Explore Colorado Springs Homes

I thought this article was pretty interesting. Compared to last year, the interest in buying a foreclosure is down — but sells themselves are still up. There are still some great deals out there and they are not hard to find.

Buyer interest in foreclosures wanes ~ An ongoing online survey has been conducted by Trulia.com and RealtyTrac to measure home buyers’ attitudes toward foreclosures.  “For every borrower who avoided foreclosure through the Home Affordable Modification Program (HAMP) last year, another 10 families lost their homes,” said Trulia’s co-founder and CEO Pete Flint.  Data from the survey in May revealed the following:

§        45% of adults would consider purchasing a foreclosed home, compared to 55% one year ago.

§        1% of homeowners would walk away from their home as a first choice if they could no longer afford their mortgage, but 41% would at least consider it if their mortgage was “underwater.”

§        95% of consumers expect to pay less for a foreclosed home, and 36% expect a discount of at least 50% when purchasing bank-owned properties.

§        78% of adults believe there are downsides to buying foreclosed properties, compared to 85% one year ago.

§        92% of consumers would be willing to invest in renovations and remodeling if they purchased a foreclosed property.

§        57% of the renters surveyed are somewhat likely to purchase a foreclosed home in the future, compared to 40% of current homeowners.  Willingness of renters to purchase these properties do vary with age: 65% of those 18-34; 63% of those 35-44; 54% of those 45-54; and, 31% of those 55 and older.

§        Of adults likely to buy a foreclosed home: 62% would use it as a primary residence; 19% as a rental property; 8% as a second home or vacation property; and, 6% to resell or “flip”.  83% of renters would purchase it as a primary residence, compared to 51% of current homeowners.

“Although fewer consumers expressed interest in buying a foreclosed home than a year ago, the actual sales of bank-owned properties (REOs), along with sales of properties in the foreclosure process, continue to increase — accounting for more than 30 percent of total sales in the first quarter of 2010 according to our data,” said Rick Sharga, senior vice president for RealtyTrac. “

Brian – Explore Colorado Homes