Money Related Articles

  • Green house in hands.
    Buying a Foreclosed Home
    Military.com|
    With the number of foreclosures continuing to grow, some renters may be tempted to join the ranks of home owners by buying a fo...
  • Foreclosures Expected to Peak in 2011
    Associated Press
    Lenders are poised to take back more homes this year than any other since the housing meltdown began in 2006. About 5 million b...
  • States Probe Foreclosure Practices
    Military.com
    The foreclosure epidemic sweeping the nation as more people fall behind on their mortgage payments has led to a joint investiga...
  • Troops Seek Foreclosure Class Action
    UPI
    Lawyers said they hope to get class action certification in New York for an increasing number of active-duty U.S. troops fighti...

Home Ownership Most Popular Articles

Sick of Renting? Buy a Foreclosure

In today's flagging housing market it's easy to envy renters -- they don't have to worry about flat home sales, paying for home repairs, home owners' association dues, or property taxes. On the other hand, they do have to worry about throwing their money away month after month, while they're not building equity. But, many renters may soon join the ranks of home owners by buying up foreclosures.

Purchasing a foreclosed home seemed like a smart investment when the housing decline was in full swing last year. But, as homes prices stabilized, more home buyers turned their noses up at buying foreclosures, mostly because of unknown fees associated with the sale. In fact, a RealtyTrac/Truilia.com survey of potential home owners found that more than half of respondents aren't interested in foreclosures.

"It's somewhat surprising that consumers cite hidden costs as the biggest negative aspect of buying a foreclosed home," said Rick Sharga, senior vice president of RealtyTrac in a company-issued statement.

"Most bank-owned foreclosure sales include the same title protections and other safeguards that are in place for non-foreclosure sales," Sharga added.

As consumer curiosity in foreclosures waned, renters began expressing interest in these cheaper, often run-down properties. According to RealtyTrac, 57 percent of renters are likely to purchase a distressed home in the future. And, younger renters are significantly more likely to buy a foreclosure. About 61 percent of 18- to 34-year-old renters, and 65 percent of 35- to 44-year-old renters are likely to consider purchasing a foreclosure -- compared to just 40 percent of renters 55 years old and older.

What's more, renters interested in buying a home will have a glut of foreclosures to choose from. The RealtyTrac/Truila.com survey results were released just as Economy.com estimated that 2.4 million homes will be foreclosed in 2010, a slight increase from last year's foreclosure estimate of 2 million.  

"Even during the darkest of economic times, dreams don't die," said Truilia.com Founder and CEO Pete Flint in a press release. 

"Foreclosures provide never-before-seen opportunities for new segments of homebuyers and allows renters to become first-time home buyers," Flint continued.

Renters should keep their eyes on states with high foreclosure rates. For example, Nevada, Arizona, California, and Florida are expected to have the most foreclosures, according to RealtyTrac. And, cities such as Seattle, Minneapolis, Phoenix and Miami, are experiencing an increase in dispossessed homes.

"Consumers [should] take the time to educate themselves on the process for purchasing foreclosures. They'll be able to take advantage of the great bargains that currently exist in the real estate market," concluded Sharga.

Military News App by Military.com

Download the new Military.com News App for Android on Google Play or for Apple devices on iTunes!

© 2016 Military Advantage