5 Worst Places to Buy Foreclosures in 2013
No. 1 worst market: McAllen, Texas
This South Texas city along the U.S./Mexican border never saw big home-price gains during America's real estate boom, so it didn't suffer as much in the resulting bust.
Add in Texas' fastest-in-the-nation home-seizure process and you have foreclosure conditions that are good for current owners, but terrible for would-be buyers.Foreclosure filings in McAllen fell 66% during 2012, leaving the 775,000-population area with only a 12-month supply of distressed homes available for purchase. That means the typical McAllen foreclosure sold for just a 21.5% discount in 2012 -- well below the U.S. average. "There are definitely markets in Texas that still have foreclosure problems," Blomquist says, "but few are dealing with the huge numbers of [distressed properties] that we saw elsewhere in America."
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