Buying Foreclosures and Saying Goodbye to Renting

by on Finance Foreclosures, Foreclosures, Real Estate Investing

For renters, buying foreclosures is the most logical thing to do considering the state of the housing market. Aside from the fact that they will no longer be throwing away money in terms of rent, they can take advantage of the savings that these repossessed properties offer.

A lot of people think that renters actually have it easy since they do not have to worry about home repairs or property taxes. But if you think about it, they are also not building any equity. For this particular reason, it is no longer surprising that many renters are now considering becoming homeowners.

Of course, a lot of renters are turned off by the unknown fees that supposedly come with foreclosed homes. In fact, in a survey, more than 50 percent of the respondents answered that they are not interested in buying foreclosures for the said reason. For real estate experts, this was quite surprising since foreclosure sales actually include similar protections and safeguards that non-foreclosure properties possess.

On the other hand, another survey revealed that 57 percent of home renters are considering the purchase of distressed properties. Young renters, surprisingly, were found to be attracted to foreclosures compared to older renters. With home prices stabilizing, renters are also becoming more interested. Even with the bad economy, it can be said that the dream of home ownership have not yet died for these people. And the fact remains that foreclosure properties provide the perfect opportunities for their dream to come true.

Deciding on buying foreclosures has actually become easier for these renters especially with the millions of foreclosed houses in the market. Analysts estimate another 2.4 million houses that will be repossessed in 2010.

For renters interested in owning one of these distressed homes, experts recommend that you check out states and cities with high rates of foreclosure. These include Nevada, California, Arizona, Seattle, Phoenix and Miami. Of course, renters should learn as much as they can about these repo homes in order for their investment to be considered a success.