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Cash Buyers Made Up Nearly 30 Percent Of All Foreclosure Sales In 2013

New report shows that, while 2013 foreclosures were down overall, foreclosure sales were up.

We’ve talked a lot recently about the number of foreclosures dropping significantly in 2013, but interestingly enough, a report released recently by RealtyTrac shows All cash home buyerthat foreclosure and distressed home sales were up 2 percent in 2013, and that a good chunk of buyers paid all cash for these homes.

The report showed that 29.1 percent of all foreclosure and distressed home sales in 2013 were purchased by all cash buyers. While you might think that these were all purchased by investors such as private equity groups, you might be surprised to find out that they made up for just over 7 percent of the all cash sales. The markets that garnered the most foreclosure sales were:

  1. Jacksonville, FL (38.1%)

  2. Knoxville, TN (31.9%)

  3. Atlanta, GA (25.2%)

  4. Cape Coral, FL (24.9%)

  5. Cincinnati, OH (19.3%)

  6. Las Vegas (18.2%)

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The 2014 Foreclosure Market

As property prices plummeted as a result of the so-called “Great Recession, lenders for the past five years or so have gone to certain lengths to accommodate distressed sellers in an effort to help them avoid foreclosure. This included quicker approvals of short sales (In most cases, barring complications from the buyer or seller), cash incentives for short sales and deed-in-lieus, and other programs that helped homeowners find alternatives to walking away from their mortgage obligations. In most cases, lenders realized that foreclosing on a property that has already lost money was more of a financial risk than to try and find a solution that would help to minimize their losses.

With the real estate market on the rebound, we may see lenders not so reluctant to file a Notice of Default against homeowners who are behind on their mortgage, as they know they can more easily recoup their investment as equity sales continue to rise.

The good news is that homeowners who are still finding themselves behind or upside down in their mortgage can still find help through programs such as the federal government’s Making Home Affordable program. California also has their Keep Your Home California options in place. Both of these statewide and national programs are still in effect through 2015.

What questions do you have about the real estate market? Our team of experts are ready to answer them at no obligation to you. Contact Montemayor & Associates for all of your real estate needs.

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