Regardless of the area of the state of Virginia from the northern Virginia high tech corridor down to Virginia Beach and west to the to the agricultural section of the state, Virginia is a very diverse state. Foreclosure homes are available across the state in greater numbers today than in any other time in its history. No town or city in Virginia however has been unaffected by the recent mortgage meltdown. Northern Virginia, often referred to as the Silicon Valley of the east handles more than half of all the data for internet users in the country yet foreclosures there are no different than the rest of the country. Likewise, Hampton Roads with its many DOD, military and National Aviation facilities still has the mortgage crisis plaguing their economy. And the third largest concentration of Virginians in Richmond-Petersburg are also feeling the repercussions of mortgages that are in default.
Foreclosures are in no short supply in Virginia even though the state has been ranked #1 for business four years in a row by Forbes Magazine and the unemployment rate is one of the nations lowest at 6.8%. This is great news for today's Real Estate buyers as the numbers of unemployed indicate that jobs are not the primary reason for the number of mortgages in default. These numbers indicate that the foreclosures in Virginia are much more to do with the sub-prime mortgage meltdown and have little to do with the local economy.
So buying a foreclosure in Virginia will not leave the owner with a unsalable property but should instead leave the new owner with several different options to make money from a wise investment. Either reselling the home to someone that could not afford their previous mortgage (after it adjusted upwards) or rent the home to create positive cash flow immediately.
Regardless of the end result Virginia currently offers smart Real Estate investors the opportunity of a life time as the number of potential buyers has not diminished and there is an abundance of real estate at reduced prices that can be taken advantage of.
As the 12th most populated state in the country and an area that ranks 35th in the nation, there are a lot of people in a fairly small area which makes buying and selling all the easier. Virginia has nothing if not opportunity. Combined with the extremely diverse economy Virginia is uniquely positioned to see more growth in the value of real estate after the mortgage crisis has played itself out. This process could take another 18 to 24 months before it is completed and equity starts to accumulate across the board. However if the savvy investor or home buyer makes a purchase in the market today the rewards will be multiplied.
As the real estate market continues to reset itself and prices continue to adjust and mortgages also continue to adjust, more and more Virginians will lose their homes by merely walking away from what appears to be an untenable situation. If the average home in Virginia has lost 15-20% of its value than the average mortgage will take 5 additional years before it starts to build its first dollar of equity.
This negative equity position sometimes referred to as being underwater or upside down on the mortgage is motivating more and more Californians to stop paying their mortgage as the insult is exacerbated by injury when the mortgage rate is adjusted upwards and quickly becomes unaffordable on its own.
So what do you do if you are not going to foreclosure in Virginia? You should be buying homes that have been foreclosed on. Buying as many homes below market as your credit can withstand. Why buy in a down market? Buying in a down market and not trying to time the market to purchase on the exact day that the market sees its lowest point will allow the smart investor to buy more foreclosed homes and rent them out before buying additional homes and repeating the process. Remember all of those people that lost their homes will still need a home to live in and provide their family shelter. This is where the greatest boom in recent history for the state of California will come from. If you are not in the game, get in the game.
The Common Wealth of Virginia is made up of 95 counties and 39 independent cities. It's make up is unlike any other state in the Nation. These independent cities are treated similar to how most other states treat their counties regarding jurisdictional proceedings and this once again effects real estate in general and foreclosures in particular. Where most states have court proceedings that take place at the county court Virginia does the same process at the incorporated city level and therefore it is some what more complicated to gain the same information. By using USHUD.com or one of the other sites in its network of free foreclosure sites you can by pass this issue completely.
The most populace cities in Virginia and therefore the cities with the greatest opportunity to find and great foreclosure deal are Virginia Beach, Norfolk, Chesapeake, Suffolk, Richmond, Arlington, Alexandria, Leesburg, Fairfax, Tysons Corner and Loudon. If you are buying or looking to buy in any of these cities you are more assured of a quick resale or rent out than in most places in the rest of the country. More than 75% of the state of Virginia lives in this handful of incorporated cities.
The economy of Virginia is the definition of "Buy low, Sell high" as the foreclosure number increases every day while the sub prime mortgages continue to adjust upwards regardless of what the federal government tries to do to stop them.
The economy no matter how dismal it may look nationally is quite different in Virginia. One reason for this is that the state is the head quarters for some of the countries largest government agencies such as the Department of Defense, the CIA, National Science Foundation and the United States Patent Office to name only a few. Buying in areas surrounding these agencies is especially beneficial as the Government has increased the number of employees on the federal payroll even while the private sector has lost millions of jobs across the country.
To wait and try to time the market perfectly will leave the skeptical investor out of the best opportunity to become wealthy and the average home buyer looking to maximize their purchase will not see a better time to buy a home for several generations. To wait for the recovery means to lose out on the equity that will rise nearly as quickly as it fell. The Virginia economy is strong and diversified. From government agencies, agricultural concerns to the high tech industry and large military installations, Virginia doesn't have the size of economy that it does because it is singularly focused.
Many large companies also have their Head Quarters located in Virginia as 18 Fortune 500 companies call Virginia home. Virginia ranks #10 of all states regarding being the home of Fortune 500 companies. In recent decades Virginia has successfully transitioned from agriculture and government support into the high tech category and currently its highest grossing export is Computer Chips. A very impressive transition for a state that could live off its proximity to the Nations Capitol.
In order to take full advantage of all that the foreclosure market has to offer in the state of Virginia read more about how to buy foreclosures and educate yourself on the communities you are most interested in buying a foreclosure. Start shopping here for the foreclosure home that meets your needs. If you are facing a pending foreclosure call a local real estate professional and determine what types of options you have. Your options will depend on your particular situation. Other variables in Virginia include but are not limited to, where a home is located, density of that areas population, which can vary greatly in Virginia, how much is owed on the home and how much the particular home is worth in today's market.
Q. Does the higher number of foreclosures mean that there are too many homes already for the population?
A. No, Virginia has been and will continue to be a destination for others from outside the state and has its own strong and diversified economy. Residence will always need homes and a good investment today in a down market will result in a better upswing in the very near future.
Q. Has the average home in Virginia lost more of its value than in other states?
A. No, but this is good news as the real estate market continues to improve an investment today will reap higher rewards in the near future. Recent initiatives have also created an environment which has placed the majority of the blame on the banks and removed the financial stigma of being foreclosed on. Thus we will see more foreclosures until the sub prime mortgages have all been purged from the system through foreclosure, sale or refinance.
Q. Why would Virginia be more affected by the mortgage crisis?
A. With a much higher than average income, the wealthiest counties in the country Virginia will recover from the mortgage meltdown faster than any other state. Buy a foreclosure and rent it out or flip it and buy another. It will be hard to lose in Virginia.