Home Foreclosures are Rising Nationwide; Should you buy a ‘starter’ home or a ‘forever’ home?
-This is a transcript from Go Gaddis Radio to listen to the episode click here-> https://soundcloud.com/cleve-gaddis/home-foreclosures-are-rising-nationwide-should-you-buy-a-starter-home-or-a-forever-home/
Welcome back to Go Gaddis Real Estate Radio, right here on AM nine 20. The answer in this segment, believe it or not, home foreclosures are starting to rise again nationwide. I'm not sure if it is a trend that is gonna get bad fast. I don't believe that it will, but foreclosures are starting to rise. And then should you buy a start at home or wait until you can afford to buy a forever home, I'm gonna be interested in hearing your opinion, Kristy, and I'll give mine as well.
My name is Cleve Gaddis. You're listening to Go Gaddis Real Estate Radio. I'm joined in the studio by my business partner Kristy Vallee. Hello, and I'm glad to have you here. Thank, you're doing such a great job on the show and I absolutely love it. And our goal with this show is to help listeners go from real estate novices to experts.
So home selling and buying can be done with total, total confidence and without all the worry that's typical with life's biggest investments. Yes, I just bought a town home, exciting. Had a home inspection. Okay. Every home inspection you can possibly find from probably one of the most detailed home inspectors in metro Atlanta.
Okay. The other day after I bought my town home, they put the garage door down and the whole bottom piece, the bottom section of the garage door became detached from the rest of the garage door. Wow. That's exciting. So we don't want people to have surprises after closing that they don't want, we don't want 'em to learn anything after closing.
They should've learned before. Right. I wasn't surprised that that happened. You already know about it because I didn't know that it was gonna fall off. But I knew that I was gonna have to replace the door because something had happened before and they had kind of screwed it all together and things like that.
And so really, we're adults. Mm-hmm. If we wanna buy a home that has some potential risk for us in the future, okay, we can do that. Right. But we shouldn't as home buyers, and we shouldn't as home sellers learn something after closing that we should have learned before. Can you imagine as a home seller learning that you could have sold your home for more?
After you had already gotten your check and check and move on down the road. Yeah, that's. That's terrible. Or what if you disclose something incorrectly and your real estate agent didn't give you good advice on what needs to be fixed or things like that. And then now the home sell home buyer says, Hey, the neighbors say you already know about this.
Mm-hmm. So you're gonna have to fix it. Mm-hmm. Yeah, you don't wanna learn that kind of stuff after closing, so you need to work with the right people. If you want to connect with us, it is easy. If you wanna work with us, just dial 7 7 0 4 9 7 0 0 0 0. Or if you're online now, just go to go get us radio.com.
G O G A D D I S radio.com. You can ask questions, answer air off air. You can make comments, you can push back. I promise you, I get. S several people every single month, uh, disagree with my opinion on something. And I have learned a lot by listening to the opinions of people who are way, way better versed Yeah.
In, in the subject matter than I am. So if you want to push back, go to the go Gaddis radio.com and do that. You can share your ideas. You can also ask for your neighborhood to be featured in our neighborhood spotlight, and you can subscribe to our podcast and Kristy of the total podcasting platforms out there.
What percentage of them are we on? All of them. All of them. That's exactly right. All of them. So you were in business 2008 to 2012. Now you were doing a little more property management business than you were. Real, real estate back. That's, that's a, that was a, no, that was a rude way to say that. No, you're right.
No. Property management is real estate. Yes. But doing real estate transactions at the time. Yes. And so I was doing nothing but normal market transactions and once that market started to shift, it was amazing how the market just took a dive so fast. Mm-hmm. And then the next thing I know, 35% or 30% of all the closings in metro Atlanta were some type of distressed property.
A foreclosure, a deed in lieu of foreclosure, a short sale, things like that. I mean, it's, it's, it's just amazing. So let's take a look and see what's happening now if foreclosures are up, and I'll just go ahead and tell you right now, listening. Audience, foreclosures, were up 14% in the last month.
Foreclosures were up 7% from April and 14% from a year ago. So definitely, definitely moving up. The number is still relatively small right throughout the country. 23,245 foreclosure starts, began in the month of May. Okay, let's put that in perspective. In over the four year period, uh, 2008, 2012, there were 2.2 million, right?
Foreclosures. In the US 2.2 million. So we're still in pretty good shape. Now don't read ahead in the article. Don't read ahead in the article. Okay. If the, if you had to guess what states out there might lead the way in terms of foreclosure activity, which states would you think? Oh my, let's see. Uh, Florida.
Bingo. That is number one. Second home market maybe? Well, no, I think it's the state with the most alligators. Okay. That that's how you decide whether or not you have the, have the most foreclosures. Everything. There's a lot of crazy stuff happens in Florida. Yes. There's a lot of crazy stuff. What did you say?
The reason my thinking is people have second homes there and that's the first thing that they would just, if they're having financial trouble, that they would let go. I never thought about that. Yeah, I never thought about that. So, uh, based on some of the reality TV shows that I, uh, that are set in Florida, it, it could be that the people are not smart enough to make their pay.
Sorry, I shouldn't say that. Did I say that on air? Sorry, I didn't mean that, but you know what I'm talking about, right? Yes. Sometimes it's like, oh, goodness gracious. Okay. Florida, what, what, who would you, what state would you say is next? Um, I mean, I would just jump all the way over to California. Oh, come on.
