Plainfield foreclosures

The list of Plainfield homes put up for Sheriff's sale in this past week's Courier caught my attention for three reasons: the sheer number, the dollar amounts involved, and the spread throughout the city.

The first thing you should know about Sheriff's sales is that these are serious -- make that SERIOUS -- business.

Not only has the homeowner missed more than some payments, they have gone into foreclosure and the lender has secured a judgment by a court against the property in the amount owed the lender plus other costs and fees.

That total is known as the UPSET PRICE, less than which will not be accepted for the property. That includes any unpaid property and sewer taxes as well as any IRS, mechanics' or other liens against the property. The court then orders the Sheriff to sell the property at public auction to satisfy the judgment.

People have been known to come back from the brink, but it's not highly likely.

Below is a summary table of this past week's Sheriff's sale listings --

UPSET PRICE	JUDGMENT	STREET	BLOCK	WARD
$996,976	$881,972	Berkeley Ave	700	2
$531,786	$482,791	Charlotte Rd	800	2
$511,872	$466,013	Kensington Ave	800	2
$449,311	$417,314	Park Ave	800	2
$426,128	$385,596	Carleton Ave	700	2
$393,290	$362,976	West 6th St	300	3
$380,322	$351,808	West 4th St	1200	4
$373,507	$346,768	Johnson Ave	100	1
$336,952	$308,952	Lafayette Pl	100	4
$310,080	$285,703	Columbia Ave	1200	2
$280,082	$260,012	West 8th St	900	3
$267,741	$247,902	Murray Ave	1300	3
$257,531	$236,915	Madison Ave	900	3
$246,872	$225,817	Hillcrest Ave	300	1
$211,393	$195,164	Earle Pl	1100	1
$196,518	$182,054	Evona Ave	300	4
$141,060	$102,893	West 5th St	900	4
$66,876	$60,747	Lenox Ave	1200	3

Of the 23 properties listed, 18 were in Plainfield, two in Fanwood and three in Scotch Plains.

What I think is worrisome is the geographic spread -- one third of the Plainfield foreclosures are in the 2nd Ward, and Wards 2 and 3 make up almost two thirds of the total. If the relative stability and higher-priced properties of Wards 2 and 3 are under assault, what else is in store?

Add to this the UPSET PRICES in relation to the current real estate market. One property on Berkeley Avenue is needing just a whisker under $1 million to satisfy the judgment.

The two big questions are whether, in a sinking market, these properties will hold up in appraisal against the sums needed, and, secondly, where the buyers will come from -- who now must have real, verifiable incomes and some real money in the bank. Unless, of course, they are going to pony up 100% cash for these properties.

I do not know if these foreclosures are a result of the subprime mortgage mess, which has yet to make its full weight felt in Plainfield. That will come, as the adjustable rate mortgages (ARMs) issued in 2005, 2006 and 2007 reset from the introductory low rates to higher index-based rates.

Those resets have just begun and will ripple through the next two years. And, for those unlucky enough not to be able to refinance out of the ARMs, the resets will continue periodically for the life of the loan.

Batten down the hatches. Heavy weather ahead.

-- Dan Damon

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