The 10 states in the country with the most bank foreclosed homes represent the idea that foreclosure is hitting hard across the country. Two of these states, Florida and Michigan, have little in common, especially the weather, but now they are commonly linked due to the amount of foreclosures available. Foreclosure listings in Michigan are up 128% from this time last year with nearly 1 in every 250 households being foreclosed upon. While overall the percentage of homes of foreclosed on is slightly down in Florida, 1 in every 171 homes is being taken back by the bank. With repossessions occurring all over the state, in places like Orlando foreclosures offer buyers a chance to own their own place in a tourist Mecca. The similarities in the market do not stop there.
Distressed properties mean even larger savings
In addition to the prices already below market value, some bank foreclosed homes and properties offer investors an even bigger discount. Distressed properties are either properties that are in need of multiple repairs or they have been held by the bank for a long time without being sold. Investors, which have capital to rebuild, are willing to purchase these properties with the hopes to sell them at a much higher return. Orlando foreclosures clearly demonstrate this approach. Investors are very interested in the distressed properties in this area, because they know they will get a great return on their money by renting out the homes once repairs are completed. Distressed properties are also seen in the foreclosure listings in Michigan. As homeowners do not have the capital to perform the upkeep on their homes, the properties have fallen in disrepair. In order to liquidate as many of these properties as possible, banks have turned to auctions to help sell them.
Auctions to the rescue
Auctions have become a way to quickly sell off foreclosures. Homes can either be sold in a group or individually to the highest bidder. Recently some Orlando foreclosures, condos, were sold in a group of 300 to a single investor. Not only did this mean was this good news for the bank; the investor got a price far below the market rate. Due to the amount of foreclosure listings in Michigan, auctions are helping banks sell as many possible properties with outstanding savings to the buyers. While casual buyers may not have thought about auctions as a great way to purchase a home, it is becoming more common and a great way to save even more money on bank foreclosed homes. Start now with ForeclosureDataBank.com.
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Written by Alex Rolim.
