Why Jersey’s foreclosure crisis is cause for celebration to some

Foreclosures are at a 11-year high across the state

New York Weekend Edition /
Mar.March 04, 2018 09:00 AM

(Credit from left: Taber Andrew Bain, 401(K) 2012)

The New Jersey housing market marches to the beat of its own drum.

As foreclosures nationally hit an all-time low, New Jersey’s housing market is seeing repossessed homes reach a 11-year high. Of the state’s total housing supply, nearly 2 percent of homes were in foreclosure in 2017 and, between November and December last year, the number of homes owned by the bank went from 1,448 to 2,308, according to the Wall Street Journal.

Part of the reason is the state’s system of “judicial” foreclosure, which means repossession of a home must wind its way through the court system — a process that can take years — so homes that went into foreclosure after the financial crash in Jersey are only now making it to the market.

“The pig is now finally at the end of the snake,” said the New Jersey Bankers Association’s Michael Affuso to the Journal. “We had the extraordinary slowness of foreclosures occurring at the judiciary, and that problem has reasonably resolved itself.”

New Jersey’s housing market is increasing low on supply, so buyers are welcoming a spate of new properties and many see the uptick in foreclosures as an investment opportunity.

“There’s a lot of experienced investors who are buying [bank-owned homes] and some new people are buying them believing they are going to be investors,” New Jersey Realtors’ Christian Schlueter to the Journal. He pointed to one recent repossessed home which received eight offers in just three days and closed over the asking price, despite being a fixer-upper that would need extensive renovations.

Most investors are converting the bank-owned homes into rentals for former homeowners who lost their houses. [WSJ]Erin Hudson


Related Articles

arrow_forward_ios
(iStock)

Mortgage requests surge ahead of Thanksgiving

Mortgage requests surge ahead of Thanksgiving
Vanke US managing director Kai-yan Lee, RFR’s Aby Rosen and 100 East 53rd Street (Photos via Foster + Partners and Getty)

Vanke seeks to remove RFR from Midtown condo project

Vanke seeks to remove RFR from Midtown condo project
Hippo founders Assaf Wand and Eyal Navon (LinkedIn)

Home insurance startup Hippo raises $350M

Home insurance startup Hippo raises $350M
Prices increased 6.6 percent year-over-year in September (iStock)

US home prices surged 6.6% in September

US home prices surged 6.6% in September
From left: Edison Properties CEO Robert Selsam, Ironstate Development's Michael Barry, Stellar Management founder Larry Gluck (LinkedIn; Gluck Family Foundation)

These developers could benefit the most from Soho’s rezoning

These developers could benefit the most from Soho’s rezoning
176 North 6th Street and 16 South Portland Avenue in Brooklyn (StreetEasy; Google Maps)

Brooklyn luxury market surges with nearly $73M in contracts

Brooklyn luxury market surges with nearly $73M in contracts
1045 Madison Avenue and 300 Central Park West (The Benson; Wikipedia Commons)

Manhattan luxury market shows signs of progress with 25 deals

Manhattan luxury market shows signs of progress with 25 deals
TikTok's biggest stars include (from left) Bryce Hall, Griffin Johnson, Addison Rae, Charli D'Amelio and Dixie D’Amelio (Getty)

Firm that manages TikTok party houses goes public

Firm that manages TikTok party houses goes public
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...