Buyers purchased nearly 250,000 pre-foreclosure and foreclosed properties in the second quarter of 2010 at an average discount of 26 percent, according to the latest foreclosure sales report from RealtyTrac.
I would question who are buying these properties.
Title companies are having difficulty with lenders, and are not issuing clear titles for home sale transactions. I can see how difficult this can be for the mortgage companies and lenders. Who knows how much is owed on a property, who actually owns it, back taxes owed, unpaid utilities, or what condition it is in.
We all should be cautious these days.
Unless you buy at least 50% on a foreclosure you are not getting a deal. Most foreclosures need a complete rehab. Most people buying foreclosures have no ideal what it takes to put one back in sellable condition. Sad but true.
I inspected a home last month that sold for $875,000 in 2005. The current buyer was paying $240,000 and that was probably still overpriced. We are seeing a much larger drop than 24% in Florida.