But overall foreclosures have been on the decline lately. In fact, according to a new report from ATTOM Data Solutions, the first half of 2020 saw foreclosures hit a record low. Just one in every 824 housing units (about 0.12%) has gone into foreclosure so far this year.
Luckily for investors, real estate is local -- and that drop didn't happen everywhere. In fact, some parts of the country actually saw increases in foreclosures (as much as 161%).
The top six
Are you on the hunt for your next investment property? If so, here are a few of the markets where you might be able to find an affordable foreclosure:
- Peoria, Illinois: According to ATTOM's data, Peoria had the highest foreclosure rate in the country last quarter, with one in every 751 housing units receiving a foreclosure filing. That's 0.37% of all housing units in the city.
- Stockton, California: Stockton has seen a whopping 161% uptick in foreclosures over the year. It's one of only 10 cities where foreclosures have increased, the data shows.
- Trenton, New Jersey: In New Jersey's capital, the foreclosure rate is three times the national average. According to ATTOM, 0.36% of all Trenton's housing units went into foreclosure this year -- or one in every 1,573. In June, the city had one of the 10 highest foreclosure rates in the country.
- Chico, California: Chico's another California city where foreclosures are on the rise. Over the year, foreclosure filings are up 61%. Like Trenton, Chico had one of the highest foreclosure rates for the month of June, too.
- McAllen, Texas: This south Texas city claims one of the few upticks in foreclosures (up 42%), as well as one of the year's highest foreclosure rates (one in every 1,148). McAllen had the single-highest foreclosure rate for June as well.
- Lake Havasu, Arizona: You might not have heard of this tiny vacation town, but apparently, it's a foreclosure hotspot in 2020. Foreclosures are up 39% in the area over the year, and it also claims one of the highest foreclosure rates in the country at 0.30% of all housing units.
Other notable mentions, according to ATTOM's data, include Fort Wayne, Indiana; Atlantic City, New Jersey; Bakersfield, California; Columbia, South Carolina; Fayetteville, North Carolina; Cleveland; and Chicago.
Get ready to compete
If you're looking to buy a foreclosure in one of these areas, make sure you come ready to compete. Have your paperwork and proof of funds ready, and be prepared to make a decent earnest money deposit to help you stand out. You may also want to propose a quick closing date if at all possible; most banks want their money back on these properties stat, so the quicker you can make that happen, the better.
Unfair Advantages: How Real Estate Became a Billionaire Factory
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