A new report says Massachusetts has the best foreclosure deals in the country, if we’re reading this right, providing a 53 percent “foreclosure savings” to buyers of foreclosed homes.
Not sure if this No. 1 ranking is all that it seems. They define “foreclosure savings” as the average sales price of foreclosures to the average sales price of no-foreclosures. There’s not much more information that helps explain the rankings.
But if they’re effectively comparing lower-end home prices with higher-end housing prices, then, yeah, there’s going to be a big gap. The gap is going to be even bigger if there’s been a slight recovery in the higher-end market, like there has been in Massachusetts. And so on.
There could be a legal component to all of this, i.e. people are hesitant to buy foreclosed homes here, driving down foreclosure costs, due to all the legal controversies surrounding the foreclosure process.
If anyone out there has a theory about the rankings, please pass it along.
