Buying a Foreclosure Can be a Great Deal
According to the foreclosure-tracking firm RealtyTrac, the number of foreclosure filings nationwide dropped for the 2nd straight month in December. After falling 21 percent in November, filings were down by an additional 2 percent in December. Good news, right?
“Foreclosure filing” is a catch-all term, comprising default notices, scheduled auctions, and bank repossessions.
Like always, a small number of states dominated December’s national foreclosure figures. Six states accounted for more than 50 percent of all bank repossessions.
- California : 17% of all repossessions
- Florida : 11% of all repossessions
- Arizona : 6% of all repossessions
- Michigan : 6% of all repossessions
- Texas : 6% of all repossessions
- Nevada : 4% of all repossessions
December’s foreclosure filings fell to its lowest levels since June 2008, but we can’t read into the report too much just yet. Foreclosure volume continue to be dampened by lawsuits and moratoriums related to controversy surrounding the so-called robo-signers.
Distressed Homes Account for One-Third of Home Sales
Foreclosure activity may have lessened in December anyway, but we can’t know for certain.
Distressed properties are in high demand among home buyers, accounting for one-third of all home sales; always typically sold at a steep, 15 percent discount as compared to non-distressed properties.
Buying foreclosures can be a terrific “deal”. You just have to be patient. And often, have an eye for the possibilities.
That said, buying a foreclosed home is different from buying a non-foreclosed home. Specifically, because you’re buying from a bank and not a person, contracts may vary from what’s “customary” and negotiations may be drawn-out.
It’s one reason why buyers in Iowa — first-timers and investors alike — should always talk with a real estate agent before writing an offer for a foreclosed property. You can learn a lot from the internet, but when it comes time to actually purchase a home, you’ll want an experienced professional on your side. If you’re in the market to make a home purchase, I’d be happy to recommend a good real estate professional to help you out with your search. If you’re looking for that recommendation, feel free to email me and I’d love to help you out!
