Yes – you read it right – according to the statistics released by The Center for Responsible Learning (CRL), it is estimated that bank foreclosures have reached the magic figure of 1 million, so far in the year 2009. Another statistical fact is, according to the National Delinquency Survey conducted by the Mortgage Bankers Association (MBA), another 12% of mortgage loans are running the risk of foreclosure and will be added to this astounding figure of Bank foreclosures.
One can understand the volume of devastation being caused by the foreclosure fiasco, in the US Real Estate markets, by the above figures. Industry experts estimate that on an average nearly 6500 foreclosure filings are turned out daily, in all the States of US put together. In spite of the US Government taking steps to address the foreclosure problem, by allocating funds for helping mortgage lenders to work out solutions with distressed home owners to avoid foreclosures, the crisis continues to wreak havoc on Real Estate markets.
The predictions made by CRL are even more threatening. The number of US households affected by foreclosure problem will increase to 9 million and 92 million families will lose home values of about $1.9 trillion. Already in 2009 the foreclosure epidemic engulfing the US country, has reduced home values of 70 million properties – both secondary homes and foreclosed homes along with new homes.
Now this is the situation obtaining in US Real Estate markets. On the brighter side of it, first time home buyers for settling down in prime locations, as well as investors who want to buy homes for renting or resale, are offered a never-before opportunity. If you are a home buyer for the first time, Bank foreclosures can be your very first targets. Not only you get assorted varieties of housing properties – single family homes; down town apartments; suburban villas and farm houses; multi-residential premises like condos in formidable communities and neighborhoods, but also get them at prices well below their market value, anywhere by 30 to 60% less.
The same benefit applies for investors from Bank foreclosures, as they can buy innumerable properties of various sizes, models, accommodation, square footage etc. at competitive rates. Banks lend mortgage loans to varieties of customers from different ethnic groups, of different income groups, and of different life-styles. As such the delinquent properties brought under Bank foreclosure listings will be very much varied, to fulfill the needs of every one. Of them, properties that need some repairs and rehabs offer more profits, since there will not be much competition in taking them. Investors can make huge profits by spending some initial capital to fix them up and can rent them for deriving a steady income month after month or re-sell them with higher margins for buyers ready to occupy such renovated properties.
Surely home buyers and investors can start their search for a best suited property from Bank foreclosures and buy them when the time is ripe by negotiating with the home owners directly at the pre-foreclosure stage; bid for the chosen property at the foreclosure public auction; and get them from Bank-repossessed properties. Whatever way they choose, they are sure to pocket thousands of dollars as savings in every sales deal.
