Lisa Simpson
Jul 25,2008
In: reo homes

REO Homes in Georgia

To understand the reason behind REO homes in Georgia it is necessary to do some homework. By REO homes in Georgia is meant those houses that have been taken over or repossessed by the banks after having failed to sell it off in court auctions. Rising number of REO homes in Georgia is a fall out from the unprecedented foreclosure crisis lashing USA.

Georgia lies between Florida in the south, the Atlantic and South Carolina on the east, and by Alabama on the west. Georgia State is the third fastest growing in the country in count by numbers and the fifth fastest in count by percentage. Atlanta is its important city and the capital. This prosperity makes one wonder why there are so many REO homes in Georgia.

Georgia like the rest of the country has been caught in the foreclosure net. The intensity of foreclosures varied from one region to another. Primarily the increase in interest rates on sub-prime mortgages have been held responsible for the REO homes in Georgia. But lately the falling price of the real estate market has made it impossible for banks to sell their foreclosed properties in court auctions. Hence the rise of REO homes in Georgia.

But lately good news have been trickling in that gives hope that the number of REO homes in Georgia will decline. Most of the REO homes in Georgia lie vacant and uncared for. There are so many REO homes in Georgia that the lenders cannot take care of all of them. These vacant REO homes in Georgia attract crime and disease. However news is trickling in that the HPI or Housing Price Index has risen by 3.2% during the second quarter. Thus before the market stabilizes this is the best time to invest in REO homes in Georgia.

Georgia right now ranks fourth in the national foreclosure rate with one foreclosure being listed for every 271 houses. Buyers can choose from a wide selection of houses and the closing costs have also climbed down to affordable levels. In November 2007 there had been 9,950 foreclosure postings in Georgia. During that period the foreclosure rate was 1:420. It was a drop from October 2007 by over 20% but 28% higher than November 2006.

Time alone can tell if the various preventive measures are having any positive impact not only on the number of reo foreclosures but also on the real estate market.

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