Record Foreclosure Rates Could Mean Cash in Your Pocket

I find the foreclosure business in the U.S. interesting as it presents a view into the future for our Edmonton, Alberta, Canada real estate market. We always move about a year or 2 behind you. I guess it’s coming… Wish me luck!

I think the foreclosures in the Sunbelt markets have drastically reduced home prices but that doesn’t always equate to real estate deals

I believe if you are in the position buy up your dream houses in your dream locations now. You can really get them at a steal!

I agree with most statements made here. The ability to purchase in this market will show your strength in the future.

I think typically when it comes to foreclosures a lot of the time they end up being homes that not many people want to buy. Of course there are exceptions. However this year changes much of that. There are millions of homes nation wide that are entering foreclosure, if not already. The difference is many of these homes are quality single family units that make for a good investment. They are in good parts of town and for a reasonable price. I think this year presents a good opportunity for investors as long as they don’t get themselves upside down.

Useful post and great responses.

Here in the northeast we have our share of forclosed homes but most of these homes are being listed with real estatebrokers instead of the “old school” way of the early 1990’s when the bank would simply give it to an auctioneer and have them sell it on the street. Auctions are the best way to get the nest buy. I find that the banks are getting more for these properties by listing them with brokers but they are taking a lot longer to sell and the large numbers of them are dragging down the rest of the market.

in California there are a lot of foreclosure auctions all around Southern California. Definitely a must go to. Houses go relatively cheap!!

Watch this interesting video by an artist, Cadence Weapon called “real estate” – http://www.youtube.com/watch?v=YtLoi0PG-Zw

We have seen an increasing number of foreclosures in Washington D.C., Maryland and especially in Virginia. In Virginia prices of homes have dropped by more then half. A house that used to cost $800,000 now cost somewhere in the neighborhood of $400,000!

I agree that this is a great time to be investing in real estate.

I prefer pre-foreclosures. REO’s are harder to close than short sales. Now that the bailout funds are not going to be used to buy up bad debt, mortgage lenders are accepting 50% of fair market values to avoid foreclosure proceedings.

Short sales are what’s selling right now.

Temporary 1% funding for short sales is now available.

It is very sad and unfortunate so many people are losing their homes. I for one point my finger primarily at the banks. pssst, did you see Citi is laying of 50k people, front page of CNN. For investors though, now is the time to pounce. A solid credit score is key though. There’s a great article here.

It’s a great time to buy and bargain hunters continue to move in to take advantage of the high inventory, rock bottom prices, and low interest rates.

Foreclosure are a great way to get real estate, but one of the best ways is to be able to get to it when it is in the Pre-Foreclosure stage. That way you don’t have to deal with the banks.

Hi, I would like to know if its true that the foreclosure properties can be sold as little as 10K+ as advertised online. Is there a catch to it? Do you have to buy for cash only? etc.

I’ve never seen such record foreclosures in Phoenix. If you have the cash, now is the time to build a portfolio of investments that cash flow immediately. I stumbled upon this site (from stumbleupon) the other day. It just shows how much choice there is. http://azforeclosuregold.com/ I’m hoping to pick up at least 2 properties this year.

The complications involved in purchasing a foreclosed property are exponentially greater than purchasing a conventional property. As a result, it is particularly important to have a real estate broker knowledgeable in the legal issues involved in a foreclosure. http://www.ivyequity.com

It’s real easy to buy distressed properties all over the U.S. but what to do with them once you get them is the big question. I’ve learned the hard way the real estate problem that can’t be fixed is this, “paying to much”. You can’t cash flow, sell quick or borrow against(cash out)if you paid to much. Anything else, bad neighborhood, horrible market, etc, you can remedy that if you pay the right price.

Happy Investing, buying and selling!!!

We have seen record foreclosures as well. We have found that the Idaho foreclosures do very well though.

