Nationwide there are fewer and fewer foreclosures available on the market; but, there are US cities where a good foreclosure deal is easier to find than in other parts of the country. For instance, the Palm Bay, Florida metro area has plenty of foreclosed homes.
Foreclosed homes amounted to 24 percent of all sales in Palm Beach and an average of 28 percent in savings for home buyers as opposed to a conventional home sale.
RealtyTrac rated the area as the best pick among the best cities to purchase a foreclosure in 2013. Also on the list are Lakeland, Florida, New York City metro area, Albany, New York and Rochester, New York.
On the opposite end, RealtyTrac reports that McAllen, Texas is one of the toughest cities to purchase a foreclosed home with a limited number available on the market. In fact, only 7 percent of total home sales last year in the area were at foreclosure. Other markets where foreclosure deals are tough to find include Salt Lake City, Las Vegas, Little Rock, Arkansas and Ogden, Utah.
2013 presents the challenge of a lack of foreclosures in many cities. According to Realty Trac’s Vice President, Daren Blomquist, the best places to purchase are areas where many homes will become available.
In 2010 thousands of foreclosed documents were signed off by bank employees (also called the robo-signing scandal) many foreclosures were left in limbo. In US States like Florida and Illinois a judge must approve the paperwork- therefore making a backlog in foreclosures.
Housing prices have risen, many states have fewer foreclosures on the market, gains in existing home sales, and new home sales have risen, which has lead to more home buyers looking for buying foreclosures. With the market in a slow recovery, the risk to purchase a foreclosed home is not as great of a threat.
Home buyers must be cautious- just because the property is a foreclosure property does not mean that it is a good deal. Most often, foreclosures have been vacant for a period of time, and / or not properly cared for leading up to the foreclosure auction. Having a home inspection performed on the home is essential in order to know the condition of the home and any issues that may go along with it. Home inspections will not only disclose problems such as plumbing, heating and electrical, they will also confirm the structural integrity of the property prior to you signing a contract. Also, prior to purchasing a foreclosure be sure to carefully study the neighborhood, get a feel for the neighbors, check on the crime rates, and any other pertinent information. If the neighborhood is high in foreclosures it will bring property values down.
The 2013 housing market began stronger than any year in years. There are fewer foreclosures on the market. With housing prices going up, there will be even fewer. If you are serious about a foreclosure, a good real estate agent is your best bet, as there is lots of competition.