Housing market analysts are expecting another increase in the number of foreclosed properties, including HUD foreclosures, in New Jersey this year. According to them, the state is set to face another increase of around 20% in its foreclosure supplies.
Prior to the housing market crisis, Trenton foreclosure listings and distressed property numbers in the rest of the state averaged between 24,000 and 25,000. In 2009, that average jumped almost three times and reached 65,000. And despite signs of an improving economy, analysts believe that the number will be even higher this year. According to them, it is the high unemployment level that will bring in more foreclosures to the area.
Another reason for the predicted increase in foreclosure listings in New Jersey is the figure for delinquency borrowers. Although the fourth quarter of 2010 showed declining delinquency numbers, the level remained highly elevated and much bigger than the average usually recorded in normal market conditions. Analysts stated that, if these delinquent borrowers failed to make their loans current, thousands more would be added to the foreclosure total of the state this year.
It is not only New Jersey which is expected to record high number of bank and HUD foreclosures in 2011, but most of the 50 U.S. states. The Mortgage Bankers Association issued a 2010 fourth quarter report showing that 8.2% of total mortgages in the country are delinquent. The figure is lower than the 2009 fourth quarter percentage of 9.5% and the 2010 third quarter figure of 9.1%.
However, analysts stated that foreclosure lists will still probably be higher this year than in 2010, mainly because of the massive number of unemployed all over the U.S. and the looming threat of the so-called shadow inventory that could enter the housing market this year. In addition, foreclosure cases that were put on hold during the fourth quarter of last year will likely get restarted this year and will add further to the nation's foreclosure totals.
For New Jersey, analysts have stated that the problem of bank and HUD foreclosures will be worse this year, but they did claim the several programs that have been put in place in the state to assist troubled borrowers could help prevent hundreds and even thousands from losing their properties to foreclosure.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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