Monmouth/Ocean Sees Fewer Foreclosures

While the media has focused our attention on the sub prime mortgage foreclosure problem across the country and around the state, Ocean and Monmouth Counties are not seeing the same trend.

According to Jeff Otteau, President of Otteau Valuation Group, many of the sub prime foreclosures we are hearing about now, were closed in 2005. After 2 years, the interest rates are reset and people are unable to afford their mortgage payments.

Statewide, sub prime mortgages in 2005 were 23% of all mortgages, while Monmouth county was 17% and Ocean 19%. “Fewer homeowners in Monmouth and Ocean entered into these loans, so the fallout is far less than it has been across the state and the nation”, said Otteau. The FHA is working on alternative loan programs to sub prime.