The Town Broker

Westfield Foreclosures? A Sign Of The Times.

Foreclosures continue to be a problem in New Jersey. According to Realty Trac (the nation’s leading source for foreclosure data and information) NJ was ranked #11 nationally in terms of foreclosure activity for the month of July. Right here in Union County, we have more than our fair share. But many of us think the issue is contained to the urban towns on the eastern and western ends of the county.

And increasingly, they’d be wrong.

Are the more affluent communities like Westfield immune from the county’s foreclosure epidemic? Unfortunately, the answer is no. While the number of mortgage defaults is relatively low compared to other hot spots in the county, new defaults in Westfield have risen in recent months.

What’s going on? And more importantly, what should distressed homeowners do?

Westfield Mortgage Delinquencies & Foreclosure – Getting Perspective

It’s important to step back and understand that when the media talks about “foreclosures’, they are often talking about 2 different things: 1) actual foreclosed properties, and 2) mortgage delinquencies. Recent estimates are that nationally, 1 out of every 7 households with a mortgage is either in some stage of foreclosure, or delinquent with the mortgage payment.

*Pause* Think about that number for a moment…it’s staggering. If you left your house today and drove down the street until you came to the 7th house, how long would it take? That’s the size of the problem nationally.

The government likes to focus on how their programs are reducing the total number of actual foreclosures. And while that’s a good thing, the number of homeowners falling behind on their mortgage is going up.

The graphic below shows that here in Union County (#2 behind only Essex Co. for the most foreclosures in NJ), we have a higher level of foreclosure activity than exists on either the national or state level. I don’t know how you feel about it, but to me, that’s kind of a big deal.

The next graphic shows the towns in Union County where the foreclosure activity is heaviest. And when you look at it, something startling is beginning to happen. Westfield, which has been trending upward each month in terms of new foreclosure activity, has now broken into the “top 10″ for the heaviest foreclosure activity in the county. Granted, the numbers are on a dramatically different scale than in some of the other towns. But it’s a trend that’s moving in the wrong direction.

Why Westfield you ask? As I talk to those neighbors facing foreclosure, as well as attorneys and other professionals dealing with this issue locally, I end up with the same conclusion: “It’s The Economy, Stupid!”

Sure…there has been the occasional case of someone who purchased a house beyond their means with an exotic mortgage product that blew up in their face. But more often, I’ve heard stories about good people who have experienced unemployment, underemployment, or an unexpected health issue. (And occasionally, all 3.) These crises have seriously challenged people’s ability to pay their mortgages on time.

But unlike some of the towns on the list with higher levels of foreclosure activity, many Westfielders had resources that carried them through…until now. At some point resources run out, and things begin to slip out of control.

If You Or Someone You Know Is Facing Foreclosure, Get Help.

The most important thing to understand if you or someone you care about is facing foreclosure is that time is of the essence. There are a wide range of options to help ranging from mortgage modification, to short sale. Not every solution requires selling your home… in fact, many don’t. But regardless of which solution you chose, they ALL take time end expertise. And once you’ve received a mortgage delinquency notice, the clock is running.

Feel free to visit another foreclosure prevention blog that I write to find resources that can help. Or, call me directly (908-216-4836). I’m one of the few broker/agents in this market that has the specific training and experience needed to get through these kinds of challenging situations.

But whatever you do, don’t just stick your head in the sand and hope things get better on their own. They usually don’t…

Tags: Foreclosure, Mortgage Delinquency, Westfield

Now This Could REALLY Be A Game Changer…

Earlier today, I was showing homes for sale in Union and Essex Counties. I have an investor looking to buy, and there are some really good opportunities out there at the moment. The sad part is that these were ALL distressed properties…bank owned or pre-foreclosure.

Now you might remember that only yesterday I posted a story saying that distressed property sales were not as big a problem in NJ as in other states. I even went so far as to say that in some Union County towns, there weren’t enough out there to have a significant impact on home values.

I still stand by that claim. But in several Essex and Union County communities there ARE distressed properties…LOTS of them. I learned a long time ago that there is a story behind each of these homes. In most cases, distressed property sales are the result of decent, hard working people, who met with an unfortunate twist of fate (can anyone say unemployment?!)

As I drove home, I listened to the evening news on the radio. This story really caught my attention. Bank of America announced a bold new plan today to not only modify troubled mortgages, but in some cases, FORGIVE some of the mortgage principle.

Mortgage Debt Forgiveness Could Be A Game Changer.

At the moment, the program is limited in scope. It’s only being offered to borrowers who received loans from Countrywide Financial, the biggest and one of the most aggressive lenders during the housing boom. (Incidentally, Bank of America bought Countrywide in 2008.) But this is one of the first programs I’ve heard  Read the rest of this entry »

Tags: bank of america, Foreclosure, mortgage debt relief

Are Foreclosures Hurting YOUR Property Value?

We’ve all read about the growing number of foreclosed properties out there. According to the Mortgage Bankers Association (MBA), one in 10 borrowers is seriously delinquent on their mortgage, up from one in 16 borrowers a year ago, and one in 33 two years ago. Increasingly, I’m being asked whether or not all these distressed properties are having a negative impact upon existing home values here in Westfield and our surrounding Union County towns. The short answer is…maybe. It all depends on where you live.

Union County Foreclosure Levels Among The Highest In The State.

It’s important to understand that while foreclosures are a big problem nationally, they are not as common here in New Jersey. Nationally, over 50 percent of all foreclosures are concentrated in only 4 states… California, Florida, Michigan and Illinois.  NJ ranks only 39th out of all 50 states in total reported foreclosures. That’s the good news. But their numbers are growing here in NJ, and a large number of distressed property sales CAN pull down the value of neighboring homes. That’s the bad news.

According to Realty Trac, the nation’s largest provider of foreclosure information, Union County ranks 3rd highest in terms of NJ’s reported foreclosures…behind only Essex and Ocean Counties. That number concerns me. But the number of new filings varies dramatically across all Union County towns.

Realty Trac Heat Map

Realty Trac also maintains this “heat map”. The map shows the concentration of new foreclosure filings for the month of February, 2010. What you see here is that new filings are ABOVE THE COUNTY AVERAGE in some towns, but SIGNIFICANTLY LOWER in others. In the towns with the highest concentrations, I’m seeing property values suffer. In towns wil the lowest levels, I’m not seeing any significant impact.

The Take-Away

Depending on where in Union County you live, foreclosures may or may not have a negative impact your property value. If you have a question about a specific property, feel free to contact me. I’d be happy to provide a price opinion for you.

Tags: Foreclosure, Realty Trac, Union County, Westfield