Foreclosures offer affordable housing options to first time home buyers

While the increasing number of foreclosures for sale has become a matter of concern for the U.S Government as well as the real estate market, there is a silver lining to this situation as well. As more and more homes are being repossessed by banks and lending agencies, these lenders are left with no option but to release the foreclosures back into the market at much lower prices than traditional real estate deals in order to push up the sales of the former. The availability of a large number of highly reduced repo homes has therefore opened a rare avenue to first time home buyers who could never dream of investing in these properties before.

With major U.S states recording large number of foreclosures more and more mid income families are coming forward to invest in these properties for the very first time. In California a large number of families who have been previously residing in leased apartments have successfully purchased foreclosures which include two to three bedroom units as well as condominiums.

A similar trend has also been observed by real estate analysts in Florida which is famous for its high end neighborhoods and scenic waterfront houses. While this region was an exclusive investment option for the elite and high income bracket families, a series of foreclosures that have taken place in the past year has changed this drift remarkably. According to last quarter’s real estate market analysis, 45% of the properties that have been purchased in this region have been picked up by first time home buyers belonging to the mid income group.

The Minnesota Housing Partnership has also come forward with some interesting results which point at certain positive developments that have been observed by the State Housing Authority. Officials at the department have reported that a total of 6,300 foreclosures have been sold through sheriff sales in the last quarter. They further noted that more than 75% of the buyers belonged to mid income groups and purchased the foreclosed homes as their first property.

With the U.S Department for Housing and Urban Development offering a large range of home ownership programs through all the Federal Housing Authorities, first time home buyers are getting even more reasons to invest in foreclosures. The Texas Housing Department for instance has launched three different partnership schemes for mid income families who are interested in purchasing foreclosed homes. The schemes offer down payment assistance, tax credit abatement as well as low interest housing loans respectively.

As the influx of foreclosures into the U.S housing industry makes real estate much more affordable, there has never been a better time and opportunity for first time buyers to pick up their dream home at a great bargain deal!