Illinois Foreclosure Info
Record Highs in 2007! Rising in 2008?
Illinois foreclosure resources show that in 2007 there were 90,782 foreclosures were filed!In fact, more than 1 percent of all U.S. households were in some stage of foreclosure during 2007
"There
are parts of the country where we're seeing many more bank
repossessions," said Rick Sharga, a spokesman for RealtyTrac.
Michigan reported 136,205 foreclosure filings in 2007. California and Florida foreclosure filings are so astounding I won't even mention them here.
Despite government and community efforts to delay or handle some of these problems, foreclosures are increasing.
Since sales are slow now and average prices are down, many home owners do not have enough equity in there homes to sell and be able to pay off the loan, or even a realtor in many cases.
Interest rates on mortgages are great right now we keep hearing. It's a catch-22 because the lending guidelines are very strict now and the secondary mortgage market has collapsed.
Opportunity?
For the entrepreneur or investor there is obvious potential here with . If you understand the law of supply and demand it isn't hard to understand why average prices are down.
Fewer home-buyers (low demand) and many homes for sale (huge supply) means the buyer has choices and many of those choices are ON SALE.
In addition, the houses in foreclosure are open to short-sale deals, where a third party, usually an investor, will negotiate a lower payoff to the bank in exchange for the house. Foreclosure auctions and buying post-auction as a bank-owned property are also very viable options right now.
Caveat Emptor
Just because everything is on sale, doesn't gaurantee turning a profit on an acquisition. The old adage "buy low - sell high" doesn't really hold true in current market conditions.
Just as you can acquire the property "low", you'll probably have to sell it "low" just to move the property. Research your market thoroughly so you know exactly what you can sell it for, before you buy it.
Michigan reported 136,205 foreclosure filings in 2007. California and Florida foreclosure filings are so astounding I won't even mention them here.
Despite government and community efforts to delay or handle some of these problems, foreclosures are increasing.
Since sales are slow now and average prices are down, many home owners do not have enough equity in there homes to sell and be able to pay off the loan, or even a realtor in many cases.
Interest rates on mortgages are great right now we keep hearing. It's a catch-22 because the lending guidelines are very strict now and the secondary mortgage market has collapsed.
Opportunity?
For the entrepreneur or investor there is obvious potential here with . If you understand the law of supply and demand it isn't hard to understand why average prices are down.
Fewer home-buyers (low demand) and many homes for sale (huge supply) means the buyer has choices and many of those choices are ON SALE.
In addition, the houses in foreclosure are open to short-sale deals, where a third party, usually an investor, will negotiate a lower payoff to the bank in exchange for the house. Foreclosure auctions and buying post-auction as a bank-owned property are also very viable options right now.
Caveat Emptor
Just because everything is on sale, doesn't gaurantee turning a profit on an acquisition. The old adage "buy low - sell high" doesn't really hold true in current market conditions.
Just as you can acquire the property "low", you'll probably have to sell it "low" just to move the property. Research your market thoroughly so you know exactly what you can sell it for, before you buy it.
