Across the country, Americans are watching the recession fall before
their eyes. It�s getting harder and harder for people to pay their
mortgages and as a result, the number of foreclosures is escalating.
The residential real estate market effects the entire country. When it
crashes, it is just like the stock market crashing. Everyone suffers.
The only people who do well are bankruptcy and divorce lawyers and
doctors, who are always needed. Car repair shops tend to also do better
in a down economy as people tend to fix old cars instead of buying new
ones. Everyone else gets hit really hard. The collapse of the
residential real estate economy triggers a domino effect and the dominos
are already starting to fall down.
You can count on seeing a lot more foreclosures on the market.
Foreclosures are usually located in blighted areas during times when the
market is prospering. Now you can see foreclosures just about anywhere,
even in upscale neighborhoods. A foreclosure occurs when the owner of
the property is unable to pay their mortgage and the bank takes over the
property. The owner is evicted and the bank or lender sells the property
to someone who will cover the cost of any debt due. Banks and mortgage
lenders do not want to hang onto the properties so they are willing to
let them go as long as they get any monies they put out for the
mortgage.
Buying foreclosed property is not difficult. You have to have cash ready
as well as a certified check for the down payment. You have to be able
to prove that you can afford to finance the house so you will have to
either show proof that you have the money for a cash sale or a
pre-approval letter from a mortgage company. You will also bid on the
property along with other people. You should not be discouraged if you
get turned down. If you continue bidding on foreclosures, you will
eventually get a property and you can then fix it up and rent it out to
a tenant. You can hold onto the property until the residential real
estate market turns around and it becomes a sellers market. This will be
noted when the demand for housing is greater than the supply and will
cause the value of the homes in your area to rise significantly.
You can find a list of properties in foreclosure in your local county
courthouse. This process has to go through the court system. An owner
must be evicted by the sheriff and the sale of the property must be
public knowledge. Anything that goes through the court system is of
record.
Real estate agents have a list of homes in foreclosure. These are owned
by banks and lenders and this information is also of public record. If
you are working with a real estate agent, they should be able to show
you the homes in your area that are in foreclosure. Be advised that
these homes have already been seen by savvy investors before they came
on the market and make a better long term investment, or a home in which
you plan to live, than a home that can be fixed and sold quickly.
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