Commercial Foreclosures Also On the Rise
It looks like troubled homeowners are not the only one affected by the mess in the real estate market. Even owners of commercial properties are facing foreclosures.
According to Foreclosure Listings Service, the number of commercial foreclosure filings recorded for the first half of the year has risen by 35 percent, compared to last year. Of course, compared to foreclosures in the residential sector, this figure is considered to be quite low. In fact, there were 25,000 residential foreclosure filings during the same period in the counties of Collin, Dallas, Denton and Tarrant.
Dallas County posted a somewhat big share of the commercial foreclosure filing, with 398 buildings. But Tarrant County was the winner with 447 postings.
For this year, most of the commercial foreclosures belong to the condominium/apartment sector. Less than 200 apartments are actually scheduled to be sold in foreclosure auctions. In most cases, the older and low quality apartments are the ones being foreclosed.
Buyers and investors looking to take advantage of the low selling prices of these commercial properties should seriously hurry up and make offers. Although some of these commercial buildings may be neglected and damaged, it is guaranteed that they will be worth it considering their amazing return potential.
Of course, it is important that buyers do their homework before making an offer. Inspecting the foreclosed property is crucial if you do not want to spend more than you anticipated in repair costs. Also, it would not be bad if you check the title or deed for other encumbrances or liens.
Just like residential house foreclosures, buyers need to understand that the work does not end with the foreclosure search. If you are careless with your decisions, you might end up with real estate properties that are not worth investing into.
