How do the Charlotte Foreclosures affect the housing prices?

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How do the Charlotte Foreclosures affect the housing prices?

Posted On : Jan-06-2011 | seen (405) times | Article Word Count : 518 |

It is a well known fact that buying properties during the time of foreclosures can turn out to be a very advantageous prospect, if carried out carefully and patiently. However, the logic behind this momentous affect of foreclosures on the housing prices is not widely known.
The first and the foremost thing to know about Charlotte Foreclosures is that they act like a double edged sword in the housing market. This is because from the perspective of the potential buyers, this trend can bring the high end homes within their price range. However on the other hand, it is very harmful for the home owners, who are trying to sell their property as the foreclosures bring about saturation in the housing market, thereby resulting in considerably reduced inventory rates.
According to its basic definition, a foreclosure implies the legal as well as the professional proceedings wherein the lien holder, such as the bank obtains the necessary court order documents, which allows it to repossess the property of the mortgagor. The foreclosures primarily take place when the loan payer defaults on the payments towards the property and fails to pay it for several months subsequently.
The basic affect of the Charlotte Foreclosures on the housing prices can be easily gauged by the available facts and figures. It has been observed that among the various factors which can substantially affect the housing prices, foreclosure can cause the greatest depreciation. For example, under normal circumstances, the price of a house falls by an average of five to seven percent when its owner dies; or when a home owner declares bankruptcy, the cost of the house drops by only three percent. However, on the other hand, when a house gets foreclosed, its value reduces by an average of twenty seven percent, which is more than one fourth drop in the price of the property.
Though foreclosure hits the housing prices adversely, it is very beneficial for potential buyers. This is because the saturated market of foreclosures can offer them a seemingly boundless choice of homes to select from. Besides the myriad array of choices available, the economical prices make the foreclosed homes a very attractive option for property seekers.
However, the foreclosure of homes can badly harm those people, who are trying to put their home on the market. The excess of inventory in the foreclosure market as well as the low demand drives sends the housing prices spiraling downwards. The equity of the home owners also suffers serious consequences, as their house goes straight into the foreclosure market and thus gets immediately devalued. The foreclosed properties are generally also used for comparable sales by the realtors in order to drive down the cost of a residence for sale.
The future of the foreclosed properties is however bleak as even though the number of Charlotte Foreclosures is becoming stable, the range of such homes is increasing thereby resulting in falling prices. Moreover, the lower interest rates and increased affordability of loans has failed to improve the situation as few potential buyers qualify for the new loans because of increased credit standards.

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<h1>How do the Charlotte Foreclosures affect the housing prices?</h1> Author: <a href='http://www.articleseen.com/profile_Julie Thompson.aspx'>Julie Thompson</a> It is a well known fact that buying properties during the time of foreclosures can turn out to be a very advantageous prospect, if carried out carefully and patiently. However, the logic behind this momentous affect of foreclosures on the housing prices is not widely known.
The first and the foremost thing to know about Charlotte Foreclosures is that they act like a double edged sword in the housing market. This is because from the perspective of the potential buyers, this trend can bring the high end homes within their price range. However on the other hand, it is very harmful for the home owners, who are trying to sell their property as the foreclosures bring about saturation in the housing market, thereby resulting in considerably reduced inventory rates.
According to its basic definition, a foreclosure implies the legal as well as the professional proceedings wherein the lien holder, such as the bank obtains the necessary court order documents, which allows it to repossess the property of the mortgagor. The foreclosures primarily take place when the loan payer defaults on the payments towards the property and fails to pay it for several months subsequently.
The basic affect of the Charlotte Foreclosures on the housing prices can be easily gauged by the available facts and figures. It has been observed that among the various factors which can substantially affect the housing prices, foreclosure can cause the greatest depreciation. For example, under normal circumstances, the price of a house falls by an average of five to seven percent when its owner dies; or when a home owner declares bankruptcy, the cost of the house drops by only three percent. However, on the other hand, when a house gets foreclosed, its value reduces by an average of twenty seven percent, which is more than one fourth drop in the price of the property.
Though foreclosure hits the housing prices adversely, it is very beneficial for potential buyers. This is because the saturated market of foreclosures can offer them a seemingly boundless choice of homes to select from. Besides the myriad array of choices available, the economical prices make the foreclosed homes a very attractive option for property seekers. 
However, the foreclosure of homes can badly harm those people, who are trying to put their home on the market. The excess of inventory in the foreclosure market as well as the low demand drives sends the housing prices spiraling downwards. The equity of the home owners also suffers serious consequences, as their house goes straight into the foreclosure market and thus gets immediately devalued. The foreclosed properties are generally also used for comparable sales by the realtors in order to drive down the cost of a residence for sale.
The future of the foreclosed properties is however bleak as even though the number of Charlotte Foreclosures is becoming stable, the range of such homes is increasing thereby resulting in falling prices. Moreover, the lower interest rates and increased affordability of loans has failed to improve the situation as few potential buyers qualify for the new loans because of increased credit standards.About the Author: Julie Thompson, has been working on ForeclosureListings.com studying the foreclosures market, helping buyers on the finer points of <a rel="nofollow" href="http://www.foreclosurelistings.com/list/NC/">North Carolina</a>. Try to visit ForeclosureListings.com and find all related information about <a rel="nofollow" href=" http://www.foreclosurelistings.com/list/NC/MECKLENBURG/CHARLOTTE/">Charlotte foreclosures</a>. Article Source: <a href='http://www.articleseen.com/Article_How-do-the-Charlotte-Foreclosures-affect-the-housing-prices_47533.aspx'> http://www.articleseen.com/Article_How do the Charlotte Foreclosures affect the housing prices?_47533.aspx</a>

Article Source : http://www.articleseen.com/Article_How do the Charlotte Foreclosures affect the housing prices?_47533.aspx

Author Resource :
Julie Thompson, has been working on ForeclosureListings.com studying the foreclosures market, helping buyers on the finer points of North Carolina. Try to visit ForeclosureListings.com and find all related information about Charlotte foreclosures.

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