Foreclosure Opportunities for Buyers

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Despite signs of stabilization in the past months, the foreclosure numbers for July remind everyone that the housing market, and perhaps the economy as a whole, are still in recovering. The rise in foreclosures is not an anomaly. In fact, many analysat predicted July would see a rush of foreclosure listings as the government’s moratorium on foreclosures ended. While the moratorium undoubtedly helped some families who were in line for loan modifications, it only prolonged the inevitable for others. As in months past, the states with the highest foreclosures were California, Florida, and Nevada.

Bob Phillips explains more about the concentration of foreclosures:

“Foreclosure tracker RealtyTrac reports that the number of foreclosures nationwide rose 7 percent on a month-to-month basis last month. However, three states dominated the foreclosure list, tallying more foreclosures between them than the rest of the country combined. California : 30.0 percent, Florida : 15.7 percent, and Arizona : 5.4 percent. On a per household basis, the states ranked 2, 3 and 4. Only Nevada’s foreclosure rate was higher. Now, we point out these statistics for two reasons. The first is to remind you that foreclosures can be highly local. For all of the foreclosure-related stories that run in the papers and on TV, defaults make a much larger impact on home values in some areas versus others. And, second — foreclosures can represent a terrific buying opportunity. Not every foreclosed home is in pristine condition, but there is a plethora of affordable housing out there, suitable for first-time buyer, move-up buyers and investors, too.”

Foreclosures continue to offer great opportunities in desirable areas that were once out of reach for first-time buyers. As long as lenders can keep up with loan applications and banks can process the REO sales, it is likely the increase in inventory will be only a temporary hurdle towards recovery.

Click through to read Bob Philips full blog.

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