Foreclosure is a powerful buzz-word.
It seems like just about everyone who is in the market to buy a home right now wants one. But the simple truth is that a good portion of the remaining foreclosure properties here in Orlando aren't all they are cracked up to be. In other words, not always a great deal. Why? Well, first off many of the best deals have been bought up and the inventory of existing homes for sale is at the lowest level in over 18 months. A savvy real estate agent will look at foreclosures, bank owned properties, as well as all other properties for their clients to find every possible great deal out there.
So, what does make foreclosure homes so appealing? Perception of value. I mean, a home is being offered for sale for less for less than the current owner paid for it- therefore it must be a good deal....right? Well, this is not necessarily true. Each foreclosure should be evaluated on a case by case basis. For example, many homes have fallen into foreclosure after being occupied for only two or three years. And in that time frame a lot of buyers were getting 100% financing. There is more than likely a negative equity situation in that home. Compare that to a home which has been with the same owner for generations. It mostly has been paid off. Let's say this owner passes away and hands the property down to a relative who wants to unload it quickly. Chances are....the latter situation might provide the better opportunity for a buyer.
Foreclosures are not be for everyone. If the owner of a property in foreclosure is not making note payments....what are the chances the home is being maintained properly? Repair costs for updating, needed repairs and/or house abuse may push the price right back up. Granted, if you have hands on construction experience, a lot of patience (purchasing a foreclosed property can take a lot of time), vision and most importantly cash on hand- a foreclosed property might be right for you.
The bottom line on the bottom line. Good homes at fair prices are not on the market very long- whether it is a property in foreclosure or just a great deal. With the help of an astute Realtor you will have a leg up on others in the race to find the good ones fast. I have helped clients purchase foreclosure properties, and in other cases I have helped clients evaluate non foreclosure properties which are "move-in"ready". In many cases (I should say most), the non foreclosure property proves to be the better deal.
Feel free to test me on this. If you are interested in purchasing real estate fill out the information on my dream home finder and you will be mailed all the properties that fit your criteria as soon as they hit the market....automatically. This includes foreclosures and bank owned properties. Or get in touch with me and I can set this up for you.
Don't sell yourself short by only looking at properties in foreclosure. There may be a better deal waiting for you, with a lot less hassle.
Filed Under
Articles by Michael Gonick,
buyers,
foreclosures
RobinMiller on November 9, 2011 at 9:01 AM
The causes for foreclosure are simple. When there has been a failure to pay the required mortgage payments for a period as specified in the lending agreement, then foreclosure is a likely result as the lender mobilizes to recoup the debt owed in other ways.
Cleveland Foreclosure Lawyers
Anonymous on December 13, 2011 at 9:55 AM
Sometimes the easiest way to stop foreclosure should be to walk. If, after overlooking your financial situation, you arrive at the conclusion that eliminating your personal credit card debt and/or cramming down your mortgage won't be enough to set yourself on reasonable financial footing, and your home is "under water", then the greatest thing money could possibly be to convert your property over to the lender and begin anew.
Chicago Foreclosure Attorney