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

Capital Gains Taxes?

Capital Gains Taxes?

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Capital Gains Taxes?… How to Sell a Home Without Paying Capital Gains Tax: What Home Sellers Need to Know

If you’re planning to sell your home, you may be wondering how to avoid capital gains taxes. Understanding the rules and available exemptions can save you thousands of dollars and help you keep more profit in your pocket. While taxes can be complex, there are clear ways you can reduce or eliminate your capital gains liability when selling a home. In this blog, we’ll break it all down in plain language, focusing on what homeowners in Clifton, NJ, need to know.

Before we begin, a quick disclaimer: This blog is for informational purposes only and does not constitute tax, legal, or financial advice. Always consult a tax professional, CPA, or attorney for guidance specific to your situation.

What Are Capital Gains Taxes?

When you sell a home, the IRS considers the profit you make from the sale as a “capital gain.”  Capital gains taxes are simply the difference between the amount you paid for the home (your cost basis) and the amount you sold it for (your sale price).

For example:

  • If you bought your home for $200,000 and sold it for $400,000, your capital gain is $200,000.

Capital gains are taxable, but there are exceptions and exclusions specifically designed to help homeowners reduce or eliminate these taxes.

The Home Sale Exclusion Rule

The good news for homeowners is that the IRS offers a generous Home Sale Exclusion, also known as the Section 121 Exclusion. This rule allows you to exclude up to:

  • $250,000 of capital gains if you are a single filer.
  • $500,000 of capital gains if you are married and filing jointly.

For many homeowners, this means you may owe no taxes at all on the sale of your primary residence. However, you must meet certain criteria to qualify for this exclusion.

How to Qualify for the Home Sale Exclusion

To claim the exclusion, you must meet two key requirements:

  1. Ownership Test: You must have owned the home for at least two years during the five years leading up to the sale.
  2. Use Test: You must have used the home as your primary residence for at least two of the last five years.

If you meet both the ownership and use tests, you can take full advantage of the exclusion limits.

Example: Let’s say you bought your Clifton home for $300,000 and sold it for $600,000. If you are a married couple filing jointly, you can exclude up to $500,000 of the gain. That means you won’t owe any capital gains taxes because the $300,000 gain is fully excluded.

Partial Exclusion for Special Circumstances

If you don’t meet the full ownership and use tests, you may still qualify for a partial exclusion of capital gains. Special circumstances include:

  • A job relocation (moving more than 50 miles away).
  • Health-related reasons.
  • Unforeseen events, such as divorce or natural disasters.

Even if you’ve only lived in your home for a short time, it’s worth exploring whether you can claim a partial exclusion.

Example: You lived in your home for just 18 months before accepting a job relocation. While you don’t meet the two-year requirement, you may still qualify for a prorated exclusion based on the time you lived in the home.

How Improvements Impact Your Capital Gains

Did you know that home improvements can reduce your taxable gain? The IRS allows you to add the cost of qualifying capital improvements to your home’s cost basis. This effectively reduces the amount of your capital gain.

What Counts as a Capital Improvement?

Capital improvements include any upgrades that:

  • Increase the value of your home.
  • Extend the useful life of your home.
  • Adapt your home for new uses.

Some examples include:

  • Adding a new roof, deck, or swimming pool.
  • Installing a new HVAC system or windows.
  • Renovating the kitchen or bathrooms.
  • Adding a home office or converting an attic or basement into living space.

Example: You purchased your home for $250,000 and spent $50,000 upgrading the kitchen and adding a deck. When you sell the home for $400,000, your cost basis is now $300,000 ($250,000 purchase price + $50,000 improvements). This reduces your capital gain to $100,000 instead of $150,000.

Keep Records of Improvements

To take advantage of this rule, keep detailed records of all improvements, including receipts, invoices, and permits. This documentation will be invaluable when calculating your cost basis and minimizing your taxable gain.

Pro Tip: If you’re planning to sell your home in the next few years, consider making strategic upgrades that not only boost your home’s value but also reduce your taxable gain.

