If you read the newspaper and listen to the mass media, you'd think that foreclosures are everywhere. That's what they love to report -- crisis, drama, mayhem... It gets listeners, viewers, readers, etc.
Some areas of the country are much worse than others. Overall, the D.C. metro area remains in pretty decent shape when it comes to foreclosure numbers. In the month of October, the District had one active foreclosure for every 3,388 households, according to research company RealtyTrac. Virginia had one foreclosure for every 1,261 households, the 29th highest in the country. Maryland has quite a bit more foreclosure activity with 1 in 645 households -- the 12th highest in the country.
Buyers ask me everyday about purchasing foreclosures in Northern Virginia. In addition to foreclosures, which are often designated on the MLS as REO, or real estate owned by the bank, another designation that's popping up a bit is "short sale." A short sale is the sale of a home where the proceeds fall short of the owner's outstanding mortgage balance. Some lenders will agree to accept the short sale proceeds and forgive the rest of the mortgage balance when the owner cannot make the mortgage payments. Why? By accepting a short sale, the bank may be able to avoid a lengthy and costly foreclosure proceeding.
Where are the foreclosures and short sales in Northern Virginia?
The chart below shows the MLS prevalence by area of short sales, foreclosures, REO properties that are available.
TOTAL NUMBER OF ACTIVE LISTINGS DESIGNATED FORECLOSURE, REO, SHORT SALE:
|
Area |
Foreclosure, REO, Short Sale |
Total Inventory |
|
Alexandria |
28 |
774 |
|
Arlington |
14 |
829 |
|
Fairfax County |
449 |
6777 |
|
Loudoun County |
210 |
3146 |
|
Manassas City |
84 |
572 |
|
Prince William County |
618 |
5292 |
|
D.C. |
55 |
2912 |
Northern Virginia homebuyers can find some good deals by exploring foreclosures and short sales. However, it is important to be aware that the process may take longer than a regular sale. After a offer is submitted on a property, it must be reviewed by the bank prior to acceptance. This process can take anywhere from days to several months and is therefore not recommended for someone who must purchase and move in quickly.
CLICK HERE TO RECEIVE INFORMATION ON FORECLOSURES AND SHORT SALES (Indicate in the Notes Section that you are seeking foreclosure information)
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