Foreclosure Rates

Investing in foreclosure properties can be a great option as that provides the homebuyers a rate better, which is much lower than the market prices and affordable too. However, remember that investment in a foreclosed property needs a very analytical and an intelligent approach. Bargains are even available to the people who know where to look in for, so an experience in the market or consulting someone who has prior experience is definitely an added bonus.

Investment in foreclosed properties is the latest trend in the US market because in today’s market of real estate hunting for new houses and then investing in them can be a very frightening expertise. Thus, off late, the foreclosure market in the US has seen a steady growth.

According to the data available in January in the year 2006, foreclosure market in the US has seen an increase of 45 percent year over year. A listing of over 600,000 foreclosed properties had been compiled from over 2,500 counties and cities across the country by Yahoo Real Estate, AOL Real Estate and MSN house, as per the reports of Realtytrac. The total number of foreclosed properties across the country went up to 900,000 in the quarter-ended March in the year 2007. Nevada, Colorado, and Georgia tops the list when it comes to per capita foreclosure properties but the cities having the largest number of foreclosed properties are California, Florida and Texas.

As compared to December’05, Georgia and Colorado saw spikes in foreclosure rates by 144 percent and 196 percent respectively. The rates are expected to accelerate more in the coming years.

More than 103,540 foreclosed properties were newly enlisted in the list of foreclosed properties according to market reports of US foreclosure. According to the data available, it shows that for every 1,117 US household, there is one new foreclosure. This trend is going to continue in the upwards direction.

The foreclosure rate in the state of Georgia almost doubled with 7,342 properties being enlisted newly in the foreclosure stage. Nevada records one new foreclosure per 483 households while for Georgia it is 422 households. Colorado ranks third in the list. Increase of 15% in the foreclosure rates was witnessed by the states of Indiana and Texas.

Experts say that this increase in the foreclosure rates is due to the softening of the prices of home and rising rate of interest and this will be the trend for the next few coming years.

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