Foreclosures are a part of any real estate market and while national statistics are high in the foreclosure rate, we are no where near that. However, foreclosures are still, and always will be, a small part of the market where investors and regular buyers can make a profit and see equity.
On the Mississippi Coast, much like most markets, the majority of the foreclosures need work, or as most of the agents representing the banks say – “need TLC”. If you do not mind trading a little sweat equity or hiring someone to do some work for you, there are awesome deals in the foreclosure market.
One of the key factors you have to watch out for in buying a foreclosure is overpricing and under-valuing the repairs by listing agents and banks. Obviously, the bank’s goals are to get as much money as possible and sell as quickly as possible. This presents almost mutually opposing interests in their own house. Many foreclosures are priced very close to market value but a well-documented offer from a qualified buyer can often convince the bank to take a lower price. In some instances (specifically HUD), the bank also favors owner-occupants over investors.
If you are looking to buy foreclosures on the Mississippi Gulf Coast, contact me – there are deals and steals to be found. I am very familiar with the process, assisting with repair bids, and obtaining specialized financing for homes that need work.
