Buying a Home in Foreclosure

Buying a Home in Foreclosure

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Buying a Home in Foreclosure: A Guide for New Jersey Buyers

 

Are you considering buying a home in foreclosure in New Jersey? Foreclosures can be an attractive option for homebuyers and investors seeking below-market deals, but they come with unique challenges and risks. Understanding the foreclosure process and the market dynamics across New Jersey is key to making informed decisions.

What Is a Foreclosure?

A foreclosure occurs when a homeowner fails to make mortgage payments, leading the lender to repossess the property. These homes are often sold at a discount, making them appealing to buyers looking for affordability or investment potential. However, understanding the foreclosure process and the potential risks is crucial before diving in.

Why Consider Buying a Foreclosure?

  • Lower Prices: Foreclosures are typically priced below market value, offering significant savings.
  • Investment Opportunities: These properties are ideal for buyers interested in fixing and reselling (flipping) or renting them out.
  • Potential Equity: With the right improvements, foreclosures can gain substantial value over time.
  • Variety of Buyers: Foreclosures aren’t just for first-time homebuyers—they’re also attractive to seasoned investors, property developers, and those looking for multi-family rental opportunities.

Types of Foreclosure Sales

Understanding the different stages of foreclosure is essential for making informed decisions:

            Pre-Foreclosure:

    • The homeowner is in default but still owns the property.
    • You can negotiate directly with the owner to purchase the home before it goes to auction.

            Foreclosure Auction:

    • Properties are sold at public auctions to the highest bidder.
    • Buyers often need to pay in cash and have limited opportunities to inspect the property.

            Real Estate Owned (REO) Properties:

    • These homes did not sell at auction and are owned by the lender.
    • Buying REO properties typically involves fewer risks than auctions and includes a traditional buying process.

Steps to Buying a Foreclosure Property

 

  1. Determine Your Budget
    • Work with a lender to understand your financing options.
    • Consider additional costs, such as repairs, inspections, and closing fees.
  2. Partner with an Experienced Real Estate Agent
    • A knowledgeable agent can help you locate foreclosures, evaluate potential risks, and negotiate the best deal.
  3. Research the Property
    • Perform due diligence to uncover any liens, unpaid taxes, or other encumbrances.
    • Understand the property’s condition and market value to avoid overpaying.
  4. Inspect the Home
    • Whenever possible, schedule a professional inspection to identify structural or mechanical issues.
    • Be prepared for potential as-is sales, where repairs are your responsibility.
  5. Secure Financing
    • Many buyers use cash, but specialized loans like FHA 203(k) or Fannie Mae’s HomePath can cover purchase and renovation costs.
    • Work closely with your lender to determine the best option for your situation.
  6. Make an Offer
    • Your agent will guide you in crafting a competitive offer based on market conditions and the property’s history.
    • Be prepared for additional paperwork and lender requirements.
  7. Close the Deal
    • The closing process for foreclosures can be more complex, so patience is key.
    • Your real estate agent will assist with navigating any challenges and ensuring a smooth transaction.

Areas in New Jersey with Higher Foreclosure Rates

Certain regions in New Jersey tend to have a higher concentration of foreclosure properties. These include:

 

  • Essex County: Cities like Newark and East Orange often have foreclosures due to urban density and economic factors.
  • Passaic County: Areas such as Paterson and Passaic offer opportunities for both investors and homebuyers.
  • Camden County: Foreclosures are common in cities like Camden, Trenton, and Pennsauken, with potential for revitalization projects.
  • Atlantic County: Coastal towns, including Atlantic City, frequently have distressed properties due to fluctuations in the tourism-driven economy.
  • Union County: Elizabeth and Linden are notable for foreclosure opportunities, particularly for multi-family and investment properties.

Potential Risks of Buying a Foreclosure

While foreclosures can offer great deals, they also come with challenges:

  • Unknown Condition: Many foreclosures are sold as-is, meaning you inherit all repairs and issues.
  • Competition: Other buyers and investors may drive up prices in popular areas.
  • Extended Timelines: The foreclosure process can be lengthy, especially for REO properties.
  • Legal Complications: Outstanding liens or disputes can complicate the sale.

Tips for Investors and Flippers

For investors and property flippers, foreclosures offer unique opportunities to maximize profits. Here are some additional strategies:

  1. Look for Undervalued Properties: Focus on homes in areas with strong market demand and growth potential.
  2. Build a Renovation Team: Work with reliable contractors and designers to handle renovations efficiently.
  3. Know Your Numbers: Calculate your after-repair value (ARV) and ensure your investment aligns with profit goals.
  4. Understand Local Zoning Laws: Ensure the property’s intended use aligns with zoning regulations, especially for multi-family or commercial ventures.
  5. Leverage Tax Benefits: Consult with a tax professional to understand deductions available for investment properties.

