Headlines tell us that foreclosures are dropping, and local real estate agents agree. According to RealtyTrac’s latest report, Alabama saw a 17% drop in foreclosure filings in the first half of this year compared to the first half of 2010. The same report shows that the number of foreclosure filings in Alabama for the month of June 2011 was 1,458. This is 20.4% decrease from the same month last year.
It is good news that the numbers of foreclosures are dropping in GulfShores and the rest of the state. This is certainly healthy for the real estate market. However for those in the market to buy, my advice is to move quickly to take advantage of great bargains and wise investments. Many 3-year adjustable mortgages were given out in 2008 and these have resulted in some of the foreclosures and short sales available at this time. This will not repeat in the coming years.
As buyers look for opportunities to benefit from the price reductions with foreclosures and short sales, I am often asked which type of sale they should consider. Both types of sales are priced to sell property quickly and the buyer benefits. However, there are differences and the help of a good real estate agent is important.
There are more risks in buying a foreclosure. Typically foreclosures have sat empty for a while, utilities have been shut down, and many of properties need additional repairs. Sometimes former owners leave the home stripped of fixtures and appliances or even destroy the interior.
With a short sale, the owners are still living in the home and the home is being maintained. Another factor to consider is the Alabama law that allows a borrower to reclaim a foreclosed property for up to one year upon payment of amounts owed. Buyers must be aware of this one-year right of redemption.
The real picture- - the market will not be driven by foreclosures and short sales long-term. It is to your advantage to purchase some outstanding real estate in GulfShoresandOrangeBeach now at “quick sale” prices. I am ready with many options and knowledge of the Gulf Shores and Orange Beach real estate market. Give me a call today. LanceSteffek, 251-981-2225.