Buyers of Alabama Foreclosures Saved 15 Percent

by Donald Hanz on States

Buyers of Alabama foreclosures in the first three months this year saved 15.2 percent, based on a foreclosure sales report.

This meant that everyone who bought a foreclosed property for sale or a distressed property in the first quarter in Alabama got it a price lower by an average of 15.2 percent than the average price of homes not in foreclosure.

There were 716 distressed and foreclosed homes in Alabama that got sold during the quarter, representing 18 percent of total quarterly home sales. The average price for foreclosure homes sold was $155,635, marking an average discount of 15.2 percent. The average discount for short sales was 7.2 percent and the average discount for units bought from a bank owned homes list, such as that of SunTrust Mortgage, was 16.4 percent.

A number of SunTrust foreclosures are still available for sale in Alabama as it was among the eight states where SunTrust provided plenty of home loans. As of March 2008, the bank has originated $9.6 billion worth of mortgage loans and has been servicing 942,238 loans worth $155.5 billion in several states.

Among Suntrust-owned homes currently for sale in Alabama are a three bedroom single-family home in Birmingham priced at $19,900; a three bedroom-house in Huntsville priced at $59,900; and a six-bedroom home in Hoover priced at $149,900.

Compared to other states, the pace of Alabama foreclosures is slower. In the first quarter, Alabama contributed only 0.7 percent to the nationwide total of foreclosure filings and only one percent to the nationwide REO total. It also ranked 35th on the foreclosure rate chart.

In May, the ranking of Alabama moved further down to 37th in a chart of the 50 states. The 1,928 homes notified of default or foreclosure marked a drop of 20 percent from the preceding month and a decrease of two percent over the year.

Nevertheless, prospective buyers of Alabama foreclosures still have a lot of properties to explore, as many properties in default ultimately move on to foreclosure.