 

Why Buying Foreclosure Homes Appeal to Rental Property Buyers

For those interested in building rental portfolios, foreclosures provide:

  • Affordable Entry Points: Lower purchase prices increase potential returns.
  • Customization Potential: Renovate the property to meet tenant preferences and charge competitive rents.
  • Scalability: Investors can acquire multiple properties within their budget, building a robust portfolio in areas with strong rental demand.
  • Scarcity: Obviously with the higher demand and therefore prices of homes and real estate there are fewer foreclosures now and the best way to source better deals is with off-market.

 

Ready to Explore Foreclosure Opportunities?

Contact us at United Real Estate and Sanchez Realty Group, led by Roberto A. Sanchez, a trusted and experienced real estate professional to guide you through the complexities of purchasing foreclosure properties, if you’re buying a Home in Foreclosure in New Jersey. Whether you’re a first-time buyer, seasoned investor, builder, or property flipper, having the right team on your side ensures a smooth and informed buying experience.

Small Income Property Analysis

Small Income Property Analysis

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Doing Small Income Property Analysis and educating income property buyers and small investors on how to do small-income property analysis on the potential income of small investment properties should be an important trait of a real estate professional.

We also assist home buyers and investors interested in purchasing multi-family properties to create passive income through rentals and create equity over time.

This Small Income Property Analysis information video could assist the beginner investor with the basics analysis to make a better-informed purchase.

There are several approaches and analysis methods investors utilize to make sure they’re making a sound decision.

These simple methods quickly tell you if the property meets your investment objectives whether they’re smaller investments; 2-4 units or larger properties.

I’m Roberto A. Sanchez with United RE and the Sanchez Realty Group, I’ll explain some of the most common methods used to analyze a property.

For the sake of this illustration we will use a 2-unit property with a purchase price of $300,000 and a rental income of $3,000 a Month.

 

 

These 4 Analysis Methods are Most Commonly Used:

 

 

1st  Net Operating Income:

Gross Rental Income – Operating Expenses

Ex:  $3,000 x 12 months (Income)  – $11,000 (Expenses) or  $36,000 – 11,000 or $27,000 NOI  (Net Operating Income – Before Mortgage)

 

2nd Cap Rate:

Net Operating  Income / Total Purchase Price

Ex:  $27,000 / $300,000 = 9% Cap Rate

 

3rd 1st One Percent Rule:

Monthly Gross Rent >= 1 % of Total Purchase Price

Ex:  $3,000 >= 1% of $300,000 = $3,000

 

4th Net Income After Mortgage (NIAM)

Net Operating Income – Mortgage or Finance Costs

$27,000 – $12,900 (Principal + Interest) = $14,100 (NOI)

 

 

4th Cash on Cash Return (CoCr or COC):

Net Income After Mortgage / Down Payment

Ex: $14,100 / $75000 = 18% COC

 

Other Methods are:

 

The Gross Rent Multiplier:

Total Purchase Price / Yearly Gross Rent

Ex:  $300,000 / $36,000 = 8.3

 

The 50% Rule:

It estimates the NOI at 50% of Gross rents

Ex: $36,000 yearly GR x 50% = $18,000.

 

 

Counties/Towns with Investment Properties

in Northern New Jersey

Bergen County Multifamily Properties

Morris County Multifamily Properties

Passaic County Multifamily Properties

Union county Multifamily Properties

Any Questions? Contact Us

Essex County Multifamily Properties

Sussex County Multifamily Properties

Clifton Housing Market Trends

Clifton Housing Market Trends

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Clifton Housing Market Trends: What Sellers Need to Know

Why Understanding The Clifton Housing Market Trends Matters

Are you wondering, “What’s happening in the Clifton housing market right now?” Knowing current trends is essential for anyone planning to sell a home in Clifton. These insights help you determine the best pricing strategy, timing, and marketing approach. Roberto A. Sanchez and the Sanchez Realty Group at United Real Estate are experts in Clifton real estate, have in-depth knowledge of the many neighborhoods and overall market as residents over 30 years, and offer invaluable guidance to home sellers.

What Defines a Seller’s Market in Clifton?

A seller’s market occurs when there are more buyers than available homes. Clifton, NJ, is currently experiencing this phenomenon, driven by:

  • Limited Inventory: The number of homes for sale in Clifton is relatively low, creating competition among buyers.
  • High Demand: Buyers are attracted to Clifton for its convenient location, excellent schools, and vibrant community.
  • Rising Home Prices: With high demand and low supply, home values in Clifton have steadily increased, giving sellers the upper hand.
  • Buyers’ Desirability: Buyers are offered diversity, convenience and affordability

Understanding these dynamics can help sellers set realistic expectations and prepare for a smooth transaction process.

