Foreclosed homes in parts of America are being sold at values way below average – and the ‘average’ itself is now falling. Boston Real Estate Now reports mortgage firm Countrywide Home Loans has 297 properties for sale in Massachusetts, with an average asking price of $174,628 which is below the state average.
That average is now falling, partly because of discounts on foreclosed homes offered by firms like Countrywide. The blog says:
“Companies are much more systematic about selling properties than the typical seller.
“The company generally seeks the opinion of several real estate professionals to set the initial asking price. Then it reduces that price by a fixed amount if the house fails to sell during a predetermined period.”
This week the Wall Street Journal reported the number of foreclosed homes in the US continues to rise, with lenders and property investors now owning about 660,000 properties in April, more than double the January 2007 total.
Loan firms are now trying to avert further foreclosures by easing terms or giving families longer to catch up with repayments.
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