You may think that purchasing a foreclosure is the same as putting someone out of their house or even contributing to the homeless problem. However, purchasing a foreclosure actually helps the debtor, the lender, the county, the community and the buyer.

The debtor or defendant is obligated to pay the difference between the outstanding debt and the amount the property is sold for at the sheriff auction. NJPForeclosures.com, by providing this information to the public, increases the number of competitive bidders; allowing the market forces of supply and demand to determine the price. This increases the likelihood the debt will be satisfied and the defendant will not owe additional money.

Do you know 90% of the properties at sheriff sales are "purchased" by the lender for less than $300.00 -- due to no bidders? But, if a property can be sold to the public at auction, the lender benefits by receiving payment on the debt. The lender can generate more loans rather than hold and manage the real estate.

The county benefits through increased fee revenue based on the winning bid. The county fee is a percentage of the bid. When the amount bid by the lender is $300.00 or less, the county receives very little fee revenue... when compared to the true market value of the property.

The community benefits through increased property values and reduced vacant housing. When a property is abandoned; the house is not maintained, repairs are not made, and the grass is not cut. Many times the house can attract vandals. The houses nearby can not command top dollar, since any potential buyer will wonder about the condition of the neighborhood.

The buyer benefits by purchasing real estate at 30% to 60% below appraised value.

In short, purchasing foreclosures is a way to stimulate the economy where everybody wins.