Key Trends in the Clifton Real Estate Market

Trend #1: Rising Home Prices

Clifton has seen consistent home price appreciation over the past few years. For sellers, this trend means greater returns on investment. According to recent market reports, the average home price in Clifton has increased by X% compared to last year, reflecting strong buyer demand.

Rising prices not only benefit sellers but also indicate a healthy, stable market. However, pricing too high can still deter potential buyers. Consulting with an experienced real estate agent, like Roberto A. Sanchez, can help you strike the perfect balance.

Trend #2: Low Days on Market

Homes in Clifton are selling faster than ever. The average days on the market (DOM) have decreased, signaling a robust market where well-priced homes attract offers quickly. Sellers who price competitively can expect multiple offers within days of listing.

This fast pace means sellers need to be prepared. Before listing, ensure your home is market-ready with necessary repairs, decluttering, and staging. Quick sales require strategic planning, which is where the expertise of Sanchez Realty Group becomes invaluable, negotiation skills is a must in today’s market to help you achieve your highest price gains while enjoying a stress-free possible transaction.

Trend #3: Buyer Preferences Are Shifting

Today’s buyers are prioritizing:

  • Home Offices: With more people working remotely, functional office spaces are a top priority.
  • Outdoor Living: Features like decks, patios, and spacious yards are highly desirable.
  • Modern Kitchens and Bathrooms: Updated, move-in-ready homes often fetch higher prices.
  • Open Layout and Modern Decor: Preparing your home and introducing subtle and economical updates could bear the best return on investment (ROI).

If your Clifton home aligns with these trends, you’re in a strong position to attract motivated buyers. Even if your home doesn’t currently meet these criteria, small upgrades can significantly enhance its appeal.

Trend #4: Technology-Driven Home Searches

The rise of online platforms and virtual tours has transformed how buyers search for homes. Most buyers begin their search online, presenting high-quality photos, detailed and well-crafted listing descriptions, virtual walkthroughs, and matter-port, aerial videos, and neighborhood-specific informational videos are essential. Sellers in Clifton should leverage these tools to showcase their homes effectively. Partnering with a tech-savvy real estate team like Sanchez Realty Group ensures your home receives maximum online and offline exposure.

Trend #5: Local Market Stability

Clifton’s real estate market has remained stable despite national economic fluctuations. The town’s strong sense of community, excellent amenities, and proximity to major cities make it a desirable location. This stability reassures both buyers and sellers, fostering confidence in the market.

How to Leverage Market Trends to Your Advantage

Work with an Experienced Realtor

Partnering with an experienced Clifton real estate agent like Roberto A. Sanchez ensures you have access to the latest market data and professional insights. Sanchez Realty Group excels at positioning your home to maximize its value in today’s market.

An experienced agent can also guide you through negotiations, helping you secure the best possible price and terms. Their expertise is especially critical in a fast-moving market like Clifton’s, where timing and strategy can make all the difference.

Price Strategically

Setting the right price is crucial. Overpricing can deter buyers while underpricing leaves money on the table. With expert guidance from Sanchez Realty Group, you’ll receive a detailed comparative market analysis (CMA) to determine the optimal price for your home.

Strategic pricing involves understanding both local and national trends. For example, while Clifton may be experiencing a seller’s market, broader economic factors like interest rates and inflation can still impact buyer behavior. A knowledgeable real estate agent will help you navigate these complexities.

Timing Your Sale

While the Clifton market is currently favorable for sellers, timing your sale strategically can further enhance your results. Consider seasonal trends, buyer activity, and your personal goals when planning your sale. For example:

  • Spring and Summer: These are traditionally the busiest times for real estate, especially in the Northeast due to the warmer, longer days, with more buyers actively searching for homes.
  • Fall and Winter: Although less busy, these seasons can still be advantageous, especially for well-prepared sellers. Serious buyers who remain active during these months are often highly motivated and ready to transact which might be best since you have a lot less competition with less homes in the market.

Enhance Your Home’s Appeal

Even in a seller’s market, presentation matters. Invest in minor upgrades, such as fresh paint, updated fixtures, and landscaping, to make your home more appealing. Staging your home can also help buyers envision themselves living there, increasing the likelihood of a quick sale.

Why Choose Sanchez Realty Group?

Selling a home in Clifton requires a tailored approach, and that’s exactly what you’ll get with Roberto A. Sanchez. With deep local knowledge and a proven track record, intrinsically knowledgeable about the Clifton Housing Market Trends, Sanchez Realty Group ensures your home stands out in the competitive Clifton market. From expert staging advice to aggressive marketing strategies, they handle every detail to secure the best outcome, always looking after your best interest.

Sanchez Realty Group’s commitment to personalized service sets them apart. By taking the time to understand your goals and concerns, they create a customized selling strategy that meets your needs. Their extensive network and marketing expertise further enhance your home’s visibility, attracting qualified buyers and maximizing your return.

