Potential homeowners eschew traditional buying methods
10/25/2010
By Credit.com Staff
Now more consumers are seeking mortgages on homes bought in foreclosure auction rather than the traditional means of buying a property, according to a report from the Los Angeles Times. There has been increased competition for houses available through public sale because prospective homeowners who would have tried to buy a normal foreclosed property have seen that market dry up thanks to moratoriums on home seizures by a number of large banks.
Since Bank of America, JPMorgan Chase and GMAC Mortgage halted all foreclosures, there has been a 20 percent drop in the number of homes available in the traditional foreclosure market, the report said. Properties being auctioned off are only available because they were foreclosed on months ago but did not find a buyer.
Many consumers may find bargains not only on the house they buy at auction, but also on the home loan they may get to pay for it, as mortgage rates have remained at or near record lows for a number of months.
