3 Reasons to buy a Foreclosure Now!!!

After a 5 year period of an unsettling real estate market, it seems that price of real estate is going up and buyers are finally jumping into the market. Even though mortgages are still tough to get, more contracts are being written like never before.

Here are 3 reasons to stop procrastinating and look for a good deal on a foreclosure now before it gets too late:


1. Low Inventory -  A couple of years ago there was a over supply of foreclosures and distressed homes for sale. No matter what the price, you couldn't even give houses away in some markets. This year that has changed. The foreclosure department of many lenders have hooked up with Hedge Funds that are scooping up REO's in record numbers. Companies like Blackstone have bought over 20,000 homes in various markets in 2012 and that number is expected to grow in 2013.

Because of this, the large pool of REO's have shrunk in addition to many homeowners that were in a foreclosure process have either been foreclosed on by now or have sold through a short sale.

2. Interest Rates are Rising - Are we to believe that the Feds would keep interest rates this low forever? From an all time low of 3.35%, rates this year have been increasing and are now up to 4.25%. A one point jump just in a couple of months. And you think gas prices rise quick!!

Now that the Feds believe that the economy is improving and with the large built up demand for loans, interest rates are expected to rise over the next few years. Some believe as high as 7%.

Jump in now and get locked into a mortgage because even though it is higher this year, it is still historically lower than other times.

3. Rising Consumer Confidence - Warren Buffet once said "You buy when they run and run when they Buy." In a few short moments, people will be running to buy. Now that the market have  corrected itself from all of the years of bad loans and a over supply of McMansions, federal regulation of the mortgage industry has loosened, and the overall perception that the economy is improving, buyers are looking to purchase homes at a time that they know is the perfect time to find a steal.

As a buyer, whether for the first time or seasoned, you don't want to get caught out in bidding wars. Already this year I have seen multiple offers on REO's and distressed homes and even market value homes. Start looking into purchasing now before the average Tom, Dick, Harry also starts showing up at the next open house!!

For more info on the latest deals in foreclosed homes, check out my site www.myforeclosureconsultant.com or email us at info@myforeclosureconsultant.com