As Texas residents may know, while the rate of foreclosures may have dropped to earlier levels, the number of bank repossessions has gone up dramatically. According to RealtyTrac, a 66 percent increase in repossessions this year during the third quarter included over 123,000 properties returned to a bank in this three-month period.
The vice president of RealtyTrac stated that some properties would be sold off at more of a discount because of deferred maintenance. This might reportedly have negative repercussions on real estate values. In New Jersey and New York, foreclosures may take over three years. Now that the backlog of houses under repossession is moving in New Jersey, the state holds the number one spot in foreclosures nationwide, with Atlantic City having the highest rate in that state.
Foreclosures are falling in some states that were hit hard by the economic crisis. These include California and Arizona. One reason is because these states processed foreclosures more quickly. New Jersey home prices went up only by 2 percent. This compares to the home price gain in the national average of 6.9 percent. A problem with New Jersey real estate, according to an auction company, is that investors that purchase repossessed properties are fewer than those in the West. This has allowed properties to require rehabbing and many are still occupied. Auctions in the state are normally conducted through the sheriff’s office in the area, and auction companies do not participate in the sales, so investors do not have an opportunity to follow properties going up for auction.
If a homeowner is facing mortgage foreclosure, it may be a good idea to consult with an attorney who has experience in bankruptcy law. Legal counsel may be able to assist in stalling the process while explaining the options that may be available to help the client remain in the home.