Consider Foreclosures If You're Thinking of Buying A Home

In my last blog, I mentioned that foreclosures decreased in April, and that this may be an indicator that the housing crisis may have hit rock-bottom, and that it can only get better from hereon out.

It seems that more data confirms this positive trend. I picked up a copy of the Los Angeles Daily News yesterday and the headline emblazoned on the front page was So-Cal Housing Market Sales Hit 8-Month High.

Here's the takeaway from that story:

• Home sales hit their highest level in eight months in April due to bargain hunters snapping up foreclosed properties.


• 66% of those April sales were for homes priced under $500,000


• There was a jump of 22% in home and condo sales from March.


• Most of the activity was in areas hardest hit by foreclosures, specifically the Antelope Valley and Inland Empire.


• Analysts are mixed on whether numbers do in fact indicate that the worst may be over, but according to John Karevoll of Dataquick, "it's looking as if the worst is behind us".


• Although we may have reached the bottom of the sales slide, it doesn't mean we've also reached the bottom of the price decline, because foreclosures are still working their way through the system and will push down prices.

If you're one of the many who were priced out of the real estate market a few years ago, now is a good time to take advantage of the abundance of foreclosures. (Heads up though that one disadvantage to buying a foreclosure is that most of the time they are in bad shape and need serious work; either they've been vandalized and copper stripped out or just in bad shape. But hey, if you're OK with that, and you realize that what you're getting in exchange is a house that you would not be able to afford under normal circumstances, go for it.)

If you want to see what's out there in terms of foreclosures in your area, here's a freebie that you can take advantage of:



Before any of you go out foreclosure hunting though, whether you're a first-time homebuyer or an investor, please, please, please, puh-leaze don't look at any homes until you call me first (or your own mortgage advisor, if you already have one) and get preapproved (my preapproval process includes a detailed review of how you stack up against the lenders' guidelines, how much of a loan amount you're qualified for based on your monthly payment comfort level, what you can expect in closing costs, the do's and don't's you need to keep in mind as you go through the homebuying process, just to name a few).

Unless you know how much home you qualify for (or, if you don't qualify based on your current circumstances, what you can do so you can qualify for a home before you're priced out of the market again), you should NOT be out there looking at anything. You'll just break your own heart.

Till next time, Happy Foreclosure Hunting!

Dezzi Rae