Everyone knows just how opportunistic today’s market can be with an abundance of foreclosed homes up for grabs. It seems like new foreclosure listings appear daily, with thousands of investors competing for the best discounted properties available.

Part of succeeding in such a market involves doing one’s homework regarding a particular property and making sure it is a sound investment. That means, among other things, having the property properly inspected. Here we’ll talk about strategies behind foreclosure inspection, why you should have your prospective foreclosures inspected, critical issues that you may encounter, and particular areas of emphasis to cover during your inspection.

Strategies and Tips for Better Inspections

These days, foreclosures run the gamut in terms of quality. Not all are created equal. Dilapidated, abandoned, and neglected foreclosures in the slums are a different beast altogether than recently-vacant, well-maintained, and intact foreclosures in higher-end neighborhoods in the suburbs.

Because of this, it helps to have inspections for your properties. The scope and detail of an inspection will depend on the quality of the home itself. For example, if you are dealing with a foreclosure in a relatively decent neighborhood, and the home appears to be well-maintained and in good order, you could probably deal with inspecting the home yourself for minor repairs and leave it at that. If that is your course of action, it helps to attend a professional home inspection at least once so you can get a good feel for how it is supposed to work.

Let’s say that the home appears to be in worse shape, or could potentially require extensive work. Even if nothing on the outside appears out of order, if your instincts tell you differently, it helps to go with a more in-depth home inspection, particularly with a professional home inspector.

If this is the case, you (or your inspector) will want to pay attention to these critical areas:

- Electrical wiring

o Look for exposed wires, damaged wiring, circuits that don’t work properly, stripped wiring, wiring that is old and not properly upgraded, etc.

- Plumbing

o Foreclosures often are victim of having copper plumbing stripped and sold for scrap. Check and see if everything is in place; if it is, see if there is any evidence of water damage or leaking in the home.

- Roof

o Leaks are a major concern; check the attic if applicable or the ceiling.

- Foundation

o Every foundation needs to be checked for cracking. Crawl space foundations are more susceptible to rotting and termite-infested wood, especially with older homes.

- HVAC

o Are there any missing implements? Are the heating elements properly installed and in good working condition? If not, they could pose a safety hazard.

One smart idea is to hire another trusted contractor or company to perform a second inspection and give you a better idea of what needs to be fixed with the home before you proceed further.

Benefits of Foreclosure Inspections

The main benefit of a foreclosure inspection is to help you determine how sound of an investment a foreclosure may be, so you are not pouring money into a money pit. Again, not all foreclosed homes are equal; some will require extensive, major renovations that could eat away at your profit margin and leave you in the red.

Another benefit is time. If you are purchasing this home for yourself, you can avoid potential issues that you’ll have to correct in the future. If you are trying to fix it and sell it, you will have less work before you.

Finally, inspecting a home makes it easier to price a home and bid competitively, and obtain permits for a home once the purchase has been made. If you know what the home will cost to repair to proper standards, you will have an inside track on pricing your bid or offer and maximizing your spending power.

Steps for Inspecting a Foreclosure Home is a post from: Foreclosure Magazine - Read more about how does foreclosure work.

With bank foreclosures and Freddie Mac foreclosures remaining elevated in majority of markets, the report from S&P did not surprise a lot of analysts. According to most of them, the presence of cheap distressed homes will likely continue to drag prices down for the rest of the year. In February, 19 of the 20 major city markets tracked by S&P showed month-over-month price declines. It also marked the seventh month in a row that the price index has fallen from the previous month.

Housing experts explained that plummeting housing prices are caused by several factors, including huge amounts of foreclosed and repo properties in the market, record levels of unemployment in various regions, difficulties encountered by potential homebuyers in securing financing and fear among would-be buyers that prices will decline further in the coming months. Experts also stated that what is even more worrying is that the U.S. housing market is set for another deluge of foreclosures.

According to them, foreclosure homes for sale are likely to surge in the coming months as lenders pour the distressed properties they are putting on hold into the market. Industry experts claimed that a lot of foreclosures and even non-foreclosed houses are still in the pipeline as some sellers are not putting them into the market in the hope that they will have a better chance of selling at higher prices in the coming months.

The report from S&P showed how much impact a list of bank owned properties for sale has on housing prices, analysts noted. The report revealed that in Atlanta, Chicago, Charlotte, Tampa, New York, Portland, Seattle, Miami, Phoenix and Las Vegas, prices have dipped in February 2011 to their lowest levels since the period 2006 or 2007. The report also showed that the biggest drops in prices between January and February of this year were recorded in the cities of Chicago, Miami, Minneapolis and San Francisco.

