If you are a first time nest builder and thinking of purchasing a house there is good news. One of the best alternatives is to opt for homes repossessed by the banks. In 2010 over 1 million houses were in the market that lenders like the banks had previously foreclosed upon. The scenario is attractive for those shopping for a home – especially those foraying forth for the first time.
The lending group comprising of mortgage firms, banks etc are not landlords – this is not their business. They know about lending and related matters. They cannot manage properties – it is the last recourse for them. Utilities, taxes, insurances have to be attended to. Thus it is to their best interest to offload the repossessed units as quickly as possible.
There are bank repossessed units scattered across the country in nearly every state with concentrations varying from one to another. These are plentiful in California, Florida, Arizona and Nevada. In other states the foreclosure numbers are slightly lower than these leading four states.
For those who are buying a home for first time the options are generous; but opportunities are also there for those hunting for a second home, a vacation unit or a retirement one. The prices are much less than what had been the original asking price. The example of Bristol Palin and his new unit in Arizona can be cited. The discount is considerable.
There are many who have qualms about buying a repossessed house from which the previous owners have exited after shedding tears. They hesitate to profit from the ill luck of others. The fact is harsh and real. People have lost their homes. But the person buying it did not cause it; it was caused by the tanking of the economy, the loss of jobs and many other factors that led to the foreclosure crisis. It has nothing to do with the first time nest builders. It should be looked upon impersonally as a business deal. The lending group has properties that they want to dispose off fast.
Most of these have an asking price much less than the market rates. Since the previous owners failed to repay their loans these are now sitting on the shop shelves. Supply is much more than demand. From the business angle it is perfectly sensible to buy a house that has been taken over by the bank, after foreclosure. The value of the property is generally far more than the dollars being paid for it. Would you not like to own a unit you have dreamt about but never hoped of actually walking into it with the keys in your hand?
The condition of the repossessed houses are generally better than those in foreclosure because the bank sees to the repairs and spruces it up before putting it into the market. The title deed too is clear and there are slim chances of any additional liens being tagged on to it. Unlike houses being sold in foreclosure, in this instance the buyer gets a chance to enter the premises and make a thorough inspection. The prices are heavily discounted not because of a bad neighbourhood or weak condition of the unit but because the banks are in a hurry to dispose of these units that are hanging like a weight round their necks. If they don’t then apart from taxes and insurance the banks have to face charges about code violation. By buying bank repossessed houses the buyers give the economy a lifting hand.