Avoiding Capital Gains Taxes When Selling an Inherited Home

If you’ve inherited a home, the capital gains calculation is different. Instead of using the original purchase price as the cost basis, the IRS allows you to use the home’s fair market value (FMV) at the time of inheritance.

This is called a stepped-up basis, and it significantly reduces your capital gain.

Example: If your parents bought a Clifton home for $150,000 years ago and you inherit it when it’s worth $500,000, your cost basis is now $500,000. If you sell the home for $510,000, your capital gain is only $10,000.

This rule is particularly helpful for heirs who plan to sell an inherited property quickly.

Special Note for Multiple Heirs

If multiple people inherit a home (e.g., siblings), the stepped-up basis applies proportionally to each heir’s share. For example, if you inherit half of a $500,000 home, your stepped-up basis is $250,000.

Strategies for Reducing Capital Gains Taxes

If you anticipate a significant capital gain on your home sale, here are additional strategies to minimize your tax liability:

  1. Timing Your Sale: If you’re close to meeting the two-year ownership and use tests, consider delaying the sale to qualify for the full exclusion.
  2. Renting Before Selling: If you’ve used the home as a rental, you may still qualify for the exclusion if you meet the ownership and use tests.
  3. Offset Gains with Losses: You can offset capital gains with losses from other investments (known as tax-loss harvesting).

Consult a Tax Professional

While there are clear strategies for avoiding or minimizing capital gains taxes, every homeowner’s situation is unique. Tax laws are complex and constantly evolving, so it’s important to work with a qualified tax professional or CPA. They can help you:

  • Calculate your cost basis accurately.
  • Determine your eligibility for exclusions.
  • Plan your sale to minimize taxes.

At Sanchez Realty Group, we specialize in helping homeowners navigate the selling process in Clifton, NJ, and surrounding areas. While we can’t provide tax advice, we can connect you with trusted local professionals who can.

Final Thoughts

Selling a home without paying capital gains taxes is possible if you take advantage of the IRS rules, exclusions, and deductions available to you. By understanding the Home Sale Exclusion, tracking your capital improvements, and working with qualified professionals, you can keep more of your hard-earned profits.

If you’re thinking about selling your home in Clifton or Fairlawn, NJ, the team at Sanchez Realty Group is here to help. We’ll guide you through every step of the process and ensure you have the resources you need to make informed decisions.

Ready to Sell Your Home?

Contact Roberto A. Sanchez and the team at Sanchez Realty Group today. Let us help you make your next move with confidence and clarity!

 

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+

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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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2021 RE Market Skyrocketing Up Already!

2021 RE Market Skyrocketing Up Already!

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2021 Real Estate Market Skyrocketing Already!

 

 

 

The housing market is already skyrocketing into 2021 so far. Buyers and their high demand have far outnumbered sellers and a short supply of houses. According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), sales are up 23.7% from the same time last year while the inventory of homes available for sale is down 25.7%. There are 360,000 fewer single-family homes for sale today than there were at this time last year. This increase in demand coupled with such limited supply is leading to more bidding wars throughout the country.

Rose Quint, Assistant Vice President for Survey Research with the National Association of Home Builders (NAHB), recently reported:

“The number one reason long-time searchers haven’t made a home purchase is not because of their inability to find an affordably-priced home, but because they continue to get outbid by other offers.”

A survey in the NAHB report showed that 40% of buyers have been outbid for a home they wanted to purchase. This is more than twice the percentage in 2019, which was 19%.

 

What does this mean for sellers today?

It means sellers have tremendous leverage when negotiating with buyers.

In negotiations, leverage is the power that one side may have to influence the other side while moving closer to their negotiating position. A party’s leverage is based on its ability to award benefits or eliminate costs on the other side.

In today’s market, a buyer wants three things:

  1. To buy a home
  2. To buy now before prices continue to appreciate
  3. To buy now and take advantage of historically low mortgage rates while they last

These three buyer needs give the homeowner tremendous leverage when selling their house. Most realize this leverage enables the seller to sell at a good price. However, there may be another need the seller has that can be satisfied by using this leverage.