Conclusion

Understanding housing market trends is key to a successful home sale in Clifton, NJ. By staying informed and working with an expert real estate agent like Roberto A. Sanchez, you’ll be well-equipped to navigate the market and achieve your goals.

Selling a home is a significant milestone, and you don’t have to go through it alone. Contact Sanchez Realty Group today to schedule a consultation and take the first step toward a successful sale.

 

Co-Signing Gone Wrong

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Co-Signing Gone Wrong

Co-signing Gone Wrong

 

We did a short webinar with Marlon (The Kreditmogul), Marlon, who is very knowledgeable on credit restoration and have helped me and other people to restore their credit score to the levels that are acceptable and allow creditors extend better terms when it comes to personal purchases (car loan, mortgages to purchase a home, etc) and Co-signing gone wrong for would be home buyers.

 

 
 
Having credit allows people not just get better with their financials because credit is just about everything nowadays, right? We need to have credit so that we can purchase stuff, we need the credit, even for other things like applying and being considered for job opportunities and obtain positions where the integrity, character and responsibility of the person is important.
There are 3 parts of this webinar that we hope to help people with understanding the ramifications of each of them and how it affects their credit but most importantly their long term financial health and how to keep their credit file in good standing, this one is about a Co-sigining gone wrong, listen up. 
 
 
 

Why You Should Think Before You Co-Sign

 

The first is about being a CO-SIGNER on a loan and how doing Co-signing can go wrong! I know it sounds great. You know, that we have family and close friends of ours that might want us to help them, but it can also be a risk because the reason why I say that is that if something happens, we become a co-signer for our primary account. Yes, you are also held just as 100%, follow me 100% responsible as the primary, right. So whatever reflects on that primary reflects also on the secondary, which is the co-signer.
 
So the same liabilities are shared under the same roof guys. So be careful with co-signer. It could be as, as good tempting, but it could also be a trap for anyone who does not understand the ramification, just don’t do it and realize the consequences that can come behind that. I always share with people what I went through myself, but I always want to help people understand you can do it on your own and could be where you need to be as far as, getting qualified for an approval for auto loan, eventually a mortgage or personal debt of that nature that fall in that category without even having a cosigner, it’s all about just re-building your credit and getting yourself established and then going out there and doing it the right way. Okay. So that’s what I would share about cosigner. Be careful.

 

What Other Have Found About Being a Co-Signer on a Car Note, Consumer Debt, Mortgage, Etc

Being a Cosigners is a very delicate thing to do, especially when you cosign for people that are not directly in your circle, like a close family member or someone like that, you must be very careful, and you must know the person. I find a lot of people in my real estate practice that they want to purchase a home, but they were a co-signer for a friend and what happens is that the friend wasn’t as responsible the person thought he was, and then he goes out or she goes out and sign up for a vehicle for this person, and then all help break loose. I mean, the person has an accident, get sued, they take the car away and as would find out, the debt they don’t take away, the debt still got to get pay some kind of way and if you’re the cosigner, then now you are responsible for all these liabilities.
Lots of people have come to find out the hard way that being a cosigner is not something that you, you should think or take lightly. I mean, it’s something that maybe you can do for your daughter or son, your mom or, or somebody very close that you know is not going to get you in trouble and it’s going to be able to pay their debt and even when you do it like that, you have, you have to know that there’s certainly a degree or level of responsibility on your part, because if something happens to that person and you want to keep your credit profile in good shape, then you’re going to probably have to take over that debt eventually, Find out how you can improve your credit and be able to purchase a home hopefully without the need of a co-signer.
 
 
Call/text or email me for a FREE, Consult: Roberto A. Sanchez 973-216-1945 Rsanchez@robsrealtor.com

 

Call/Text or Email Us for an Accurate, No-Guesstimates Value of your Property, How to Buy Property, Your First or Move up/down or Invest in Real Estate

Sanchez Realty Group at United RE: 973-216-1945 or Email: rsanchez@robsrealtor.com.

Homes For Sale in Clifton by Price Range

$100,000 – $200,000

$500,000 – $600,000

$200,000 – $300,000

$600,000 – $700,000

$300,000 – $400,000

$700,000 – $800,000

$400,000 – $500,000

$800,000+

Search For Any Properties in New Jersey

Clifton RE Market – May 2021

Clifton RE Market – May 2021

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Clifton RE Market – May 2021 vs May 2020

 

Clifton RE – May 2021

(According to the GSMLS in Clifton)

Clifton RE May 2021

Single Homes SOLD (Incl, Condo/Townhomes, Active Comm Homes): 59 Homes

Median SOLD Price: $ 420,000

Days on Market: 14

Sale to List Ratio: 104.2

VS

Clifton RE May 2020

Single Homes SOLD (Incl, Condo/Townhomes, Active Comm Homes): 37 Homes

Media SOLD Price: $ 380,000

Days on Market: 19

Sale to List Ratio: 100.6

INCREASE: 10%

May 2021 continues to show strength in the Real Estate market, although this report is based on the Clifton RE, most towns in North New Jersey are experiencing the same surge in prices and it does not look like the lack in available homes will ease up the buyers demand and desire to land a property under contract creating multiple offer situations and therefore moving prices higher.

