After years of rising home prices, prices have begun to recede, however, the number of foreclosures for sale have increased. In March 2008 the number of foreclosure homes increased 57% above the pace being set one year prior. Bank foreclosures and government foreclosures coupled with the new sub prime mortgage market are becoming a nationwide epidemic with an estimated one million homes to face foreclosure within the next year. Government Tax foreclosures and tax lien foreclosures traditionally were auctioned off 4 times annually. However, due to the staggering number of foreclosed homes in this market, these additional auctions are scheduled and with a record setting number of these repossessed homes being placed on the auction block.
What do all these foreclosures do to the housing market? First, they are bringing property values down. Some may argue that property values were not realistic to begin with, however, they were appraised and priced what the market would bear. Foreclosures can ruin a neighborhood. Houses that are vacant due to the homeowner being evicted or “walking” are an invitation to vandalism, squatters and looters. Foreclosures are causing mounting stress and deep psychological issues to not only the parents, but the children found in this predicament who are now forced to move and leave the only home they have ever known as well as changing schools, finding new friends etc.
The silver lining of the foreclosure market is for would be homeowners. Should persons looking to purchase housing purchase a home in foreclosure, they will often times find themselves paying 25% less than the market price of the house, and sometimes considerably more. The banks and lending institutions are facing a similar financial crunch as not only are they not being paid the money that was promised to them long ago when issuing the mortgage, the property is sitting, producing no revenue at all. Thus, the banks and mortgage companies are dropping prices and open to all negotiations to well qualified buyers. If you are a well-qualified buyer and considering a real estate purchase, you will greatly prosper from a membership on our site. Dedicated to servicing those seeking to purchase foreclosure properties, you will find all the information needed to make a well-informed decision.
