US Foreclosures hit record numbers this April based on a report filed by the city of Vallejo California. The data suggested that the rate in that area was the sixth highest in the entire United States, which led the city to file for bankruptcy. What this essentially means is that the mistakes of the housing bubble could not be corrected with just a few years. This is due to the fact that there are a host of factors that are necessary in order to get the economy back on track and the real estate market is just along for the ride.
Plummeting Housing Values
Areas that were hardest hit by the housing bubble bust like Florida, California and Las Vegas real estate, saw their revenues go down the drain as collection from taxes also went down. For Canadians buying US real estate, what is important to note is that foreclosed properties brought down the value of million dollar properties in prime locations all over these hard hit states. This presents a unique investment opportunity not only for investment but also because the present economic situation in the US has led to a stable Canadian currency hedging really well against the US dollar.
Why Contemplate Purchasing Foreclosed Property?
There are currently millions of properties in the United States that are undergoing some stage of the foreclosure process. What’s amazing is that most of these are still in pristine condition. There is a lot of potential for making a profit once the US economy gets back on its feet; it’s simply just a matter of time. The real estate market is cyclical; therefore, it is not a question of if, but when economic forces jump start demand in the US housing market.
Tips On Buying Foreclosed Properties
Make Sure to Get Pre-Qualified for a loan – Before heading down south of the border to America, it would be wise to get your finances in order to know if you have what it takes to buy property in the US. If you are very much liquid and can buy the property by paying cash, then you can skip this step. Otherwise, you need to take steps in order to secure financing for the type of foreclosed property you intend to purchase.
Find a qualified lender – You also need to look for a lending company that specializes in loans on foreclosed properties. This ensures that you stay in the loop about the entire foreclosure process in the United States.
Experienced Realtor – Look for an experienced real estate agent that can guide you to the best listings of foreclosed properties available in your chosen state. Having an experienced real estate agent that has your best interest in mind will help you navigate the sometimes tricky world of US foreclosures.
Get Educated – Do you know that you can purchase a foreclosed US property by attending a foreclosure auction? Or the fact that you can directly contact the seller or have a real estate company bid on your behalf? Knowing the available options available gives you more bargaining mojo and can assist you in getting a much more reasonable price for a property.
If you want to know how you can get the low down on US foreclosures consult a foreclosure specialist at: www.stevemartel.com
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