Lowell Foreclosures

Reasons Why Buying a Foreclosure in Lowell, MA is a Good Idea

Lowell has many things to offer to its residents. From shopping to galleries to parks and other recreation areas, it is a city for everyone. Located in Middlesex County in Massachusetts, it has a large area, which allows it to be in the fourth spot out of all the places in the state.

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This city once served as a mill town, which is where it got its nickname as the Mill City. It is a popular place throughout the US because of its part during the American Industrial Revolution when it was the cradle of several large factories and mills.

This area has its historic sites still standing today, thanks to the efforts of the National Park Service. It has a total area of almost 15 square miles, and less than six percent of it is made of water. The city is located at the place where the rivers of Concord and Merrimack join together. There are several hills in this area, including Lynde Hill, Christian Hill, and Fort Hill. Both Fort Hill and Lynde Hill are situated in the neighborhood of Belvidere.

Dracut, Billerica, Tyngsborough, and Chelmsford are just some of the towns that border this city. There are eight distinct communities here, including the Acre, Downtown, Centralville, and Pawtucketville. This city celebrates several annual events, including its birthday every February in which the area also celebrates winter through Winterfest.

Real Estate Details

The homes here are quite affordable, which is why many homebuyers flock to this city to purchase a property. The home values are only $273,037, which is lower than the Boston Metro. It is a sellers’ market, especially with house prices increasing almost eight percent from last year. This trend is bound to continue as the experts predict that the values will rise at least four percent before this year ends.

Although sellers are believed to have the upper hand here, the homes for sale are only priced at $192 per square foot on average. This amount is lower than the average of Boston Metro where the houses are worth almost $280 per square foot. The median rent here is also lower than Boston where the prices are $1,500 and $2,682.

Why Buy a Short Sale

Although the homes may be affordable, it is still difficult to find a home, precisely one with two bedrooms or more, which may be within your means. Perhaps you may also be looking for an investment property where you can pay less than the current value on the market. In this case, one of the best options is to find a short sale in this city.

Mortgage delinquent homeowners are the key to these short sales in which there is 2.1% of homeowners with problems in their mortgage. These people did not pay for their mortgage at least once, and the number is higher than the US value, which is only 1.6%. Almost 10% of the homeowners in the city are underwater on their mortgage, which beats the Boston Metro since it only has 6.3%.

If you have been searching for an affordable property in this area, you will be glad to know that you can find homes that are sold for a low price. Take this home situated on Jewett Street with five bedrooms and two bathrooms. With a square footage of 2,268, it may seem surprising that this place only asked for $254,400.

The good news with a short sale is that the owners are usually willing to do a few repairs here and there. Others are even happy to reduce their asking price as long as it is not below their mortgage debt. These people want to get rid of the property as fast as possible, along with the fact that they can avoid going through a foreclosure proceeding and at the same time they can pay their debts.

Why Buy a Bank-Owned Home

The problem with a short sale is that the homeowner is typically still living on the property. Additionally, it can take several months to a year before the whole transaction is completed. You can avoid these hassles with a bank-owned home. When a property is owned by the bank or a mortgage lender, it can provide you will lower rates, just like with a short sale home.

For instance, a foreclosed home at Warwick Street was bought at $279,900. If it were not a distressed property, the price would have been around $304K at least. A foreclosure that is on sale typically receives several offers from various buyers. Often, the bank can hold an auction where all the interested buyers can provide their bids.

Note that a bank-owned home is sold as-is, unlike with a short sale where the owner may be willing to upgrade or help with the repairs. Nevertheless, whether you choose a short sale or a foreclosed property, you will get a much lower offer than a traditional home sale.

The bargain price is not just the attractive quality of these distressed houses because you can also pay for it with a low down payment. Typically, you will pay about 20 to 30 percent of the asking price of the house. However, with a foreclosed property in Lowell, the lender or the home seller may only ask for five to 10 percent for the down payment.

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