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Atlantic County again led U.S. metropolitan areas in foreclosure activity rates in the first quarter of 2015, and other southern New Jersey counties saw big year-over-year increases too, RealtyTrac said Wednesday.
The new figures reinforce the struggles of real estate markets battered by years of down local economies and a spate of New Jersey distressed properties delayed by previous backlogs and moratoriums.
“It signifies this is still a market that’s experienced a lot of housing trouble,” said Daren Blomquist, vice president of market research firm RealtyTrac. “It’s not just that (Atlantic County) is the highest but we’re continuing to see these increases in foreclosure activity so it’s still getting worse.”
Atlantic County, where one in every 113 housing units had a foreclosure filing, led the country, ahead of Rockford, Illinois, and Ocala, Florida. It led last quarter too.
Troubles trying to get banks to approve short sales and lenders not budging much on asking prices are keeping more properties from being sold, said Freda Thomas, of Re/Max Platinum Properties in Linwood.
“They’re not being too flexible in price, which is causing these properties that are short selling longer, which then goes into foreclosure,” she said.
“I’ve had a couple where they turned down offers and come back with higher bids when their appraisers go out, which makes it more difficult for these properties to move,” she said.
Within the past year, lenders have been increasing efforts to fix up portions of foreclosed houses with fresh paint and new carpet, which makes them a little more attractive for buyers, she said.
RealtyTrac’s foreclosure activity measures initial filings, sheriff’s sale notices and bank repossessions.
All area counties and New Jersey were up in the first quarter from one year ago.
Atlantic County was up 46 percent; Cape May County, 35 percent; Cumberland County, 16 percent; and Ocean County, 25 percent.
New Jersey was up 17 percent in that period, and the state had the fifth-highest foreclosure rate in the country in the first quarter, RealtyTrac said.
In South Jersey, the biggest single jump came from notices of sheriff’s sales — the auctions listed in newspapers of specific properties lenders are preparing to sell.
James Schroeder, an attorney specializing in short sales and owner of the Schroeder Law Group in Hammonton and Egg Harbor City, expects short sales, distressed sales and bank-owned properties to dominate the market for the next five years.
This is primarily because of job losses, he said.
“I’m just beginning to see a trickle from people who lost their jobs in the casino a year ago. Usually people sit stunned for a year,” he said.
Schroeder said those facing bank notices should address them early rather than waiting.
“It’s the best thing for them and the best thing for our county,” he said. “Homeowners deferring maintenance, not fixing major issues … by the times these houses hit the market they’re in really poor shape that affects the property values of the entire neighborhood.”
Anthony Houser, a real estate agent with Coldwell Banker Excel Realty in Vineland, said banks are putting more inventory out for sale, but there are still plenty of abandoned properties that vary by neighborhood.
Coupled with vandalism and stolen pipes and heaters, homes in bad shape can be particularly difficult to sell.
“They put a house out for sale for maybe $120,000 and it needs $30,000 worth of work, nobody can buy that house unless it’s a cash buyer or investor,” he said. “Right away you can’t get a regular mortgage and you’re already narrowing down the people you can sell to.”
“We definitely have a lack of ready to go, sellable homes that people can move into for a decent price, and when we get one, we sell it fast,” he said.
The national picture of foreclosure activity counters the one seen locally and statewide.
Filings in the U.S. dropped 8 percent in the first quarter of 2015 from a year ago, according to RealtyTrac.
Contact Brian Ianieri:
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