Distressed property in the foreclosure process in the US is selling at an average of 27% lower than other real estate with almost a third of all transactions involving those in some stage of mortgage distress, the latest data shows.
The discount is likely to stay around 25 to 30% as it is expected that lenders will carefully manage the number of properties coming onto the market to avoid flooding the sector which could bring slowly recovering prices crashing down, according to RealtyTrac.
Nevada had the highest proportion of distressed sales of any US state, with 64% of all transactions involving properties in mortgage distress. California was second, with such sales accounting for 51% of all sales and Arizona at 50%.
Discounts on distressed homes were highest in Ohio, Kentucky and Illinois, where they sold for an average of at least 39% less than non foreclosures.
Read this news article on Buyassociation.co.uk.
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