When price is falling down, like this economic climate, it’s a best time to buy properties such as ; home / regency (rumah),vila, apartemen or even foreclosed house . Whatever to invest or to live in. But not to forget some consideration, such as, quality, location, legal etc. As long as we can manage and know the prospect of the properties it’s no matter to invest as much as we can.

This is a great time to refinance or buy a property because of two facts. 1) Homes are cheap 2) Interest rates are low. But be cutious!

Regards,
Rick Carter
http://www.mymortgageguideonline.com

Regardless of what you buy, foreclosure or not, make sure you put enough down to make it cash-flow as a rental. If you don’t, you’ll be at the mercy of the market fluctuations and could end up as a foreclosure yourself… bad deal.

- John Carle
Edmonton real estate agent
ReMax Real Estate (Edmonton) LTD.
http://www.knock-knock.ca

This is a great book for many who need an investment; good also for those who need urgent cash to sustain their survival for this hard time of economy. Getting quick cash through payday loans from Personal Money Store is fast, easy and most importantly, safe and secure. People who take out payday loans know exactly what they are getting and how much it will cost. Amid the many scams that hit consumers in 2008, it�s nice to know that getting loans from places like this is straightforward. But in 2008, some people seeking to lower mortgage payments, reconfigure loans or just get their stimulus checks were victimized by con artists. This article goes over the scams that hit consumers last year. I also found some important guidelines that I was not aware of before: the IRS will never contact you by phone, mortgage counselors don�t charge fees upfront and I need to keep an eye on my Internet bill next year.

This book looks interesting, I will have to check it out.

This book is a great resource and looks like a good one. Thanks for sharing.

Interesting book, I look forward to finishing it.
I am buying houses now, even in this slow market, and yes, in one of the hardest hit areas of the country.
We have houses in foreclosure, houses foreclosed on already, and more headed that way all the time.
In my residential neighborhood alone (where I live), there are 3 bank owned houses and four neighbors I know of who are in foreclosure.
Kind of frustrating too, seeing as how I’m an investor with vehicles marked up with my logo saying I buy houses.
Might have been able to help some of these folks before it got too late.

Anyway, that’s the thing, while I am buying a lot of houses a the moment, because deals are there, the key is just that……to buy at a deal.
If a house is worth say $100k TODAY, it might be worth $90k next year, perhaps less. So, I need to buy at $50k for it to make sense……….enter the bank owend properties, and we can do just that, all day long.
There are others we buy as well, not bank owned, as sellers are having a time selling at all, and agree to discounts just to get out.

Bottom line, it’s time to buy, but requires diligence, and investor mentality, not speculation……..thats what led us here in the first place, speculators.

Thanks for the blog post, I’ll check back often,
Jim
a/k/a The Biker Who Buys Houses
my blog: http://www.REmentors.com

I agree with your article, you may have to put a little more time and money into a foreclosure, but I think it’s well worth the investment. Now is the time to buy!

I am moving back to the US in a few weeks and would like to buy a home in Chantilly, Virginia. The homes that I like are about 100,000 over my budget, it seems that maybe a foreclosed property would be the way to be able to get that, but from what I understand is that it can be time consuming and risky. We need to find a home within a reasonable time, so I am afraid of going down that road.
http://www.cyprus101.com

Working foreclosures is just another part of the business. I don’t mind working them.

I agree that there are many ways to make money from this foreclosure market. I work in Grand Rapids, Michigan, and even though our economy is one of the slowest in the nation, I still see many buyers and investors successfully turning a profit from foreclosed homes.

