High Foreclosures Spell Low Property Prices

Posted in Foreclosed Properties, Foreclosure, August 6th, 2007 |

The rising tide of foreclosures means gloom for property sellers. The balance between demand and supply determines the rate and there are just too many properties on the shop shelves. Foreclosed houses can be snapped up for a bargain but it is bad for sellers trying to compete with bank prices. The banks can’t afford to indefinitely wait on unsold property to realize their dues. It is more judicious for them to let the unit go and be content with getting back only the loaned amount.

In Northwest Las Vegas the brand new five-bedroom showpiece seemed an impossible dream coming true to Kathy and Michael Lowry. A neat profit on a resale would have seen their children through college. But a year and a half later the dream became the reality of continuing to pay interest on the loan without any buyer knocking on their doors. It began to tell on day-to-day life when small movie treats had to be curtailed to keep their heads above water. Eight similar foreclosures in the same neighborhood as the Lowry’s have forced them to climb down on their price. Even then they are finding tough competition from the bank rates, which are about $100,000 less on their asking price. Desperate the Lowry’s are now searching for tenants to be able to pay their dues on the interest-only loans. Michael Lowry is now looking to his retirement to help him but already he has been ‘bled down’. He sees now way out for solving the problem of his children’s college education. It was beyond their wildest imaginations that such a good property investment would turn into a white elephant – impossible to maintain and keep. To avoid instant loss the only way seems to be to hang on anyhow.

Cameron Yates-DeAngelo a real estate broker is full of sympathy for people trying to sell their homes the legitimate way. Foreclosed homes sound cheap but the snag is that you buy them on an as-is basis. This means there might be ugly surprises lurking behind the locked doors in the way of upkeep and repairs.
The best option for those who want a good home on a slim budget is to log on to foreclosurelistings.com. The experts on foreclosures regularly scan through the lists and spot the best individual specific option. The services and suggestions given are tailor made and customized.

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