.06%
Percent change from 2005: 52.75%

Can't Make House Payment - How About Your Credit Card?

2008-01-04T16:09:26Z

Many homeowners are feeling the double pinch of being unable to make their monthly payment obligations. Many people refinanced their homes and used the appreciated equity to pay off high credit card balances. Unfortunately after the cards were paid off, many people charged up large balances again. What happened next? Refinance the house again and pay off the cards. Now, with the market in the toilet, their homes and their cards are maxed out and they are unable to make either payment.

See this report from the Associated Press about the sharp increase in unpaid credit card bills.

Agent Commissions Holding Steady

2008-01-03T15:56:36Z

Home sales have fallen throughout most of the country, but real estate agent commissions appear to be holding steady at just over 5%.

The total amount of commissions paid to agents and brokers dropped this year as home sales tumbled. Agents are expected to collect $55 billion in commissions this year, compared to about $65 billion in 2006, $68 billion in 2005 and $61 billion in 2004.

Americans paid $19 billion more in commissions in 2007 than in 2000 largely because of the surge in home prices during the boom. But Realtors aren't celebrating. The number of agents ballooned during the boom when business was plentiful. These days, listings often linger for months.

Would You Rather Lose Your Home Or Your Car?

2007-12-07T08:28:10Z

Over at AllFinancialMatters JLP is discussing a recent Wall Street Journal article about the higher rate of people falling behind on their car loans.

If you are a homeowner who is falling behind on your home and your car, let your car go. Stop making payments, let it get repossessed, and throw all of that car payment money towards keeping your home out of foreclosure. Often times we see homeowners who are about to lose thier house making sure they keep their $500+ car payment current.

Its better to deal with a deficiency from a repossessed car then it is to deal with a foreclosure.

Rate Freeze Leaves Most Homeowners Out In The Cold

2007-12-06T17:37:18Z

The latest government bail out proposal reminds me a bit of Seinfeld. It is expected that the President will announce that the government has struck deals with some of the larger lending institutions where they will freeze the teaser rates *on some* of their subprime mortgage loans. Not everyone with an ARM that is about to rest will have their low introductory rate frozen for the next 5 years though.

If you are able to make your current teaser payment, and will also be able to make your adjusted payment - No Freeze For You

If you are unable to make your current teaser payment, and you will not be able to make your adjusted payment - No Freeze For You

Only those who can make their current teaser payment and will be unable to make their new adjusted payment will be eligible to have their payment frozen for the next 5 years.

Step to the left.

New Jersey's New Foreclosure Prevention Program

2007-10-31T19:05:45Z

New Jersey announced a new foreclosure prevention effort to help thousands of the state's borrowers who facing foreclosure.

In addition to counseling and financial help to owners, a new task force has been created which will study and find solutions to troubled mortgages. There will also be a $433 million mortgage refinancing bailout.

There are close to 8,000 New Jersey borrowers with subprime mortgages that went into foreclosure in 2007 and there are another 11,000 who are close to three months behind.

Builders Dropping Prices - Where Does That Leave You?

2007-10-11T13:38:13Z

With the way the market is going, builders are slashing prices of their existing inventory and offering incentives unheard of months ago.

For homeowners who jumped in at the height of the boom, the discounts aren't so good. In Quayside Court, a quiet cul-de-sac in Huntington, many residents who bought last year suddenly own homes worth a whole lot less--making it hard for anyone who has to refinance, sell, or borrow against the equity.

BusinessWeek story

Are You Behind On Your Mortgage?

2007-10-08T19:22:06Z

Are you behind on your mortgage?
Are you worried about losing your home?
Are you trying to stop foreclosure?
Do you have 1,2 or even 3 mortgages on your property?
Have you tried to obtain funds to bring your loan current without success?
Is your lender refusing to accept your payments?
Are you worried about having a foreclosure on your credit report for the next 10 years?
Do you need help FAST?

We Can Help! We have programs to help stop foreclosure regardless of your situation.

To contact us now for immediate help - Click Here - or call (888) 661-0914 to talk with a foreclosure prevention professional.

Bargains At The Sheriff Sale - Really?

2007-10-01T15:55:47Z

This Saturday, the New York Times had an article about foreclosure auctions which explained that there are not as many bargains at these sales as one would think. Even with the record number of foreclosures happening across the country, homes in foreclosure only represent 2% of all mortgages.