You got it. You nailed a second one as well. I haven't even read ahead. Yep. So in the state of Florida, 2,901 foreclosures got started. The state of California 2,451, that's an apples to oranges comparison cuz California's a lot bigger. Where would you say the third state is? And you, there's no way you can get this right.
You cannot get three for three. I'm going to guess New York. New. Oh, so close. The third is Texas. Okay. Where 2,286 properties fell into the foreclosure column and then Illinois and New York would be fourth and fifth at 1,358 foreclosures. And this is just the. Process of foreclosure, right. Beginning, this is not really a foreclosure.
Right. And 1,287, I think the reality is that there's a lot of people who are under, you know, financial distress. Absolutely. There are businesses that are, are, uh, suffering, having to lay off people because of either the fact that they were a tech company and they spent like crazy and, and weren't unfortunately even based in reality or in some cases.
I mean, uh, inflation is just causing significant problems for, um, You know, for homeowners and I, I'm gonna be honest with you, I really feel for somebody who loses their home because they cannot afford to pay for it. Yeah. It's very sad. Yeah. It's a sad situation. And think about that in many cases, that home, that's the, that is the sort of the.
It's the structure, it's mm-hmm. It's what provides stability for the family. And I know, I know we should be able to have stability anywhere, but then that gets ripped out from under 'em in the 2008 to 2012 recession. You know, it was sad. Mm-hmm. Because in, so in so many cases, you would have married couples who.
Now hated each other. And then as a third person to hate, they hated the house. Mm-hmm. And it was so sad. I was glad to help 'em move on. I was glad to put fresh energy in those houses. Right. But it's, uh, it's way better to leave a home and be sad than it is to leave a home and be glad. Yeah. We were, um, experiencing people coming to us in property management saying, you know, we need to.
We need to leave, we need to transfer to for a job. Oh, right. Or we need to go somewhere else. But we are, we're upside down. Right. And a lot of our business and property management was what we called. Accidental landlords, people who didn't really wanna be a landlord, but they were trying to avoid foreclosure.
And that's probably not the landlords that make the best decisions. Yeah. Because they don't have any extra money. That's a sad situation. It is. So they're trying to, to, I mean, and I'm saying any of those kept their properties during that whole time and they still own them and they're very glad they did, but could be a very difficult situation.
Right. So let's change subjects and if you just joined us, you're listening to Go Gaddis Real Estate Radio right here on AM nine 20. The answer. I'm Cleve Gaddis. I'm a. Real estate broker and a team leader right here in Metro Atlanta, and I'm joined the studio today by my business partner Kristy Vallee.
Our families share 37 years worth of history in Atlanta real estate. Absolutely. And uh, we are, as the name says, we're given a modern spin on all of the traditions that have been developed over the years in real estate. So if you were a first time home buyer, Would you personally, and put, you, put yourself back when you and Chris were in this position?
Um, would you buy a starter home or would you choose to rent and wait until you could afford what you would believe maybe as your forever home probably wouldn't be. If you bought it as your first home, what would you do? So we were in that position and we were trying to decide, yeah, do we rent an apartment or do we go ahead and buy something that may not be.
I, you know, our dream house. Mm-hmm. Um, we ultimately chose to purchase a, a small home. It was further out. It was not our dream home. So how far out did you have to live compared to where you wanted to live? Um, probably 10 miles. 10 miles. So you, you, you wanted to go, where, where'd you want to move? Duluth.
So, we are, we're from Buford. Buford. So you wanted to be in Buford And we ended up buying a house in Auburn. In Auburn. Oh. Mm-hmm. Okay. And so that's, Auburn is, brother is, but it's east, correct? Yeah. Yeah. Beford. Yeah. Okay. All right. So, but you found your little house. Found a little house? Yeah. And how did it work out for you?
Great. We stayed in it exactly two years, yeah. In one day. And we moved to a little bit bigger house, not. Not much bigger. But being in real estate, I was in real estate. Um, you see so many houses, you have a hard time not moving. We've moved four or five times. Well, you find interesting opportunities. I have not moved in the last 24 years, except in the last two weeks.
Right. And I moved. And it's not easy to move after 24 years. It's not easy to move. I consider a forever home really? 20 years. Okay. And now I'm not saying that's right. That's just what I consider it to be. And I would say hands down, my answer to that question is if it is, go ahead and buy a starter home.
Or wait for your forever home, buy the starter home. Right. Because my guess is you bought your starter home and that gave you and Chris some additional seed money to use to get into the next home that worked better. Exactly. And the next home to work better. And I would assume you've been able to accumulate some equity over the years with five purchases.
Yes. That's awesome. This segment of the show is brought to you by the law firm of o' Kelly and Sohan. They're a full service law firm with 26 offices throughout Metro Atlanta. The firm specializes in residential real estate closings, including home purchases, refinance closings, corporate relocation, and real estate.
Contract review and title insurance matters. They can be reached by calling 7 7 0 4 9 7 1 8 8 0. I'm gonna go back to for just a second cuz we've got a few, little bit, uh, a little bit of time left in. Sure. Oh, by the way, If you wanna sell your house for $28,000 more than your neighbor sold his or her home for, Go to Go Gaddis radio.com.
Click on $28,000 more. You'll be on and off that site in 30 seconds. And I will personally help you figure out how to sell your house for $28,000 more than your neighbor. Let's do this. Let's take a quick break. Sure. We'll come back when we come back in our neighborhood. Spotlight Rivermont. Okay.
Subdivision in Johns Creek. And if you win the lottery, what should you do next? I say buy a home from Modern Traditions Realty Group. And why invest in real estate? Stick with us. We'll be back.
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