The report said 601 new foreclosures were scheduled for auction during February, down from 783 foreclosures scheduled for auction in the state in January and 793 in 2008. Bill Staniford, PropertyShark chief executive, said the company gathers its information from public records that show when a property enters into foreclosure.
This report is for the properties that actually go into foreclosure - not just the papers that have Lis Pendens - the papers that are filed when someone does not pay their mortgage for 3 months. The Lis Pendens usually starts the foreclosure process, but many of the properties can be renegotiated and do not wind up in foreclosure.
Now lets take a look at the NJBiz article titled Report: NJ foreclsoures declined in February -
Bill Staniford, PropertyShark chief executive, said the company gathers its information from public records that show when a property enters into foreclosure.
While the total number of foreclosures declined for the state, urban areas were fared poorest, the report found.
“Areas that have lower economic status are going to get hit worse,” Staniford said. Essex County had the highest number of new foreclosures up for auction last month; cities with the most new foreclosures included Newark, with 37; Paterson, with 29; and 24 for both Trenton and Elizabeth.
Staniford said White House policies are convincing banks to ease their stance on foreclosures to negotiate more with homeowners, but “my belief is the government action is prolonging the problem, rather than solving the problem.”
If the economy does not turn around as hoped and substantial layoffs continue, Staniford said there is little more the government can do. “If someone loses their job and becomes incapable of paying their mortgage, they are going to have to sell or go into foreclosure,” he said.
And here is the accompanying graph illustrating the state's monthly foreclosure rate -
While it is good news overall, the report highlights that more has to be done to stabilize the state's urban areas. We have seen some sales that seem unfathomable - houses priced so much more than they ever should have (even at peak prices). But at least things seem to be stabilizing.
Also, it is too bad the charts start in 2008. Since there are always some foreclosures due to deaths, job losses, divorce, and medical issues it would be interesting to put the 601 numbers into historical perspective.