Home Foreclosures for Sale at Less than $100,000

The problem of foreclosure homes has created a good real estate housing market. John Klahn who is a network engineer at an area hospital of Denver has bought 9 homes over the last one and a half years at less than $100,000 each. The slump in the prices of home has proved beneficial for some like Klahn who expects to buy a dozen soon. He has rented the homes for as much as $450 more than the insurance, taxes, and mortgage, and expects to sell them at a huge profit after the housing market becomes stable. About 355 homes in the seven-county metro area have sold for less than $100,000 in 2005. In 2008, about 2,015 homes were sold at the same price with nearly 90 percent being a foreclosed home. Last year, the number of foreclosure homes in seven-county metro area was as large as 27,024. This is almost a 41 percent hike from 2006.

The seven-county metro area has been reported with a 9 percent hike in home foreclosures in the first half of 2008 as compared to the same time of 2007. There have been a total number of 14,659 foreclosed homes in the first quarter this year. It has become an easy matter to find out renters for properties with the vacancy rate of for-rent single-family homes and condos coming down to 2.7 percent. The vacancy rate for apartments is 6.2 percent. According to a broker named Charles Roberts, the homes that are available below $100,000 are mostly found in the areas like Green Valley Ranch, north and south Aurora, southwest Denver, Montbello, and Commerce City. The homes that sold at $140,000 two years ago can be now bought for $55,000. It is indeed good news for some real estate investors. There has been a decline in the prices by 40 to 50 percent almost.

Lon Welsh, managing broker of a real estate company has said that about five years ago it was unthinkable to buy a home at less than $100,000, more so for the first time buyers of property. As the value of homes for sale has gone down due to foreclosures, therefore only those who really want to sell it are putting their home into the market for sale. The financing is getting hard to get irrespective of the fact whether the buyer is an owner-occupant or an investor. Klahn has said that it is very difficult to get conventional financing at this moment.

Popularity: 11% [?]