Recent reports show foreclosure rates are the lowest they’ve been in six years. According to the Mortgage Brokers Association, the mortgage delinquency rate has dropped for the sixth consecutive quarter.
This is all great news for the economy. But, what does it mean specifically for you – the homeowner or prospective buyer?
As a homeowner, it means increased home values. Nearby foreclosures can have a hugely negative impact on the value of your house. More often than not, this has to do with curb appeal, as foreclosed homes sit vacant and unattended.
As a prospective buyer, it means more opportunity. This is especially true if you are looking to secure a mortgage loan. As the market continues to improve, Loan Officers and financial institutions are more amenable to lend money.
These are takeaways from Brian O’Connell’s article, “What It Means to Have Foreclosures at Six-Year Lows.” You can read the full article here.
Considering purchasing a foreclosure? They can be a great way to score a terrific deal. However, foreclosed homes are often abandoned for months and sometimes years. This can pose potential problems that will turn an amazing price tag into a huge, wallet-draining headache. These tips can help:
Make a Home Inspection a Must – This includes looking at the foundation, investigating plumbing problems, and evaluating the electrical system.
Look for Signs of Deferred Maintenance – There may not be any significant structural or mechanical issues. This is great. But, if maintenance has been deferred for a significant amount of time, this could be due to the cost of repair or could have caused additional damage.
Check the Sewer – Especially when a home is 20-years-old or older, it’s a good idea to have the sewer scoped. One of the last things you’ll want to deal with when you move in is a broken line or incorrectly connected system.
Re-Key Every Lock – Once you decide the home is right for you, be sure to re-key every lock. It’s not uncommon for multiple individuals to have master keys to foreclosed homes.