I agree there are so many opportunities to capitalize in the pre-foreclosure market right now. Short sales is something that could actually help solve this problem. Dispose of the foreclosure property, get the loans of the banks books, and help provide housing for those who have been left in the foreclosure crisis.

http://reitvshow.com

In Baltimore, we are seeing folks getting into trouble in terms of foreclosures but it is typically those who bought at the high end and essentially were speculating. We adhere to a low end theory principles of investing with multiple exit strategies and while we have seen an uptick in the foreclosures we are able to pick up for cheap, we continue to pick up vacant properties from distressed sellers. We are also seeing situations where rents are 2 times mortgage amounts. We invest for cash flow though and not appreciation so we have been able to avoid the foreclosure bug that has bitten many investors. For more information on investment opportunities in Baltimore, MD visit http://www.gilliardgroupllc.com

Sure, cashing in on foreclosed and preforeclosed homes may seem fantastic, especially when the price is half of what it was two years ago. Always keep in mind though what may happen in the market in the next two years. There is no guarantee that house you picked up for fifty cents on dollar won’t be worth twenty five cents on the dollar in six months time.

Good luck with your book sales.

yes, you are correct its always difficult to see when you house falls by half
you never know whats going to happen

Foreclosure investing is a tricky business at the moment, particularly with predatory attorneys looking to unwind any deal where an investor profits at the homeowner’s expense (that’s how they view it).

Even more troubling is ignorant, over-zealous consumer protection terrorists who consider a nickel of profit as evidence of a foreclosure scam.

If you’re investing in distressed property in this environment, BE CAREUL.

Joe “the scammer” Kaiser
10 years, 400 deals, 0 complaints
http://www.pushedtoshove.com

Sounds interesting, I’ll have to check it out.

-aspire
http://www.realestateadvantage.net

I believe we are experiencing the greatest transfer of real estate wealth of our generation. Everyone should be buying as much as possible right now.

Great blog

Jim

I would like to know where I can get financing with my bad credit?

Before any jumps into the market of buying and selling foreclosures, you need to read. The market is tough, but putting all your money into an investment and then losing out, is even tougher. READ UP on foreclosures before your the loser.

I do mainly high end in North Atlanta. I hate foreclosures and my clients are typically not even intersted. It’s so over hyped.

THE best deals are on spec homes owned by builders still in business. Nothing like a new home for a couple a hundred less than it was last year.

RM

You are right RM. I agree strongly with your comment. I would add that any home from a builder would be the right choice now.

If anyone is interested in working with some REO properties, check out our company: http://www.reodirectpartners.com or feel free to call us at 888-362-1444.

hey i completely agree with ur idea.
Boise real estate

To Whom It May Concern:

My opinion on this forum will be extremely biased as I am the Vendor Relations Manager for Absolute REO Solutions, Inc. and I profusely believe in our product and in the success of our partner agents along with us. I will try to answer some of the questions raised in this forum and also provide some additional information regarding what we do and what sets us apart from the competition.

Our team is comprised of professionals that have been in the mortgage, real estate and wholesale lending industries for an average of 15 years each. The owners ran one of the largest mortgage broker shops in Illinois and were consistently on the top 10 list of several of the Nations Largest Wholesale Lenders. Our Asset Managers are former Regional Managers and Account Executives from these very Mortgage Wholesale Lenders. As a result they have a wealth of personal connections in the industry with the lenders that remain as both wholesale lenders as well as servicers. In addition to that, through our association with the ICBA (Independent Community Bankers of America) we have access to their 5,000+ member base and are the only REO company endorsed by them. We will have a booth at their Convention in Orlando in March as well as one at the ABA convention in October. We provide lenders with a “one-stop-shop” solution to dealing with their defaulting loans. We offer the option to take the process over from day one, from the first default and start of negotiations with the mortgagors on behalf of the lender to try to find a workable modification plan. If that option does not work out then we try to Short Sell the property to minimize our lenders losses by not incurring additional interest losses as well as property tax losses and legal expenses. If all options fail, we continue on through the foreclosure process. We constantly inspect the properties to make sure that no economic or physical deterioration is taking place while the properties are in initial default or when they become bank owned assets. We have been operational in Illinois and have Banks, Institutional Investors and Private Investors that have handed over their portfolios for us to manage. Due to our contacts in the industry and our presence through their respective associations we have decided to expand out to more foreclosure prone areas and offer our services to a wider client base. Before doing that we have to ensure that we set up a good vendor list of Realtors TM, Preservation Companies and Attorneys that will be able to service our clients needs.

