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Turning Crisis into Silver: Foreclosure Homes Attract Investors

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By : Leticia Carvalho    99 or more times read
The current financial crisis has brought certain grief to people who stand to lose their homes to foreclosures. Looking into the bright side, the number of lower-priced homes in the market has attracted investors with capital to purchase these homes for business purposes. Some intends to rent these homes out to new occupants or offer them to previous tenants. Other investors try to purchase these homes prior to actual foreclosures then rent them out to previous owners, sparing them the hassle of moving out. New owners will rent these homes out until the market peaks up and home values return to normal, making it profitable to resell the home.

New homebuyers are eying these foreclosure properties which are valued much lower than market standards. They stand to gain from these transactions, as well as the opportunity to own their primary real estate. These purchases are much supported by banks who do not want these properties riding their books, as well as lenders who have enough foreclosure homes in their hands to function properly.

Virginia ranks No.11 among the states with the highest foreclosure rate. September reflected one out of 505 homes in foreclosure, totaling 6,397 foreclosures for that month. Compared to last year, Septemberís rates have gone up a staggering 229% and have deteriorated from August by 20%. As a whole, the nationwide tally is at one foreclosure for every 475 houses, an increase by 21% from last year. With these figures, purchases of these properties by investors and budget buyers can help normalize the market and bring badly inflated prices back up.

With this promising trend in purchases, and the number of investors and individual buyers inquiring for available homes for sale, mortgage companies in Virginia are providing a public offering of these foreclosure properties. They will present these homes up for sale to prospective investors and buyers through a caravan tour, bringing prospects to actual home locations while providing relative information regarding these properties.
Leticia Carvalho has been educated in the finer points of the foreclosure market over 5 years.

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