No matter the area of New Jersey, Bergen County, Burlington County, Camden County, Essex county or Middlesex county or anywhere in between no area in New Jersey has been spared the results of skyrocketing foreclosures which was created by the national mortgage collapse and the negative effects it had on property values across the country.
New Jersey with its unusually high income and punitive tax structure has felt more of an impact than most other states. Every price range has been affected and no region has been left unharmed by the millions of risky sub prime mortgages provided to borrowers who could not make their payments.
You should be buying NJ foreclosure listings now. New Jersey's has the distinction of being the most densely populated state in the country and one of the slowest growths of new residents in the United States. The overall population of New Jersey has increased at a mere 1/3 the national average (1% annually) which in other circumstances would be a leading indicator of a glut in the housing market. Instead New Jersey situation is a leading indicator of a needed pricing correction. This makes real estate in general and foreclosures in particular good investments during times of financial uncertainty.
Read more about how to buy foreclosures and educate yourself on the communities you are most interested in buying a foreclosure and start shopping here for the foreclosure home that meets your needs. If you are facing a pending foreclosure call a local real estate professional and determine what types of options you have. Your options will depend on your particular situation. Other variables in New Jersey include where a home is located, density of that areas population, which can vary even in New Jersey, how much is owed on the home and how much the particular home is worth in today's market.
The unemployment rate in New Jersey is approximately 10% higher than the national average. The slightly higher number of unemployed results in an equally higher than average number of foreclosures. This number is artificially deflated as more residents leave the state in search of employment in tax friendly states in the south.
Q. Does this mean that people in these areas don't pay their bills or that there are no jobs in these Cities?
A. No, this is because New Jersey is the most densely populated in the entire country and the number of foreclosure opportunities coincides with the population and therefore the higher than average number of mortgages and defaults on those mortgages.
Q. Does the high number of foreclosures mean that people have given up or are leaving New Jersey?
A. Partly, New Jersey has been cursed with its own success with higher than average median income there is a higher than average percentage of unemployment which spikes during economic down turns. Unemployed residents are more likely to migrate to other states and New Jerseyans are more migratory than most states.
Q. Does this mean that the average home in New Jersey has lost more of its value than in other places?
A. Slightly. People are more likely to let their home go to foreclosure and walk away the higher the percentage of lost equity and the more upside down they are on their mortgage. Recent initiatives have also created an environment which has placed the majority of the blame on the banks and removed the financial stigma of being foreclosed on.
Q. Why would New Jersey be affected by a higher number of properties losing their value?
A. With a higher than average number of people moving out of the state, vacancies are more common while banks struggle and the market corrects itself. More houses = More Mortgages = More Defaults = Less value.