How to Find Foreclosure Discounts in the Current Market

by on Real Estate Investing

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The foreclosure market has started to decline across the country as home prices rise and the real estate market moves toward recovery. However, even with foreclosures being harder to find there are still some great places to invest in foreclosures across the country for those interested in foreclosure investing.

Decline in Foreclosure Discounts

When people go in search of foreclosure properties, they are looking for homes that are well below market value. The great news is that foreclosures can still be obtained for below market value; however, the steep discounts seen over the last few years are quickly dwindling. What, exactly, does that mean? In short, you can still find foreclosure properties but it takes knowing where to look.

At the end of the day, finding foreclosure bargains is greatly dependent upon the area. For example, you can still find some great deals on foreclosures in Cleveland, but it may be harder to find comparable discounts in other surrounding cities.

On the other hand, if you are looking to purchase foreclosure properties in Atlanta, then you may have to search harder to find the best deals.

The number of foreclosures on the market (especially those with steep discounts) is directly proportional to the area's progress toward real estate market recovery. For example, Southern California experienced an 18% increase in home sales in October; therefore, it may be harder to find steeply discounted foreclosures in this area.

Finding Foreclosure Deals

In order to find the best deals on the market, it is important to understand the area's local real estate market and to determine which cities are still selling foreclosures well below market value. There are still some great places to invest in foreclosures throughout the country when taking this information into consideration.

Pittsburg: One of the best cities to invest in foreclosures in the current market is Pittsburg. In September, this city still had foreclosures leaving the market for an average of over 27% below market value.

Cleveland: Another city that continues to have great deals on foreclosures is Cleveland, where foreclosures sold for an average of more than 25% below market value.

According to the Washington Post, other cities with great potential for foreclosure investing include Cincinnati, Baltimore, New York, Detroit, Charlotte, Boston, Philadelphia, and Minneapolis.

Therefore, if you are looking for some great foreclosure deals then consider these cities (and avoid Phoenix).

In conclusion, foreclosure deals may be harder to find, but they very much still exist if you look in the right places. They key to investing in the current real estate market is looking for cities that still have foreclosures well below market value and snatching up those properties while they are still around.

The video below has more information on finding deals on foreclosures: