Foreclosures hit highest level since 2019, sparking interest from bargain hunters
Foreclosures Hit Highest Level Since 2019, Sparking Interest From Bargain Hunters
In recent years, mortgage servicers have been willing to work with borrowers to help them avoid foreclosure, and many homeowners in trouble could take advantage of strong market conditions to sell before losing their homes. That means the hefty discounts seen in today's foreclosure sales may reflect the home's condition, said Andy Walden, head of mortgage and housing market research at Intercontinental Exchange.
"Those properties may be more distressed than normal," Walden said.
A Complex Process
Candess Correll, a real estate agent working in the Washington, D.C., area, tells buyers interested in foreclosures to expect limited ability to tour the home, little room to negotiate price or repairs, and a three-to-six-month closing process.
Those drawbacks often discourage first- or second-time buyers, but she's seen experienced buyers, or those who are contractors or well-connected to contractors, have luck with the transactions.
"In the end, it does typically work out pretty well financially," Correll said.
Last year, April and Matt Sanders bought a foreclosed home in southern Ohio sight unseen to be closer to their daughter and granddaughter. Buying a foreclosure wasn't initially their plan, but after years of searching, they had found few options available in their budget.
When a home just four doors down from their daughter went up for auction, they decided to take a look. The listing had no photos, but they scouted what they could from the street and scoured public records and social media for clues about the home.
After getting as comfortable as they could, they won the auction, paying $212,500 for a 2,000-square-foot home with four bedrooms and two-and-a-half bathrooms.
The closing process was prolonged — they won the home in July, but court proceedings to resolve title issues meant they didn't have the keys until November. Their advice to other prospective buyers of foreclosed properties is to get comfortable with uncertainty.
"We hurried up just to wait a really long time," said April, 53, an infection prevention manager at a nearby medical center. "That gave us a lot of time to second-guess."
The process of cleaning out the home and making the minimum repairs and renovations to make it livable took several additional months. They moved in last April and have enjoyed spending more time with their granddaughter. The renovation process, however, is ongoing.
"We are loving the home, but I think we have a ways to go," April said.
This article has been published in yahoo.com via Yahoo News.
Foreclosures hit highest level since 2019, sparking interest from bargain hunters
Foreclosure sales can mean hefty discounts for buyers willing to brave complex closing process and potential renovations.
finance.yahoo.com
