Foreclosures - Not What They Seem!
The Media is full of misleading information about foreclosures in Georgia! They give the impression that all these homes can be bought for pennies on the dollar, and so many people are homeless from losing their homes. Fact is - I find nothing could be further from the truth. As I study the individual postings in Forsyth County for example, 50% of the foreclosures in dollars relate to developers and builders who can't meet their expenses, resulting in unfinished homes or sub-divisions. The majority of the remaining 50% applies to homes under $300K in value. Most of those homeowners have large second or third mortgages with little or no equity in the home, brought about by past loan products that required no money down and little to no money in the buyer's bank account.
Attend an auction on the court house steps and you'll see that very few private homes in Forsyth County actually make it to that point. Usually a sale is worked out before the auction. In October 2007, with 102 properties listed for auction, only 28 were brought to the court house steps. Of those 28, only 5 had any one other than a bank bid on them. A potential buyer must stand outside in the weather with cash in hand from 9:00 a.m. to 4:00 p.m. just to see if the home they are interested in will be offered. Where do all these homes go, and why don't the banks make it easier to buy them?
Bottom line - it's a great time to buy a home! Consider a foreclosure if you have a lot of patience and all cash. Otherwise, interest rates are near record lows, loans are available to buyers with decent credit and some money in the bank for a down payment, and the selection is probably the best it's been around Atlanta. It's a super buyer's market!
Tom Riess
Buyer's Agent
posted by The Komar Team Blog @ 4:33 AM
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