High Foreclosure Rates in New Jersey: Investment Opportunity?
January 12th, 2007 by 
Joseph Smith
2006 has been a difficult time for many New Jersey home owners. In places like Bergen County and Monmouth County, foreclosure rates have increased ten times since 2005. Due to increased housing payments for those who chose an adjustable rate mortgage (ARM) option, many property owners have defaulted on their payments. Even with options to pay a more specific mortgage amount (pay-option ARM) or only the interest on their mortgage, borrowers could still not comply with the required payments.
Experts believe that one particular reason for the increasing foreclosure rates in New Jersey is the low loan-approval standard being implemented in the state during the housing boom. When buyers with not-so-good credit score availed of a loan, they agreed to pay a higher interest rate just to get the loan approved. The previously approved ARM interest rate of 7% is now at 11 and 12%.
Fortunately, only subprime foreclosure rates are increasing and are projected to slow down this year. Mortgage lenders have already made adjustments on their loan-approval standards to avoid aggravating the situation. In addition to this, New Jersey is not experiencing any economic meltdown: many jobs are available and businesses are still thriving.
In circumstances like this, real estate investors check out the market thoroughly for any bank foreclosure New Jersey that might be a welcome addition to their portfolio of investments. With the many available repossessed properties, real estate investors might just find several properties that are being sold at really low prices.
If you are interested in taking advantage of the current real estate market condition in New Jersey, you should also take heed. You should seek professional advice from foreclosures expert like Foreclosure Deals before making any decision to purchase or invest in any bank foreclosure New Jersey.
