Even the BBC is talking about the foreclosure crisis in the United States.
Of course, those of us at home know that foreclosures are on the rise, we only need to look around our own neighborhoods.
According to the BBC report:
More than 272,000 people in the US received a foreclosure notice in July, a rise of 55% on a year earlier, according to analysts Realtytrac.
Florida and California had the highest rate of foreclosures, figures showed.
In a further indication of the severe problems affecting the US housing market, more than 77,000 homes were repossessed in July.
As a result of this increase, 17% of all homes for sale in the US are repossessed properties.
What does this mean for investors? Well, for one thing, there’s a market glut. Where once competition was fierce for good-condition foreclosures, there is now an abundance of stock in many areas, particularly in California (especially Southern California) and Florida. I am watching a certain city in Southern California and have noted that many homes in pre-foreclosure and foreclosure have been untouched by any potential buyers, and the homes have gone all the way to REOs.
There are a lot of would-be investors anxious to buy, and their lots out there to buy. It’s best the you take one step at at time, take care to learn the process AND the pitfalls, before you jump in.
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