A survey from the University of Michigan further emphasized the impact of foreclosure homes for sale on prices and sales of regular houses. Around 90% of the respondents to the survey stated that right now is a bad time for home sellers.

Foreclosure Homes for Sale Continue to Hammer U.S. Residential Prices is a post from: Foreclosure Magazine - Read more about how does foreclosure work.

They revealed that, aside from cheap properties offered at foreclosure auctions, luxury dwellings are also posting increasing sales since the start of 2011. Experts reported that affluent buyers are starting to gain confidence with regards to the direction that the housing market might take. They claimed that gains in the stock market are part of the reason for rich people's newly-found enthusiasm towards residential properties.

Although bank owned foreclosures dominated the home selling market during the first quarter of 2011, realtors reported that houses priced above $1 million also recorded increased sales in majority of U.S. states. They also revealed that bidding wars for luxury houses have escalated, the first time that such trend is seen since the start of the foreclosure crisis. Brokers and agents also reported that confidence among luxury homebuyers has risen in the past few months, particularly since supply in this category is not as high as in other housing segments.

At the opposite end of the market, home foreclosures continue to rack up sales, with majority of sales deals accomplished by investors who are taking advantage of the bargain prices and those who have the ability to pay in cash. Improvements in both ends of the market however, are not happening in the middle where properties ranging in price from $100,000 to $500,000 can be found.

Traditionally, houses in this price range comprise at least 60% of the home-selling market. With luxury houses and cheap dwellings at public foreclosure auctions accounting for big percentages of residential sales, the middle market is left struggling, realtors have explained. This trend, along with the oversupply of short sales and foreclosures, is preventing the housing industry from recovering, some industry experts have asserted. They also believe that tight lending standards are to be blamed for the slow recovery of the home market.

For most real property agents and brokers, difficulties in acquiring loans are as much a problem as the oversupply of home foreclosures in the nation. They argued that housing will not be able to recover unless lending rules are loosened up a bit to allow would-be buyers to cut down the supply of distressed properties in the market.

Home Foreclosures Still Dragging Housing Market Down is a post from: Foreclosure Magazine - Read more about how does foreclosure work.

The huge amount of distressed homes in all regions of the U.S. caused prices to continue to drop since July of last year. Currently, analysts reported that prices of dwellings in 14 major markets of the country have dipped to a level similar to what was seen during 2003. Moreover, analysts are predicting more declines in housing prices for the rest of the current year, a development expected to create further instability in the industry.

The continuous decline in prices, particularly among properties in bank owned listings, is also projected to cause housing sales to dip, but analysts stated that investors will benefit as they will have more opportunities to grab properties at even lower rates. Meanwhile, while investors will have the best pickings from properties already out in the market; analysts predict that home sellers, particularly actual homeowners, will be unlikely to sell their properties in the coming months, given that they will be selling at a loss.

With hundreds of thousands of cheap house foreclosures for sale to compete with, prices of non-foreclosed and newly-built homes have also tumbled. Nationwide housing data showed that even markets previously protected from the worst of the crisis are experiencing historic lows in residential prices. Some of these regions include Minneapolis, Denver and Chicago. Prices also declined in Detroit, Las Vegas and Cleveland, although analysts claimed that this was expected.

The massive drop in prices is mainly attributed to the growing number of homes under listings of foreclosure auctions and dwellings being sold as short sales. For the most part, real estate investors are the most likely to benefit from the current condition of the market, while homeowners and home sellers are left to cope with their losses. Analysts also asserted that the depressed condition of the residential market is taking its toll on the overall economy of the U.S.

In the coming months, they predict further decreases in housing prices as house foreclosures for sale continue to increase. They stated that the worst of the crisis is being felt by homeowners who have purchased their homes during the real estate market boom, with majority of them currently having little or zero home equity.

House Foreclosures for Sale Are Now Great Investment Assets is a post from: Foreclosure Magazine - Read more about how does foreclosure work.

The massive inventory of bank foreclosures and distressed properties has created a buyer's market in housing, real property agents stated. This has made a lot of homebuyers persistent in their demands, with majority of them asking for further discounts and additional perks, knowing that majority of sellers are desperate to unload their properties. Realtors have revealed that majority of current purchasers are looking for heavily bargained dwellings, and most of them are getting it.

Realtors reported that even for a bank owned home for sale, most buyers are expecting it to look like an owner-occupied home. Most of them tell realtors that they do not want to be the one to paint, clean and put the carpet in; expecting to have all these taken care of on top of the low price. Industry-savvy realtors have advised current home sellers to clean, repair and stage their houses if they want them sold. They remind sellers that buyers have become picky and more critical and that they can afford to be.