Sellers must use these benefits to buyers wisely while negotiating the best terms and conditions during a sale to ensure a smooth transition while selling their home for the highest amount possible and under the best terms and conditions.

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Northern New Jersey Real Estate Market

Northern New Jersey Real Estate Market

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Northern New Jersey Real Estate Market

Clifton RE Market Report – 2nd Half 2019 vs 2020 

 

The Northern New Jersey Real Estate Market and specifically the town of Clifton RE Market Report – 2nd Half of 2019 VS 2020

Take a Look at Your Local Housing STATS (For Stats Pertaining to your Local Neighborhood, feel free to reach out)

Median Sold Price for Homes Sold ifrom July-December 2019

Single Homes SOLD (Incl, Condo/Townhomes, Active Comm Homes): 377

Median-Price – Median Sold Price – Sale to List Ratio – DOM

$ 359,000                $ 360,000                    100                       31

VS

Median Sold Price for Homes Sold ifrom July-December 2020

Single Homes SOLD (Incl, Condo/Townhomes, Active Comm Homes): 61

Median Price  – Median Sold Price  – Sale to List Ratio – DOM

   $ 398,500                 $ 400,000                    100                        20

Over 10% Increase

ABSORTION RATE:

Extremely low, in less than 2 Months all available homes would be gone if no other homes were listed, which is a great indicator of the market activity in a particular area, typically a over 5-6 months of inventory is consider a buyers market.

This is still an outstanding increase of value in just a year, in spite of the health crisis and the tremendous share of uncertainty in many areas of our lives, real estate still shows strength and resiliency in the face of continued concerns about the resurge of Covid-19 cases and virus strains.

WHAT TO EXPECT IN 2021!? 

The continued rock bottom, historically low interest rates, strong buyer traffic in spite of the past Holidays and now severe Winter season in the Northeast tells us its a great time to be a seller, these conditions have contributed to the continued rise of prices, which have been offset the increases in mortgage payments.

Several points to consider:

  • New construction permits by builder is much higher however, it will take some time for these homes to become available.
  • There might be an increase in listings due to homeowners in hardship looking to sell to avoid foreclosure.
  • 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.
  • After a period of continued uncertainty it might be the best time to sell higher in a high demand-less inventory market, attaining higher price with possible multiple offers and better terms/conditions.
  • REMEMBER: RE is about the 3 P’s; Presentation, Promotion(Exposure) and Price.

Call us for a FREE consulation.

 Have a great week and Prosperou, Peaceful and Healthy 2021

BE SAFE!

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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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.

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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

 

 

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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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Our Telephone:

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RE Market Report April 2020

RE Market Report April 2020

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RE Market Report April 2020

 

   Single Homes (Single, CCT, AH)

                                    YTD2019     YTD 2020      % Change

            New Listings         4,862             4,429                 – 8.9%

            Pending Sales       2,768             2,901                + 4.8%

            Closed Sales         2,136             2,328                 +9.0 %

 

 

The RE Market Report April 2020 for the last 4 months of 2020 vs 2019 shows us the balance of supply and demand because both buyers and sellers are in check, in spite of the crisis and less homes available but there are also less buyers.

Now, as we have been quarantined for the last 8 weeks it has impacted most aspects of our lives and we are now face with a prevalent and valid concern, to keep ourselves, our families and protect each other from this terrible invisible enemy.

So, Fortunately looks a glimpse of light is appearing at the end of tunnel as we listened to the authorities and experts in regards to the numbers related to the pandemic illness mderating or coming down a bit but, as per the authorities we’re still no in safe territory so, they have extended the shelter in place till the end of May as we speak.

Hopefully so, we wish all of you to stay safe and healthy and thanks all those out in the trenches working amid this situation, specially the health professionals in the front lines.

However, the concern might go on for a while, therefore the safety protocols and guidelines adopted might become part of our new norm at least for the foreseeable future.

Now more than ever is necessary to adopt the virtual processes and effective online marketing strategies
That allows us to move on should you need or want to do so.

