RealtyTrack, a service that tracks foreclosures in the U.S. reported that lenders foreclosed on 1 million properties in 2010, a record number since it started tracking foreclosure activity in 2005.
That's a huge number! It means that banks are now proud owners of 1 million homes which will come back on the market this year. In Charleston and Mt Pleasant, we are already experiencing an increase in the number of lender-owned (REOs) that are being listed. There are currently more than 400 homes listed as REOs, and this number is probably much higher, as some REO agents do not label their listings correctly.
These properties will be aggressively priced, since banks will want to offload them as soon as possible. There are (and will be) great buying opportunities for owner-occupiers and investors to pick up some of these properties for a fraction of their market value. Keep in mind that distressed properties may bring additional risks, so it is a good idea to hire an experienced Realtor to help you minimize those risks.
However, it also reported that defaults have dropped 20%, which is good news for would-be sellers in the medium-term.
CLICK HERE > To view a list of foreclosures, short sales and REO's in the Charleston Area.