In the second quarter of 2012, New Jersey properties that banks had already foreclosed took 354 days (nearly 1 year!) to sell from when they were foreclosed upon. This was the third longest period of time in the US — The US average was 195 days and the only two states with a higher number of days for the sale of these properties to close were New York (430 days) and Arkansas (357 days).
The Federal Housing Finance Agency (FHFA) announced its REO Initiative Program. Under this pilot program, in metropolitan areas of the country hit hardest by foreclosures, investors will be invited to apply to qualify to purchase large blocks of real estate owned by banks (REO) with the condition that the properties they buy will be available for rent for several years. This will not only reduce the number of foreclosure and REO properties on the market but will also stabilize neighborhoods overwhelmed by foreclosures. More about this program is available from the FHFA website and it’s announcement regarding this pilot program. If you have questions about the impact of foreclosures and bank-owned properties on home values in the Tewksbury and Somerset Hills area, contact Leaf, Realtors at 908-965-9756.