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CD this might be an ignorant question, but hang with me.
I’ve been getting ready for a move, scoping out neighborhoods in my new town online, and I’m finding a whole lot of foreclosures in the area. Like as many as homes for sale.
Meanwhile home prices are way up, and it seems like most lenders are requiring 20% down again.
MD is a judicial foreclosure state and had a very prolonged crisis. Baltimore has loads of cheap row houses....amazing that it is so close to DC, but real estate is night and day. I saw a. Ice older house in Montgomery County on three acres for 719,00 the other day. Seemed reasonable.
I’ve wondered this as well. I don’t see “so many” foreclosures, but a fair amount (Charlotte, NC). Anyone that’s purchased in the last 8 years or so should have a good amount of equity, and I’d think anyone that purchased before that even if the value isn’t much higher would have at least paid it down a bit.
I guess people could have done cash-out refis, etc (although I’d hope they’d actually be paying their mortgage if they did that!). And I guess depending on how long you haven’t paid it that would be more money (plus late fees I imagine) that would have to be paid back.
Just in case you're looking on Zillow - they have a lot of "pre-foreclosures" and "foreclosures" listed that are not actually for sale, but the average consumer doesn't usually know this. This may make it appear that there are a lot more foreclosed homes for sale than there actually are.
As someone else said, judicial-foreclosure states will have high rates of homes in foreclosure without resolution. For many of these cases, the banks simply stopped the process in order to focus on the most profitable ones. Many are time-barred but the banks keep bundling them up as investments and sell them over and over in trusts. Some cannot be followed through to an actual foreclosure judgement... they just sit, abandoned. A number of these are eventually condemned.
In these states, the foreclosure issue isn't half over. Not even close.
Just in case you're looking on Zillow - they have a lot of "pre-foreclosures" and "foreclosures" listed that are not actually for sale, but the average consumer doesn't usually know this. This may make it appear that there are a lot more foreclosed homes for sale than there actually are.
Not sure about OP, but I was mainly referring to "foreclosures" that were on the MLS. I use quotes because I believe in most cases that means the home was already bought at auction by the bank. If you count the number of homes being auctioned off by the cities/counties, I think it's still fair to say there are "a lot" of foreclosures.
Not sure about OP, but I was mainly referring to "foreclosures" that were on the MLS. I use quotes because I believe in most cases that means the home was already bought at auction by the bank. If you count the number of homes being auctioned off by the cities/counties, I think it's still fair to say there are "a lot" of foreclosures.
I specificallly meant Zillow - the average consumer doesn't understand the difference between what Zillow calls a preforeclosure or foreclosure vs an actual MLS listed REO listing. I get many home buyers looking to buy these "Zillow" listings and am always explaining the difference.
I guess the quantity depends on area - here in CT we still have a bunch. Not half lol...but 10-20% on average depending on town.
Also - at least here the majority of foreclosures here are strict foreclosures - no auction since debt exceeds value, and property just conveys to lender and most of the time just gets listed on MLS after. But of course - foreclosure laws vary wildly by state.
Last edited by minna_reid; 02-15-2018 at 08:00 AM..
Reason: clarification
This is obviously something very dependent on area. We've basically run through all our stock of foreclosures several years ago. 2812 active or pending listings in my county and 11 of them are either bank owned, HUD owned, or Auction. So .4% of all listings today. That is practically none (by none I mean no more than there were 15 years ago before the crash...there are always a few). So look for local reasons, not general ones.
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