There are a couple of main concerns. First would be if there are an excessive amount of foreclosures how long will it take for much of the inventory to be absorbed. Home prices will not likely appreciate until much of the inventory is absorbed.

More concerning to me is on a subdivision by subdivision basis. If one subdivision has a high percentage of foreclosures you can get a very good deal, but there can be an issue with all the folks who are not paying the HOA or CDD fees. The Homeowners Association has regular expenses, and if they do not get enough coming in they could have to resort to special assessments or increased fees on the remaining homeowners.

Sincerely,

Jeff Launiere, P.A.
Real Estate Consultant
Keller Williams Realty
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