Rising number of foreclosed homes is making some market experts feel sweaty. According to the March foreclosure figures released by E-Foreclosuresearch, Virginia recorded a total of 4, 933 forclosures or one per 655 households. The report further stated that foreclosed properties may have risen by a whopping 368% when compared to the same month previous year. By comparison of foreclosures by state, the rate of Virginia foreclosures drop slightly as compared to the national average.
Suffering from predatory finance lending practices by which homebuyers with bad credit scores were allowed to opt for ARM (Adjustable rate mortgage), Virginia has found itself in a bind. Moreover, speculative investors too, have contributed immensely to the Virginia foreclosed homes count. As investors realized that their property investments weren’t bearing expected fruits, they quickly pulled out and left a barren and crippled market in their wake. The growing and rapidly increasing foreclosure inventory has created chaos in an already ill market
And then there were those homeowners who decided to overextend themselves and opted for mortgage loans, which they could ill afford in the first place. A sluggish real estate market and increasing cost of living, these homeowners faced the brunt of forclosure.
Foreclosures filed in Virginia touched 1,731 homes, pushing the State to # 25 on the highest forclosures rate listing for June 2007. However, Virginia foreclosure activity showed signs of a slow down after having peaked in May 2007.
Market experts are of the opinion that home sellers in Virginia should consider offering their real estate at the lowest price available. This will help them avoid the increasing holding costs such as insurance premiums, maintenance fees, among other things.
