 | The financial crisis of 2008 had a huge impact on the number of foreclosed homes taken back by lenders. The years up to 2008 saw a significant amount of sub-prime lending, which allowed borrowers to apply for a loan with minimal down payment and no income verification. That can work for a limited time period when home values are rising, but eventually loan payments started rising and homeowners couldn't sell the property to repay the loan. |
Stagnant real estate markets led to an increasing amount of homes being listed for sale at the same time lenders were taking back huge numbers of foreclosed homes throughout most part of the United States. Currently, the backlog of foreclosed homes is smaller, but lenders are still trying to keep the amounts of bank owned property to a minimum.
If you are seeking foreclosed property as an investment, you'll probably want to look at homes needing significant work to make them marketable. Homes where a lender has already completed repairs and upgrades just won't have the price flexibility to make it a viable investment. If, however, you are seeking a personal residence, a fully rehabbed home at a somewhat undermarket price may be exactly what you are seeking.
If you are seeking foreclosed property as an investment, you'll probably want to look at homes needing significant work to make them marketable. Homes where a lender has already completed repairs and upgrades just won't have the price flexibility to make it a viable investment. If, however, you are seeking a personal residence, a fully rehabbed home at a somewhat undermarket price may be exactly what you are seeking.
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