Foreclosures UP 32 percent in July from a year ago
By: Dennis Norman
There just seems to be no end in site for the sickening numbers of foreclosures we are seeing take place in the housing market. While, from an investors standpoint, it seems like a “positive” in that foreclosures often present a good opportunity for an investor to purchase property at below-market prices however it’s really a double-edged sword though as foreclosures drag down property values, which hurts an investor.
BankForeclosureSale.com is predicting that there will be approximately 2.8 million homes in some state of foreclosure in the U.S. by the end of the year. “The increase in foreclosure filings can no longer be attributed solely to the sub-prime mortgage mess,” Simon Campbell, business analyst for BankForeclosuresSale.com says. “There are several contributing factors that include declining home values, rising fuel costs, a weakening economy and sluggish home sales. With all this going on it’s not surprising that many homeowners are no longer able to afford there current mortgages.”
All the reasons that Simon Campbell cited above for the foreclosure rate are also reasons for investors to stay on their toes and really excercise caution when buying property, particularly if the plan is to try to resell the property anytime in the near future.
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