  • REMEMBER: RE is about the 3 P’s; Presentation, Promotion(Exposure) and Price.

Call us for a FREE, NO OBLIGATION consultation.

Roberto A. Sanchez

973-216-1945

 

May STATS according to New Jersey Multiple Listing Service:

As the weather warms and pandemic restrictions ease across much of the
country, the U.S. housing market shows little sign of cooling. Robust buyer
demand, fueled by low mortgage rates, continues to outpace supply, which
remains near historic lows. Nationwide, inventory remains much lower than it was
at this time last year, and sales prices are surging as a result.

• Single Family Closed Sales were up 39.2 percent to 1,105.
          • Townhouse-Condo Closed Sales were up 125.1 percent to 493.
         • Adult Communities Closed Sales were up 180.0 percent to 14.
                      • Single Family Median Sales Price increased 16.5 percent to $555,000.
                              • Townhouse-Condo Median Sales Price increased 2.9 percent to $360,000.
                                • Adult Communities Median Sales Price decreased 7.9 percent to $327,000.

With such limited supply of existing homes to purchase, all eyes are on home
builders to provide a much-needed boost of inventory to the market to help meet
buyer demand. However, increasing material and labor costs, along with supply
chain challenges, have contributed to significantly higher construction costs, with
builders passing these costs on to homebuyers. And while the warmer
temperatures, rising sales prices, and the reopening of the economy may draw
more sellers to the market, historically low levels of homes for sale are likely to
continue for some time.

Homes For Sale in Clifton by Price Range

$100,000 – $200,000

$500,000 – $600,000

$200,000 – $300,000

$600,000 – $700,000

$300,000 – $400,000

$700,000 – $800,000

$400,000 – $500,000

$800,000+

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Clifton RE 1st Qtr 2021 vs 2020

Clifton RE 1st Qtr 2021 vs 2020

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1st Quarter 2021 vs 2020

The 1st Quarter of 2021 is Experiencing a Surge in the Real Estate Market Like Never Before.

Clifton RE 1st Qtr 2021 vs 2020

1st Quarter of 2021 median sales price for Clifton was $ 400,000 with 188 homes SOLD and 101 Sale to List Price Ratio and 23 days on the market.

Compared to 1st Quarter of 2020 with a median sales price of also $345,000, with 108 homes SOLD 99.8 Sale to List Price Ratio and 39 days on the market.

1st Quarter of 2021: Experienced 16% Increase Over Same Period of 2020

That’s Great NEWS, Whether You’re Thinking to Sell or Someone You Know Who May, Please Help Us Get a Family Their New HOME!

WHAT TO EXPECT IN 2021!?

Interest rates ticked up a bit higher but still at historical lows and lack of homes available for sale is creating multiple offer situations and therefore price increases throughout the country.

The Northern New Jersey market as well is experiencing a strong buyer traffic and homes are going under contract in record time (usually (3-10 days) with multiple offers and in some cases way over asking.

Several points to consider:

  • In Clifton as well as other towns and neighborhoods are experiencing a shortage of homes for the anxious and desirous buyers, it’s a market still good for move-up buyers and those homeowners usually enjoy substantial gains in appreciation in the last few years which help to entice sellers when purchasing another home by affording better terms and conditions.

 

  • The Federal Housing Finance Agency is extending the assistance to homeowners wih loans backed by Fannie Mae and Freddie Mac currently in forebearance to receive another 3 months extending the Covid19 assistance to 18 months.

 

  • The expected increase of buyers traffic (60.7% higher than same period last year per showingtime.com) for the foreseeable future (2021) due to buyers looking for a more suburban lifestyle, more outdoor/indoor space, more room to breath in the outskirts of bigger cities, especially now that working remotely has and is becoming the new norm.

 

  • REMEMBER: RE is about the 3 P’s; Presentation, Promotion(Exposure) and Price.

Call us for a FREE, NO OBLIGATION consultation.

973-216-1945

Homes For Sale in Clifton by Price Range

$100,000 – $200,000

$500,000 – $600,000

$200,000 – $300,000

$600,000 – $700,000

$300,000 – $400,000

$700,000 – $800,000

$400,000 – $500,000

$800,000+

Search For Any Properties in New Jersey

Serious Mortgage Delinquencies in New Jersey?

Serious Mortgage Delinquencies in New Jersey?

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Serious Mortgage Delinquencies in New Jersey?

 

 

A lots of people have asked me,  can we expect a new wave of foreclosures coming into the marketplace in the next six months to maybe even 24 months from now due to the fact that there’s a lot of people that are a little behind on their mortgage?

