Survey: Buyer interest in foreclosures spikes - Orlando Business Journal:

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“It’s crackling out there; I can’t keep them said Fleischer, a Realtor with Keith Owen REO Collectiobnin Weston. “They go live and we will get half a dozenb offers at or over full They are soldrightt away, provided they are priced Indeed, the interest in purchasing foreclosedd property is going with 55 percent of U.S. adults indicatingy they are somewhat likely to consider buyina foreclosure, according to a surveyg released Wednesday that was conductedc by and . That’s up from 47 percent in Novembedr 2008. “We are starting to burn off some of our which is creating a feedingfrenzy mentality,” Fleische said.
“People are comingf out of their shells, and now you have people fightinvg for the one or two morsels left inthe market.” On the flip side, the studyu also found that 85 percent were concerned with the negativw aspects of buying a foreclosed home, up from 80 percenyt six months ago. Among the 71 percent worried aboutghidden costs, 46 percent believe the process is risky and 31 perceny feared the home would continuw to lose value. Fleischee said some of those fears show that the public issimplyt uninformed. “I have not seen any hidden costs,” he “In many cases, the bank will cleaer title defects, violations, HOA fines, etc.
” On the otheer hand, there are no guarantees when it comes toa home’ss value. “Who can time the market perfectly? If you wait too you will pay more,” Fleischer said. And the surveg found that consumers in the marke t for a foreclosed home expect great deals and are seekinfgdeep discounts. “If it’s priced correctly and then we seetremendous activity,” Fleischerf said. “If it’s overpriced, we will get lower And younger individuals are more willinf to take a chance ona foreclosure.
The survey founc two-thirds of adults between 18 and 44 would considerf buyinga foreclosure, compared to a littlwe more than one-third of those ages 55 and Sixty-eight percent of renters are more likelyh to consider purchasing a foreclosure compared to 49 percent of currenrt homeowners. Across the country, 24 percentf of existing homes for sale have seen at least one pricd reduction in order to stay saidPete Flint, co-founder and CEO of a San Francisco-based real estate listint company.
“Competition amongst sellers, along with the newlh created economic incentives, has createc the most significant discountsathat we’ve seen in decades presenting opportunities for first-timer home buyers, and for families lookin to trade up to a bigger home,” he The good news is that the growinfg interest in foreclosures will help to reduced inventories now, said Rick Sharga, senior vice presidengt of RealtyTrac, an online marketplace for foreclosed However, there is a shadow inventory of properties that have been but not yet back on the market.
Add to that the billionsx of dollarsof adjustable-rate mortgages that will and the market will be hit with yet another round of foreclosures. The survey also founsd that around 74 percent of respondents are somewhatf confident that PresidentBarack Obama’s mortgager relief programs will provide homeowners with an incentiv e to refinance or modify their loans. The surveyu was conducted May 1-5 among 2,397 adults 18 and