Even more bad news for the housing market in the US:
New Home Sales Plunge 16.9 Percent
Excerpt
The number of people buying new homes tumbled in February to the fewest on records dating back nearly half a century, a dismal sign for an already-weak housing market.
Many builders are waiting for new-home sales to pick up and for the glut of foreclosures to be reduced. But with 3 million foreclosures forecast this year nationwide, a turnaround isn't expected for at least three years.
Rather than buy a previously lived in home that has been foreclosed, I would be looking at new homes that are going for a fraction of what they were built for.
Most lived in homes are going to need updating, repair, renovation, remodeling, or some fix up (if they have not been totally trashed).
You are looking at a time when you can perhaps find builder's, new, spec homes foreclosed on that would be a steal. Many developers or builders are perhaps now going under and would accept anything to get out of a home they are sitting on.
WARNING: It is okay to work directly with a developer but get traditional funding and title search/title insurance. There is a community here in NC that the seller/developer was doing his own financing. People were paying him but he was not paying the banks. The entire development and about 16 homes sold with people living in them have now been seized by the banks because he defaulted on his loans to the banks.
Banks use the property as collateral and apply liens to the property.
Huge horrible mess for these homeowners. Some stand to lose close to $100K in fees, down payments, and monthly payments paid thus far over the past year or so