Many people believe that with all of these homes going into foreclosure that it is easy to find bargains at the sheriff sale. I can tell you from experience, it is not. I have seen many inexperienced first-time buyers, or novice investors, attend sheriff sales and either pay too much for the property because they didn't do their research before hand to know what the property was actually worth, learn what repairs the place needed or they just got caught up in the excitement of bidding (what is an extra 1, 2, 5 10 thousand+? - I am still getting it at a steal!)

The pitfalls of buying at the sheriff sale is not reserved to people looking to buy a home for their family to live in. Novice investors lured by the prospect of making a large profit also fall victim at the sale. From the NYT article:

Many investors have a real estate or construction background. Others sign up for classes. After taking a seminar in buying foreclosures, Todd Vela, a salesman for a nutritional supplement wholesaler, bought two houses nearing foreclosure last fall not far from his home in Grand Rapids, Mich. He said he paid about $20,000 for a dilapidated four-bedroom house in a neighborhood where other properties are worth triple that. He said the house needs $25,000 in repairs, including a new roof and new kitchen, and he hopes a contractor will buy it as-is for about $40,000, though he would take less. On the second home — an 1,800-square-foot four-bedroom — he paid about $60,000 and made $5,000 in cosmetic improvements. He hopes to sell it for about $90,000. Even though Mr. Vela has not been able to sell either house, he remains upbeat about buying foreclosed properties and intends to resume shopping once he sells one of his investments.
“I’ve been good on picking up properties, but I haven’t been good on an exit strategy,” said Mr. Vela, who paid cash. “I’ve had to hold them longer than I originally liked. That’s O.K. That’s part of the game. It’s affected my holding times but not my profit.”

The current real estate market is unstable and extremely volatile. An increasing number of people that we work with are investors who got into the market at the top and are either at risk of losing their investment property in foreclosure, or are bleeding money each and every month.

If you are a homeowner or investor that wants to sell your home or investment property contact us today.

Tags: "investment property" : rental : sheriff sale : auction

Don't Make Your Foreclosure Problems Worse

2007-09-28T16:35:11Z

Facing foreclosure is an event that puts an unbelievable amount of stress on homeowners. Before you do something like Ms. Christman is accused of, stop, take a deep breath and honestly look at your options. Before you spend $2.81 and find a book of matches, call 888-611-0914 or fill out this form.

Gaines Twp.- Kent County Deputies have arrested the homeowner for the September 1st fire at 6825 Deer Cove Drive.

Cheryl Marie Christman, 38, was arrested and is being lodged in the Kent County Jail for intentionally setting fire to her home. Fire investigators believe that Christman was attempting to collect insurance money because the home was going to be foreclosed four days later.

Christman was arraigned this afternoon for the arson charges. Bail was set at $20,000. Her preliminary court date is set for Oct. 1st at 2 p.m. reported by WZZM13

Tags: foreclosure : fire

Working Hard and Posting Light

2007-09-26T19:32:37Z

Sorry about the lack of posting as of late but we have been really busy working on a few purchases. In one matter we are working with an owner facing a foreclosure sale in the next week. The house in question needs some work and owner is about $15,000 behind in payments, penalties and interest. We are bringing those current and giving them some cash so they can move on with their life. Time is of the essence here so most of our time has been spent dealing with the mortgage lender, and inspectors and contractors.

Posting will resume at a more frequent pace soon - In the meantime, take a look at this post by The Consumerist which gives some of the deceptive advertising language lenders have used and borrowers should watch out for.

Tags:mortgage : new jersey : sorry (for not posting)

Foreclosure Help

2007-09-19T19:31:50Z

At least 8,000 of the 143,898 New Jersey borrowers who opted for subprime mortgages went into foreclosure in the first half of this year.

Of the 15,426 first-time foreclosures filed in New Jersey in the first six months of this year, 53 percent involve borrowers with adjustable rate mortgages. Nationally, the figure is 37 percent for the same period.

Black and Hispanic borrowers, who hold 41 percent of subprime loans, have been hardest hit.

A 2005 Freddie Mac survey found 61 percent of delinquent borrowers did not know there are workout options, and significant percentages of those borrowers did not return lender phone calls out of embarrassment or a lack of faith that anything can be done to help them.

