Foreclosures down in NJ, rising in PA
By: Tom MacDonald
A new survey shows the number of foreclosures in Pennsylvania is going up while New Jersey’s rate is dropping. Experts say the economy is causing a roller coaster for homeowners.
By: Tom MacDonald
tmacdonald@whyy.org
A new survey shows the number of foreclosures in Pennsylvania is going up while New Jersey’s rate is dropping. Experts say the economy is causing a roller coaster for homeowners.
Transcript:
Jeremy Nowak is CEO of The Reinvestment Fund, a community development financial institution. He says Pennsylvania didn’t have a big rise in home prices during the housing boom, so it took more time to have an increase in foreclosures.
Nowak: “You’ve got higher rates of unemployment that are hitting, secondly, some of the mortgages that were made 12, 18, and 24 months ago had reset provisions and those reset provisions are coming do, thirdly there are still declines in housing values.”
Nowak says in New Jersey there is currently a decline in foreclosures, but in resort areas such as the Jersey shore there are high rates of foreclosure due to people buying at the top of the market and now having negative equity in their homes, meaning they owe more than they’re worth.
Listen:
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[audio: reports20090313home.mp3]
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