October 02, 2007 at 22:32 PM EDT
Real Estate Foreclosure Report
National Real Estate Foreclosure Reports Foreclosure activity increased 36 percent from July to August. Foreclosure activity increased 115 percent from August 2006. A total of 179,599 foreclosure filings were reported nationwide in July 2007. Foreclosure Filings Up 93 Percent From July 2006. The foreclosure rate was one foreclosure filing for every 693 households. State Foreclosure Reports Nevada, California and Florida posted the top three state foreclosure rates. The states with the most total foreclosure filings were California, Florida, Ohio, Texas and Michigan. California cities accounted for six of the top 10 metro foreclosure rates. Modesto, Stockton and Merced documented the top three metro foreclosure rates. Other top 10 metro foreclosure rates were Detroit, Fort Lauderdale, Las Vegas and Cleveland. Nevada documented the nation’s highest state foreclosure rate for the seventh month in a row, one foreclosure filing for every 199 households. Georgia’s foreclosure rate leapfrogged from eighth highest in June to second highest in July thanks to a 75 percent increase in foreclosure activity from the previous month. California reported 39,013 foreclosure filings in July, the most of any state for the seventh month in a row and up 289 percent from July 2006. Other states with foreclosure rates ranking among the nation’s 10 highest in July were California, Colorado, Ohio, Florida, Arizona, Massachusetts and Indiana. Buying foreclosures can be a profitable real estate investment strategy. As always you should research the real estate foreclosure market first, then buy below market price, and sell higher later when the market recovers to capture your profit. Or buy and hold the property and rent it out to bring in positive cashflow from it. Foreclosure properties can be a terrific investment, or give home buyers a much more affordable option than traditional properties in this time of escalating prices. But, before you jump in assuming this is "real-estate for dummies" or the next get-rich-quick scheme, think again! You really need to know your stuff when it comes to navigating your way through the process and making sure you're getting the most bang for your buck. Web-based services like SeizedRealEstate.com can help investors and home-buyers tap into this previously hidden market by providing access to foreclosure and pre-foreclosure information typically available only to professional real estate brokers and investors. Today, home-buyers can use these services to identify and research potential home purchases, as well as to find the tools and professional resources they need to help them close the deal. When offering advice to buyers interested in taking advantage of the foreclosures market, SeizedRealEstate.com stresses the importance of educating oneself about the types of properties and the processes involved. Even seasoned real estate investors have something to learn when it comes to approaching this market. It's important to go in with the appropriate knowledge. Types of Properties Available at Various Stages of the Foreclosure Process. Serious buyers must first understand the difference between the varying types of foreclosure properties. It's important to review the basic types of properties, each representing a different stage in the foreclosure process. Real Estate Pre-Foreclosure Properties A property enters pre-foreclosure after a default notice is filed by the foreclosing lender against the borrower who owns the property. The different notices that are filed during pre-foreclosure include Notice of Default (NOD), Lis Pendens (LIS), Notice of Trustee Sale (NTS) and Notice of Foreclosure Sale (NFS). For most consumers, buying a pre-foreclosure property from a private homeowner is the most favorable of options. This is a best-case scenario because the seller is able to get out from under a mortgage without destroying his or her credit rating, the lender is saved the time and expense of foreclosing on the property, and the buyer gets a below-market price on a home. In addition, buying at this stage of the process allows you, the buyer, a chance to fully evaluate the property before making an offer. The disadvantages associated with purchasing a property during the pre-foreclosure stage are few, but worth mentioning. As with any major purchase, negotiations between the buyer and seller can be difficult, especially since the seller would typically prefer not to have to sell the property in the first place. Secondly, transactions are time-sensitive, since there is pressure to complete a sale before the property goes to auction. Real Estate Auction Sales Foreclosure auction sales are typically the domain of the professional investor. These properties are formally in default, and sold to the highest bidder at an auction. Buyers are required to be physically present at the auction and must be prepared to pay 100 percent of the sale price in cash on the spot. Though foreclosure auctions can offer significant savings as well as immediate property ownership, they are not for the faint of heart or the uninformed! Unless the buyer is already familiar with a particular property, there is usually little time to examine it. And, the buyer will be competing against professional investors—and sometimes even the lender—at the auction. Real-Estate-Owned Properties Once the lender officially reclaims a home, it is classified as Real Estate Owned by the Lender (REO). While REO properties typically offer more time for evaluation and a more standard bank-managed transaction, their prices are usually very close to full retail market value. Therefore, they offer buyers the lowest potential savings. It's definitely possible to find great deals in the foreclosures market. You just need to know where to look and be able to differentiate exactly what you're looking at. With an understanding of the pros and cons of buying at each stage of the process, you'll be well on your way to a successful purchase you can be proud of.
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here