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Dips in median sales prices in Sacramento have seen a new low. Compared with Jan 2007, prices have gone down 26.8% till Jan 2008. As compared to the high period of Aug 2005, the dip is 34.6%.
According to CBS13.com Sacramento is now facing a new trend. Home owners are going in for what is termed as “intentional foreclosures”. Simply put, home owners prefer to let their homes fall into foreclosures to get that house across the street already on foreclosure because it is more affordable than the one they live in. An example in case, Chris paid $550,000 for his home and the house next door that has been foreclosed is now selling for $450,000, so he ditches making payments on his current home, hurts his credit a bit, but ends up with a house just like the one he lives in with a considerably lower mortgage payment.
With relief coming into Sacramento foreclosures after President Bush passed the ‘Mortgage Reform Bill’ home owners facing foreclosures see hope of holding onto their homes. This is also a time that has encouraged people to look for their first homes and investors alike.
Approaching home owners, whose properties are facing foreclosures, is a great option. In such a case, lenders do not mind getting an amount lesser than the market value of the home simply because it is a liability when it gets to them.
Going in for homes that have been through the bank foreclosures is another option. With these homes one does not have to worry about existing taxes or liens on the property as the bank would already have taken care of that. Banks are also known to pass the properties on to real estate agents to save themselves the trouble. Whether the house is with the bank or an estate agent, it would be priced lower than the market price, always leaving room for bargaining.
Irrespective of whether you choose to buy a property facing foreclosure or properties which have already been through bank foreclosures, make sure you view as many properties as possible before you sign across the dotted line.
