Foreclosure.com tracked a one-month increase of 3,859 residential foreclosures nationwide and confirmed the existence of a buyer's market in the residential real estate sector.

The data gathered by Foreclosure.com also indicates that investors are moving quickly to purchase foreclosed properties, with more than 25,000 foreclosed homes being sold in April 2006. Foreclosure.com maintains America's largest and most accurate database of residential foreclosures.

On the other hand, according to new Foreclosure.com data, the increasing foreclosure rates during May in California and Florida contributed to an overall national upward trend in foreclosed homes. Additionally, foreclosure rates rose significantly in Alabama, Louisiana and Mississippi, each of which had been experiencing a lower than normal foreclosure rate following Hurricane Katrina.

However, the continued rise in interest rates, which affects monthly housing costs for owners with adjustable-rate mortgages, is triggering a rise in foreclosures and a softening of home sales across the board. In essence, this creates a 'perfect storm' for investors who are not deterred by higher interest rates.

By M. Sese
http://realestatepress.org