The Los Angeles Foreclosure Market 2017
Over the better part of the last decade, the real estate market has seen more than 6 million homes go into foreclosure. This means that there have been more than 6 million homes added to the real estate inventory for prospective buyers to consider. Foreclosure properties can come in various states from relatively well kept, to extremely distressed. For this reason, foreclosure properties are often popular among prospective buyers that are looking to renovate houses and sell them for profit, renovate and rent them out, or buy a fixer-upper for a lower price and build their own equity in their new home.
What Does the Los Angeles Foreclosure Market Look Like?
Over the last little while, the Lost Angeles real estate market has seen a bit of a dip when it comes to foreclosure properties. However, this mild drop is far from permanent with more and more Los Angeles foreclosure homes are expected to make their way onto the market as home prices rise in the coming months.
Cities in the Greater Los Angeles area are already seeing a noticeable increase in the number of foreclosure properties that they have to deal with. The concern in terms of the city and the overall real estate market with an increase in properties such as these is that 1) often times if they are being foreclosed on they have not been given the most care and maintenance which impacts the entire look and feel of the neighborhood and 2) the fact that while the lenders do try to at least achieve fair market value, these properties generally sell for much less than comparable houses that have been well-kept.
One of the most crucial things to be aware of when considering purchasing a foreclosure property is that you are not buying from an individual seller – in most cases, you are buying from a bank.
Understanding Both the Buyer and the Lender’s Roles
If the lender takes procession of the property in question, either through a legal document formulated during the beginning stages of the foreclosure or through taking part in the foreclosure auction, generally the property will still be sold, however, at a later date. This is because often, in situations such as this, the owner (lender) will take care of any necessary repairs or renovations to make the property a safe place to live. This can be beneficial to prospective buyers that are not in a rush to purchase, however, in many cases the delayed timeline can frustrate perspective buyers.
This delay is one of the most important factors that buyers considering purchasing a foreclosure property need to be aware of. Often times these lengthy timelines will not necessarily coordinate with those of interested buyers, causing frustration and stress for all parties involved.
It is important to be aware of the fact that specific rules and laws regarding foreclosure properties vary depending on where you live. While purchasing a foreclosure property can be a huge benefit financially to the buyer, it is a heartbreaking time for the person or family that was unable to keep their home.