Despite Books And Seminars Foreclosed Houses Not Selling At Auctions
January 19th, 2009
Book publishers and seminar organizers are netting gains but despite these books and seminars the foreclosed houses are not selling at auctions. In Dallas-Fort Worth till now this year investors bought only 5% of the units – the rest were returned to the lenders. Till September it totaled to approximately 700 houses according Foreclosure Listing Service of Addison. The purchasers are the typical investors whose business it is to sniff around for bargain deals in troubled waters. They are experienced and know what they are doing. But the majority is staying away from these risky ventures. The foreclosed houses are more often than not in a bad state of disrepair. Without thorough inspection of the interior the purchase will be a gamble. Even after inspection hidden defects surface that may well entail costly repairs and refurbishing. Brave hearts may of course win a deal and luck.
Approximately third party purchasers pay 60 cents on the dollar to buy the units calculated on the tax values. The average price is $103,629.
The foreclosure crisis has affected the lending market. Mortgage rules are now much more strict than before. Housing loans are difficult to access. Investor purchase numbers have fallen by 7% since the previous year.
In Dallas-Fort Worth region 40% of the foreclosed properties listed this year have been put up for sale. The other houses have escaped the foreclosure net thanks to agreements worked out between the borrowers and lenders. Through September 2008 16,000 houses have been sold at foreclosure auctions.
Dallas County has recorded the largest number of foreclosure sales in 2008. Through September it was 270. In Dallas on an average the acquisition is 50 cents on the dollar.
Collin County has gained the most from September postings where foreclosure sales figure increased by 38% from what it was a year previously. The foreclosure totals remained unchanged in Dallas and Tarrant counties.
For two consecutive quarters in this year the total number of foreclosure postings in this region has declined. George Roddy of Foreclosure Listing Service commented that although the change has been for the better and is welcome one couldn’t definitely say that this trend will continue. He said, “We’ve seen before that foreclosure postings go up and down.”
Experts opine that during the boom years the price of houses had been artificially inflated. Unless the price comes down to reality levels the market will not pick up.
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