Who Wins in a Foreclosure?
We all know foreclosures are affecting people everywhere but my good ole state of California is really taking a hit with foreclosures. According to Inman.com, California is the 2nd state with the highest foreclosure rate right behind Nevada. In the same article they list the top 20 U.S. metro areas with the highest foreclosure rates. California has 11 out of the 20 metro areas. Foreclosures benefit very few people. Banks lose money and the owners lose a house. The new buyers may benefit by getting a better deal but I am not sure how much because many times with bank owned properties it is a bidding war and the highest and best wins. When this happens it’s usually the all cash buyers that get the house leaving out the conventional and FHA loans. An FHA buyer seems to have a tougher time because they usually have limited funds and asks for seller to help with closing costs.
Diana Lematua
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