Brian Ianieri did a great job in an AC Press article posted online this morning breaking down the driving force in the current Atlantic County real estate market – distressed properties.
The article correctly identifies that the impact of the bottom dropping out of the casino industry and the local tax base has yet to hit the end of the foreclosure market, sheriff sale. In fact it will likely be a few more years before that happens en force.
Right now there are thousands of families in the seven counties of southern New Jersey who are hoping they can ride out the storm. Hopefully many will be able to do so and in doing so will hasten the healing of the local market.
Realistically thousands of distressed homeowners, even if they could recover temporarily would be overwhelmed later on by the weight of the debt of their homes. Right now in our local communities we see people struggling to pay $240,000 mortgages to hold on to their homes while neighbors are buying nearly identical homes for 90-110K.
If a homeowner has had a significant hardship event which includes: unemployment, sickness or death of one of the borrowers, divorce, cutting of hours or wages, having their personal businesses fail or several other qualifying event they can investigate foreclosure prevention options rather than wait for the hammer to fall.
What the article indicates is that banks, who do not want to own a few thousand empty properties in south jersey, are not getting people to purchase their homes at sheriff sale and have to take ownership. What happens next is a couple of years of vandalism, frozen pipes, delayed maintenance and steep drops in what they would have received for that home if it had gone in a short sale rather than taken back by the bank in a sheriff sale.
If you find yourself at a loss for what is happening in the local market and how that impacts your home and financial situation. Call Schroeder Law Group for a $250, one hour consultation. We will educate you and give you strategies to be out ahead of this next wave of foreclosures. Like picking a winning stock, getting in ahead of the masses is the best play. Don’t wait until the opportunity window closes for you to hit the reset button and recover from this economic disaster.
In case the link for the AC Press goes bad – here is a copy of the article referenced in this post.