Best 2008 Home Buys: COOK & LAKE Counties

Foreclosures


   

BUYING FORECLOSURES: THE FACTS YOU SHOULD KNOW

FORECLOSURESHandingKey.jpgPLUSES AND MINUSES

 

 The growing foreclosure market opens a wide range of opportunity.

There was a 133% increase in foreclosure activity from 2005 to 2006.

filings in 2005:       3,311

filings in 2006:       7,731 

FORECLOSURES WILL CONTINUE TO INCREASE THROUGHOUT 2007 AND 2008.

 

Foreclosures I currently have access to:

I currently have access to over 900,000 foreclosure and bank-owned properties from across the country. These include detached single-family homes, townhomes, condos, mulit-family buildings and more.

So how did we end up with so many foreclosures anyway?

With increased competition over the past few years between lenders, each wanting to be the consumer's choice for lending, many banks came up with a wide range of creative loan products. Among them were a multitude of promotions with adjustable rate mortgages. While 20 years ago it was nearly impossible for borrowers to get approved on mortgages if they didn't have an excellent credit history, the past few years have been focused on subprime loans,  geared toward borrowers with lessor credit histories. These promotions looked extremely attractive and made sense to buyers.

Home buyers took for granted many important facts, one of such was the fact that when the loan adjustment would come up, they would be responsible for the new higher monthly payments. Many borrowers thought that they will easily refinance their loans when the ARMs adjust. However, in order for this to work, the new future rates had to be lower than the adjustable rates and this was the piece to the puzzle that no one could ever know in advance. In reality, these borrowers were gambling... with their homes.  

Buyers ignored other elements...

What if the property taxes also increase by then?

What if the monthly assessments increase too?

What if I loose my job, do I have sufficient savings to pay my monthly bills?

The end result is an estimate of about 9% of the loans that were made over the past few years, were made by borrowers who could not repay them.  

So this leads us to the BIG question....

Is buying foreclosure right for everyone?

The answer is a clear-cut: NO!!!!!!!!!!
For some, this is an opportunistic arena if you have funds in place, time to wait, lots of patience, and a full understanding of what this purchase entails. However, resale homes have definetly turned into a HOT buy recently as well... often, better than foreclosures these days. To better understand why, read the article below.
If your decision is to still continue with foreclosures, please email me for a buyer's agreement to get started or with questions about the process at: Alina@AlinasHomes.com  
While there are many open doors for mistakes with foreclosures, the BIG mistake that people make in the purchase of a foreclosure is thinking that all foreclosures constitute a deal and assuming that what they are purchasing is a deal. What buyers need to understand is that while foreclosures have been increasing at rapid rates, area home resale prices have been declining as well.  This is often where the error is made in the purchase of a foreclosed property.  People go through a lot to get their foreclosed home and brag about the tens or hundreds of thousands of dollars they just saved, only to realize that the current local area resales are just as good, if not better, often consisting of well-kept & cared for homes who's prices have already been re-adjusted to the curent market prices.... and there's usually still room for negotiating prices and terms further to your benefit!
So be careful with your purchases, be aware of your options and decide which way is best for you...
no matter which way you choose to buy a home...
THIS IS DEFINETLY THE TIME TO BUY!
Good Luck and email me with any questions:
 Alina@AlinasHomes.com

 

 

 

 

 

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Alina Davidov