Thinking About Buying a Foreclosed Home?

February 23, 2012

Have you been pondering buying a foreclosed home?  This spring of 2012 may just be the time to take action on the best chance you will get.  With low mortgage rates and the population of foreclosed properties finally spreading out across all 50 states the market is ripe for value.

Bank REOs are rising and foreclosures are coming onto the market faster.  A study done by RealtyTrac, an Irvine CA based foreclosure tracking firm showed that the number of recent foreclosure filings has dropped 19% over the last month as compared to last year.  Default notices from lenders and property auctions are down some 20% and bank repossessions of homes are down 15%.

At a glance, January’s foreclosure filings for the US look great for housing.  Fewer of these foreclosures means fewer homes being dumped for low prices which lends us to believe that home price would raise.  However, if we take a look at monthly foreclosure data we see a different picture. As compared to a year ago, January’s foreclosure figures shows us that the market is prime to see more bank-owned houses for sale.

Default notices: no change

Scheduled Auction: up 1%

Bank Reposessions: up 8%

See all foreclosure properties by clicking a city below:

 

Bloomington Foreclosed Homes

Minneapolis Foreclosed Homes

Eden Prairie Foreclosed Homes

Minnetonka Foreclosed Homes

Edina Foreclosed Homes

Richfield Foreclosed Homes

Golden Valley Foreclosed Homes

St Louis Park Foreclosed Homes

 

When buying a foreclosed home make sure you don’t only look for inexpensive homes but make sure there is value in those homes.  Some Minneapolis REO’s can be heavily discounted but do not provide a lot of value.  Just because it has the title “foreclosure” does not mean it is worth your money or time of day to fix it up.   Often you will find that these homes have the title “as is” on them.  This means that you are assuming all risk with the purchase of the property for sale.  When you buy one of these homes, make sure you work with an experienced Realtor.