Since 2007, Foreclosures have dominated real estate news. You can’t turn on the news or open a paper without some Foreclosure-related story.
But for all of the discussion, Foreclosures continue to be geographically concentrated.
Adding up the latest stats from RealtyTrac.com, more than half of the country’s Foreclosure actions from March occurred in just 3 states — California, Florida and Nevada.
Those 3 states represent just 19 percent of the nation’s population.
Despite the local concentration of Foreclosures, however, they remain a national problem. This is because mortgage lenders lend in all 50 states — not just 3 of them — so the impact of mortgage defaults in one region can quickly spread to others.
In part because of Foreclosures are higher, the following has happened:
- Mortgage guidelines have tightened
- Downpayment requirements have increased
- Private mortgage insurance has become more expensive
That’s an important set of changes even for a North Georgia Mountain Home or Cabin would-be borrower. In some cases, it can keep a person from qualifying. I recently handled a transaction where my buyer’s who had excellent credit and a hefty down payment had troubles qualifying for a loan. To say the least, it was a stressful situation for all parties involved.
If you are an Investor or just looking for a great deal on a Home or Cabin in the North Georgia Mountains, also consider Properties on the Open Market. Foreclosures are not always “The Best” deal out there. Just a couple of things to consider when purchasing a Foreclosure is first and foremost the unknown. When you are purchasing a Foreclosure, you are buying without a Property Disclosure Statement and without a Home Warranty unless you choose to purchase one. Even then, Home Warranties are limited to mostly mechanical issues, and seldom cover structural problems that seldom arise but do occur and it would be nice if you could go to the Builder to address those concerns. Come back to The Porch soon for a more detailed post on Why You Should Consider Buying a Home on the Open Market.
Meanwhile, if I can assist you in anyway with your North Georgia Real Estate needs, please call me at 706.633.8186, or you can email me Chad@EmailMyRealtor.com.
Make it a GREAT day!
Search the March 2009 Foreclosure report for yourself on RealtyTrac.com’s website.