Research by Moody’s Economy.com predicts that in 2009 1.8 million borrowers will lose their home to foreclosure. This figure rises from 1.4 million homeowners in 2008. Moody is a leading independent provider of economic, financial, country, and industry research. Moody attributes the increase in foreclosure rate to the rise in unemployment. At the start of the housing crisis in 2007, the unemployment rate was about 4.6%. Last month it reached 9.4%. Many believe it reach 10% by the end of the year. This unemployment figure does not account for those self-employed individuals unable to collect unemployment, those that have a reduced wage, and those that have not given up. Other experts believe the true unemployment figure to reach closer to 15%. In San Diego unemployment is predicted to hover around 11-12%

As the start of the housing crisis, homeowners that had subprime loans were the first to lose their homes. Now unemployment is the biggest factor driving foreclosures today. “It’s a much harder nut to crack, unemployment,” said Mark Calabria, director of financial regulation studies at the Cato Institute. “It’s much easier to bash lenders than to create jobs.”

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Amidst the widespread data and news of sinking real estate markets nationwide, more and more investors are forced to file bankruptcy and/or have their properties foreclosed. On the other hand, one’s loss could be another’s gain. If you are searching for a new home or a new property, you should look into foreclosed properties. But before doing so, learn the plus side of purchasing foreclosed real estate properties.

Buying foreclosed properties could be advantageous to people looking for properties with average to huge equity and discounted prices. As the lending company wants to immediately regain the loan expenses, the foreclosed home is also immediately out in the market. To further the salability of the home, discounted prices are very much popular in the foreclosures markets, whether in auctions or real estate listings. However, the discounted prices usually occur during slow trends in the real estate market.

The reduced prices of foreclosed homes range from more or less $30,000 to more or less $250,000, depending on the condition, year of construction, facilities of appliances included, location and other property-related details. There is one foreclosed home, built just last 2006, with 3 bedrooms and three bathrooms, which costs only $36,000.

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