Foreclosure
With 31 percent of house sales in America in the first quarter of this year all foreclosures, this would appear to be an excellent time for those looking to buy a foreclosed house.
In just five years the number of foreclosures in the country has risen by an alarming 2,500 percent. That isn’t good for the country, or the people who have lost their homes, but it is very good for anyone who is in the house buying market.
“A combination of an enormous inventory of distressed properties and an unprecedented interest by home buyers to buy these properties boosted sales,” said Rick Sharga, senior vice-president at RealtyTrac.
Most homeowners try to prevent foreclosure if at all possible. They are taking advantage of historic low mortgage refinance loan rates in order to refinance their homes. For many it is working, but for many more it is not, and for them foreclosure prevention eventually becomes impossible.
This is where others are stepping in to buy up foreclosed properties at bargain basement prices, in many cases. To those who have lost everything, those snapping up foreclosure properties must appear little better than a shark feeding frenzy in the ocean.
However, foreclosed homes are usually very good bargains. The homes have been maintained in good condition in most cases. It’s just the finances that the previous owners had a problem with.
Buying foreclosures can be a lot easier to finalise too, as buyers deal directly with the lending institution or bank, and not with an owner.
Most lending institutions and banks have a policy in place of getting rid of the foreclosed homes as quickly as possible, thereby cutting their losses fast and moving on.
This works in the favor of anyone seeking to buy a foreclosure. The price will be relatively low – sometimes amazingly so – and the paperwork will be fast and efficiently processed.
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