Lately we've been hearing from more people in the Madison area who are hoping to buy a foreclosure as an "instant equity", "fix and flip", or a long-term "buy and hold" investment. But the reality is that there just aren't that many foreclosures out there, which the numbers from the Wisconsin Circuit Court database make abundantly clear:
Will foreclosures rise from here?
We don't expect a significant rise in foreclosures anytime soon, and for three key reasons:
- Lending practices have improved significantly from the practices that preceded our nation's foreclosure crisis 15 years ago, so there just aren't that many bad loans out there.
- Most homeowners right now are locked into a low interest rate and a low monthly mortgage payment.
- Most homeowners also have a significant amount of equity in their home, so most people have very little risk of ever being underwater with their mortgage.
So, if you're seeking to purchase your next home at a good value, our advice to you is to hire a professional buyer agent who will help you explore your buying opportunities from all of the available sources -- including for sale by owner, off-market, and MLS-listed properties. We also highly recommend treating your search as a year-round endeavor. In our low inventory market, you just never know when the perfect opportunity will present itself.
This article is published courtesy of:
Dan Miller, REALTOR
Mad City Dream Homes & RE/MAX Preferred
1619 Monroe Street #1, Madison, WI, 53711
