Types of Foreclosure Opportunities
I categorize foreclosures into three areas:
- Terrible Opportunities – where the original amount borrowed (or my estimate of its current balance) is at or above the assessed value.
- Good Opportunities – where the original amount borrowed (or my estimate of its current balance) is close to, but below, assessed value.
- Great Opportunities – where the original amount borrowed (or my estimate of its current balance) is well below the assessed value.
A few observations about the people who may be interested in foreclosure properties:
- Investors who hope to flip foreclosure homes (buy, fix, sell for profit) would likely be interested in the “great opportunities.”
- Buyers looking for a home for themselves would likely be interested in the “good opportunities,” and certainly the “great opportunities” as well.
- I have yet to meet someone who is interested in the “terrible opportunities,” mainly because they aren’t likely to be able to buy them at a reasonable price — the bank will take the houses.
Unfortunately, for those who hope to do well buying a foreclosed home, most foreclosures in this area fall into the “terrible opportunities” category. For example, yesterday a home on Chestnut Oak Lane was in the Daily News Record with an original loan amount of $343,920 — and an assessed value of $316,700.
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SCOTT P. ROGERS, Associate Broker
Licensed in the Commonwealth of Virginia
Coldwell Banker Funkhouser Realtors
401 University Blvd, Harrisonburg, VA 22801
540-578-0102 (mobile)
scott@HarrisonburgHousingToday.com
