Hoboken homes in pre-foreclosure

3/6/2008 Update:

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.”

1/31/2008:

What’s up with this?

A Hoboken411 reader told me to check out the Realty Trac website and search Hoboken properties.

The list came up with 505 properties currently in the pre-foreclosure stage, as well as 35 up for auction and 197 bank-owned.

hoboken-foreclosures-january-february-2008.jpg

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:

  1. 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.
  2. 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.
  3. A third party buys the property at a public auction at the end of the pre-foreclosure period.
  4. 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?

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46 Comments on "Hoboken homes in pre-foreclosure"

FAP
Member

[quote comment=”72061″]Good Read re Bailout Plans, conclusion is its a big bailout of banks, not homeowners:

http://www.cepr.net/documents/publications/bailout_2008_03.pdf

Personal opinion is absent any evidence of fraud on the broker/lenders part none of these people deserve any bailout[/quote]

Maybe I’m missing something but I don’t see how it’s a bailout for the banks. At best it will remove high quality jumbo loans off their books and give them cash. The low quality loans will still remain on their, or whoever owns the things now, books.

The loans Fannie is willing to buy aren’t ones that are likely to default.

bri777
Member
bri777

Good Read re Bailout Plans, conclusion is its a big bailout of banks, not homeowners:

http://www.cepr.net/documents/publications/bailout_2008_03.pdf

Personal opinion is absent any evidence of fraud on the broker/lenders part none of these people deserve any bailout

FAP
Member

calculatedrisk.blogspot.com/2008/03...mbo-conforming-loan-guidelines.html

And the Agency “bailout” the Realtors were counting on has been announced. Seems that Fannie/Freddy won’t just buy and garbage sight unseen! They actually want documents and to restrict people getting “agency jumbos”* to those who can actually afford the mortgage AND who will put money down!

How dare they. 🙂

*yeah I know but I don’t know what we’re going to calls these things yet.

jambers
Member

[quote comment=”72040″]Perhaps houses in Hoboken that are in foreclosure represent people losing their homes.
Your real estate “opportunity” could be someone else’s disaster.[/quote]

Yeah, but it’s not the buyer’s fault that the seller created their own “disaster” by spending out of their means because The Jones’ (as well as all Realtors) said to.

Onus Foist
Member
Onus Foist

Perhaps houses in Hoboken that are in foreclosure represent people losing their homes.
Your real estate “opportunity” could be someone else’s disaster.

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