In most cases we try to retain the management portion of the transaction and leave the Realtors TM with what they do best… MARKETING AND SELLING THE PROPERTY. As a result, our vendors are able to market more properties in less time without focusing on the many ministerial acts involved in an REO transaction.

Some of the benefits that we provide to our vendors are the ability to post their listings on our website for wider exposure and a free advertising venue. In addition to that we try to give our vendors all the tools they could possibly need to grow their own business. We provide fully customizable forms that Realtors TM could use with their name and logo for the following tasks:

REO forms, disclosures and contracts
BPO forms for both Fannie Mae and Freddie Mac loans
All contracts, explanations and disclosures for short sales
All contracts, forms and explanations for loan modifications.

These are forms that have been prepared by our legal and marketing teams and are at your disposal at no additional cost.

For your $295 you are purchasing a “Lobbying” group of professionals from within the industry to “Lobby” the lenders on your behalf as well as the possibility to use the tools provided to you from the onset. Finally, as an added bonus, we send our vendors out a 1 GB Credit Card sized memory sticks which contains all the aforementioned forms that are accessible off-line and plenty of memory left to use for their own needs.

Should you have any further questions please do not hesitate to contact me at 847-999-4346 or by email at aberg@absreo.com

Sincerely,

Anthony Berg

Vendor Relations Manager

Good and bad oppertunities.

URGENT HVCC UPDATE:

HVCC Continues to devastate home values across the US. We fear that with higher Fannie and Freddie loan limits it will carry through to our former “jumbo” markets, leading the country even further into recession. As we’ve shared, Representatives Childers (D-MS) and Miller (R-CA) introduced legislation (H.R. 3044) requesting an 18 month moratorium on the Home Valuation Code of Conduct (HVCC). H.R. 3044 now has 22 co-sponsors and now is the time to forward our petition to every person you know and every representative in the country. Read some of the comments in the petition and you will soon understand the harmful nature of this horribly misguided code.

ThinkBigWorkSmall applauds the introduction of H.R. 3044 and would like to thank Representative Childers (D-MS) and Representative Miller (R-CA) for their continued efforts and leadership on this issue but it is not enough… Tens of thousands of consumers have already been robbed of their opportunity to enjoy historically low rates by Attorney General Andrew Cuomo’s rule. HVCC needs to be permanently reversed in order to restore lower costs to the consumer and to protect the thousands of real estate transactions stalled by this horribly misguided code.

Please sign and forward the following petition and forward to everyone you know in the industry and ask them to forward to their representatives:
http://www.hvccpetition.com

Wait till 2011, dont catch a falling knife.

Denise Evans has definitely established herself as a credible expert on foreclosures. Its interesting to look back at articles from last year; so much has changed! Most people don’t seem to realize that, yes, the general trend of the real estate market is still one in decline, it is possible to make a killing purchasing a foreclosure that is well under value. Happy home hunting, investors!

When it comes too real estate you need to be watchful of everything. The littlest change could move the market in your favor for a limited time. Always be mindful of your market.

I just sold a builder model home this past Friday that was $300k even with $5k closing costs paid.

The notable thing? It was discounted $208k!!

This is in North Atlanta (Cumming). Probably the largest % discount to date for me.

Earlier in the year I gor a $1.3M home for $985k. Another builder spec in a high end n’hood.

Rob

I am Rhea S. I have visited your website and I would like to congratulate you on building such a valuable online resource. I am sure your visitors find your site as useful as I did.

Have a great day.

Thanks and regards,

Rhea S.

http://www.MyFinanceAdviser.com I am Rhea S. I have visited your website and I would like to congratulate you on building such a valuable online resource. I am sure your visitors find your site as useful as I did.

