California Still Leads the Nation

Foreclosures stories seem to dominate the national housing news anymore. Seriously, it seems at least one foreclosure-related story makes its way to the front page or the nightly news every week.

For prospective, over 300,000 homes were served last month alone.  More importantly though, the prevalence of foreclosures depends on where you live.

As reported on RealtyTrac, just 4 states accounted for more than half of the country’s foreclosure-related activity last month.

• California : 22.7 percent of all activity
• Florida : 14.9 percent of all activity
• Arizona : 6.7 percent of all activity
• Illinois : 5.7 percent of all activity

The other 46 states (and Washington D.C.) claimed the remaining 49.9%.  Interesting, right?

Buying a Foreclosure is Hardly Streamlined

However, just because foreclosures are concentrated geographically, that doesn’t make them less important to homebuyers in Des Moines and around the country.  There’s been more than 1.4 million foreclosure filings in the last 12 months and that’s a figure that can’t be ignored.

Distressed properties now play a role in 1/3  of all home resales.

Therefore, if you’re in the market for a foreclosed home, here’s a few things to keep in mind:

1. Properties are usually sold “as-is” and may not be up to living standards. Be sure to physically inspect the home before buying it.  Better yet, get a professional to do it for you.
2. Buying a home from a bank is rarely as streamlined as buying from an individual homeowner. Be prepared for delays and long closings.  With preparation, this can be less painful, but still… be realistic.
3. Foreclosures aren’t always listed for sale publicly. Ask your real estate agent how to access the complete foreclosure inventory.  There are special resources.

In order to use the federal homebuyer tax credit, you must be under contract for a home by April 30, 2010 and closed by June 30, 2010.  That doesn’t leave much time to find a bank-owned home and make it to closing.  If you’re serious about buying foreclosures, it’s probably best to start your search soon.  Really soon.

If you’re not sure where to start, contact me.  I’d be happy to help give your search some direction.  I can’t sell you the house, but I can definitely help connect you with an excellent Realtor!  Then, when you’re ready to finance it, I can help with that!

Tagged as: bank owned properties, foreclosures, Iowa Foreclosures, REO