Now's the Time to Buy a Foreclosure Home
That nasty F word, foreclosure, has been harassing us with bad news for far too many months now. Seems like no two weeks go by without some new report or forecast announcing that more Americans are either creeping towards foreclosure or have passed the point of no return. The problem has defied the industry's 'real estate is local' mantra and has spawned a national housing crisis, characterized by eroding property values and a glut of unsold homes (not to mention a meltdown of major financial institutions).
RealtyTrac chimed in on Friday with its usual dour report. Its August 2008 U.S. Foreclosure Market Report showed a 12 percent increase in foreclosures nationwide from the previous month and a 27 percent increase from August 2007.
The silver lining to all this — and there's always a silver lining in tough times — is that would-be home buyers now have more properties to choose from, many with drastically reduced prices, than ever before. Because buying a foreclosure home has its own intricacies and involves a game plan slightly different than that of a regular home purchase, HomeFinder.com has created a new Foreclosure Guide to assist folks interested in this market.
Our five-article package, which is grouped with our comprehensive Home Buying Guide, provides detailed information for people interested in buying a foreclosure property. It also offers practical advice to homeowners seeking to avoid foreclosure. Other topics:
- Understanding the foreclosure process and determining if buying a foreclosure property is right for you.
- Where to find foreclosure homes — buying direct from the homeowner, and from auctions, REOs and government sales.
- Checking for damage and other problems unique to foreclosure homes.
- How to protect yourself against common foreclosure scams.
On each article page, you can enter in a search field your zip code or city and state to look up available foreclosure properties in your area.
As you read our Foreclosure Guide, keep in mind that there's been some favorable developments lately — we'll take whatever we can get: The government's recent seizure of mortgage giants Fannie Mae and Freddie Mac not only has bolstered investor confidence, it has deflated mortgage rates. The Primary Mortgage Market Survey said Thursday that interest for a 30-year fixed-rate mortgage slid to 5.93 percent this week from a bulky 6.35 percent, while the 15-year rate also fell, to 5.54 from 5.9 percent.
No, the bailout won't loosen today's stringent lending standards (as well it shouldn't), and it won't perk up property values (at least not as a direct effect). But it will instill some needed confidence in people who have been stroking their chins wondering if now's a good time to buy. Check out our Foreclosure Guide and see if this type of property is right for you.
Got hot local housing tips or a story you want to share? Contact Dean Golemis at openingdoorsblog@HomeFinder.com.
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