Foreclosures Situation in Arkansas: Better or Worse?

Arkansas now has the 16th highest foreclosure homes rate in the nation, two places lower from April’s result. Upon closer look, the state recorded 87 REOs for that month while for May; there were 235 homes that entered the final stage of foreclosure. Despite the decrease in Arkansas foreclosures rate, many analysts are worried that the situation is in fact, worsening.

Since distressed property usually pass thru several stages of the foreclosure process before becoming REOs, owners have a chance to stop foreclosure in Arkansas. Of course, it would be best if the owner can avoid foreclosure in the first place. Getting a loan these days is actually safer, thanks to stricter lending guidelines. Aggressive lenders will no longer prey on borrowers with poor credit in order to earn commissions. Many of these subprime borrowers lost their homes to foreclosure because they could not afford the ballooning monthly mortgage payments.

On the other hand, owners facing foreclosure can still try to negotiate with their lenders in order to effectively stop foreclosure. Many lenders are open to new payment arrangements because they do not want to spend on foreclosure costs either. The large inventory of Arkansas foreclosures has even started affecting home appreciation values making it difficult to entice buyers.

Right now though, the market is still favoring the buyers who are attracted to the affordability of these Arkansas foreclosures compared to brand new homes. With the assistance of foreclosure brokers like ForeclosureConnections, these buyers can easily grab the best deals in the market. Sellers have even resorted to teaming up with the brokers by entering into foreclosure listing contracts, which are considered to be the favorite search tool of seasoned investors.

Hopefully, by the end of the year, the overall real estate market condition in Arkansas will return to normal as sales activities pick up.

More Resources: