When it comes to foreclosures, Virginia is not too far down on the list of states with the highest number of foreclosures. Unscrupulous lending practices and the provision of adjustable rate mortgages to people who did not know how the repayments would have to be made, apart from home loan issues to people with already poor credit scores has led to the number of Virginia foreclosures growing at a steady rate ever since 2005.
High rates of divorce and unemployment in the state have also not helped matters much. Another major reason leading to the continuing increase in Virginia foreclosures has been the behavior of speculative investors, who pulled out of the Virginia real estate market without paying back their loans once they understood that their property investments were not going to escalate any time soon.
However, in spite of everything, the situation in Virginia is not half as bad as that of states like Nevada and California, which are leading the list of states with the maximum number of foreclosures. While property prices have definitely not risen up, they have not fallen down drastically either. At the same time, Virginia foreclosures are being sold for a fraction of their real price by lending agencies and banks who are now trying to sell off their inventory of foreclosed properties to cut their losses as soon as possible.
The situation is ripe for home buyers who have a fixed source of income, because they can now buy foreclosed properties at discounts ranging from 20% to 40%. In counties where the rate of foreclosure is very high, this can go up to 50%.
Some of the counties where a large number of foreclosed homes are up for sale currently are Frederick, Fairfax, Loudoun and Prince William. These are the counties that make up for more than 50% of total Virginia foreclosures. Foreclosed properties can be had at good discounts almost all over the state currently, but even their prices are expected to go up by the end of this year since the real estate market all over the country is supposed to stabilize by that time.
High rates of divorce and unemployment in the state have also not helped matters much. Another major reason leading to the continuing increase in Virginia foreclosures has been the behavior of speculative investors, who pulled out of the Virginia real estate market without paying back their loans once they understood that their property investments were not going to escalate any time soon.
However, in spite of everything, the situation in Virginia is not half as bad as that of states like Nevada and California, which are leading the list of states with the maximum number of foreclosures. While property prices have definitely not risen up, they have not fallen down drastically either. At the same time, Virginia foreclosures are being sold for a fraction of their real price by lending agencies and banks who are now trying to sell off their inventory of foreclosed properties to cut their losses as soon as possible.
The situation is ripe for home buyers who have a fixed source of income, because they can now buy foreclosed properties at discounts ranging from 20% to 40%. In counties where the rate of foreclosure is very high, this can go up to 50%.
Some of the counties where a large number of foreclosed homes are up for sale currently are Frederick, Fairfax, Loudoun and Prince William. These are the counties that make up for more than 50% of total Virginia foreclosures. Foreclosed properties can be had at good discounts almost all over the state currently, but even their prices are expected to go up by the end of this year since the real estate market all over the country is supposed to stabilize by that time.
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