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Growing Number of Indiana Foreclosure Homes Means More Investment Opportunities
December 20th, 2007 by 
Joseph Smith
Although the state enjoys one of the highest home ownership rates at 75 percent, Indiana also has the second largest foreclosed homes inventory. Many local officials and real estate experts believe that the subprime mortgage market is not entirely to blame. Unemployment rate has actually gone up in the past years and without jobs, many homeowners will really have difficulties paying their mortgage dues – resulting to a great supply of Indiana foreclosure homes.
Whenever the supply of foreclosed properties soars to record levels, the buyers generally enjoy more advantage than the sellers. This means that sellers will have difficulties receiving multiple offers and would normally offer greater incentives and bigger discounts in order to attract buyers. On the other hand, there are buyers who choose to wait on the sideline a little while longer, waiting for home prices to drop further.
The rise in the number of foreclosure homes in Indiana is actually taking a toll in the local housing market. Many lenders have even decided to tighten mortgage approval guidelines in order to avoid a repetition of the current foreclosures situation. The present situation is actually the result of predatory lending practices that swept the nation during the most recent housing boom. Many borrowers during those times were enticed by offers of interest-only down payments and adjustable interest rates, without really understanding what they were getting into.
When the interest rates on these mortgage loans started re-setting, these owners found themselves with ballooning mortgage payments. Some owners manage to stop foreclosure by curing their mortgage default while others were not lucky enough.
Last August, the state had the 10th highest foreclosures rate. There was an 11.91 percent increase form last July and 41.35 percent rise from last year. For more information on the foreclosure situation in Indiana, you can always check out reliable sites like Foreclosure Deals.
