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 GSEs are 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.
