Distressed home sales continue to drop

Drop in distressed home sales across nation shows continued recovery from housing bust

MERRITT ISLAND, FL - A national report from CoreLogic released last week shows distressed property sales were 12 percent of the homes sold across the nation in March.

CoreLogic defines a distressed home as real estate-owned (REO; bank-owned) and short sales. A broader definition of distressed homes includes tax sales and homes in the foreclosure or bank possession process.

“When you break down the CoreLogic report, you see that bank-owned property was 8.4 percent of the total home sales and short sales were 3.7 percent,” said Ted Thomas, an international expert on distressed home sales. “That’s showing the banks are trying harder to unload the property they got as a result of failed short sales and foreclosures. This is good news for investors because banks do not like to own property. Owning property comes with a laundry list of maintenance issues banks are simply not equipped to handle.”

The CoreLogic report states, “Bank-owned properties typically sell at a larger discount than short sales.”

Mr. Thomas said real estate investors are finding great deals by talking with banks and making offers.

“It doesn’t cost you anything to walk into the bank office and speak with someone in the mortgage department. You get a list of available properties and then make an offer. You’re not out anything but a little time,” Mr. Thomas said. “If you have good credit and can prove the ability to make payments, you can often get a mortgage from that same bank.”

Michigan, Florida and Illinois are the monthly leaders in the report. Nevada, once a lead state in distressed property sales, continues to drop in the ranks. Of all the states, California has seen the greatest drop since the height of the housing bust, down 67.5 percent. Only North Dakota and the District of Columbia are within one percent of the housing bust peak figures.

“There is value to be realized in buying bank-owned property,” Mr. Thomas said. “You can live in it, rent it or put it on the market and sell it for a profit. When you buy direct from the bank, you aren’t paying commissions and you can sometimes avoid a lot of the closing fees.”

For more information about the CoreLogic report, visit www.CoreLogic.com. For more information about investing in distressed real estate, visit www.TedThomas.com.

ABOUT TED THOMAS - Located in Merritt Island, FL, Ted Thomas is a noted international expert on tax sales. He conducts seminars about how to buy such property and is also an investor. His website offers extensive free information to people interested in this investment field.

Media Contact:

Ted Thomas
info@tedthomas.com
www.TedThomas.com
321-449-0040