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%
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.
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 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.
We Can Help! We have programs to help stop foreclosure regardless of your situation.
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
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
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)
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.
I've talked here before about what you should do if you are facing foreclosure and want to avoid it at all costs.
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
One thing that I find amazing is that while the media pundits constantly remind us of the sub-prime meltdown, the bursting of the housing bubble, the record number of foreclosure filings and the general doom of the overall real estate market and U.S. economy, they have no problem accepting new advertising from Countrywide, Quicken, DiTech and other mortgage lenders.
Read this article from Saturday's New York Times.
Consumer advocates say many ads are at best misleading and at worst steer consumers into risky loans with promises of low introductory rates that do not make clear that they could pay significantly more in a few months or years.
Tags : 
subprime : mortgage : foreclosure : 
media : 
TV : 
advertising
If you are facing foreclosure by your lender, one option you have is to give the deed to your home to your lender. This is called Deed In Lieu of Foreclosure. While this option to stop foreclosure makes sense, it may not be the best option for all homeowners.
When a homeowner has given the deed to their home in lieu of foreclosure to their lender, they no longer have title to or ownership of the mortgaged home. In New Jersey, under the state's Fair Foreclosure Act, the debtor homeowner needs to "voluntarily" surrender their property. This means that the homeowner must have received all proper notification by their lender of their intention to foreclose the loan.
It is important to note that as a homeowner you need to formally notify and document your intention of giving your lender your deed in lieu of foreclosure. Simply abandoning your property will not be sufficient.
Tags : foreclosure : 
deed : new jersey
Kathy at Shak & Jill asked a question on her blog today that not enough people are asking - what happens to all of the homeowners who have been foreclosed on by their lender?
It is impossible to turn on the TV or read the newspaper and escape someone from the news media drone on about the number of owners in foreclosure. While that number is large, I think Kathy has brought up the real story that we should be talking about - not how did we get here, or how bad is it out there, but what happens to the owners that have lost their home.
Homeowners are thrown into foreclosure for any number of reasons. 99% of the homeowners out there in foreclosure did not wind up in that position because they chose to stop paying their mortgage. More likely than not they experienced something such as a job loss, illness or other catastrophic event that caused a financial hiccup. That one missed payment then started to snowball into a larger and larger amount that eventually became so large it would be impossible to make up.
Owners who are foreclosed on have their credit ruined so they are unable to get back on their financial feet. The debt that they are saddled with as a result of the foreclosure makes it necessary for them to sell most of their possessions that are of value which include their autos. This makes getting to and from work an ever growing challenge and because of the damage to their credit they are unable to get a car loan or afford a used one that will run. Unable to get a mortgage they enter into the rental market and are forced to pay for a home but not experience any of the benefits that are afforded to owner occupants. Foreclosure can ruin a homeowners life and they should do everything they can in order to avoid this outcome.
Pundits - Instead of repeating how bad it is out there - please spend some time informing the rest of America what is happening to their friends, families and neighbors.
Photo Credit : spankyblu1
Tags: foreclosure : new jersey : 
real estate : 
homeowner help
This case was reported in the New Jersey Law Journal
New Jersey homeowners facing foreclosure will have to move faster to cure a mortgage default, under a federal appeals court decision.
The Third U.S. Circuit Court of Appeals held that the right to cure ends when the property is sold at auction, rejecting the owner's argument that it continues until the deed is delivered to the purchaser.
The ruling in the closely watched case resolves a more than decade-old split among federal bankruptcy and district judges in New Jersey.
"Having finally been given the opportunity to break what is a virtual tie between the New Jersey federal courts," the court held in its Aug. 3 decision that 11 U.S.C. § 1322(c)(1) does not afford the debtor a post-auction right to cure.The relevant provision, § 1322(c)(1), enacted as part of the Bankruptcy Reform Act of 1994, allows a Chapter 13 debtor to cure a home mortgage default "until such residence is sold at a foreclosure sale that is conducted in accordance with applicable nonbankruptcy law."
Some judges have interpreted that language to cut off the right to cure - to pay the arrears and bring the mortgage payments up to date - when the auctioneer's gavel falls, the so-called gavel rule.
