A foreclosure is a bank owned property. Unfortunately, there are many foreclosures available for sale in this marketplace . This is due mostly to those buyers who purchased in our peak market. When the mortgages they secured on their properties come up for renewal the mortgages are not being renewed. This is due to the value of the property not being there. For example a property may have been purchased during the peak for $400,000 and the value of the property is now $350,000 If the homebuyer purchased with zero down or even 5% down there is no equity in the property. Banks will not overfinance a property. This is why they have realtors evaluate the property as well as appraisers to validate the value.

Foreclosures are priced to sell. The banks don't want to carry properties for extended periods of time. There are carrying costs especially during the winter months when the weather turns.

There is a perception that foreclosures are trashed, neglected and require a lot of work. In most cases this is not true. These properties were homes to families that often times have come up against circumstances that they could not control and now they have unfortunately lost their homes. Job loss is also a huge contributing factor to properties being foreclosed.

In todays market there are foreclosed homes in most areas of the city. You must qualify as you would in a regular real estate transaction. It is best when purchasing a foreclosed property to write an Offer to Purchase with as few conditions as possible. The last foreclosure property that I sold had several offers on the property.

If you are considering purchasing a foreclosure property, please contact me and we can discuss the areas and price range that you would like information on. The current real estate market affords many, many opportunities for first time home buyers and investors.

Marianne Bladon
Remax Realty Professionals
403-803-8598