The question is if there are serious mortgage delinquencies in New Jersey?.  According to Black Knight, technology company that tracks mortgage data, they came up with some numbers:

The amount of borrowers delinquent that are actually applying for some kind of modification or loan worker with their lenders fell by 340,000 people in the month of July, that’s a 9% decrease from the month previous month of June.  That is good news.

However, homeowners that are 60 to 90 days, or even over 90 days behind in the mortgage payments or our serious delinquent that went up by 376,000 In the month of July, that’s a 20% increase from June which is concerning a bit.

There’s over 2 million people that are actually in some kind of modification or workout plan  with their  lender, aAnd that’s the highest level since 2010,  we know what happened back then.

85% of these people are in some kind of forbearance or workout plan and obviously in some kind of economic distress, we know that the economy haven’t  fully recovered and especially people that work in the hospitality, leisure and the food industry,

That situation is similar in many other industries where, the economy for them to have not fully recovered, we also know that in some cases households with two income earners where one of them haven’t been fully employed yet, or maybe had to stay home to school and take care of their kids.

Also, according to Black Knight, among the top five States with the most delinquencies are;

Mississippi, Louisiana, New York, Hawaii, and New Jersey, but they also have the top five States with the most serious delinquencies which are  also Mississippi and Louisiana, Nevada, Alaska, and again New Jersey.

There’s some good news as we know in the last five years or so values in homes have skyrocketed and lots of homeowners have a lots of equity in their homes, among other factors that can help them steer clear of foreclosure.

(Check this video to see the difference between now and the last great recession) So there might be a way out of this situation, even when the lender cannot offer a suitable solution.

If you or anyone you know and care about need to be pointed the right direction and/or need any kind of advice, or a referral to a professional that can be of assistance,  feel free to reach out to us at (973) 216-1945.

Contact Us 
 

 

Do You Know What's Your Home Value?

This is the Best Possible Time to Sell if Thinking to Move.

 

 

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Sellers Are Back!

Sellers Are Back!

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What we’ve been noticing is the housing index supply component, which checks the amount of homes that actually come on the market and tracks the amount of new listings, have been getting to the level of back in January, which is encouraging news for buyers.

 

However, due to the fluency of buyers coming from more densely populated areas like New York and the outskirts of New Jersey, we have more buyers than the amount of buyers that we typically have in the region, especially in the spring and the summer markets and although that’s encouraging news we still need more inventory.

What’s happening is for the sellers is a great market. Let me ask you, if you wanted to put your home on the market, would it be better for you to put it on a low inventory, more buyers, or in a higher inventory, same amount of buyers?

Perhaps the first will be a better option. So this is what’s happening right now. Many buyers are getting discouraged, unfortunately, because in many cases they cannot compete with the amount of available buyers that are putting more money down with better buying power and better terms and In many cases, homes are selling quickly and with over 10% of asking prices.

This obviously is a great seller’s market. If your home is presented well, it’s got the right exposure and it’s price, right? Most likely it might sell over asking price. So this is the time to consider whether you’re in defense, you’re a buyer seller or an investor. This is a great, great time to be a seller, for buyers is still affordable due to the historically low interest rates and more availability of loans if qualified.

Feel free to contact me if you need anything, if you want to get your value, feel free to reach out to us at (973) 216-1945. We’ll do it for you without any obligation or expect

 

 

Do You Know What's Your Home Value?

This is the Best Possible Time to Sell if Thinking to Move.

 

 

CARES Act – Help for Homeowners in Need

CARES Act – Help for Homeowners in Need

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CARES ACT and Homeowner Assistance Programs

 

The CARES ACT and homwoner assistance programs was inacted at the begining of the Pandemia in March 2020 and of this blog we’d like to first and foremost hope you and your family are safe and healthy, surely and slowly looks like we’re going back into some kind of normalcy, perhaps by the time you’re looking at this we’ve emerged from it, in any case,   I’ll bring you four ways provided by the cares act and homeowner assistance programs designed to help homeowners in need due to a crisis and in some cases provide individual help as well.

Here are four programs that can be utilized to assist homeowners that are in need in these times of crisis as provide by the CARES ACT in its homeowner assistance programs provisions. The first one is:

 
Forbearance.

Forbearance is basically an agreement between the homeowner and the lender. The lender agrees to reduce or delay payments for a set period of time, typically three to six months and they can extend that if the conditions are still the same. The only thing with this one is at the end of the period, all the money is due.

Modification.

Modification is more of a legal process by which the lender, changes the terms of the original loan, For example, if you have a 30 year fixed rate on your original mortgage, they might change it to 40 years, hopefully with the same interest rates or lower provided that you qualify and therefore the payments are going to be lower and more sustainable.

