The weakness in the housing market and the economy continue to have an effect on mortgage delinquencies resulting in the increased number of foreclosures and pre-foreclosures available in the New Haven, CT area. While the Mortgage Bankers Association reported nationwide that fewer mortgage borrowers were delinquent on their loan payments during the second quarter of 2010, with the delinquency rate dropping to 9.85%, down from 10.06 three months earlier, first-time delinquencies have increased after four quarters of decline. They rose 3.51% in the second quarter 2010 from 3.45% in the first quarter 2010, reflecting the slow recovery in the housing market. That is why it is still a perfect time to invest in the New Haven foreclosure market because you are getting a property at a substantial discount with built in equity. So when the housing market does recover, you will be in a good position to either sell or continue building equity.
Finding Foreclosures
Buyers/investors can find foreclosed homes in all neighborhoods in the New Haven area and in all price ranges. You may want to drive the area to find the neighborhood of your choice. You will see quite a few for sale signs, including for sale by owners, bank foreclosures and short sales. If you don’t live in the area or you don’t have the time to drive by, then there are several other places to look including:
- Local MLS
- Realtor
- Internet websites
- County recorder’s office
- Newspapers and magazines
- Contacting banks directly
- Foreclosure auctions
The best source for finding New Haven foreclosed houses is your local Realtor. Banks list their REO inventory with local Realtors, who advertise them in the MLS. Realtors network with other REO Realtors in the area and share information about their inventory. The Realtor can help you negotiate with the bank when you find a property you are interested in. While you could find REO properties on your own, the Realtor will save you time and has access to more available properties.
What You Should Know About Foreclosure Auction Properties
Here are some basics you should know about foreclosure auction properties:
- Foreclosed properties are sold at public foreclosure auctions to the highest bidder for cash
- You don’t get any title insurance
- You normally don’t get to inspect the homes
- You may get stuck having to pay off any liens left on the property
- You are responsible for evicting any former owners or tenants that remain at the property
- Properties are sold at substantial discounts
- Properties are sold in an “as is” condition
- Many of the properties are in poor condition
What You should Know about REO’s (real estate owned) Properties
Here are some basics you should know about REO properties:
- REO’s have the less risk because they have already gone through the foreclosure process and are now owned by the bank
- Properties are listed with local Realtors
- You can get title insurance and inspect the homes
- All liens are paid at close of escrow by the bank
- Properties are sold at substantial discounts
- Properties are sold in an “as is” condition
- Many of the properties are in poor condition
New Haven foreclosed homes are great investments. Whether you purchase a home at a foreclosure auction or a REO from the bank, you are getting a property with built in equity. Now is a good time to purchase foreclosed homes in the New Haven and surrounding area while the prices are still affordable, and there is an abundance of inventory.
