First Time Buyers Go for Bank and Fannie Mae Foreclosed Homes

by on Foreclosures

The ongoing housing market crisis has depressed the prices of houses, particularly bank foreclosed and Fannie Mae foreclosed homes. This, according to industry analysts, has given first time buyers a chance to purchase houses of their own and most of them have taken advantage of the opportunity.

In California, bank foreclosures in Fresno and in other counties are highly favored by those purchasing houses for the first time. It has been estimated that during the period July 2009-June 2010, almost 50% of homebuyers in all the U.S. were first timers. This is particularly true in California since prices of houses in the state have declined considerably in the past three years.

According to analysts, California foreclosures for sale seemed to be providing majority of first time buyers with a chance to own their own residence. In October, 55% of Fresno County mortgages were loans issued by the Federal Housing Administration (FHA) which are usually favored by first time homebuyers. The figure is considerably high compared with 2007 when FHA loans accounted for a mere 3% of mortgages in the area.

Housing analysts and real property agents have stated that this is a good gauge of how many newcomers are purchasing bank and Fannie Mae foreclosed homes and other types of residential properties. They reveal that most first time home purchasers are still hindered by tight lending rules and the required credit ratings, hence the tendency to go for cheaper properties like foreclosures.

With bank foreclosure property for sale numbering in the tens of thousands in Fresno and in other parts of California, the region has become a great place for first time homeowners. Prices of residences in the area declined to $174,000 as of September 2009 from the September 2006 price of $300,000. Analysts stated that, with the prices at an all time low, first time buyers are flooding into the home buying market.

Majority of these first time buyers are also aware that the best deals right now are in short sales and foreclosed properties. Housing experts have stated that buying foreclosures involves challenges and risks, but for those who have done their research, experts asserted that buying properties like bank and Fannie Mae foreclosed homes will be first timers' best bet of having their own house.

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