Missoula, Mt. has its share of budget foreclosed homes right now. In fact, RealtyTrac reported trustee sale properties in default, 88 REO bank owned homes. One in every 1,234 Missoula homes received a foreclosure filing in July 2011. Trulia reported the median sales price for Missoula homes during the period February 11, 2011 through April 11, 2011 at $68,315. This represents a decline of 58.6% compared to the second quarter 2011 and a decrease of 62.5% from the same time one year ago. The average listing price for the week ending August 3, 2011 was $345,886 for the week ending Aug 03, representing a decline of 1.5%, or $5,280, compared to the week before. The average price per sq. ft. is $63. If you are looking for popular neighborhoods, Lower Rattlesnake, Miller Creek, Rose Park, Franklin to the Fort, University District, and Upper Rattlesnake top the list.
With record low interest rates, now is a perfect time to find your budget foreclosed Missoula property. Despite the U.S.credit downgrade by S & P and the U.S. debt ceiling problems, the Fed has vowed to keep interest rates at historic lows for the next couple years in hopes of helping the economy rebound and the housing market stabilize. Banks are not making it easy for borrower to obtain loans though so you need to have a credit score of at least 640 or higher to get a good rate. If you have a score below 500, you won’t qualify for any loans, not even FHA. Also threatening the housing recovery is the loan limit expiration September 30, 2011. Right now, loan limits are $417,000 for Fannie Mae and Freddie Mac government backed loans and $271,050 for FHA loans with loan limits in higher cost areas of $729,750 for FHA and conventional mortgages. The proposed changes could reduce limits as much as $50, 00 and would impact 612 counties in 40 states including the District of Columbia. Buyers should act now in case the loan limits are reduced as they may not qualify for a loan.
Right now there is a large inventory of budget foreclosed homes and short sale opportunities in Missoula. Investors and first time home buyers having been taking advantage of affordable prices and abundant inventory. Cash buyers are finding great bargain properties at Missoula property auctions as well. Government homes, bank foreclosures and REO’s are on the top of the list of good quality budget homes that buyers can choose from. There is a lot of competition for these homes so when you find one, you should act immediately berore someone else buys the home. Be sure to do your inspections and due diligence. Keep in mind though that not every foreclosure home may be a good opportunity if the home needs major systems repairs such as a new roof, plumbing or electrical, heating and air conditioning or has structural damage.
Working with a local Missoula Realtor is the best way to find bank owned REO properties because REO’s are always listed with local Realtors who advertise them in the MLS to attract qualified buyers. Bank owned properties offer buyers less risk because liens have been taken care of and buyers are not responsible for paying them off or evicting current owners or tenants. Also, you can obtain title insurance on bank REO’s. Realtors are able to search criteria for REO homes quicker saving you time and money and the hassle of having to call multiple Realtors to make appointments to view foreclosure properties. The Realtor will help you negotiate the offer with the bank as well so you can get the best price for the property.
Right now market conditions are conducive to purchasing Missoula budget homes. Many buyers are rehabbing their foreclosure treasures and then renting them out because there is high demand for Missoula rental properties. Since foreclosed homes are sold at deep discounts, there is a huge upside potential for making a profit on your investment. Five or six years from now, the property could be worth as much as 60% more. With the stock market so volatile right now, investors are choosing to put their money in safer investments such as real estate because they know over the long run their investments will appreciate. So if you are thinking of purchasing a Missoula home, now is the best time. Don’t wait because you may lose the opportunity to take advantage of favorable buyer’s market conditions.