Is St. Louis, Missouri a good place to buy a foreclosed home?
In a July 25, 2008 article in the St. Louis Post Dispatch it was reported that foreclosures in the St. Louis metropolitan area surged over 77% in the second quarter compared to a year ago. There were 6,357 homes in the St. Louis area that received at least 1 foreclosure notice in the 2nd quarter, which is one in every 192 households. St. Louis’ foreclosure rate ranked 46th out of the 100 biggest metropolitan areas. This means that the number of foreclosed homes that you will have to choose from will be very long. A strong benefit to buy a foreclosed home is due to pass through Congress this week giving people who purchase a foreclosed home a $7,000 tax credit.
Foreclosure signs continue to pop up in all areas of St. Louis, houses that once cost well over $500,000 can be purchased for $300,000 or less! Agents predict this trend will continue through the end of this year so NOW is the time to act!
Some skeptics think the Fed is going to bail out home owner’s facing foreclosure, they’d better think again. In a Wall Street Journal article last month, it was reported that the State Foreclosure Prevention Working Group, comprised of banking regulators and 11 state attorneys general, found that 7 out of 10 homeowners who are seriously delinquent on their mortgage payments are not on track to receive any kind of help with their payment troubles. The rising number of delinquent loans isn’t allowing lenders to stay on top of their loss mitigation efforts. This means the market will continue to be flooded with more affordable attractive houses.
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