Falling Home Prices can prove to be a great opportunity for traditional homebuyers.
When most people examine the current real estate market a few things become apparent. First and foremost, there has been a significant decline in home prices since 2006. Second, the foreclosure inventory is incredibly large. Finally, interest rates remain low. Read more:
Freddie Mac could take more than a decade to unload its current REO inventory. Read the Housingwire.com article about Freddie HERE. As non-performing loans continue to climb, Freddie Mac vendors sold fewer REO properties in the third quarter of 2011 than they did earlier in the year. If the current trend holds, and the GSE reduces a net 1,000 REO properties from its inventory every quarter, it would take 60 quarters to unload its entire inventory — roughly 15 years! What this means in layman’s terms is – distressed foreclosure properties are not going away anytime too soon.
The potential homebuyer can afford to take their time to find the right house for them and their family. With patience and diligence great success can be the result. (There are diamonds in the rough out there)
Foreclosures Offer Great Opportunities
Successfully Buying Foreclosed Properties can be difficult but we can help.
With the odds stacked against them, the average buyer really needs professional assistance to ensure the greatest chances of success. When all due diligence is properly done by the buyer, success will likely result. There have been enormous changes in the housing market since the huge inventory of foreclosed properties has become available. If you are purchasing a foreclosure as a personal residence, we highly recommend you seek the advice of seasoned REO/Foreclosure professionals. Some of these professionals entered the foreclosure market at the beginning of the downturn and they now have several years of experience and are familiar with the process and can safely guide you to a smooth successful purchase. Using ethical professionals with high standards and a reputation of providing excellent service is a must. And in our opinion, that due diligence includes using trusted real estate professionals such as REO specialist, Mortgage Brokers, Appraisers and Home Inspectors. Get references & investigate their reputation and hire the professionals that have the experience and have made doing their best to insure successful outcomes a priority. Their reputation is public, check them out at the BBB, Google them, get referrals, and be thorough. You’re making a significant decision, one that you will have to live with for many years to come especially if you are buying a personal residence for you and your family. Coming home each day to a home that you are not happy with cannot be fun. When all due diligence is properly done by the buyer, success will likely result.
Not all foreclosed or distressed properties are a great buy and if you’re not fully educated on the property’s condition and the buying process it could result in making a poor decision. Unfortunately, we’ve witnessed such failures many times. We firmly understand the difficulty of investing your time and money into a project only to end up with an unsatisfactory result. As a potential homebuyer consideration must also be given to the possibility of having to pay a mortgage and live in a home for many years that you are not satisfied with.
Educate yourself and get professionals that have the experience and have made doing their best to insure that you have a successful outcome a priority. There is tons of information out there to help you make informed decisions or call someone who is familiar with the process. That’s what they do for a living and they will know other professionals who also are willing to provide their skills in their area of expertise. There are many sources to check the professional’s credentials and service record. Check them out.
VACANT/FORECLOSED HOMES: Many vacant foreclosure properties develop mold and other conditions due to various reasons. Some of the properties have been vacant for extended periods of time and during that time some of the precautions and ongoing maintenance needed to prevent such conditions were not performed. The pressure of a potential foreclosure may have caused the former homeowner to neglect some of these maintenance chores. It is also likely that some of the conditions were present prior to the foreclosure. Some of the contributors to such moisture include: Severed plumbing lines, excessive debris in gutters, and poor downspout drainage near the foundation walls, improper slope of soil or concrete surfaces at the foundation walls, and poor seals or large gaps at the concrete or asphalt joints near the foundation walls. Without professional advice some of these conditions may not be apparent to the buyer and may not be discovered until after the deal has been completed.
