RALEIGH, N.C. -- In the midst of housing market slump "foreclosure" is becoming more common word in our vocabulary.
For some people, foreclosure means misfortune and for others, it can mean opportunity.
When Maggie and Vince Hall moved from Arizona to start a new life in the Triangle, they wanted to find a home to "flip" as well a place to make their home. But, they ended up finding their dream home at a dream price in Fuquay-Varina.
Homes in the neighborhood they were looking in can go for the high $300,000s, but Maggie and Vince says they found a "gem" under foreclosure. They ended up buying the 3,500-square-foot house for a price in the mid 200,000s even though Maggie Hall said it was in bad shape.
"It was a disaster actually. At one time there was a big hole in the wall there," Maggie Hall said.
Hall says while the house was a good deal, it came with a hidden cost.
"First of all sadness, because I have always loved where I've lived and I think for anybody to lose their home, it's got be sad," she said.
The North Carolina Commissioner of Banks predicts about 60,000 homeowners will face foreclosure statewide in 2008, which is about a 10 percent increase from 2007.
The company RealtyTrac ranks North Carolina 18th in the nation when it comes to foreclosures. Local broker Matt Peedin, with Fonville Morisey, says while the Triangle is not seeing as many foreclosures as other parts of the country, it still happens. Buying a foreclosed home, is not as easy as buying a typical home for sale according to Peedin.
"It's just an overwhelming process, and it's a process," Peedin said.
Peedin said there are different avenues you can take to finding a foreclosure, and the Triangle Multiple Listing site, or MLS, is a good place to start. While you're looking, he says keep in mind some foreclosure sales, likes those backed by the Federal Housing Administration, require you have a broker to help you through the process. He said the FHA also doesn't let investors who don't intend on living in the home bid for the first 10 days.
"For a first time homebuyer it's a great opportunity to buy a FHA foreclosure because you will have priority over the investors that are out there," Peedin said.
If you want to go the non-online route, or just a different route, Peedin said check out your county courthouse. Usually you'll find a section of posted foreclosures, and it's not required you have a broker to help you through the bidding process on the day of sale. But, Peedin said beware because you cannot inspect the property before buying.
"You many not know what you're getting into until after the fact," Peedin said.
Newspapers also list foreclosures, and if you know someone in danger of foreclosure you can engage in what's called a pre-foreclosure sale, which can be beneficial for both the seller and buyer.
Peedin said whether you're making an investment or making a home, do your homework and make sure the home has potential to appreciate.
"You wanna buy in an area that has a good track record for a quick sell," Peedin said.
Vince Hall said he and his wife were planning on flipping their new home. But after countless renovations they're staying, and keeping an eye on the market for another great deal.
"Absolutely, always looking," Vince said.
Currently a new state house committee is examining the increase in foreclosures and whether North Carolina needs tougher regulations.
Related:
* Find a foreclosed home through the Federal Housing Administration
* Find a Veterans Affairs-backed home under foreclosure
* Find homes in your county backed by many different kinds of loans, check your local paper or county website. For instance, wakeco.gov.
* Find foreclosures online
Tip: Some lenders backing a foreclosed home require you have a licensed broker help you through the bidding/buying process.
Help: If you are in danger of losing your home to foreclosure, you can call the new state hotline at (888) 995-HOPE.
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