How To Protect Your Home Value With Increasing Foreclosure Rates

While home foreclosures are on the rise, there is another side of this economic dilemma. A lot of investors are targeting foreclosures as profitable investments; regrettably, this is not good news for most homeowners. Foreclosures are causing decrease in property value thus reducing the value of homes that aren't facing a foreclosure. While people like to mention the good things about foreclosure, the key to preventing this from happing across the country is also to avoid a foreclosure in the first place.

Foreclosed homes invite vandals and a squatter in search for a place to go that is out of the weather.  This spells failure for a neighborhood that has a high rate of foreclosures.  Vacant properties will bring trouble and thus drive property values down. 

When lenders attempt to unload foreclosure properties as fast as they can, in a lot of cases this means that lenders sell the properties at up to 40 - 50% of the market value.  Even with properties selling this low, some foreclosures can stay vacant for an extended period.  Simply because the home is being sold does not mean that there is someone moving in, a lot of investors have vacant properties in their portfolio. 

Here are some things that you can do to help for protecting the value of your home: 

Keep your eyes open 

Keeping watch around your area for the properties that have been foreclosed and aren't vacant will help to keep your neighborhood free of vandals and squatters.  Foreclosures are on the rise and thousands of homes every month are going into foreclosure.  Keeping an eye out for the homes in your area will help keep the vandals from stealing appliances, damaging the property and forcing lenders to board up properties.  Boarded up properties, are invitations to more trouble property values.  Lenders will sell homes that have been boarded up for even less, just to move the property. 

Don't panic and sell 

Home ownership is a long-term investment, and while foreclosures are increasing, they will even out and the market will recover at some point.  Stay calm and do not panic, now is probably not the time to sell your home especially if you are trying to make a bit of money.  Home values are being driven down; buyers are looking to buy them cheap and below market value right now.  In some cases you could still sell your home for a profit as at first intended; don't attempt to sell just for the reason that the local markets are flooded with foreclosures.   

Home foreclosures may rise even more next year, so hang in there, don't dump your house just due to foreclosures in your area.  You bought it as a long term investment in the first place, and this may be a short-term problem.  The houses market will recover at some point and your property value will likely increase once again.