With the number of foreclosures jumping 60% over the past year, the question often arises....are foreclosures truly good deals?
In reality, a small percentage of foreclosures are, indeed, worth your time. However, there are a couple of major issues that affect this opportunity to get a great home at a great price. For instance, struggling homeowners often pull all equity out of their homes in a last ditch effort to avoid foreclosure. Mortgage companies allow this to happen because they want homeowners to keep their homes as well. (Mortgage companies want to make loans, not sell real estate.) Once all equity is pulled out in a declining market, then the home is no longer worth the payoff.
A second issue to consider when looking at foreclosures is the condition of these homes once homeowners relinquish custody. Sadly, the majority of these properties are not in livable condition. If you choose to purchase such a home, then who do you think will be doing the pricey repairs? Probably not the mortgage company.
Truly, the best way to get a great deal is to find pre-foreclosures. At this stage, most homeowners are willing to take a loss to save their credit. Distress sales, often referred to as fire sales, are a great way for investors to purchase properties with immediate equity. With recent jumps in foreclosure filings, banks are more willing than ever to work with buyers and sellers in creative ways, such as the ever popular short sale.
If you are interested in foreclosures, we have a list of them from local Blue Ridge, GA banks. We also have several properties that fall into the category of "pre-foreclosure." For more information, visit http://www.realestategamtns.com/ and fill out a request form.