Buying a foreclosed house can be an economical way to purchase your starter home. In some cases, repairs may be needed or kitchens might need some remodeling but despite those improvement costs, there isn't a cheaper way to purchase a house.
In recent years, the real estate market has enjoyed a bounty of foreclosed properties for first-time buyers and investors to scoop up. Home prices began to slide by June 2007 and by 2008, 2,800 homes in Sonoma County were lost to foreclosure. Distressed sales peaked at 76% of all homes on the market in February 2009.
The Great Recession, which began with the subprime mortgage crisis, forced too many families out of their homes, which often ended up in foreclosure or a short sale. The good news is that the worst of the foreclosure crisis is behind us.
Don't worry about losing an opportunity to purchase a foreclosed home. There's always an opportunity to get a foothold in real estate by purchasing a home at an auction.
And there is always someone who figures out a way to defraud the foreclosure system.
Northern California Investor Faces Conspiracy & Mail Fraud Charges