The Federal Housing Administration will provide information on home ownership, mortgages and dealing with lenders on Sept. 29, from 9:30 a.m. to 2 p.m., at Essex County College, 303 University Ave., Newark. People can register by calling 1-800-CALLFHA.

Facing Foreclosure? Bad Loan? Sue Your Broker

2007-09-06T16:10:55Z

I've talked here before about what you should do if you are facing foreclosure and want to avoid it at all costs.

Talk to your lender
Talk to HUD
Refinance
Declare bankruptcy
Negotiate a short sale
Sell your home fast

here

A growing number of private lawyers, with help from consumer-rights groups and legal-aid lawyers, are pursuing legal relief for borrowers who got loans they had little chance of repaying and, the lawyers argue, shouldn't have been granted. Taking cases on a contingency-fee basis, these lawyers are giving borrowers the chance not only to stop foreclosure and rescind the loan, but also to seek damages for abuses in some cases. The aim is to prove that lenders granted fraudulent or "unconscionable" loans with terms skewed heavily in their favor, or to fight abuses by servicers such as phony fees that cause homeowners to default. The lawyers handling these cases are taking them on a contingency basis meaning they only get paid if they win. That means that many homeowners who pursue this course of action may not actually get an attorney to take their case unless their particular circumstances are a "slam dunk" win for the attorney.

Homeowners considering suing their broker for their foreclosure need to remember that once the foreclosure action is filed, there is a limited amount of time to find a solution. Unless you have a remarkable set of circumstances - Don't waste your time trying to get an attorney to take your case. However if you do think that your case has merit, find an attorney qualified to handle wrongful foreclosure claim. This is a new area of law that not many attorney will know how to handle. Contact your local bar association and ask for a list of referrals. Also keep in mind that if you proceed and file a lawsuit against your broker/lender, and you lose, you may be required to pay the other side's legal fees.

Tags: foreclosure : mortgage : lawsuit : fraud : broker : law : new jersey

Beat The Competition - What Sellers Need To Do So They Can Sell

2007-09-05T10:43:22Z

Gregg Swann at BloodhoundBlog posed an interesting question a few days back - What Can Sellers Do Differently To Get Their Houses Sold?

In his post Greg uses a hypothetical situation, although in much of the nation I have to believe the suggested scenario is true, where there are three houses on the same street that are for sale. Each of these houses comp to one another (same sq ft, bed/bath construction) and they are all priced within $1000 of each other.

Now for the kicker - NONE OF THE HOMES ARE SELLING The first house is in the best shape, has the most curb appeal and is clearly the first choice if a buyer was going to pick one of these three. The second house needs some updating in its paint but is a solid value for the price. The third is a rental that has not been updated in years and has been vacant for months. The last tenants had to be evicted and damaged the interior.

Clearly, even the best of the three is overpriced for this market. How can we tell? Because it isn’t selling, even though it’s the pick of the litter.
What does that say about house number two? And what conclusion might the seller of dowdy, run-down house number three draw, if he were of a mind to draw conclusions?
Here’s a better question: What might the seller of house number three do differently, if he actually wants his house sold?

Drop the price and unload the problem. Homes are selling in this market. In August 2007 there were 490 Monmouth County homes that sold. As a seller if you want to be included in that number of monthly sold homes, you need to start to think about being flexible in either your price or your terms.

If you have the ability to be flexible and want to sell your property, contact us today.

Tags : "sell today" : "real estate" : fsbo : rental

New Jersey Building Permits Decline

2007-09-04T10:25:59Z

According to NJBIZ the number of building permits that were issued in New Jersey June and July 2007 fell by 33%. I guess the real estate slump, slow down, disaster, call it what you will, has taken hold in the garden state.

Builders are tuned into the real estate market. Accordingly when they believe that a real estate slump has started to end, they will begin to pull more building permits. They in turn will build more and more homes. However, when they see a glut of inventory in the market, are not able to sell their newly constructed homes, and are sitting on large tracts of property, they will stop paying to have permits issued.

If the builders have stopped pulling permits because they cannot sell their new homes, how are owners of older homes going to be able to sell their property in the near future?

Tags :building : construction : real estate : new jersey