Investors Snap Up Cheap Bulk Foreclosures

It’s no secret that the foreclosure crisis has resulted in a massive inventory of discounted homes that offer steep bargains and price reductions to investors and homebuyers. What you may not know, though, is exactly how cheap some houses may be in the foreclosure market today.

All over the country, Fannie Mae sells bundles of discounted homes to investment groups for pennies on the dollar – and sometimes less. These homes are sold ‘as-is’, typically require extensive repairs, and are usually in economically depressed parts of the city. One such home, for example, was mortgaged in 2002 for $37,000.

It’s sale price from Fannie Mae? Just $200.

Investment companies are making a killing in the market, scooping up these homes and purchasing them for sometimes less than one percent of their mortgage price. In Jacksonville, Florida, the same San Diego-based company that bought the above home for $200 purchased another for $200 and bought three for $1,000, $2,500, and $3,500, respectively.

Note that these homes do require repairs and may even have squatters living in them. Some are also vandalized, with missing air conditioning units, fixtures, and other parts. This stems from these homes remaining vacant for so long, languishing on city blocks for years without owners.

With that being said, investors who qualify to purchase bulk foreclosures from Fannie Mae are doing so in droves, and are scoring incredible deals on drastically discounted homes.

Some say that the bulk purchases hurt the price value in the neighborhood. Others counter by saying these companies are revitalizing properties that otherwise wouldn’t have anyone in them, which would raise values in the long run.

Either way, this is another example of the remarkable discounts available to investors who want amazing foreclosure deals. They’re out there, and foreclosure deals – especially for investment groups who qualify with Fannie Mae – are as cheap as they’re ever going to get.