Foreclosure Sales Increasing In Popularity
It is the same story right across America – foreclosure sales are becoming more and more popular. Of all the properties in the market, a third come from the foreclosure zone. Most of them are bargain deals with banks offering heavy discounts. This is pushing down the real estate market prices to unprecedented levels.
A popular way of attracting potential buyers is conducting foreclosure tours. Brokers in buses take round the interested to view for themselves the innumerable foreclosed bank repossessed houses. One such tour operating company is The Long Island Foreclosure Tours. It made its entry early this year. David Farrell is a partner. He said, “Every day you see an increase in the share of the market that is foreclosure business and that is why we started this and got involved.” He points to the many vacant houses and comments that the banks are in urgent need to sell them quickly. The market for foreclosed houses is growing. The banks now own a third of the houses on the shop shelves in USA! For those with funds the market is for buyers.
Andrew Hutchinson is one of the buyers on the bus tour. He takes this as a chance to move up in society. Foreclosures are giving him a chance to shift to a better locality and climb more ladders. The taxes might be steeper but that is a small price to pay for moving into a house one could not previously afford.
One of the houses on view is a spacious property having an outhouse. It is sitting on one of the posh localities of the area. In 2007 the value of the house was more than $1.2 million, but the bank bought it for a little over $ 1 million. Today the asking price is $699,000 – calculating to a discount of about 50%. The irony is that had the prices been lowered earlier there was a chance that the original owners would have been able to retain the house that was their home.
The administration at all levels – local, state and federal, as well as the communities are working to stem the tide of foreclosures rushing in so that the people can stay on. But critics are saying that the measures are all too late to have a sizeable impact on the crisis.
The credit crunch has hit the advertising world and consequently the message is not going around of various workshops and seminars being held to help the foreclosure victims.
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