On top of the low prices, particularly among foreclosure houses for sale, buyers are also expecting to get further incentives, realtors reported. According to them, some sellers have gone this route to get their houses sold; with some offering gift cards for home paint and new furniture, while others provide assistance for financing closings. Meanwhile, others are looking for additional features like exterior living areas, porches and fireplaces.

Agents have also revealed that they find repossessed property and other residential dwellings to be easier to sell if they have energy-efficient add-ons. Real estate brokers stated that houses with windows that are triple-glazed and homes with boilers and energy-saving appliances often generate a lot of interest. They stated that homebuyers usually look for these features because energy-efficient items allow them to save more money. At the current condition of the market, realtors stated that these features make a residential home more competitive.

Housing market observers have explained that the high number of foreclosure houses for sale has given the power of negotiation to homebuyers. With so many to choose from, buyers can afford to be picky and demanding. For the part of sellers, realtors suggest that they make their dwellings as attractive as they possibly can if they want them sold.

Foreclosure Houses for Sale Popular Among Current Buyers is a post from: Foreclosure Magazine - Read more about how does foreclosure work.

With the number of foreclosed fixer upper homes for sale and distressed single family dwellings continuing to increase while jobs have become scarce, analysts stated that the housing market problem will not be ending soon. Although mortgage refinancing involving more years to pay in exchange for lower monthly loan payments has been criticized by some, a number of analysts believe that the option is appropriate for certain homeowners.

According to them, homeowners facing possible loss of properties to bank-owned foreclosures might be better off extending their loan terms. Although this will mean higher interest in the long run, it will help save the borrower's property and will also provide more money that can be used in other immediate obligations. However, not all support the option of extending loan periods.

Those who criticize the method of prolonging the payment period have argued that homeowners, even those who are faced with possible loss of properties to foreclosures homes, tend to lose more in the long run. Aside from higher interests, they also cited the fact that owners will lose more equity the longer the payment period. This could hurt them if they decide to sell their homes after a few years.

But for those who recommend this option, their main argument is that most troubled homeowners nowadays are also suffering from income loss or reduction since majority of them have lost their jobs. In such cases, having an additional source of money will help them get through their financial problems and will also save their properties from becoming repossessed homes for sale.

For analysts who favor longer loan terms, they suggest the option mostly to those who are encountering sudden financial problems caused by unemployment, divorce or emergency medical situations that require money. They added that it will also prevent foreclosures homes and will benefit those who have every intention of staying in their houses for a long period of time.

Some Analysts Favor Longer Payment Periods Over Foreclosures Homes is a post from: Foreclosure Magazine - Read more about how does foreclosure work.

The fallout of the mortgage mess included homeowners with little or no equity left on their property. If the owner can no longer pay the mortgage, selling the home would be a challenge and in most cases, the property becomes one of the many bank owned foreclosure homes.

Although the situation seems dire at best, experts are saying there could be other better alternatives than letting your home end up in the inventory of foreclosure homes for sale.

For starters, there is the ever popular loan modification. The federal government even launched the Home Affordable Modification Program in order to reduce the number of homes ending up in foreclosure auctions. The said program actually offers incentives to both buyers and lenders and allows the original homeowner to apply for a loan modification as long as certain requirements are met.

At the beginning, HAFA did not perform as well as expected but recent changes to the program certainly made things brighter. Among these changes are the non-requirement of the verification of the income of the seller and the non-inclusion of the provision that the DTI should be over 31 percent of the seller’s gross income.

Another good thing about the federal program is that the borrower’s credit record is not as adversely affected. This is also true for those considering a short sale instead of just simply allowing their home to end up as repo homes. Of course, the short sale process can be a bit tedious and there is really no guarantee the lender will agree to such transaction especially if they see that they will benefit more if they repossess and put up the home as foreclosure homes for sale.

Choosing Loan Modification, Short Sale Or Foreclosure Homes for Sale is a post from: Foreclosure Magazine - Read more about how does foreclosure work.

According to the Mortgage Bankers Association (MBA), the number of distressed houses dropped in the July to September 2010 period, along with the number of delinquent borrowers. For the quarter, around 9.1% of U.S. borrowers have failed to pay their mortgage for at least a month. The figure is lower than the 9.9% recorded in the 2010 second quarter and the over 10% delinquency rate recorded in the first three months of the current year.

The number of foreclosed new homes is expected to be lower for the remaining months of 2010 as houses undergoing the process of foreclosure also declined from 4.6% to 4.4% in the third quarter. The number of borrowers who are seriously delinquent, or those who are at least three months late in their mortgage payments, also decreased from 4.8% to 4.3%.

