Buyers of New Jersey Foreclosures Got 48 Percent Discount

by on States

Buyers of New Jersey foreclosures from lenders for the period January to March got an average sales price discount of 47.78 percent, based on sales figures from a research firm.

A total of 3,218 short sale homes and units from foreclosure homes listings in New Jersey were usually sold on the average sales price of $222,156 in the first quarter, lower by 34.4 percent compared to nondistressed properties. The average selling price for short sales homes was lower by 20.83 percent than nondistressed prices.

Despite the substantial price discounts, however, total foreclosure sales during the first three months marked a decline of 16 percent compared to the prior quarter and a decrease of 5.2 percent from the first quarter in 2009. These short sales and foreclosure sales also comprised only 19.3 percent of total house sales during the quarter, far below the percentages in fellow Eastern states Massachusetts and Rhode Island, which were 42.15 percent and 41.64 percent, respectively.

During the same quarter, the pace of New Jersey foreclosures rose over the year, but slowed compared to the final quarter of 2009. About 15,593 homes were put into foreclosure, more than 3,700 of which were posted for foreclosure home auctions for sale and more than 2,400 of which were already in listings of lenders. These bank listings also included apartment homes for sale as there were also a number of multifamily homes that defaulted and ultimately ended up in foreclosure.

In addition, nearly 9,500 units of total filings were in pre-foreclosure. It is inferred that a number of these were saved from eventual foreclosure, as New Jersey was among states which posted relatively significant percentages of trial and permanent modifications under the HAMP scheme through May.

In the most recent HAMP report from the Treasury Department, there were 26,460 homes that were rescued from listings of New Jersey foreclosures as they were approved for trial and permanent modifications.

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