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The Kathy O'Neal Team

Real Estate in Chantilly Blog

Buying Bank-Owned Homes in Northern Virginia

Foreclosures concentrate on 4 states

What has been happening with foreclosure statistics?  Well, filings went up 20% nationally during March as compared to February.  That would be 13 straight months with total filings over 300,000.

Also of note is the fact that bank repossessions reached an all-time, quarterly record. During the first three months of 2010, banks repossessed more than 257,000 homes.

Remember that four states were responsible for a fair share of the foreclosure activity.

California, Florida, Arizona and Georgia accounted for more than half of bank repossessions. Together, these 4 states represent just 23 percent of the U.S. population.

The RealtyTrac report had other interesting stats to talk about:

  • Last month, foreclosure activity was up in 40 out of 50 states
  • Bank repossessions were up 9 percent compared to the same quarter last year
  • Nevada topped the state foreclosure rate for the 13th quarter in a row

Overall – and remember this will vary a great deal from locale to locale – distressed homes are about 35 percent of the resale market.

There is value out there, but keep these points in mind:

  1. Buying bank-owned homes can take a whole lot longer… could be 120 days to close or more.
  2. Foreclosures aren’t always listed for sale publicly.  Some properties are privately-held.
  3. Bank-owned homes are often sold “as is.”  There may be defects and complications that render the homes mortgage-ineligible.

As we always counsel, know what you are doing and have seasoned help.  And if you are in Northern Virginia or moving to the area, we are always here to answer your questions and help in any way possible with distressed as well as “normal sale” properties.   Let us know how we can help!