Info

Bargain hunters scooped up more foreclosed homes in 2013 -- and many of them paid all cash. Sales of foreclosed and distressed homes made up 16.2% of all home sales last year, up from 14.5% in 2012, according to RealtyTrac. Overall, U.S. home sales were up 10% year-over-year.Distressed properties are attractive to buyers because they tend to be significantly cheaper. The median home price of a foreclosed or bank-owned property was $108,500 in December compared with $174,400 for non-distressed properties. Institutional investors, including hedge funds and private equity groups, were buying up homes of all types last year including foreclosures. During the year, 7.3% of all home sales were to investors, up from 5.1% the year before.