As Foreclosures Continue to Rise in NH, a Hot Parallel Market is Emerging
|December 5, 2006|
Nashua, NH (PRWEB) -- ForeclosuresNH.com, NH's primary foreclosure reporting service, reports a continued increase in foreclosures and a decrease in properties bid on or purchased at foreclosure auction. This is happening primarily because there is no equity in the property and it results in the bank resuming ownership of the property. These properties are creating a problem for banks -- a surplus inventory of real estate that they don't want and need to sell.
ForeclosuresNH.com has discovered a trend where banks are listing these properties with real estate brokers and periodically reducing the price until the property is sold. This has created a hot market for investors looking for big discounts. There are advantages to purchasing REOs, the bank will: work with the IRS to have tax liens removed from the property, perform repairs, evict any occupants (if necessary) and provide title insurance.
"What we are seeing is a consistent increase in foreclosures as a result of the current slowdown in the real estate market," says James Kenney, president of ForeclosuresNH.com, "This slowdown is having a negative effect on home values and equity, making it more difficult for homeowners to refinance because it has erased the equity that has been built up. It is also making it difficult for homeowners to sell their home to avoid foreclosure."
"What we discovered is an opportunity, an opportunity to purchase real estate at deep discounts. We are constantly researching bank owned properties and provide a downloadable spreadsheet with all of the REO properties available (currently 329). This sheet is updated biweekly with new properties as well as reduced prices on existing properties. In addition to the address and the most current asking price, we also provide (on most listings) the assessed value, estimated equity and market values, and property information (year built, square feet, acres, beds/baths)."