Hoping for a foreclosure boom so you can jump into the Santa Clarita real estate market? If so, it's best to know the facts before you either buy a foreclosure or continue waiting for that "killer deal"! First of all, on a nationwide basis foreclosures sell for only about 15% below market value according to First American Real Estate Solutions. While 15% is nothing to sneeze at and is enough for some investor profit, it's not exactly a windfall. Don't hold your breath on a glut of foreclosures hitting the market, either. Lenders are finding new ways to hold off foreclosures, such as offering longer-term loans and delayed payment options. Homeowners who have some equity also have the ability to refinance or sell if needed to avoid foreclosure. The foreclosure rate nationwide is only 1% of all loans, according to Money magazine. And many of those will be rescued from the foreclosure process in one way or another, so they won't become those killer deals that investors are hoping for. Another myth is that any foreclosure is a good deal, so inexperienced investors often jump in on bad deals. If you buy a foreclosure at a price that is too close to market value, there's no profit to be had in turning it over. After money is paid out for fix-ups, escrow and title fees, real estate commissions, capital gains taxes and other costs, many investors find that they've actually LOST money on their foreclosure purchases. Yes, it's possible to make some good money on foreclosures. But you'll need to do your homework and make sure that you've considered all costs before jumping in on that foreclosure investment. When in doubt, consult a real estate professional who has the experience to help you run the numbers to properly evaluate a potential foreclosure purchase. And remember that most foreclosures end up listed on the MLS just like any other home for sale - smart sellers will try to sell at full market rather than waiting for a fire sale on the courthouse steps. | 
