Gloucester Foreclosures

Keys to Purchasing a Foreclosure in Gloucester, MA

Located in the Cape Ann area of Essex City, Gloucester is a city in Massachusetts that offers some real estate properties for those who want to live here. There are plenty of reasons why you may want to stay in this place, including the fact that it is an essential area for fishing and summer activities. If your job is related to the fishing industry, this city may be the best place for you and your family.

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Additionally, it is a great area for people who want to have a great summer vacation. It has plenty of activities for those who want to enjoy swimming and other water-related activities. It is also a fantastic choice for those who love to paint, sculpt, and even for those who work in the film and literature industries.

About 37% of the area is made of water, and it mostly occupies the eastern part of Cape Ann. The Annisquam River divides the city in half as it flows northward in the middle of the city until it reaches the Ipswich Bay. This city is 31 miles northeast of Boston and is served by several transportation options. The nearest and most accessible one is Route 128 where the city lies.

Real Estate Prices

The home value in this area is around $448,015, which is a considerable increase from last year. It is predicted that there will be at least a four percent increase in the prices for the next few months. Additionally, the homes here are listed at $347 per square foot, which is much higher than the Boston Metro that has an average of $276.

Since the houses can be quite expensive, it is crucial for future homeowners to find a place that will provide them with affordable pricing. There are two options here: a short sale and a bank-owned house.

Short Sales

A short sale property simply means that the property is sold at a much lower price compared to the amount that homeowner owes in this or her mortgage. The lender has agreed to the sale, and the profits that the owner will get out of the transaction will be used as a short payoff for the delinquent mortgage.

A lender can accept the sale even though it is less than the balance of the homeowner. It usually happens when the borrower can no longer continue to pay for the monthly loan payment. However, the procedure for a short sale can take a long time, mainly because the owner has to prove that he or she is having troubles in providing payments for the debts.

On the buyer’s end, it can also take some time for the purchase process to be finalized. Typically, the procedure can last for at least two months, while it is quite common for the transaction to take about a year to be fulfilled. If you cannot wait for the purchase to be completed and you have to live in the home that you have bought, a short sale may not be the wise choice for you.

Bank-Owned Properties

A bank-owned property, on the other hand, is much easier to deal with because you will not have to perform the transaction with the homeowner. This type of homes is a huge part of the real estate market in the city. In fact, it is estimated that there are many of this housing in the area, which can reach approximately 37% this year.

If you have decided to purchase a bank-owned home, you can just visit the financial institution of your choice. Typically, there is a department where you can buy the properties. They have great offers and deals for buyers, and one of them is the fact that these homes are much more affordable than a typical property in this neighborhood.

For instance, since the homes here are listed at $347 per square foot on average, you may be able to find some houses that cost $300 per square foot – or even less, if you are lucky. You will need to be resourceful, and you should know exactly where to look. Often, if the bank is unsuccessful in selling the property, it will hold an auction, typically at a courthouse where the interested buyers will present their bids.

There is a starting bid for every home, and the participants should provide an offer that is much higher than the first amount.

Whether you prefer a short sale or a bank-owned home, Gloucester has a few neighborhoods where you can find these types of properties. Some of them include Lakeshore Drive, Web Road, and Union Street. The place where you locate these houses can play a role in the cost of these foreclosed houses.

Single-family homes are the most common type of foreclosures in this city. Nevertheless, it is possible to find a condo or an apartment that is considered a distressed property where the owner has failed to make payments on time. With a market that is balanced for both the sellers and the buyers, you may want to take this opportunity to find the home that will allow you to save some money.

The foreclosures in this city are estimated to be at least 2.5 per 10,000 homes. Although it is a small number, it is higher than the US value, which is only 1.6.

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