Bank and Tax Lien Government Foreclosures Trap Homeowners in NJ- By: John Cutts
With the high number of bank foreclosures and tax lien government foreclosures in New Jersey, most will probably expect people to be leaving the state in droves. However, most troubled homeowners have admitted that despite being on the brink of losing their homes, they are unable to make the decision to leave because of the potential losses that such a decision will incur.
For those who own Elizabeth foreclosed homes, NJ and distressed properties in other areas of the state, leaving the region and selling off their homes to get out of the foreclosure mess are not very good options. For one, finding buyers willing to give them even half of the true worth of their properties had become even more difficult.
For another, job prospects in other regions are as bad or might even be worse than what New Jersey has to offer. This scenario has become quite common among owners of New Jersey foreclosure homes, with local population data showing fewer people leaving the state since 2006 when the housing crisis started.
As the number of bank foreclosures and tax lien government foreclosures increases, the number of New Jersey residents leaving the state decreases. According to a study conducted by economists from Rutgers University, over 76,000 people left the state in 2006. Last year, that number was down to over 31,000, representing an almost 60% decline.
The drop in migration has been attributed by economists to two major factors. First is the declining value of properties due to huge supplies of foreclosure property for sale and the second is lack of employment opportunities in almost all parts of the country. They added that homeowners facing foreclosures are the most reluctant to leave since majority of them are unable to sell their homes at a price that will at least give them some return, no matter how small, for their investments.
Economist also reveal that around 15% of homeowners in the state have underwater mortgages, which means that they pay higher rates for their loans that the worth of their properties. They further reveal that those who own bank foreclosed properties and tax lien government foreclosures are the most likely to stay in the state for quite some time.
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John Cutts has been educated in the finer points of the foreclosure market over 5 years.