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More Bank Foreclosures Mean New Ways to Buy
By jason | March 5, 2008
While 2007 saw some of the highest bank foreclosure inventories many states have seen in decades, experts predict that 2008 will bring even higher levels of foreclosures nationwide, and this could make for some interesting investment opportunities for homebuyers.
With the rising volume of foreclosures across the nation, 2007 brought newfound attention to the foreclosure marketplace. Tired of dealing with broker fees and eager to take advantage of the unique savings available on foreclosure property, many buyers began to shirk the traditional sales for foreclosure auctions, where foreclosure homes are often sold for anywhere from 10 to 50% below their real market value.
Sheriffs, trustees and banks began to see increased attendance at public foreclosure sales, especially in states with very high rates of foreclosure, like Texas, Florida, Michigan and Nevada. The Dallas Morning Star recently ran a report suggesting that weekend foreclosure auctions had become regular community outings, with investors and homebuyers alike turning out to see what would be available and whether or not they could get it for a good deal.
But with more and more properties coming on to the market and inventories climbing ever higher, many properties are not being sold off at auction at all. Instead, they are being awarded to the banks and lenders trying to collect on the delinquent loan owed them. And this is creating a host of new opportunities for investors and homebuyers.
As more and more bank foreclosure properties are being awarded back to the banks that issued the mortgages on them, it is making it increasingly difficult for them to get rid of their properties. Banks are not in the business of selling real estate, and as a result, the rising inventory of bank owned homes has made many of them more eager than ever to get rid of them, and this can lead to some very low prices.
Buying bank foreclosure properties is different from buying properties at foreclosure auction, but in many ways it can be less stressful. Rather than getting involved in the one-upping that occurs at live auction, buying homes through bank sales involves submitting a single, silent bid. It is then up to the bank to award you the property or not. Buying bank owned homes also gives you more of an opportunity to inspect a property before you have to bid on it. And with banks controlling lots of properties, there are virtually entire catalogues of properties to choose from.
So if foreclosure auctions are crowded and competitive in your area, be sure to consider the chance to buy bank foreclosure properties. Already in 2008 we’re seeing more rises in foreclosures, as the national rate jumped 8% from December. So be sure to watch out for all the buying opportunities, not just the commonly attended auction! In many cases, buying bank foreclosure properties and other types of repo homes may end up being more beneficial!
Topics: Bank Foreclosures |
May 27th, 2008 at 3:39 pm
[...] as a unique real estate market. Idaho and the Boise area is a ripe spot for repo homes and bank foreclosures for sale, as the foreclosure rate in January of 2008 was 95% higher than it was in January 2007. [...]