When the recession first hit, it launched financial problems that put millions of homeowners in difficult positions. Often, people ended up losing their homes to foreclosure filings, creating a massive wave of vacant houses that swept across the country in a relatively short period of time. That, in turn, obviously set the national market back in many ways, but things are now starting to return to pre-recession norms when it comes to foreclosures.
With the improving economic situation on the whole, and for the housing market in particular, foreclosure filings have become quite rare. The vast majority of people who have gotten a home loan approved since the recession first hit have had their credit and financial standings examined extremely closely, as lenders probed for just about any sign of financial unreadiness in this regard. Meanwhile, many other people who were given mortgages they couldn't afford have been pushed out of the market by foreclosure or other difficulties.
What does this mean for shoppers?
Because foreclosures were so prevalent in the immediate wake of the recession – especially in some markets in the Southwest and Southeast in particular – they provided the relatively small number of people who could actually get approval on a purchase loan with plenty of options. Moreover, even after the recession, millions of these properties still lingered on the market for years, creating headaches for lenders, but also giving discount-hungry shoppers a significant opportunity to save potentially tens of thousands of dollars or more.
But now, with so few new foreclosures going through and bargain hunters still scooping up the dwindling number of foreclosed homes for sale, those options are drying up very quickly on a national level. In some markets, demand for affordable properties is so great that any single foreclosure gets bought quickly and with fierce competition. However, there are other markets where shoppers might find these properties to be perhaps a little too common.
The metro areas where the housing market's collapse hit the hardest are still recovering in many ways, and that is certainly true of foreclosures. There are some cities where entire neighborhoods riddled with foreclosures. This creates a problem for homeowners still living there, because the value of their own properties is significantly diminished by widespread vacancy. However, those who are looking to buy a home at a steep discount may at least want to consider the possibilities of purchasing these properties in particular, because the savings can be so significant.
Indeed, combining the deep discounts that typically accompany foreclosures with today's still-low mortgage rates could combine to give consumers a massive savings in comparison with not only what they would pay for a normally priced home in the market today, but also what they would have paid for a foreclosure even a few months from now. Therefore, the sooner they get into the market, the better off they will be.
For more information about this article, call 866-614-5959.