Foreclosures are real news in only 4 states

by Tom Tousignant

in Blog, Home Buying, Mortgages

Foreclosures concentrate on 4 statesThe foreclosure filing statistics are shocking — over 300,000 homes were served last month alone.  However, the real number depends on where you live.

As reported by RealtyTrac, just 4 states accounted for more than half of the country’s foreclosure-related activity last month.

  • California : 22.7 percent of all activity
  • Florida : 14.9 percent of all activity
  • Arizona : 6.7 percent of all activity
  • Illinois : 5.7 percent of all activity

Just because foreclosures are concentrated geographically, that doesn’t make them less important to homebuyers in Charlotte and around the country.  There’s been more than 1.4 million foreclosure filings in the last 12 months and that’s a figure that can’t be ignored.

Distressed properties now play a role in one-third of all home resales.

Therefore, if you’re in the market for a foreclosed home, here’s a few things to keep in mind.

  1. Properties are usually sold “as-is” and may not be up to living standards. Be sure to physically inspect the home before buying it.
  2. The home has to meet living standards to use normal FHA or COnventional financing.
  3. Buying a home from a bank is rarely as streamlined as buying from an individual homeowner. Be prepared for delays form the selling bank that can delay closings.
  4. Some foreclosures aren’t listed for sale publicly.  A real estate agent may be able to access more foreclosure inventory.

In order to use the federal homebuyer tax credit, you must be under contract for a home by April 30, 2010 and closed by June 30, 2010.  That doesn’t leave much time to find a bank-owned home and make it to closing.  If you’re serious about buying foreclosures, it’s probably best to start your search soon.

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