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Purchase Foreclosure Homes for Sale in Nashville

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By : John Cutts    99 or more times read
Buyers can purchase foreclosure homes for sale at great prices in Nashville, based on interviews with realtors and home buyers in the city. In January, the median sales price for single-family homes dropped by 12 percent to $159,000 compared to the median in 2008.

Realtors said there are a lot of nice homes in great Nashville neighborhoods that have become affordable because they have been foreclosed. Other units are being marketed as short sales because the owners are trying to avoid foreclosure.

One six-member family, the Coopers, was able to move up to a much bigger house in a Liberty Valley subdivision because of the substantial reduction in the asking price. They lived for years in a tree-bedroom dwelling in Murfreesboro, which they purchased for $113,000 in the late 1990s.

When they saw a 3,300-square-foot five-bedroom in a nice subdivision in Liberty Valley, it was listed at $335,000. But the house stayed on the market for almost eight months, so the owners cut their asking price by $100,000, enabling the Coopers to buy the house for only $235,000, around $86,000 lower than the price paid by the owners to buy the house in 2007.

Prospective buyers can also purchase foreclosure homes for sale in the Nashville condo sector at attractive prices. The Tierneys were able to buy a two-bedroom 912-square-foot condo unit in foreclosure in a prime Nashville location for $175,000, substantially down from the $245,000 the original owners paid for the unit. The couple said that the condo unit would have been beyond their financial capability during the boom.

Broker Jim Owens said the opportunities for buying affordable homes have been aplenty in Nashville during the downturn. Although the overall price reduction in the city has been lower than the national average price drop of 27 percent over the past 3 years, the average price drop of 12 percent in Nashville has been substantial in the city because Nashville home prices did not shoot up as high as in other cities, according to research firm Fiserv.

The one hurdle that prospective buyers must overcome in Nashville and in other cities now is the tightening of loan underwriting standards. Today, buyers planning to purchase foreclosure homes for sale and other types of homes using home loans must have good credit scores and stable employment. They must also prepare a higher down payment percentage and must pass several background checks, according to the Tennessee Mortgage Bankers Association.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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