Guide to Buying Foreclosures in Atlanta
Atlanta was one of the cities that were hit hard by the foreclosure crisis. In 2013, a record number of investors in Atlanta took advantage of the situation and bought out a lot of the foreclosed properties – in fact, over 8,000 homes were bought from 2008 to 2011. A lot of the buyers have opted to rent out these properties, meeting the growing demand for rentals as many people have decided to keep on renting.
Things have definitely been looking up, however. As of the middle of last year, the Greater Atlanta area was already experiencing a sustained momentum when it comes to increased homes sales and inventory. During this time, foreclosures took a significant share in the number of home sales in Atlanta, which in turn prompted an increase in home prices.
Why buy foreclosed property?
Distressed property can be availed for purchase under the following phases:
- Pre foreclosure
- Auction sale
- Real estate-owned (REO)
There are many benefits to buying foreclosed property from a motivated seller in the pre-foreclosure phase. Aside from getting the property at a price much lower than the market purchase price, sellers are also more likely to conduct repairs and maintenance of the property in an attempt to have it sold at a faster rate. When the property is under an auction sale, you will be bidding against lenders. REO properties on the other hand, are already lender owned property. Last but not the least are foreclosed properties that are government owned – perhaps the property that takes the longest to process due to the bulk of paperwork that it involves.
It is also important to note, however, that foreclosed property also has its disadvantages – buyers don’t get to avail of a warranty protection that you will get from a brand new property built by a trusted builder, for example.
With Atlanta offering a wide selection of foreclosed homes to choose from, and with low prices and amicable interest rates, choosing to invest in a foreclosed property here is a good move. Since the process of purchasing a foreclosed home sometimes put the buyer at a higher risk, however, it’s a good idea to consult with an expert who’s familiar with the process.