• Lisa Simpson
• Jun 16,2009
• In: Foreclosed Homes

Foreclosure Homes For Sale Are Becoming The Target Of Home Buyers And Investors

The terminology of “foreclosure homes for sale” was never heard of by many Americans over the decades of carefree life, until later part of 2005.  Today there are a whopping 1,730,030 foreclosure homes for sale, waiting to be sold to home buyers and investors and this figure is getting added up every month.  There is no State in the US country escaping the foreclosure tornado, which in its sweep has uprooted millions of American families, making them forfeit their hard-earned equities to the foreclosure process.

The top ten States carrying foreclosure homes for sale in huge numbers, according to February statistics are – California; Florida; Arizona; Nevada; Illinois; Michigan; Ohio; Texas; Georgia and Virginia.  While the top order remains unchanged for months, there will be changes placed in the lower order every month, showing the growing impact of foreclosure crisis. The other States are also getting closer in holding foreclosure homes for sale in increased numbers, as the economic downturn is worsening in the country.

While home owners have become the distressed lots, there is the other side for these foreclosure homes for sale. Owning a home and leading a peaceful life is common American dream and the soaring prices of properties during the boom years of Real Estate business were dampening this dream.  But the foreclosure homes for sale available at virtually a fraction of their real value have rekindled the hopes and aspirations of many American citizens.

The reason for the low prices of these foreclosed homes for sale is – properties are brought under foreclosure process once their home owners default in repayment of the mortgage loans. There are three stages for these foreclosed homes for sale to pass through – pre-foreclosure stage when a default notice has been received by the defaulted home owners till the property is sold by a Sheriff Sale in a Court or through a Trustee Sale public auction; actual foreclosure sale through public auction when bidders have a chance to bid for the property and get it by the highest bid; and finally Bank-owned and repossessed properties after the foreclosure sale public auction, where the minimum bid is not met.

In all the above three stages the price quoted for these foreclosure homes for sale represents the outstanding balance of the defaulted mortgage loan and therefore well-below the fair and real value of the property concerned. And there is scope for negotiating the sale price of these foreclosure homes further, depending upon the stage at which the property is placed in the foreclosure process. In any stage, home buyers and investors can save thousands of dollars in buying a property from these foreclosure homes for sale, which no investment can offer. Therefore it is no exaggeration to say that these foreclosure homes for sale are becoming the profitable targets for home buyers and investors.

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