New Jersey Foreclosure Homes Rising, Appearing in Suburbs
January 25th, 2008 by 
Joseph Smith
Following the trend of the rest of the country, New Jersey foreclosures rose in 2007, although the New Jersey foreclosure homes situation isn’t quite as bad as many other states. New Jersey currently ranks as number 16 among states with the worst foreclosure property rates, and its problems are blamed largely on the sub-prime mortgage crisis.
With so many homes bought using low-income, sub-prime mortgages during the housing boom of the earlier part of the decade, homeowners are now having trouble keeping up with the fluctuating interest rates that accompany these loans. This has led to many of these homes becoming foreclosure properties, or bank owned homes that have been repossessed.
In terms of specific locales, it is the urban areas of New Jersey that have bared the brunt of the situation. Trenton foreclosures, Jersey City foreclosures and Newark foreclosure homes have been coming onto the foreclosure real estate market in extremely high numbers, and they are contributing to the state’s overall high rates.
However, it seems that 2007 brought the foreclosure crisis to many suburban areas as well. Popular Somerset and Union counties experienced more new foreclosed homes in the first nine months of 2007 than they did in all of 2006. This hints at the fact that investors who bought homes in these affluent communities are also having trouble selling off properties due to the sluggish market. Unable to keep up with high mortgage payments, these properties are going to foreclosure auction or back to the bank that sponsored the loan.
For investors, buying foreclosed homes in New Jersey is a great bet. With a market that hasn’t experienced the full devastating effects of the foreclosure crisis as other areas have, investing here could be a very profitable endeavor, since the market doesn’t have to rebound as much as it does in other areas in order for sales to garner significant profits. Buying house foreclosures or bank foreclosures in desirable areas now for low prices could pay off big as soon as a year from now, assuming New Jersey doesn’t sink any farther into the foreclosure quagmire. The good news here is that experts don’t see that happening, so investors should take heed.