Please note; the first thing that you should do is look at your statement and see who the customer service is and what their number so you can call them up and see what the requirements and conditions are, and of course before you stop making your payments. Obviously if you can still pay, you should always pay.

 

Deferment.

Deferment is, is a way by which the lender deferred, stop or reduce the payments payments for a set period of time. And what they do is they tackle or add all the money that you will owe at the end of the set period into the backend of your loan. For example, if your loan is at $200,000 principle  and you owe them $15,000 or $20,000 as a result of stopping the payments, then they add that to the total amount.

The good thing about this is that you don’t have to worry that at the end of the set period that all this money is now due.

 

Payment Assistance.

The payments assistance program  allows you   to pay in installments the money that you had at the end of the forbearance and spread the amount owed over a longer term or through the end of the loan, be mindful that forbearance and deferment are used interchangeably, but they’re different.

 

Cash Out Refi or HELOC’s

Cash out refinance or home equity lines of credit might be the option if you have enough equity in the home and have the capacity to still qualify for a new loan (still employed, credit and some reserves or savings perhaps) therefore allowing you to pay for debt incurred.

Due to the crisis, there’s an unprecedented rate of unemployment and many small business according to the experts estimates over 100,000 won’t be able to continue operating.
Please remember that your servicer might not necessarily be the original lender of your loan and  home  loans are usually owned by institutions or investors and not necessarily the bank or servicer you that you get the statements from is the one that actually owns it and each investor might have different requirements and conditions, so you should first contact them to know what to adhere to.
Thank you very much. If you need anything else, feel free to refer to us, please call me/ text me or email me.

 
Bottom Line

This COVID-19 crisis has been a sudden event that have impacted just about everyone’s live and many of us need assistance to recover from the economic impact from the Pandemia and some of these option might help, feel free to call me if I could assist you or anyone you know who might benefit from any of these programs.

 

 

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Covid-19 – 2008 Housing Tips

Covid-19 – 2008 Housing Tips

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Covid-19 – 2008 Housing Tips

First and foremost, we hope you and your family are safe and healthy during this time of quarantine and social distancing, please continue to observe the safe practices as recommended and look forward to hear from you again.

Many people are confused and asks us about the Covid-19 situation and real estate, as understandable,

I summarized in practical terms the info below, feel free to look at the short video if you prefer and analyze these charts.

let’s look at five things we know about today’s housing market that were different in 2008 and some Covid-19 – 2008 Housing Tips.

1. Appreciation

When we look at appreciation in the visual below, there’s a big difference between the 6 years prior to the housing crash and the most recent 6-year period of time. Leading up to the crash, we had much higher appreciation in this country than we see today. In fact, the highest level of appreciation most recently is below the lowest level we saw leading up to the crash. Prices have been rising lately, but not at the rate they were climbing back when we had runaway appreciation.

 

Think This Is a Housing Crisis? Think Again. | MyKCM

 

 

 

2. Mortgage Credit

The Mortgage Credit Availability Index is a monthly measure by the Mortgage Bankers Association that gauges the level of difficulty to secure a loan. The higher the index, the easier it is to get a loan; the lower the index, the harder. Today we’re nowhere near the levels seen before the housing crash when it was very easy to get approved for a mortgage. After the crash, however, lending standards tightened and have remained that way leading up to today.

 

Think This Is a Housing Crisis? Think Again. | MyKCM

 

 

 

3. Number of Homes for Sale

One of the causes of the housing crash in 2008 was an oversupply of homes for sale. Today, as shown in the next image, we see a much different picture. We don’t have enough homes on the market for the number of people who want to buy them. Across the country, we have less than 6 months of inventory, an undersupply of homes available for interested buyers.

 

Think This Is a Housing Crisis? Think Again. | MyKCM

 

 

 

4. Use of Home Equity

The chart below shows the difference in how people are accessing the equity in their homes today as compared to 2008. In 2008, consumers were harvesting equity from their homes (through cash-out refinances) and using it to finance their lifestyles. Today, consumers are treating the equity in their homes much more cautiously.

 

Think This Is a Housing Crisis? Think Again. | MyKCM

 

 

 

5. Home Equity Today

Today, 53.8% of homes across the country have at least 50% equity. In 2008, homeowners walked away when they owed more than what their homes were worth. With the equity homeowners have now, they’re much less likely to walk away from their homes.

 

Think This Is a Housing Crisis? Think Again. | MyKCM

 

 

 

Check these comments:

The COVID-19 crisis is causing different challenges across the country than the ones we faced in 2008. Back then, we had a housing crisis; today, we face a health crisis. What we know now is that housing is in a much stronger position today than it was in 2008. It is no longer the center of the economic slowdown. Rather, it could be just what helps pull us out of the downturn.

The Covid-19 situation have brought about many unknown variables and is not yet clear how this health crisis might affect the economy/financial environment as a whole, according to some of the local real estate experts there might be some variables to look at as the following months unveil how our lives will return to some degree of normalcy and they believe there might be some impact in the local Northern-NJ market., more info to come as it might be available, stay tuned.

