Hoboken homes in pre-foreclosure
Here’s a national report about the trend we’re seeing now about how more home owners than ever just can’t pay their mortgages. From CNNMoney:
“Over 900,000 households are in foreclosure according to a survey by the Mortgage Bankers Association, representing 2% of all mortgages. That’s the highest rate in the report’s quarterly history. Another 381,000 households, or 0.83% of borrowers, saw the foreclosure process started during the quarter, which was also a record.
Additionally, the number of mortgage borrowers who were over 30 days late on a payment in the last three months of 2007 is at its highest rate since 1985.
“Declining home prices are clearly the driving factor behind foreclosures, but the reasons and magnitude of the declines differ from state to state,” said Doug Duncan, MBA’s Chief Economist said in a prepared statement.”
What’s up with this?
The list came up with 505 properties currently in the pre-foreclosure stage, as well as 35 up for auction and 197 bank-owned.
Pre-Foreclosure means there was a filing by the bank that the borrower is not paying, and a Notice of Default is filed with the courts.
The foreclosure process begins when a borrower/owner defaults on loan payments (usually mortgage payments) and the lender files a public default notice, called a Notice of Default or Lis Pendens. The foreclosure process can end one of four ways:
- The borrower/owner reinstates the loan by paying off the default amount to during a grace period determined by state law. This grace period is also known as pre-foreclosure.
- The borrower/owner sells the property to a third party during the pre-foreclosure period. The sale allows the borrower/owner to pay off the loan and avoid having a foreclosure on his or her credit history.
- A third party buys the property at a public auction at the end of the pre-foreclosure period.
- The lender takes ownership of the property, usually with the intent to re-sell it on the open market. The lender can take ownership either through an agreement with the borrower/owner during pre-foreclosure or by buying back the property at the public auction. These are also known as bank-owned or REO properties (Real Estate Owned by the lender).
This process allows for three opportunities for finding bargains on foreclosure. Are there some bargains ready to be had in Hoboken?