For investors and individual buyers alike, the high foreclosure rates in some areas of the country mean good opportunities to buy. In a report, Simon Campbell of BankForeclosuresSale.com noted that there are several states with the highest potential for foreclosure sales.
"Even though the foreclosure market in the United States has changed over the past few years, it doesn't mean that good opportunities no longer exist," Campbell noted. "It all comes down to understanding where to find the hottest foreclosure markets, as well as which ones put you in position to secure the most significant possible profit."
According to BankForeclosuresSale.com, the states with the highest rates of foreclosure are New Jersey, Maryland, Nevada, Delaware, Illinois, South Carolina, and Connecticut. However, Campbell notes that there are foreclosure deals to be found all over the country.
"There are good deals to be found in all parts of the country, but you have a better chance of success if you focus your time and attention in the states with the highest foreclosure rate,” sad Campbell. “This improves the likelihood of finding homes that meet your buying criteria, regardless of what type of investor you are."
For investors, foreclosure homes need to be able to turn a profit, and according to the study, where foreclosures are highest and where they’re the most profitable are not always the same. BankForeclosuresSale.com identified which cities with both a large number of foreclosure filings, as well as prices that put investors in the position to earn a profit. These most profitable foreclosure markets by city are Chicago, Philadelphia, Cleveland, Miami, and Houston.
"It's not good enough to know which cities and states have the most foreclosures, as volume is only one part of the equation," said Campbell. "If you're an investor and you want to make money in foreclosures, you have to focus on profitable foreclosure markets such as Houston, TX that have yet to become over saturated.
"These change from month to month and year to year, so keeping your eyes and ears on the street is critical to long-term success," he added.