 

 

 

Do You Know What's Your Home Value?

This is the Best Possible Time to Sell if Thinking to Move.

 

 

Clifton RE March Report

Clifton RE March Report

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Clifton RE Market Report for March 2020

 

 

 

Clifton RE Market Report for March 2020.

Take a Look at Your Local Housing STATS.

 

SOLD MARCH 2020

Single Homes SOLD (Incl, Condo/Townhomes,Active Comm Homes) : 29

Media Price                    Sold Price                 Sale to List Ratio            DOM

$ 339,000                         $ 339,000                       98.8                            36

 

SOLD FEBRUARY, 2020

Single Homes SOLD (Incl, Condo/Townhomes,Active Comm Homes) : 34

 Media Price                    Sold Price                 Sale to List Ratio             DOM

$ 330,000                     $ 330,000                          98.2                             55

 

Quarter/Year to Year Increase:

Increased by 4.91%  ↑

 

 

 

 

 

 

 

First Quarter of  2020 (JANUARY 1st-March 31st-2020)

Single Homes SOLD (Incl, Condo/Townhomes,Active Comm Homes) :  101 Homes

Media SOLD Price:  $ 355,000               Days on Market: 39                Sale to List Ratio: 98.9

First Quarter – 2019

Single Homes SOLD (Incl, Condo/Townhomes,Active Comm Homes) :  143 Homes

Media SOLD Price:  $ 338,000          Days on Market: 41                              Sale to List Ratio: 98.5

Clifton RE March Report Quarterly 2020 over 2019:

Increased by 4.91%  ↑

 

REMEMBER:

Interest Rates are lingering around 3.5%, the lowest ever in history, if you have a higher rate is time to check your mortgage statements and call your lender if you’re thinking to stay in your home for the foreseeable future, you could be saving thousands in interest.

 

 

If You Need anything, Feel Free to Contact Me at:

        Roberto A. Sanchez – 973-216-1945

 

 

 

 

 

 

 

 

 

 

The demand for multi-family homes in Clifton is impressive and certainly, the shortage of listings is amazing.

How the CORONA VIRUS will affect Real Estate!

The kickoff of the traditionally busy real estate market in the Northeast that starts with the Spring season in this occasion might be overshadowed by the imminent threat and scare at all justified with the outbreak of the disease, while many sellers and buyers will hold off their plans to move on, the recent market falls indicate investors are taking their money from the financial markets to more secure investment asset classes also according to the experts causing the interest rates to drop as these investor look for more secure bond investments. These might become great opportunities to buy and sell.

 

 

Do You Know What's Your Home Value?

This is the Best Possible Time to Sell if Thinking to Move.

 

 

Coronavirus Housing and Economic Recovery

Coronavirus Housing and Economic Recovery

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Looking to the Future: What the Experts Are Saying

Looking to the Future: What the Experts Are Saying | MyKCM

As our lives, our businesses, and the world we live in change day by day, we’re all left wondering how long this will last. How long will we feel the effects of the coronavirus? How deep will the impact go? The human toll may forever change families, but the economic impact will rebound with a cycle of downturn followed by economic expansion like we’ve seen play out in the U.S. economy many times over. Here’s a look at what leading experts and current research indicate about the economic impact we’ll likely see as a result of the coronavirus. It starts with a forecast of U.S. Gross Domestic Product (GDP). According to Investopedia: “Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of the country’s economic health.” When looking at GDP (the measure of our country’s economic health), a survey of three leading financial institutions shows a projected sharp decline followed by a steep rebound in the second half of this year:Looking to the Future: What the Experts Are Saying | MyKCMA recent study from John Burns Consulting also notes that past pandemics have also created V-Shaped Economic Recoveries like the ones noted above, and they had minimal impact on housing prices. This certainly gives hope and optimism for what is to come as the crisis passes. With this historical analysis in mind, many business owners are also optimistic for a bright economic return. A recent PricewaterhouseCoopers survey shows this confidence, noting 66% of surveyed business owners feel their companies will return to normal business rhythms within a month of the pandemic passing, and 90% feel they should be back to normal operation 1 to 3 months after:Looking to the Future: What the Experts Are Saying | MyKCMFrom expert financial institutions to business leaders across the country, we can clearly see that the anticipation of a quick return to normal once the current crisis subsides is not too far away. In essence, this won’t last forever, and we will get back to growth-mode. We’ve got this.

Bottom Line

Lives and businesses are being impacted by the coronavirus, but experts do see a light at the end of the tunnel. As the economy slows down due to the health crisis, we can take guidance and advice from experts that this too will pass.

 

 

Do You Know What's Your Home Value?

This is the Best Possible Time to Sell if Thinking to Move.