According to MBA, the decrease in foreclosures bank owned totals and in the number of delinquent borrowers can be partly attributed to the improving job market. Despite the decline though, analysts from MBA believe that levels for both foreclosure and delinquency are still much higher than normal market levels. Most housing industry analysts expect these levels to remain high while the country's unemployment rate also remains high and values of property remain low.

Housing experts also predict that it will take at least three years for the country to work through the supplies of delinquent mortgage loans and foreclosure inventories, including bank owned properties, homes under lists of foreclosure VA and other types of foreclosed real estate. They also stated that the problem has now encroached on households with higher income and good credit ratings.

When the crisis started, analysts stated that foreclosures bank owned and other distressed property problems were limited to those who had risky mortgages with interest rates that are variable and to people who took out loans they cannot afford. Now, even those who have supposedly safe fixed rate loans are being affected by the foreclosure crisis, primarily because of the nation's high unemployment rate and the economic downturn.

Foreclosures Bank Owned Risks Decline in the U.S. is a post from: Foreclosure Magazine - Read more about how does foreclosure work.

The second quarter of 2010 saw nondistressed home sales increasing in number, but their totals are still not enough to offset the bulk of residential properties being sold off at foreclosure house auctions and those sold through short sales, particularly in the areas of Sparks and Reno, Nevada.

Housing market data for the April-June 2010 period in the two counties showed that more than half of the houses sold during the period were foreclosure and short sales, showing that more people are more interested in buying repo houses than existing residences. A total of 904 distressed properties were sold in the two areas during the said quarter.

Nevada retains its top position as the area with the highest number of foreclosed homes by state during the second quarter of the current year. In Sparks and Reno, 60% of house sales were either through short sale or through a foreclosure sale. This is higher than the same period of 2009, when 55% of house sales were accounted for by foreclosed properties and short sales.

In other areas of Nevada, like Washoe County, existing home sales rose during the second quarter, with the tax credit deadline in June being thanked by most realtors for the increase. The area recorded a 12% rise in home sales during the second quarter of the current year compared with the same period of 2009. This does not include manufactured foreclosures, condos and townhouses.

Some analysts believe that one of the most significant aspects of the latest housing market sales data is the fact that short sales have increased in most Nevada areas, particularly in Sparks and Reno, when compared with the previous year's totals. According to them, the rise in the number of short sales is primarily due to increased awareness among homeowners and quicker processing by banks.

Although non-distressed homes' share of residential property sales in several Nevada counties for the second quarter of the year has increased, over 50% of sales for the period were still accounted for by foreclosures and short sales, with condo and manufactured foreclosures not included in the total number.

Distressed Homes Remain High Even Minus Manufactured Foreclosures is a post from: Foreclosure Magazine - Read more about how does foreclosure work.

According to court reports, the couple and some other members of their family took advantage of the high number of distressed homes for sale in the state and the ongoing housing market crisis by selling manufactured dwellings to people who do not have the means to afford them in the first place.

Lynn pleaded guilty and was sentenced to 28 years in prison during a hearing held at the Kaufman County Court. He admitted being part of a scheme meant to defraud clients, most of whom lost their properties to bank owned home foreclosures. Lynn, along with his wife Kandace and sister in law Karen Hayes, was charged with using fake documents in their sale of properties to clients who do not have the money to afford such purchases.

With Texas suffering from all kinds of foreclosure problems, including government, bank and Fannie Mae foreclosures, fraudulent activities among some property sellers are not something new anymore. However, the Marriotts might not have been discovered if it were not for their former associate who complained to the police about having his signature forged.

According to former associate David Martin, the couple sold thousands of properties throughout the years, with a big number of these properties ending up as mobile homes foreclosures. Police investigations revealed that the Marriotts used illegal ways to have these properties sold, including forging the signature of Martin and using fake documents.

Martin reported to the police that his signature was being forged on checks, with someone else cashing them and raking in the profits. When some buyers of the couple's manufactured homes heard that the Marriotts are under investigation, they came forward and the issue of document fraud was discovered.

According to authorities, counterfeit documents were used in the sale of a big number of properties under the company Marriott Mobile Homes owned by Lynn and Kandace. A big number of these sales ended up as mobile homes foreclosures, with most of the former owners coming forward to file complaints against the Marriotts which led to the investigation and the subsequent sentencing.

Mobile Homes Foreclosures Traced Back to Fraudulent Family is a post from: Foreclosure Magazine - Read more about how does foreclosure work.