When you buy a foreclosed home, you’re cashing in on a home someone was no longer able to pay for. Homes priced between $80,000 and $140,000 have seen slightly decreased sales in recent months, largely attributed to financing problems experienced by first time home buyers and potential buyers with undesirable credit ratings. If this is the case, the investor receives all of their money back, less the rehab costs, plus any rental cash flow generated during the foreclosure process.
Now, with inventories of existing homes at all time lows, builders are once again in the buying mood. VA loans can be used to purchase foreclosed properties as long as the VA guidelines are met. That’s the highest percentage of overall sales since the figure hit 28 percent in the third quarter of 2010, before the foreclosure abuse claims against mortgage lenders surfaced.
During an auction, the lender is now seeking to recapture its losses by auctioning the property in a public sale to the highest bidder. Combined, bank-owned homes and those still in the foreclosure process sold for an average of $161,214 in the first quarter.
If you are more interested in Galveston County new homes then you might end up paying a little more than you think is right, but the prices will still be far lower than a home of equal stature just about anywhere else! Many real estate investors, especially the up and coming ones choose to buy USA foreclosure homes especially because they are cheaper and the risk involved is pretty less.
If the house you’re considering buying is priced similarly to homes that were taken off the market because they didn’t sell, the property you’re considering may be overpriced. You also should research your state specific foreclosure laws and understand how they apply to your situation.