CNBC reported Friday on the huge problem foreclosure properties! There are too many foreclosed homes on the market right now and that’s just counting the foreclosures that the mortgage companies are REPORTING! Investors have been buying the lion’s share of foreclosures, as first-time home buyers continue to play a very small role in housing’s recovery. First-time buyers should be about 40 percent of the market, but realtors say they are now about 36 percent.
According to CNBC Real Estate Reporter Diana Olick:
“Not to sound like a broken record, but only when we work through the vast inventory and shadow inventory of foreclosed properties, can home prices bottom and housing recover overall. Obviously certain markets are more burdened by the distress than others, but it’s a universal truth.”
In addition to a tough job and mortgage market, first-time buyers are also looking at a lot of work when buying a foreclosed property.
According to CNBC Real Estate Reporter Diana Olick found this survey from Campbell/Inside Mortgage Finance:
For the month of April, 45% of foreclosed properties were damaged and not inhabitable without renovation. Because mortgage financing is generally not available for foreclosed properties that need major repairs, investors often buy these properties for cash. Fifty-five percent of damaged foreclosed properties were bought by investors in the month of April, while only 27% were bought by first-time homebuyers.
You’d think with all the inventory of foreclosed homes, the mortgage companies would want to work with consumers who are behind on their mortgages!
