Discount for foreclosed property reaches 26% - Homebuyers to Benefit

Reports show that one fourth of the Real Estate market is now filled with homes which were lost to foreclosures. As millions of properties were foreclosed by the banks, they are now sold at heavily discounted prices. It was reported that in the second quarter of 2010, 250,000 foreclosed residential properties changed hands. The discounts went up to 26%. The previous quarter lagged behind by 35%.

This news can be a great one for the prospective homebuyers who are willing to invest now in properties. It is better for them to go for foreclosed properties as they are far cheaper than the non-foreclosed properties. On the contrary, the housing market is suffering heavily, because of these discounts. The homebuilders are finding it difficult, compete with these slashed prices and the economy is showing no signs of improvement because of this.

Reports show that most of these discounted properties were foreclosed by the banks and the rest came from short sales. This actually means that the banks gave permission to the homeowners to sell their properties at a price lower that the amount they owe to the banks as mortgage loans. However, looking at the regional data, a severe variation can be seen. Michigan and Ohio reported moderately high sales for foreclosed properties, but the highest.

In Nevada, the discounts went as high as 56% followed by Arizona at 47% and California at 43%. The lowest were in Iowa (4.4%) followed by District of Columbia (5.6%). The next in line was Montana at 6.4% followed by New York at 7.5%.

These huge discounts come as a blessing for the prospective homebuyers who can now get their dream houses at very affordable prices and make a considerable amount of savings. So, if you are looking to get a nice property, ForeclosureDataBank.com is the right option, in which you will find the hottest deals and the latest news.