First-Time Home Buyers Target Foreclosures

BY ERIK BOJNANSKY
Special Correspondent
CondoVultures.com

Armed with an $8,000 federal tax credit and knowledge of current events, first time home buyers are seeking bargains in the form of foreclosed properties.

However, home buyers should be careful when considering buying a foreclosed property.

"Just because it is [banked owned] doesn't mean it is the best deal for them [potential buyers]," said Brian Paul, CEO of the Realtors® Association of the Palm Beaches.

Kerry Smith, project editor for the Florida Association of Realtors, said first-time home buyers are asking Realtors about REO (real estate owned, bank owned) properties.

"Everyone has read all the media out there," he said. "A lot of shoppers want a bargain because that is what they read."

Danielle Clermont, communications director for the Realtor® Association of Greater Fort Lauderdale, said so many first-time home buyers are inquiring about REOs that her organization is now offering Realtors classes about foreclosed and short-sold properties.

"Two years ago we did not have [the classes]," Clermont said. But recently the "demand in the courses have increased and participation in the courses have [also increased]."

There is plenty of foreclosed inventory in South Florida, according to data from the Condo Vultures® Foreclosure Database™. Since January 2007, when the real estate market declined rapidly, foreclosure actions have been initiated on 147,000 properties. Condo Vultures® also predicts that 27,000 properties will likely be foreclosed on by the end of 2009.

Once obtained, banks will be looking to unload homes as quickly as possible.

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