The main assets identified to bring the best results according to buyers surveys among buyers and sellers
Are: 

  • Virtual tours of the property:  Matterport/3D and Floor plans, Professional virtual tours, visual slide shows, (Using Skype, Facetime, Bombomb)
  • High quality photography (HD photos, enhanced view Boxbrownie app)
  • Detailed,. Accurate and well written information about the benefits/features of the property (Realist App, Aminstitute.com)
  • Detailed, accurate description of the neighborhood (Realist, Google, Points of interest)
  • Agent led  video chats (Describing in a succinct, organic way the details about the home)
  • Follow CDC guidance on social distancing and wearing face coverings

Bottom Line

These and many other tech resources effectively assist us in marketing your home at a time when there might be less  buyers but the ones still wishing to find their dream home are perhaps more capable and ready with less options due to limited listings coming on the market, therefore your property has less competition.

Now, those buyers can view homes from the comfort of their homes and procure a visit with their real estate professional through the phone or a virtual consultation because they are now ready to schedule an in-person viewing or talk about their options.   

Opening your doors up to digital approaches may be game-changing when it comes to selling your house. Let’s connect so you have a trusted real estate professional to help you safely and effectively navigate through all that’s new when it comes to making your next move.

 

 

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Our Address Is:

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Our Telephone:

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E-Mail:

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Keys to Selling During COVID-19

Keys to Selling During COVID-19

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Keys to Selling During COVID-19.

 

In a recent survey by realtor.com, people thinking about selling their homes indicated they’re generally willing to allow their agent and some potential buyers inside if done under the right conditions.

in NJ according to the Governor Real Estate is an essential function/business and its permissible done under the safety protocols, hosting  but, open houses are not permitted for now.  This is understandable, given the health concerns associated with social contact these days.

Now the question is, if you need to sell your house now, what virtual practices should you use to make sure you, your family, and potential buyers stay safe in the process?

Virtual Process and Effective Online Marketing:  

In a nutshell the Keys to Selling During COVID-19 in today’s rapidly changing market is to make sure you have a digital game plan and an effective online marketing strategy when selling your house.  High quality listing photos and virtual tours that stand out from the crowd, truly giving buyers a detailed and thorough view of your home.

So, if you’re ready to move forward, virtual practices may help you win big when you’re ready to sell, in a market with perhaps fewer buyers and also, less listings or inventory and therefore less competition. a real estate professional can help make your sale happen.

According to the same survey, when asked to select what technology would be most helpful when deciding on a new home, here’s what today’s home buyers said, in order of preference:

  • Virtual tour of the home
  • Accurate and detailed listing information
  • Detailed neighborhood information
  • High-quality listing photos
  • Agent-led video chat

After leveraging technology, if you have serious buyers who still want to see your house in person, keep in mind that according to the National Association of Realtors (NAR), there are ways to proceed safely.

Because, we’re in unprecedemted times. here are a few of the guidelines, understanding that the top priority should always be to obey state and local restrictions first:

Safety Guidelines:

  • Limit in-person activity
  • Require guests to wash their hands or use an alcohol-based sanitizer
  • Remove shoes or cover with booties
  • Follow CDC guidance on social distancing and wearing face coverings

Working with your a true trusted advisor  – taking these steps under the new safety standards might be your best plan. This is especially important if you’re in a position where you need to sell your house sooner rather than later.

It sounds like some of these new practices might be here to stay.

Bottom Line

In a new era of life, things are shifting quickly, and these are the keys to selling during Covid-19 with a safe process, virtual strategies, and effective online marketing for sellers may be a the best option.

Opening your doors up to digital approaches may be game-changing when it comes to selling your house. Let’s connect so you have a trusted real estate professional to help you safely and effectively navigate through all that’s new when it comes to making your next move.

Check Out this Video from NAR (Nat’l Assoc of Realtors) about the virtual strategies we can implement if you’re selling! 

 

 

 

Do You Know What's Your Home Value?

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

 

 

Contact Us

12 + 8 =

 

Our Address Is:

18-19 River Rd, Fair Lawn, NJ 07410

Our Telephone:

888-501-6953 Ext. 254 or Cell: 973-216-1945

E-Mail:

Rsanchez@Robsrealtor.com

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