ForeclosureDeals.Com: Now Is the Time to Buy REO
With reports showing that mortgage costs are starting to increase and foreclosures are beginning to decline in several states across the country, ForeclosureDeals.com said now could be the best time for homebuyers to save money on foreclosed properties.
Nationwide, foreclosure home volumes were down 17% in January 2011 from the previous year. Major markets also saw foreclosures decrease in the first few months of this year.
In Massachusetts, foreclosures were down approximately 60% in January from their levels at the same time period during the previous year. Some of the leading states in foreclosures such as Florida, Nevada, Arizona and California also saw their listings slow down.
“We’re seeing a general decline in foreclosures from last year, and coupled with some of the other trends we’re seeing, it could mean that the time to get the best possible prices is now,” said James Foxx, a business analyst with ForeclosureDeals.com.
Foxx said a key trend why mortgages may be starting to increase is the possible liquidation of the GSEs Fannie Mae and Freddie Mac. He said that if the two mortgage agencies were shut down, access to the low cost loans that have increased home ownership in the country for the last 50 years would not be available for homebuyers.
Instead, homebuyers will be faced with higher interest rates, more associated fees, and less of a chance of being approved for a home loan, he said.
“Fannie and Freddie practically invented that safe mortgage so many homeowners want, the 30-year fixed rate mortgage,” Foxx said. “But it’s not the kind of loan banks or private sector lenders like to provide.”
Foxx said there are currently good deals available for homeowners interested in purchasing a foreclosed property. Foxx noted that many of the hundreds of thousands of foreclosed homes in the nation still offer great value because of discounts of up to 50% off market value with low interest rates.
According to ForeclosureDeals.com, more homebuyers across the country are attending foreclosure sales and are inquiring about REO and bank owned properties due to the uncertainty of both mortgage prices and the market for foreclosed homes.
“The key is to get out there and see what’s available now,” Foxx said. “If mortgages become more expensive, we believe even more people will turn to the discounts available on foreclosures to help offset those higher costs. While we’re glad to see interest in foreclosure investment on the rise, in terms of getting the best deal, more competition for foreclosure properties isn’t really the best thing for foreclosure investors looking for the lowest price. Anything could happen, but with the future uncertain, anyone looking at buying a foreclosure should act now to ensure they get a truly great low price.”