Looking for Foreclosures? Look in These 3 States

by on Real Estate Investing

Looking for Foreclosures? Look in These 3 States

Over the last few years, many homebuyers and investors alike have been snatching up foreclosure properties in an effort to get a great deal. In 2013, approximately 16% of all homes sold were foreclosure homes. There is no doubt that the national real estate market – and therefore most local markets – are recovering. As a result, many experts expect for mortgage rates to climb in 2014.

Despite the rising home prices and recovering real estate market, there are still some great bargain properties on the market – you just have to know where to look.

When looking for distressed homes, the best option is to consider states that still have a high rate of default and foreclosure. The following three states are where you should start your search:

Florida

One of the best places to look for foreclosure homes is the state of Florida. Here you will find approximately one in every 409 homes in some stage of the foreclosure process. The state has a rate that is almost three times the reported national rate.

Maryland

Right behind Florida is Maryland, with one in every 487 homes in foreclosure. Although there are still some great homes for sale at a discounted price throughout the state, they are becoming hard to find as home prices start to rise and the market makes progress toward recovery. Therefore, it is best to rely on a foreclosure listing service to help you with your search.

Illinois

Coming in at number three is Illinois. The state has one in every 605 homes at some stage of the foreclosure process. The Chicago area in particular is seeing a rise in home prices and decline in inventory, indicating that recovery is happening and these discount homes may become harder to find in the near future.

Nevada and Utah come in at number four and five, respectively, for the states with the highest number of foreclosures at the start of the new year.

In conclusion, the real estate market is improving both nationally and throughout many local markets. However, there are still some great foreclosure deals on the market and on the horizon, you just have to know where to look. The best place to start your search is by checking out the states with the highest foreclosure rate (discussed above) and utilize a listing service to help you narrow down your search to fit your needs, location, and budget.

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