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Competition from foreclosures will fade in '11

January 7, 2011 - Though foreclosures are not expected to slow down this year, a report says those hiring moving companies and planning to sell their homes might find less competition for buyers from discounted distressed properties.

Throughout much of 2010, sellers had to watch as buyers frequently chose bargain-priced foreclosure properties over the homes they were offering. However, WalletPop predicts that in 2011, sellers will be able to resist those affects because the properties they are offering will likely not come clouded with the same problems that foreclosures do. In 2010, many unlucky buyers learned that moving to a foreclosure is not as easy as it might seem - the homes sometimes come in poor condition while the robo-signing scandal at a number of major lenders cast a pall over the properties. As a result, homes owned by individuals - and not those repossessed by banks - will grow in attractiveness.

"The robo-signing scandal has made buyers fear that they may not get a clear title if they buy foreclosures," said the report. "The crazy delays in getting short sales approved by banks has turned other buyers off from those properties, too."

At the same time, sellers should not expect buyers to pay more for their properties. The most recent report from Trulia.com showed that buyers moving into 27 percent of homes for sale in November enjoyed at least one price cut on their property. 

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