This is Why More Foreclosures Mean It’s a Great Time to Buy

According to Mortgage News Daily, the foreclosure rate in the United States is the highest it's been in a long time. Last time this happened, it created great opportunities for those who were ready to buy and eventually drowned the market for most renters. If you're in a position to purchase, it might be a good time.

You can generally get a foreclosure home at a much lower cost than the home that is typically sold at a fair investment price. Homes that would normally sell for $250,000 can go as low as $50,000, depending on how low the banks are willing to go. Read more in How Low can Sales Foreclosures Go?

The Beginner's Guide to Bank Foreclosures contains some great tips to help get you started:

Banks are not real estate firms. They solely offer funding options. This is why you won’t find bank-owned homes as easily as professionally listed ones. Many times, you won’t even see a sign in the front yard advertising the sale. You can acquire lists of these properties from the banks themselves.

According to CBS News, the foreclosure trend is still not over. Here's an excerpt from their findings:

Mark McArdle, the Treasury Department's deputy assistant secretary for financial stability, told CBS MoneyWatch that the Obama administration's efforts to help homeowners played a pivotal role in these improvements to the housing market.

"Treasury has a variety of programs to assist struggling homeowners, with the goal of helping to prevent avoidable foreclosures and stabilize communities," McArdle said. "The Home Affordable Modification Program has helped more than 1.5 million homeowners avoid foreclosure, while the Hardest Hit Fund has assisted more than 250,000 ‎homeowners across participating states."

McArdle acknowledged this effort isn't complete. "While the housing market has recovered in many parts of the country," he said, "several areas and states are still struggling, and we will continue to help homeowners and communities in those places still recovering from the housing crisis."

Foreclosures are still out there, so if you think this might be the opportunity for you, start doing your homework now!