Mortgage Rate News

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Even though foreclosures have dropped off a little bit, they are still near highs. And there are concerns that they will linger there for a while. Indeed, with so many REO properties still on the market, it will be a while. Housing Wire reports on the implications for the housing market and continued foreclosures:

“The August report demonstrates that there is still an ample supply of properties filling the foreclosure pipeline even while the outflow of bank-owned REO properties onto the resale market is being more carefully regulated,” said James Saccacio, chief executive officer of RealtyTrac.

“After hitting a high for the year in July,” Saccacio added, “REOs dropped 13% in August, but we also saw a record high number of properties either entering default or being scheduled for a public foreclosure auction for the first time.”

Now really is a good time to buy. You can get great deals on foreclosures, enjoy government incentives, and take advantage of mortgage interest rates that are still quite low. But be careful when you consider foreclosures. Many of them have a variety of problems. Some of the issues that might affect a foreclosure include:

• Long period of vacancy.
• Vandalism.
• Disrepair.
• Theft of fixtures, wires and other items from the house.
• Problems with the yard.

In many cases, a foreclosure will be sold “as is.” While you are getting a good deal, it is important to consider that you will have to pay for repairs and renovations, and that costs money. Before you buy a foreclosure, make sure you inspect it, and that you have a good idea of how much it will cost to whip it back into shape.

With plenty of foreclosures and distressed homes on the market, it is little surprise that many are turning to these. If you decide to buy a foreclosure, make sure all of your bases are covered, and that you are prepared to pay for the upkeep and changes that may need to be made.