CT is a judicial foreclosure state, which means a judge is involved in the process. Add the fact that our State Attorney General has a historic reputation for Consumer Advocacy, and foreclosures have been slowing in our state. The homes are vacant and they will have to be sold by a REO process. These are different from the 10' of thousands of delinquent homeowners that could get a rent back option, short sale, auction, or mortgage modification.
The Vacant Foreclosed homes represent a very good opportunity for the consumer. The prices of these homes are generally 40% lower than Short Sale transactions. The homes that are foreclosed and classified as REO are in bad condition and need some significant repairs. In the past these homes were scooped up by cash buyers and investors. (By the past I mean in 2009 and early 2010) The landscape has changed, federal programs that require properties owned by FNMA use a First Look program for owner occupied sales priority. 203k Express loans are now at $35,000, and available to owners who already own a property.
These are just two examples of the differences with 2009, there are tweaks for investors as well.
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