Foreclosure Investments Gain as Stocks Slide: High Ticket
Homes
March 22, 2007
While 2006 was the year the real estate market turned from a bullish seller’s
domain into a confirmed buyer’s market, this year may be remembered for its
impact on the stock market – and how that heated-up the already explosive
foreclosure sector.
Consider these recent revelations:
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The average savings rate for American households – in other words, the amount
of money people are able to set aside after paying their bills – is the lowest
it has been since the Great Depression.
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Subprime lenders – those who specialize in lending money to people with less
than stellar credit or other high-risk consumers who don’t qualify for a
typical Fannie Mae loan – report a surge in defaults and lost revenues as their
customers fail to pay back loans and fall into foreclosure.
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Congress has called for recent hearings to investigate mortgage company lending
practices, because so many homeowners are unable to pay their mortgages and are
going into foreclosure.
Meanwhile foreclosure investors have their choice of bargains in all price
ranges, as the following examples culled from active foreclosure listings
around the USA clearly demonstrate:
Houston, Texas
The massive 6,031 square foot Texas-sized brick mansion at 3310 Chartreuse Way
is listed at $1,099,900. Almost 130 Houston area homes in foreclosure are
priced between $100,000 and $1 million, with nearly 50 priced at $100,000 or
less.
The fourth largest city in the USA has a diverse population and economy, and is
poised for continued growth. The city is home to a cutting-edge medical center,
a robust cultural arts scene, several universities, and is considered one of
the best places to do business in the nation, a fact that is validated by the
presence of many Fortune 500 companies and one of America’s busiest ports.
Knoxville, Tennessee
The two-chimney southern estate home at 1917 Cherokee Blvd has 7,866 square
feet, second story walkout balconies, and is well maintained on a wooded lot.
With six bedrooms and five baths and a list price of $1,050,000 or only $133.49
per square foot, this house is a millionaire’s steal at a bargain basement
price for a top-flight property.
But for those on a budget there are more than 100 foreclosures in the Knoxville
area, including a 2-bedroom for only $22,500 – less than price you’d expect to
pay for most single car garages or automobiles – at 2722 Wilson Avenue.
The largest city in eastern TN, Knoxville is a gateway to the recreational and
tourist destinations of the Smoky Mountains. Home to the University of
Tennessee, the town has a revitalized waterfront district and a number of good
museums.
Boone, North Carolina
Boone – a college town nestled in the Blue Ridge Mountains near popular
Asheville, NC – was selected as one of four top multi-sport vacation
destinations in North America by Adventure Sports Magazine. The Washington Post
calls Boone “Santa’s Branch Office” because it is such a winter recreational
wonderland. Intricate and amazing architectural details including a rooftop
studio room with a cupola on top of it, a traditional Appalachian stone chimney
and foundation, and a beautiful wooded lot make this 3,730 square foot Boone
home at 401 Upper Rainbow Ridge Rd a dream residence or vacation home. Although
its location and character are priceless, it is currently in foreclosure and
offered at $1,200,000.
Washington Township, Michigan
The foreclosed estate at 57054 Juliann is priced at $1,299,000 and offers five
bedrooms, five baths, and almost 6,000 square feet. There are 115 foreclosures
in the area, and 14 are listed for under $100,000.
Located in the greater Detroit metro area, this town of approximately 20,000
residents offers a small town suburban alternative to the Motor City, for those
who prefer to commute away from the big city at night.
Folsum, Louisiana
With an expansive lawn and a convenient expanded back deck, this spacious home
at 78124 Highway 25 boasts large windows and plenty of natural light and is
available for $1,075,000.
For a more economical Louisiana alternative, check out the handsome 3-2 brick
house at 115 Ruby Court in Baton Rouge, which can be yours for less than
$120,000.
A full recover to prices of two years ago may be 5-7 years away according to
analysts who believe the foreclosure market may just be getting its traction
and heating up for 2007. How things pan out remains to be seen, but many
economists and financial pundits are already predicting that foreclosure
inventories will continue to rise, fueling a buying spree on behalf of
investors who seek a high-yield, reliable alternative to volatile and jittery
stocks.