More Properties Going to Sheriff’s Sale Here

COURT HOUSE — Sheriff’s sales of properties being foreclosed on in Cape May County in the first quarter of 2008 are close to triple those from the same time period in 2007, according to Sheriff’s Office estimates, and of those properties going to Sheriff’s sale, few if any owners these days are able to save them prior to their fate, or redeem them after the sale.
While the Sheriff’s Office does not keep statistics on numbers of properties sold at auction in foreclosure, statistics from the County Clerk’s office confirm Undersheriff John Reemer’s estimates this week that increasing numbers of properties are being lost to foreclosure here and have been steadily on the rise every year since 2004.
The local trend follows the nationwide trend in foreclosures as property owners struggle to deal with adjustable rate mortgages, a tight refinancing market and tough economic times.
While Cape May County compared to other counties in the state lands right about in the middle in numbers of foreclosures (see graph below, April, 2008) that’s small comfort to those who are losing their property.
Sheriff’s sales are held every Wednesday at the Old Historic Court House at 1 p.m. At a recent Sheriff’s sale, for example, four properties were listed, auctioned, had no bidders, and were bought for $100 by the lien holders, or the plaintiffs, which effectively transfers title to the property, including all its assets and liabilities, to the mortgage holder in the form of a Sheriff’s deed. That Sheriff’s deed can then be filed with the County Clerk to perfect the title transfer.
A broker or bank representative routinely shows up at the sale to protect the bank’s interest by assuring the bidding, if any, arrives at a minimum figure to recoup what is owed on the mortgage, plus costs, fees and commissions — called the “upset price.” If no interested parties bid on the property, the bank will buy the property for a minimum bid of $100 to effect the title transfer, and the county receives $50 on that $100 as commission on the sale.
The transfer in title enables the bank to sell the property on the open market to recoup its loss.
Bidders bidding on foreclosed properties must have 20 percent of their purchase price in cash or a certified check.
On June 18, the variety of types of properties going to Sheriff’s sale reflect the fact that the increase in foreclosures is affecting people in every socio-economic scale:
•1837 Shore Road, Marmora, Judgment $118,089.87
•532 Bay Avenue, Ocean City, Judgment $1,217,017.55
•3624-3626 West Avenue, Ocean City, Judgment $620,961.68
•115 Frances Avenue, Villas, Judgment $282,668.66.
County Clerk Rita Fulginiti said she’s noted the trends in filings with the county clerk.
“The number of foreclosure filings is increasing and the number of discharges of those foreclosures is decreasing,” said Fulginiti.
Notices of Lis Pendens are filed and recorded in the County Clerk’s Office as notice that there is a pending matter for foreclosure or otherwise affecting the title to real property, Fulginiti explained. Discharges of Lis Pendens are filed or recorded when the matters are resolved prior to completion of the foreclosure action or other matter affecting the title to real property.
Since 2004, notices filed for foreclosure have been on the rise at an increasing rate:
2004: 275
2005: 276
2006: 385
2007: 615.
Meanwhile, the discharges recorded since 2004 have remained fairly steady:
2004: 46
2005: 58
2006: 51
2007: 61.
Comparing first quarter figures from 2007 to 2008, foreclosure notice filings increased from 162 to 247, while discharges for that same period decreased from 42 to 31 (see tables, below).
(Ed. note: Future segments of this series on Housing in Cape May County will focus on the Pros and Cons of Buying a Foreclosed Property, among other topics. Next week: “Facing Foreclosure: One Woman’s Story.”)
Contact Avedissian at (609) 886-8600 Ext 27 or at: savedissian@cmcherald.com
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How Does Foreclosure Happen in NJ?
By SUSAN KRYSIAK AVEDISSIAN
Each state has its own rules regarding the process involved for a mortgage lender to foreclose on a property. There are numerous steps along the way that allow an owner to attempt to work out a means to prevent losing their property. Even faced with such a dire consequence, some property owners are unable or unwilling to climb out of their financial problems, said Undersheriff John Reemer. Some, he said, to their detriment, choose to ignore the problem until it’s too late.
“Many property owners are in denial,” he said.
Some even walk away from the house, if the house’s value has dropped to an amount less than what is owed on the mortgage.
The process for foreclosure in New Jersey is detailed here:
•Pre-foreclosure Period
At least 30 days before starting the foreclosure process, the lender mails a letter to the borrower warning of the impending foreclosure. During this pre-foreclosure period, the borrower can prevent the foreclosure by paying off the amount in default.
The lender initiates the foreclosure through the courts and records a Lis Pendens (notice of pending lawsuit) with the county clerk. The lender can sue for either the default payments or the entire unpaid principal balance on the loan. The borrower is notified of the foreclosure action in person or by publication if necessary. After being notified, the borrower has at least 35 days to respond or the court will make a ruling. If the court rules against the borrower, a sale date will be scheduled.
•Notice of Sale/Auction
Notice of sale must be posted on the property as well as in the county office where the property is located. In addition, the notice of sale must be published in two local newspapers. One of these publications must be in either the largest municipality in the county or the county seat.
Notice must be given to the property owner at least 10 days prior to the scheduled sale.
Foreclosure sales are conducted as public auctions, overseen by the sheriff or another officer of the county. The property is awarded to the highest bidder, and the sheriff must transfer ownership to the purchaser within 10 days following the sale. The court also confirms the sale. The borrower has redemption rights during the 10 days following the sale, when the court considers any objections.
Information courtesy of www.realtytrac.com/foreclosure-laws/New-Jersey-Foreclosure-Laws.asp
(Ed. note: Future stories in this series include: What Can a Property Owner Do to Prevent Foreclosure?)