Bargain hunters failing to score foreclosures on the cheap

On behalf of The Rollins Law Firm posted in Foreclosure on Thursday, November 15, 2012.

Anyone facing the possibility of losing their home should be aware of all the legal options available for stalling the foreclosure despite financial challenges, such as declaring bankruptcy to erase debt or reorganize one's finances. A few options are available to keep a Mississippi home out of foreclosure.

While foreclosure is a scary word for homeowners struggling to make mortgage payments, the word equates to opportunity for bargain hunters looking to scoop up a foreclosed home for far less than it's typically worth. However, according to an article in The Washington Post, foreclosed homes across the United States aren't the great deals they used to be.

According to an analysis by Zillow, the average discount in September on a foreclosed home was only about 8 percent less than its market value. Just three years ago, foreclosed homes were selling for 24 percent less than their market values on average. With the housing market continuing to improve steadily, foreclosed properties simply aren't being sold on the cheap any longer.

There are some exceptions to the rule: For example, Pittsburgh still has huge discounts on foreclosed properties, averaging more than 27 percent off the full price. More than 20 percent off can be found in Baltimore, Cleveland and Cincinnati. The Jackson area wasn't

The Washington Post article noted that in many parts of the country, fewer foreclosures played a large role in the smaller discounts on homes that have fallen into foreclosure. Banks also have begun to favor alternatives that keep people in their homes.

With banks looking to work with people facing the threat of foreclosure, it's a good idea for homeowners to look into all options, possibly including bankruptcy, available to them. Speaking with an experienced bankruptcy attorney may be helpful.

Source: The Washington Post, "Deep discounts on foreclosed homes disappearing," Brady Dennis, Nov. 12, 2012

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