Bargain Rental Properties on Bank Foreclosure Listing

Bargain-priced rental properties on bank foreclosure listing in Lane County, Oregon are attracting a lot of interests from investors. However, only a few of them are really taking a step towards purchasing a rental property.

Industry experts said that the real estate market in the county is awash with foreclosed rental properties at discounted prices. A lucky investor could get a three-unit property with European cabinetry and glass mosaic tile for only $312,000.

They said that a large inventory of foreclosed homes in the county is enticing many investors to shop the market. According to data, nearly 55 properties are going into foreclosure every week and based on the current trend, the weekly foreclosure rate is expected to rise.

Already, about 1,200 homeowners in Lane County are 2 months to 3 months delayed on their mortgage payments. However, industry experts noted that the rate of foreclosed houses far surpassed the number of units sold year-to-date. And a growing number of foreclosure properties forced banks to dispose of them at whatever price they could get.

The declining home prices are enticing many investors but only a few are really taking a plunge into the foreclosure market. This is because prospective buyers are waiting for home prices to drop further, according to industry experts. They added that the interest is there but buyers want to make sure that they are getting good bargains.

Industry experts said that the large number of foreclosure houses on the market is giving buyers the confidence to hold off buying and wait for better deals to come.

Meanwhile, industry experts pointed out that the foreclosure crisis is expected to rise to record levels in the coming months. This could be another reason for buyers to postpone their purchases because they know that more choices are coming on the market and at even lower prices.

The increasing foreclosure trend in Lane County reflected what is happening statewide. In the first six months of this year, Oregon posted a total of 19,053 foreclosure houses, earning the state the 11th spot in the national foreclosure state ranking. From May 2008 to June 2009, foreclosures amounted to 337,211 resulting to a drop in home price of about $26,000 to average nearly $184,955.

By Cassiano Travareli