Where To Find The Biggest Foreclosure/Short Sale Discounts

Foreclosure filings fell to a 44-month low last month nationwide.

Are Foreclosure Problems Past Their Peak?

According to RealtyTrac, foreclosure filings nationwide fell 35 percent as compared to July 2010, a statistic that hints at the ongoing housing recovery. "Foreclosure filing" is a catch-all term encompassing default notices, scheduled auctions, and bank repossessions.

Despite the improvement, though, foreclosure activity remains concentrated in just a handful of states.

Of all of July's bank repossessions, more than half came from just 6 states in the union. Those states were California (19%); Georgia (8%); Florida (7%); and 6% each from Texas, Michigan, and Arizona.

On a per-household basis, the numbers were similarly skewed. Nevada's foreclosure rate was twice the next closest state.

1. Nevada : 1 filing for every 115 households
2. California : 1 filing for every 239 households
3. Arizona : : 1 filing for every 273 households

These same three states have dominated foreclosure markets since the housing downturn began in 2007.

The national average is 1 foreclosure for every 611 households.

Selling Homes At Discounts

Distressed homes, which includes foreclosures and short sales, remain in high demand with today's buyers, account for 30% of all home resales, according to the National Association of REALTORS®.

That's no surprise, either. Distressed homes typically sell at 20 percent discounts as compared to non-distressed ones.

You can even buy them with cash, then refinance them immediately afterward because of Fannie Mae's new guidelines. Under the Delayed Financing Rule, the long-standing 6-month "waiting period"  for a cash-out refinances has been waived in full.

Click here for a mortgage rate quote.

Foreclosure Mortgage Rates

If you're buying a foreclosure or short sale, you'll need a mortgage rate quote, too. The purchase process is a little bit different (and a little bit longer) so make sure you tell your loan officer.

Also, if you own more than 4 properties, you're still mortgage-eligible, too. Again, be sure to tell your loan officer.

 

Via TheMortgageReports.com - Dan Green