New Jersey Housing Suffers as Defaults Exceed Nevada's

[Boyd]

http://www.businessweek.com/news/20...g-suffers-as-defaults-exceed-nevada-mortgages

New Jersey’s judicial review of all foreclosures, which delays seizures to help borrowers, threatens to hold down prices for years as properties remain subject to repossession and then may be sold at a discount. That’s buffeting a housing market already hurt by unemployment that’s risen to a 35-year high.

Passing Nevada

The state passed Nevada in the second quarter in the rate of homeowners with seriously delinquent loans -- those 90 days late or in foreclosure -- according to the Mortgage Bankers Association. Only Florida had a higher rate of serious delinquencies, and that fell 1.2 percentage points from a year earlier to 17.5 percent of mortgages. In comparison, New Jersey’s rose 1.3 percentage points to 12.7 percent.

While home values increased in July from a year earlier in 42 states, New Jersey prices fell 0.8 percent, according to CoreLogic (CLGX), a real estate services company based in Santa Ana, California.

“Housing is an albatross around New Jersey’s economy, which is one of the weakest in the country,” Mark Zandi, chief economist at Moody’s Analytics Inc. in West Chester, Pennsylvania, said in an e-mail.
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In New Jersey, where about 60,000 foreclosures started since January 2008 still await resolution, borrowers in the foreclosure process haven’t made a payment for an average of 934 days, according to Lender Processing Services Inc. (LPS) New York, at 953 days, and Florida, at 938 days, are the only states with longer time frames. The U.S. average is 742 days.

 

[dragoncjo]

It is my opinion that prices really need to come in still. Its a tough state to live in because of how expensive homes are. I still see another 10% of downside on homes here before things start moving.

 

[dogg57]

Nothing New..........Welcome to New Jersey Now get-out

 

[46er]

Bet not many realize they are now mortgage bankers. We are living in a make believe economy. This guy is on to something, and there is so much more. He must be a self thinker.

http://beta.fool.com/jonathanyates1...ing/10464/?ticker=BAC&source=eogyholnk0000001

It is my opinion that prices really need to come in still. Its a tough state to live in because of how expensive homes are. I still see another 10% of downside on homes here before things start moving.

It really doesn't matter how low the prices get, folks don't have jobs and those that do, have a hard to impossible time qualifying for a mortgage. All low prices will do is give the speculators more opportunity, and those that own homes the chance to reduce their tax burden, which results in even less money to guvmint. Round and round we go.

There I go, getting all political in a quasi-political thread

 

[Boyd]

60,000 New Jerseyans have gone for about 3 years without making any mortgage payments and they are shielded from foreclosure. Maybe not such a "tough state to live in" after all....

 

[dogg57]

From the story.........

Kyle Ruppert, Today 12:39 PM
Seriously, the couple was really surprised when they got a piece of mail after 3 years of non-payment? People should know when they own their house or not, because you won't have the deed until the property is paid in full. Just because you don't receive the bills doesn't mean you forget about them and let them accumulate. Perfect example of modern day America

 

[dragoncjo]

We need to let the whole system just blow up. There is a big stock market bubble building as I type. QE3 was done to secure the big O reelection. The QE tool should be used for an economy in crisis not one where the spx is up 15% and unemployment rate is falling. We are a society addicted to artificial stimulus and all central banks are following our lead, which is why gold is where it is. Its really pathetic, we have another asset bubble building, this is the new process in my opinion, bubble, burst, bubble, burst. The bottom line is we have few growth oppurtunities globally and we continue to become lazier and lazier. Let it totally fail and strong will survive, but nobody wants to hear that, just keep the drugs going. College kids can't find jobs, are already loaded up on debt but they have the iphone 5, life is good.

 

[Boyd]

http://www.businessweek.com/ap/2012-09-18/s-and-p-downgrades-nj-outlook-from-stable-to-negative

S&P downgrades NJ outlook from stable to negative

By Angela Delli Santi on September 18, 2012

TRENTON, N.J. (AP) — The New York financial ratings agency Standard & Poor's lowered its outlook on New Jersey from stable to negative on Tuesday, based on the state's continuing budget imbalance and revenue projections for the fiscal year that began July 1.

S&P did not revise its ratings on the state's general obligation bonds or other debt, citing New Jersey's credit-worthiness and commitment to repaying its debt obligations. But the agency warned that a future downgrade is possible.