What is UP WITH FORECLOSURES!? (Newark, Watchung: for sale, real estate, mortgages)

[Newarkbomb]

i look at homes foreclosed on in north jersey, and they look like they'd be the same price if it was just for sale.
DOSNT MAKE SENCE, some states cut the house price more then half, here in jersey i think they cut off a cpl thousand

[brookdaleresident]

Not all foreclosures are a bargain. It's likely the mortgages are higher than comps now.

[NJ987654]

It all depends on what the bank is owed and how long it is for sale. The longer it sits, the more the bank will cut the price to unload it

[Huckleberry3911948]

not an NJ expert but they are doin the chickin licken talk but the sky is not falling yet, give it 6 months.

[Ira500]

When a home is sold at a foreclosure auction, they open the bidding at the amount that is owed on the mortgage. Since some people bought at the top of the market and/or refinanced, sometimes they owe more than what the house is worth.
If the house doesn't sell at a foreclosure auction, it usually becomes a Real Estate Owned (REO) home, and sometimes then the lender will try to unload it at a lower price, especially in areas with multiple foreclosed homes.

[kalim2008]

Originally Posted by Newarkbomb

i look at homes foreclosed on in north jersey, and they look like they'd be the same price if it was just for sale.
DOSNT MAKE SENCE, some states cut the house price more then half, here in jersey i think they cut off a cpl thousand

the mortgages on many homes that foreclosed are sometimes higher than current market prices because housing prices are falling fast. many people are upside down already.

saying that, i have seen several homes whose opening bids were significantly lower than current market prices. For example, in Watchung, 50 Dug Way had an opening bid of $489k, and sold for $600+, when the market assessment of the place is $800k+

[DodgeViper01]

Originally Posted by kalim2008

the mortgages on many homes that foreclosed are sometimes higher than current market prices because housing prices are falling fast. many people are upside down already.

saying that, i have seen several homes whose opening bids were significantly lower than current market prices. For example, in Watchung, 50 Dug Way had an opening bid of $489k, and sold for $600+, when the market assessment of the place is $800k+

Very well stated. This is true but if you call the bank for information, they will more than likely negoitate to unload it.

[noelg1970]

I used to know someone in 1998 that owned that home. It was one of the nicest places in Watchung. I would have paid the 600+. I do agree though that it's hard to imagine that amount of money for a forclosure. I was there when the pool was being put in. They paid almost 90,000 for that alone. Lucky new owners.