Yesterday it was announced that the 4 major lenders caught up in the foreclosure "robo-signing" mess (where banks were foreclosing with incorrect documentation, or not verifying information, were allowed to continue foreclosing on properties in NJ.
It has been 8-10 months where foreclosures appeared to be slowing in NJ due to a moratorium put in place by the courts. This false reading of the market will now more than likely show its true colors: more foreclosures and prices to continually slide. RealtyTrac, LLC has estimated that 1.1 million foreclosures slated for 2011 have been pushed into 2012 (on top of the inventory that will foreclose in that year).
It is apparent that it is almost certainly going to get worse before it gets better. This will, however, provide an unprecendented buyers market in which first time homebuyers in NJ are experiencing housing market levels that seem more reasonable than ever. Purchasing one of these foreclosures for personal use, or as an investment will provide buyers with a great value.
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