According to RealtyTrac, there were 1.046 million foreclosure filings throughout the United States between January 2012 and July 2012. This is a 2% increase from the previous six month period. Activities classified as a “foreclosure filing” include bank repossessions, default notices, and scheduled auctions.
While Seattle foreclosure rates have not been greatly impacted, other states such as California have seen a large increase. This increase in foreclosures is related to a $25 billion mortgage servicing settlement which provided banks with necessary foreclosure framework and rules. Banks were concerned about legal liability prior to this settlement, and had slowed or stopped their foreclosures. Now that the settlement has been announced, foreclosures have resumed.
This situation creates a unique opportunity for today’s homebuyers. Houses bought while in stages of foreclosure can usually be purchased at a lower price, which is one reason why foreclosed homes equal 25% of all home re-sales. However, just because a foreclosed home cost less to purchase does not mean that it will save you money in the long-run. Foreclosed houses are usually sold as-is and can be in much less than perfect shape. Fixing up a foreclosed home may cost you more than you bargained for and you may find a better deal in another home elsewhere. The process of buying a foreclosed home is different than other homes, so be sure to consult an expert before purchasing.
Contact Sammamish Mortgage – Seattle mortgage lenders – for more information. If you think that you may be facing an upcoming foreclosure, be sure to read our article about How to Avoid Foreclosure.