{"id":6456,"date":"2022-07-31T18:12:19","date_gmt":"2022-07-31T22:12:19","guid":{"rendered":"https:\/\/dankrell.com\/blog\/?p=6456"},"modified":"2022-07-31T18:12:22","modified_gmt":"2022-07-31T22:12:22","slug":"looking-for-a-foreclosure-discount","status":"publish","type":"post","link":"https:\/\/dankrell.com\/blog\/2022\/07\/31\/looking-for-a-foreclosure-discount\/","title":{"rendered":"Looking for a foreclosure discount"},"content":{"rendered":"\n

Over the last year and a half, some have talked about an impending foreclosure apocalypse<\/a>.\u00a0 Home price run up aside, some home buyers have decided to wait for foreclosure inventory to hit the market to get a property at a foreclosure discount.\u00a0\u00a0 <\/p>\n\n\n\n

\"foreclosure<\/a>
Homebuyers have opportunities<\/figcaption><\/figure><\/div>\n\n\n\n

Although some expect something akin to 2007-2008 foreclosure\ncrisis, they may be disappointed.  Experts\ndon\u2019t expect a repeat of the last foreclosure crisis for a number of reasons,\nincluding the fact that home equity positions of homeowners are much different\ntoday than they were the last time. \nAdditionally, although home sale prices may be moderating, it\u2019s expected\nthat future home price appreciation is still be positive.  <\/p>\n\n\n\n

Let\u2019s take a look at foreclosure data compiled by Attom Data. The July 22nd<\/sup> press release<\/a> (Top 10 U.S. Counties with Highest Foreclosure Rates in June 2022<\/em>; attomdata.com) \u00a0indicates that, \u201cthere were a total of 90,139 U.S. properties with foreclosure filings in Q2 2022. That figure was up 15 percent from the previous quarter and up 165 percent from a year ago. The report noted that national foreclosure activity total in Q2 2022 was 68 percent below the pre-recession average of 278,912 per quarter from Q1 2006 to Q3 2007 \u2013 making Q2 2022 the 23rd consecutive quarter with foreclosure activity below the pre-recession average<\/em>.\u201d<\/p>\n\n\n\n

So basically, foreclosures have increased. However, the\nnumber of foreclosures is nowhere near the amount prior to the great recession.  Even though the number of foreclosures will\nlikely not impact the overall housing market, there are buyers looking for the\nforeclosure discount.  <\/p>\n\n\n\n

If you\u2019re looking for a foreclosure discount, read the recent\nresearch by Ralph B. Siebert published in the Journal of Real Estate Research (2022,\nVol. 44 Issue 1, p1-28).  The study\nrevealed where deeper discounts may be found when buying a foreclosed property.  Siebert\u2019s analysis indicated that discounted\nforeclosed property depends on the metro and\/or regional housing market where\nthe house is located, as well as the home\u2019s value position relative to the\nmarket segment.  <\/p>\n\n\n\n

Siebert\u2019s study included transactions in Florida and Indiana\nfrom 2000 to 2020.  His results indicated\nthat foreclosure discounts were higher in Indiana than Florida.  Also, Indiana foreclosed homes in the lesser\nvalue segment lost the most value, whereas similar value segments of foreclosed\nhomes in Florida did not lose as much. \nHe also found other differences that resulted in higher discounts as\nwell.  <\/p>\n\n\n\n

If you\u2019re looking for foreclose discounts, consider the comparing market locations and value segments.\u00a0 Buyer beware<\/a>, however, it\u2019s likely that the home will likely need repair and\/or renovation.\u00a0 So, although the acquisition of the property may be at a discount, the cost of bringing it up to your standard may be costly.\u00a0 Do due-diligence, and consult with licensed real estate professionals to assist in making home buying decisions.<\/p>\n\n\n\n

By Dan Krell
Copyright \u00a9 2022 <\/p>\n\n\n\n

\"Protected<\/a><\/figure>\n\n\n\n

Disclaimer<\/a>.\n This article is not intended to provide nor should it be relied upon \nfor legal and financial advice. Readers should not rely solely on the \ninformation contained herein, as it does not purport to be comprehensive\n or render specific advice. Readers should consult with an attorney \nregarding local real estate laws and customs as they vary by state and \njurisdiction. Using this article without permission is a violation of \ncopyright laws.<\/p>\n","protected":false},"excerpt":{"rendered":"

Over the last year and a half, some have talked about an impending foreclosure apocalypse.\u00a0 Home price run up aside, some home buyers have decided to wait for foreclosure inventory to hit the market to get a property at a foreclosure discount.\u00a0\u00a0 Although some expect something akin to 2007-2008 foreclosure crisis, they may be disappointed.  … <\/p>\n

Continue reading “Looking for a foreclosure discount”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[170,275,15,245,270,13],"tags":[504,799,894,490],"class_list":["post-6456","post","type-post","status-publish","format-standard","hentry","category-buyer-beware","category-distressed-properties","category-foreclosure","category-foreclosure-listings","category-home-buyer","category-real-estate","tag-distressed-property","tag-foreclosure","tag-foreclosure-listings","tag-home-buyer-2"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p1VZLf-1G8","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/6456","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/comments?post=6456"}],"version-history":[{"count":3,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/6456\/revisions"}],"predecessor-version":[{"id":6460,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/6456\/revisions\/6460"}],"wp:attachment":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/media?parent=6456"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/categories?post=6456"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/tags?post=6456"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}