Quote:

Actually GrovePath, subprime loans are not the only loans in trouble. If you haven't seen the news lately loans to prime home buyers have started to take a turn for the worse. Adding insult to injury, many of job losses in the past year have been from the financial sector, the industry that helped DJC become what it is today. You won't see a huge collapse of the real estate market in DJC but you will see a downturn in prices though.

I came across this Federal Reserve dynamic map of subprime loans and more -- for every zip code in the country -- it is pretty interesting stuff.

BTW: Downtown 07302 looks pretty good.

http://www.newyorkfed.org/mortgagemaps/

Subprime foreclosure study: Jersey hurting

Tuesday, August 05, 2008
BY SAM ALI
NEWHOUSE NEWS SERVICE

A study released yesterday by the Federal Reserve Bank of New York paints the starkest picture of the subprime mortgage crisis in New Jersey to date.

New Jersey's ratio of subprime mortgages - those high-cost loans given to borrowers with less-than-perfect credit - in foreclosures is the nation's fifth-highest and actually exceeds the national figure, according to the study.

The study also found the home foreclosure crisis in New Jersey does not cut across all neighborhoods and economic classes in the state. Rather, subprime-related foreclosures are concentrated in clusters of largely urban zip codes, creating specific pockets of economic pain in low-and moderate-income neighborhoods.

Overall, there are three subprime mortgages in foreclosure for every 1,000 housing units in New Jersey, the study said.

"Residents in these neighborhoods are mostly at the lower end of the household income range for each county," the report said.

There were more than 10,446 subprime mortgages in foreclosure in New Jersey as of June. Many more houses are falling into default every month. Currently, New Jersey has slightly more than 3.47 million housing units.

It once would have seemed unthinkable to lump New Jersey in the same category as Nevada, California, Arizona and Florida - four states at the center of the housing meltdown.

Still, the Fed stressed the state's absolute number of properties in foreclosure is still considerably lower than those of the most severely affected states in the country. For example, Florida has 52,974 subprime mortgages in the foreclosure process, five times more than New Jersey in terms of absolute numbers, and California has 61,107, nearly six times as many as New Jersey.

The New Jersey counties with the largest share of subprime mortgages in foreclosure - a combined 25 percent - are Essex and Union, the study found.

In Essex County, about 75 percent of subprime mortgages in the foreclosure process - a total of 1,127 loans - are concentrated in Bloomfield, East Orange, Irvington, Newark, Orange and West Orange.

Together, these 11 areas have 6.7 subprime mortgages in foreclosure for every 1,000 housing units. That is more than twice as high as the state average.