Others have found a right to cure up until the sheriff hands over the deed to the winning bidder, which usually occurs later, once the auction price is paid in full, the "delivery-of-deed" rule.
Lawyers involved in the case say judges in the Newark vicinage were more likely to follow the gavel rule than those in Trenton and Camden.
The debtor, Vincent Connors of Matawan, defaulted on a home mortgage loan held by Deutsche Bank National Trust Co.
The bank foreclosed on March 4, 2004, and the property was sold to 41 Lakeridge LLC at a foreclosure sale on Nov. 10, 2004. Lakeridge paid 20 percent of the $330,000 auction price at that time.
On Nov. 14, Connors filed a Chapter 13 petition, which triggered the automatic bankruptcy stay and halted the finalization of the foreclosure sale.
His Chapter 13 plan, filed on Nov. 30, 2004, proposed to cure his prepetition arrears on the mortgage.
Connors did not, however, exercise his right to object to the foreclosure sale, or to redeem the property from the purchaser within 60 days of the filing of the petition by repaying the auction price plus interest and costs.
The 60 days expired on Jan. 19, 2005.
On March 9, 2005, Bankruptcy Judge Novalyn Winfield granted Lakeridge's motion to lift the stay, over Connors' opposition, explaining that Connors no longer had the right to cure the default and his right to redeem had also expired.
But Winfield stayed the ruling until Connors could appeal.
U.S. District Judge Dennis Cavanaugh affirmed on June 20, 2006. Noting the "schism" among courts in New Jersey on the issue, he applied the gavel rule and found Connors also waited too long to redeem under state law.
Cavanaugh granted the motion lifting the automatic stay and Connors appealed.
In affirming, the Third Circuit found "unambiguous" support for the gavel rule in the language of § 1322(c)(1).
It agreed with Lakeridge's and Deutsche Bank's argument that the term "foreclosure sale" is synonymous with the foreclosure auction. Connors argued it encompassed the entire process and ended only with transfer of the deed.
Though the auction cut off the right to cure, Connors still had post-sale remedies under state law, wrote Judge Maryanne Trump Barry, joined by Julio Fuentes and Kent Jordan.
He had 10 days to object under New Jersey Court Rule 4:65-5, and his filing of the Chapter 13 petition then extended his time to object or redeem to 60 days under §108(b) of the Bankruptcy Code, said Barry. But he let the opportunity go by.
The legislative history and public policy considerations also supported the gavel rule, Barry added.
The 1994 change to the bankruptcy law was meant to overrule an "aberrant" 1987 Third Circuit decision, In re Roach, 824 F.2d 1370, that cut off the right to cure at the time of the foreclosure judgment, Barry pointed out.
On the public policy side, the gavel rule is preferable because homeowners receive prior notice of the auction but not of the deed delivery, said Barry.
States are free to provide more post-sale remedies but in the meantime, "the gavel rule protects purchasers by avoiding an interpretation that turns §1322(c)(1) into a federal vehicle for divesting them of property rights acquired at foreclosure sales."
Tags: foreclosure : bankruptcy : law : new jersey
1. Do Not Avoid Your Lender
It is human nature to avoid any situation we feel we are not equipped to deal with. However, if you are behind on mortgage payments and need to stop home foreclosure to remain in your home, avoiding the situation is only counterproductive. Once the foreclosure process has begun, the only thing that will stop the foreclosure process is for you to do something. If you choose to avoid your lender and do nothing to stop the foreclosure, then the foreclosure process will inevitably take your home. Stay in touch with your lender, and provide them with current and accurate contact information.
2. When You First Fall Behind on Your Mortgage Payments, Write Your Lender a Hardship Letter
Lenders are people just like you and I. If some owed you money and could not pay, you would feel much better if they communicated with you and explained their current situation and when they may be able to repay you. Lenders are no different. Many homeowners who refuse seek foreclosure advice do not realize that by writing a Hardship Letter and sending it to your lender, you may me able to delay or even avoid foreclosure. If your financial situation will be improving soon, your lender may decide to give you some additional time to catch up your payments. The best way to stop home foreclosure is to avoid foreclosure altogether.
