Homebuyers in search of great foreclosure deals may have to work a little harder to find bargains these days. Due to a “shortage” of foreclosed homes for sale and increased demand from buyers, bank-owned properties have been selling for higher prices.
The notion that there is a “shortage” of foreclosures on the market may sound ironic to those who live in neighborhoods plagued by vacant homes and foreclosures.
But remember that not all foreclosures are for sale — at least not at the same time.
Take Fannie Mae as an example. As of the end of June, Fannie Mae owned 109,266 foreclosed homes. Only 23 percent of those were available for sale then, according to Fannie’s latest quarterly report. Nearly half of the foreclosed homes were on hold in Fannie’s “unable to market” list, which includes properties that are being repaired, rented or occupied by the homeowner. And many were on hold for “other” reasons.