By now it is pretty well known that foreclosure auctions are fast becoming the best place to look for bargains when it comes to getting hold of “distressed” properties at prices that cannot be beaten! This is a “secret” that’s not really that much of a secret anymore. There are more and more people that are losing their homes for various reasons (chief among them is that they haven’t got the money to pay the mortgage any longer). This is the main driving force behind the literal explosion of foreclosures and auctions at which the banks sell those properties. The banks don’t want to be holding onto those properties any longer than they have to (they really do not want to be holding those properties) because that cannot make any money on the mortgage payments if they are the ones that own the property directly.
The state of California is one of the states where the foreclosure rates are skyrocketing faster than you could even keep up with. There are far more foreclosed homes out there than there are people that can realistically afford to buy and own them. Most of the home that people are losing (and have lost) in the past few years are those that they bought for far more than the houses were even worth (appraised for). It was the dot-com era mentality (and just plain arrogance) that lead to so many people buying houses they could not afford. Of course, back then there was not the slightest hint that this would be coming down the line. The houses and property for sale at foreclosure auctions is usually being sold for far less than it is assessed and appraised at just to get them sold.
The property that is sold at foreclosed auctions is not always in bad shape; on the contrary, some of the houses in an auction like that are in very good shape. The only problem is that the owner could not afford to keep the house. Part of this problem comes from the fact that people have been living too far above their means for way too long. This is what has given so many people the best shot that they will ever get to own a home like that.