3. Ask Your Lender if They Can Offer You About Any Foreclosure Advice or Foreclosure Alternatives
You are not the first person to fall behind on mortgage payments, and you won't be the last. Many lenders have Workout Departments that can give free foreclosure help that can help you stop home foreclosure or avoid foreclosure altogether. Before you talk to an attorney or consider filing bankruptcy to stop foreclosure, find out if your lender can offer you free foreclosure advice and get you back on track.
4. If You Get Foreclosure Advice From a Third Party, Avoid Foreclosure Scams At All Cost
The big problem with a scam artist is that they look and sound like legitimate business people! There are more "Avoid Foreclosure" and "Pay Us To Stop Home Foreclosure" scams than ever more. As foreclosure rates rise and more and more owners seek foreclosure alternatives to help stop home foreclosure, the number of scams will only increase. The best way to avoid foreclosure scams to make sure you are dealing with a company that will at least provide an initial free consultation, references, and has been in business at least two years. Avoiding foreclosure scam artist that can ask for large amounts of money up front or promise to stop home foreclosure as soon as they receive payment can save you time and money.
5. If Possible, Keep Your Other Bills Current
There are many legitimate companies that offer financial help or loans for people in foreclosure. They can help stop home foreclosure by loaning the money you need to catch up on your mortgage payments or by refinancing your property with a new loan, thus paying of your lender and avoiding foreclosure. If you are behind on all of your bills, your credit score will most likely be too low to qualify for this type of loan, called a Foreclosure Bailout (a special type of loan designed specifically for people in foreclosure). I have seen consumers with a mortgage and several other small monthly payments (less than $20) lose their home because they stopped paying all of their bills. Avoiding foreclosure with a loan is one of the best ways to save your home, so if you can stay current on your other bills this is a viable option to stop home foreclosure and is some of the best foreclosure advice anyone can give you.
Tags : Foreclosure
If you are a homeowner who declared bankruptcy to stop foreclosure, you are probably sighing a sigh of relief. However you also may be feeling the pressure of making your new, larger monthly trustee payment. You may be asking yourself, "Can I sell my home even though I am in a Chapter 13 plan?" The answer is yes - But it is not as easy as calling us up and saying - "Rich, I want you to buy my home today".
There are a few things we can do to help. First, we can try and get the Trustee to lift the stay on your home and approve the sale. This is going to be hard to do, but not impossible. It all depends on you specific situation and on the total amount of secured creditors are listed in your case.
You also have the ability to voluntarily remove yourself from bankruptcy protection and we can try and negotiate a short sale with your lender.
Both of these options are available to homeowners who wish to sell their homes, but they also come with their own set of risks which must be weighed. It is important to understand the results of the decisions you make when selling your property, stopping foreclosure or declaring bankruptcy. You should always weigh all options available to you and consult with a qualified attorney.
Unless you have been living under a rock for the past 18 or so months you have to know that foreclosure rates across the nation have been skyrocketing. Many of the experts are blaming the low interest adjustable rate loans that people took out when the market was red hot. These great teaser loans allowed them to buy homes they normally would not be able to afford. Mortgage brokers that were writing inappropriate loans for home that they had to know people could not continue to afford are also to blame.
Thank goodness we have all learned our lesson and are changing our ways!
Then I saw this press release from First Atlantic Mortgage Services.
Looking to become a home owner? First Atlantic Mortgage Services (www.[URL INTENTIONALLY REMOVED].com) offers two new loan plans to help mortgage applicants buy the house of their dreams -- no matter what the cost.
Nice job - keep throwing new people into the foreclosure pool for the sake of making a buck. There is surely a special place in hell for these people.
Tags: Foreclosure : Mortgage : New Jersey
UPDATE: 4:55 PM 7/19/2007: At least these guys are starting to get it.
Recently the New Jersey Appellate Division issued a decision that is important for family members who inherit property when their relatives pass away. What did the Court say? When you inherit property, make sure you