Thursday, August 06, 2009
Buy foreclosures now - before it's too late
You've heard of speed dating? It's got nothin' on foreclosure buying these days. In many places, anyone who wants to buy a foreclosure better act fast, or they're going to come away with bupkus.
REOs, the industry term for homes repossessed by lenders and put back on the market, are often selling in a day -- sometimes in less.
"We're seeing REOs go very quickly. Offers come in immediately after the listing comes on the market, within 24 hours," said Brad Geisen, founder of Foreclosure.com. Some homes have been put into contract in less than 90 minutes.
This was our experience with the real estate market in Lake County, Illinois. There are a lot of foreclosed homes on the market in our area because our subdivision was only built within the past 5 years. Many of these homes were purchased with interest only and other funny types of mortgages. Also, we found out from our neighbors that a speculator had bought 10 houses in the neighborhood and had defaulted leaving the homes with Fannie Mae who is slowly putting them back on the market. When they do come on the market they are at great prices and they get snapped up pretty quick. There are a lot of new subdivisions out here and that is where the foreclosure action is.
I think the foreclosure situation caused by the crazy financing schemes of the bubble years will correct itself. Then we can deal with the fallout from the tanking economy. The latter will hit the bubble neighborhoods of Chicago which remain relatively unscathed so far.