Foreclosures May be your Answer

By: philip smith

Have you given thought to what high levels of foreclosures in your city this fall could mean to you personally? It's a dream that many couples starting a family hold dear; raising that family in the traditional single family home with yard. There may be a way that dream can become reality far sooner than you imagined. There is a window of opportunity right now that has opened because others tried to join the ranks of homeowners and failed, some through imprudence, others through sheer bad luck and .bad timing. Here are a number of reasons why you can buy without fear of this happening to you and your family.

Inventories of unsold single family homes are at their highest level in 18 years according to the National Association of Realtors in late September. Home prices have fallen in many cities at the fastest rate in 16 years over this last 12 months, says another source. The level of unsold homes, going into the traditionally slower winter holiday season, together with the significant increase in foreclosure filings through out this year in many states, mean a would be buyer has a power of negotiation to buy really well not known for several years.

As foreclosures due to the double whammy of defaults on sub prime and ARM housing loans and declining prices have escalated, so we now have a credit crunch that means recent housing deals collapsed as previously approved financing fell through.

This is all a generality, based on national and state averages and medians, and as most realtors will tell you, the real estate market can be very local. Educate yourself now on the real estate market conditions in a range of communities that may suit your future plans. Most predictions are that the housing slump nationally is nearing the bottom of the cycle. Learn about housing cycles; learn about the trend of foreclosures in the particular city you are focussed on. You may soon be convinced that, since you plan to buy a 'starter' home, just to see the early years of your family through, you will be staying put for at least 5 to 7 years. Long enough to see prices rise again. Then learn about the advantages of foreclosure homes and why now, and before next spring when there will be more buyer competition, could be the best time to buy a foreclosed home.

If you have the savings put aside for a minimum 10% deposit and more (remember that a foreclosure home likely needs some repairs before you move in), and a good to excellent credit record, then find out now what your preapproved loan value will be. Set your own purchase budget wisely and stick to it. Work with a local agent who knows the particular complexities of the foreclosures market. You will be astounded at what you can achieve.

Foreclosures
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