“Lenders’ inventory of foreclosed homes has steadily increased in the past couple of years and is believed to total around half a million homes. Many lenders initially were slow to slash prices, partly because they hoped to avoid huge losses. But more lenders have been capitulating as it becomes clear that delays often merely result in lower proceeds and higher costs for taxes, insurance and upkeep.”
– The Wall Street Journal highlights a significant side effect of the recent downturn in the real estate market — more foreclosures often translates to better deals. When defaulted inventory is high, lenders will naturally accept less for homes to get them off their books and recoup as much as possible from the assets. Always remember that lenders are in the business of lending money and not selling homes. That can work to your advantage, which means that now is perhaps the best time to get in on the action while the prices are right. To search for deals in your area right now click here.
I was doing some research on foreclosures and came across this article. Well written!