Even though the South Jersey real estate market looks and feels like it’s bouncing back (and it is!) you might be shocked to learn that there are still a million foreclosures on the market in the US and 8.1 million people are underwater on their homes. You might be even more shocked to learn that Atlantic City has the highest rate of foreclosed properties in the entire United States! One out of every 27 housing units is either in foreclosure or is currently bank-owned. Atlantic City has a long way to go before it fully recovers from the mortgage crisis that began several years ago, but this high rate of foreclosure inventory can be good news for potential real estate investors who shop for distressed properties.
Foreclosures sell for a significantly lower price than non-distressed properties, but there is a higher level of risk when buying foreclosures. According to president and CEO of RealtyTrac, Jamie Moyle, “You certainly have to have some level of insight. That’s part of the reason for the discount. These properties can be in various stages of condition. They could have been neglected for quite some time. Someone who is in the early stages of foreclosure and pre-foreclosure wants to get out of the house without declaring bankruptcy. But you have to get to them before they get too deep in the process and it becomes an REO and the bank owns it. Do banks want to deal with one-off transactions? Probably not. A lot of big banks want to deal in large transactions. It’s about getting there at the right time.”
New Jersey also has a particularly lengthy foreclosure process. The state is behind in dealing with much of the distress that other states have already dealt with. This is why even though the real estate market is bouncing back from its Recession-lows, there is still a glut of foreclosures on the market.
During any real estate transaction, and especially those with unique circumstances, an experienced real estate attorney will help you throughout the entire process, protecting your rights and steering you away from unnecessary complications.
If you are considering buying a foreclosure property, don’t go it alone. Contact experienced an real estate lawyer at Rothamel Bratton today for sound legal guidance. We will protect your investment and your interests.