Second home foreclosures in Southern New Jersey are showing noticeable increase in number in bank foreclosed homes listings. Statistics showed that second houses have become a part of the foreclosure problem in the area. Many houses in Southern New Jersey are unoccupied year-round.
According to experts, second home foreclosures may be less traumatic and distressing because it usually means that owners of these properties are losing their retirement or vacation property and not their primary residences.
Because of the growth in the number of second-home foreclosures, RealtyTrac, which collates foreclosure data across the United States, has launched a service for property renters.
The RealtyTrac service sorts out rental properties whose owners have different address. It provides a clear picture of the extent of rental property foreclosures in a given area. Statistics provided by RealtyTrac showed a significant rise in the number of rental properties in Southern New Jersey with foreclosure filings. And owners of these rental properties are living elsewhere.
In April 2009, about 36 percent of houses in bank foreclosure home listings in Cape May and Atlantic counties were owned by individuals living elsewhere.
Meanwhile, RealtyTrac figures showed that 31 percent of foreclosure properties in Cumberland County and 20 percent in Ocean County are owned by individuals living elsewhere. Nationwide, rental homes account for 30 percent of properties in bank foreclosed home listings.
Industry experts believed that properties in foreclosures in Southern New Jersey are second homes because all-year rentals in the area are rare because of expensive rents.
According to Daren Blomquist of RealtyTrac, the foreclosure monitoring company has started tracking rental houses in foreclosures because tenants may be caught unaware of the foreclosure problem of the property they are renting. This is to help them identify properties that are in the process of foreclosure.
Blomquist explained that tenants of repossessed homes could get evicted without any notice. He also noted the possibility that tenants may lose their security deposits.
The foreclosure-notice service for tenants launched by RealtyTrac monitors the address of renters and warns them if there is filing of foreclosure on their rented properties.
Data gathered by RealtyTrac showed that an estimated 450,000 rental houses across the United States are subject to filings of foreclosures.
Meanwhile, New Jersey has a law protecting the rights of tenants. The Anti-Eviction Act prohibits eviction of renters even if the houses where they are living are included in bank foreclosed home listings.
John Cutts has been educated in the finer points of the foreclosures market over 5 years. Learn how to invest in foreclosures at ForeclosureHomesInvesting.com.
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