The rising home sales in southern California are truly a beautiful thing. This past month saw home sales increase by as much as 22%. That is a much higher increase for that time of year than the regional average of about 1.2%. Not too bad for a supposedly depressed economy. This is a sign that the nation isn't as afraid of the real estate market as some reports will claim. It means the economy is recovering, at least in the south western parts of this wonderful country. And what happens in one area is bound to spread. But SoCal's success is not without its drawbacks.
Many of these buys have been foreclosures, homes sold by the bank when their owners default on their mortgage payments. While these can be a great deal for buyers, they also have their challenges.
One of the major issues facing buyers is the moral issue of having to kick out the tenants-often the previous owners who have fallen on bad times. Another is that it can be hard to get into them to have a look at what you are bidding on. Further, it can be hard to get financing to buy a foreclosure, and some banks won't touch them. However, if you are confident that you can overcome these challenges, or if some of them don't apply, then people buying foreclosures is exactly what the economy needs to keep it going.
If you are thinking about buying a foreclosure, be sure that the property hasn't been vandalized, either by an angry and dejected seller, or because it's been abandoned. While some vandalism is just superficial and can easily be repaired or painted over, some can damage a home more significantly. It's best to have a walk-through to be sure you know what you are getting. If you can't see the home up close, try to get as much information from the agent handling the sale. If you can't find out what condition the home is in, maybe it isn't worth it.
Other than checking out real estate magazines and keeping your eyes open for For Sale signs that state the home is a foreclosure or bank-owned property sale, check out bank and mortgage company websites to see if they list anything for sale. If you find something that piques your interest, be sure to shop around to make sure the home is priced well. You want a good deal, so make sure that's what it is.
To everyone out these snapping up foreclosures, Thank-you. You are responsible for turning this economy around.
