As of recent, foreclosures have been on the rise in some areas of the United States. Statistics from Realtytrac revealed a heavy spike in Maricopa county foreclosures in March of last year, and, as of December, 1 in every 9,586 homes in Maricopa county were foreclosed. Fortunately, these spikes are still not the highest that the US has seen in recent memory.
So what is a foreclosure?
A foreclosure happens when a borrower ultimately fails to pay their mortgage, forfeiting the property. This is the final step in a lengthy process and will only occur if the borrower is unable to pay off their outstanding debt or short sell the property.
What are the benefits of purchasing a foreclosed property?
For buyers, purchasing a foreclosed home has its advantages, which include but are not limited to:
- Potential below-market prices due to sellers wanting to close quickly
- A legally required, complete history of the property’s condition and any repairs
- More openness from sellers to providing closing cost credits and other concessions
- More openness from sellers to provide requested repairs
The bottom line
There isn’t a reason to exclusively seek foreclosed homes, however you may want to consider purchasing a foreclosed home if you’re looking to buy fast at a potentially low cost. However, do know that the seller may not be unable to negotiate a price below the outstanding balance of their mortgage.
I hope that this article has taught you a bit more about foreclosures and buying foreclosed homes. As always, I’m here for you if you have any questions on the topic or want to know a little more. If you want to reach out, please do not hesitate to contact me at 480-355-8645.