Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

For buyers who have been sitting on the sidelines watching the market turn in favor of sellers, home prices and interest rates rise, and inventory continues to go down… they may be wondering about what options they have and if making a move on a foreclosure is the way to go in the current market.

Before you start thinking about buying a foreclosed home, it’s important to understand exactly what that means. A home under foreclosure is when a homeowner is unable and fails to pay their mortgage, turning over ownership of the home to the bank. When it’s time for the home to sale, a public notice is posted and the sale is done in the form of a public auction. 

 

There are both pros and cons to bidding on a foreclosed home. 

Pros:

  • There may be some flexibility with financing 
  • It could be great potential for an income property
  • The title is clean
  • The bank may make some repairs for you
  • It could be a quick sale 

Cons:

  • There may be delays
  • You buy the home “as-is” which could include major issues
  • There is no home inspection
  • It may not be as good of a deal as you think
  • The home could be occupied by tenants or squatters

With all of this in mind, it is also important to understand foreclosures in our current market. 

We know we are still in a seller’s market, and it is going to continue this way for the foreseeable future. Because of this, it means there are fewer foreclosed homes available. In fact, there are fewer foreclosed homes in the last two years than we have seen previously.

There are fewer homeowners in trouble right now. Because home prices have been rising, most homeowners have enough equity in their home to sell before getting to the point of foreclosure.

In a blog from keepingcurrentmatters.com, Marina Walsh, CMB, Vice President of Industry Analysis at MBA says, “Given the nation’s limited housing inventory and the variety of home retention and foreclosure alternatives on the table across various loan types, . . . Borrowers have more choices today to either stay in their homes or sell without resorting to a foreclosure.”

So the bottom line is that while making a bid on a foreclosure may seem like a good way to get around the current high prices and low inventory, it just isn’t a great or even possible option for buyers right now. 

If you want to learn more about your best options for buying in this market, contact one of our experienced realtors at Dwellings Colorado Real Estate. 

Dwellings Colorado Logo

WHO WE ARE

The Amy Neb Difference.

PROPERTIES

We put the REAL in Real Estate

BUYING & SELLING

How can we help you?

Copyright 2020 © Dwellings Colorado Real Estate Group