Have a great day.

Thanks and regards,

Rhea S.

For less risky investments, have you heard about tax deed sales? Investors tend to get more bang for their buck with a higher returns on their investment. These government auction properties are often sold for just the back property taxes and a few other incidential fees. Our website http://www.taxdeedlists.com posts the sales lists and resources for sales in the 67 counties in Florida and for online and sealed bid auctions for other states around the country. We also give you free forms to sell or rent your property just for signing up.

Oliver:

Very cool, I love San Diego. I’m in Atlanta but been over there lots of times in the last 10 years.

Was just in Portland last week and thought the weather can’t compete with SD, it’s got a certain charm to it.

Send me the lsiting for the $84k condo, I want to see what this gets you.

Also, I visited your twitter site. Lots of followers and followees. Do you find that this helps your business any?

Thanks,

Rob in Atlanta

Very interesting statement from Anthony Berg….

To Whom It May Concern:

My opinion on this forum will be extremely biased as I am the Vendor Relations Manager for Absolute REO Solutions, Inc. and I profusely believe in our product and in the success of our partner agents along with us. I will try to answer some of the questions raised in this forum and also provide some additional information regarding what we do and what sets us apart from the competition.

Our team is comprised of professionals that have been in the mortgage, real estate and wholesale lending industries for an average of 15 years each……etc etc.

A company that obviously prides itself with regards to its clients and their needs.

“My opinion on this forum will be extremely biased as I am the Vendor Relations Manager for Absolute REO Solutions, Inc. and I profusely believe in our product and in the success of our partner agents along with us. I will try to answer some of the questions raised in this forum and also provide some additional information regarding what we do and what sets us apart from the competition.”

That’s cool, glad to have you here. Please contribute as you see fit.

http://www.AtlantaRealEstateInfo.com

Investing in forclosure is the best thing in real estate.Because we can get the houses in 50% of original value.As you said renting the houses is great thing.I will keep your idea.

At Coastal Reo Solutions in Myrtle Beach, South Carolina we can provide all the information you need to help in the foreclosure and short sale process.

But it also means that real estate investing is not quite doing well with that scenario, because people could no longer pay their obligation even if there are many foreclosed property who would be buying those property?

I am looking was looking at http://renttoownbiz.com for a home to Rent. Any recommendations on this way of owning a home?

Now is the time to tax action and buy a foreclosed home. Never buy until you have done a thorough due diligence process. To learn what never to do read 23 Things You Should Never Do In Real Estate

Nice and valuable suggestions

I think so because some people would want to purchase a foreclosed property they think they can money with that transactions.

Scott@Financially Free Landlord

If you have cash, another great strategy is buying and then providing owner financing. We have been buying properties all over the country and then providing financing for our buyers. With this exit strategy you can achieve passive monthly income without the problems of the three T’s of rental property (tenants, toilets & taxes). I have been investing in real estate for 14 years & owner financing properties for 7 years. http://www.SterlingIncome.com I like it a lot more than renting and the buyers obviously make out much better becuase they are building equity. This is best investment market I have seen in my lifetime – take advantage of it before its over!

Matthew Donowho

Matt:

I completely agree. Being a landlord is rough. Flipping properties is better, but still tough. I went all the way down to transactional and became a realtor.

Cash is king in this market – there is opportunity to capitalize even if things continue to decline nationwide. Buy low and sell a bit higher, buy for cash flow, etc. I agree with Matthew – raise cash from private investors and buy deals, this is my favorite approach http://www.ultimateprivatemoney.com. You can make money if you buy right and finance right. Be disciplined.

As long as you are organized and have all your “ducks in order” this could be a very successful endeavor. It’s all about timing…

It has been a different market these days. I would also rather buying forclosures to take the advantages of BMV prices to have bigger piece on capital appreciation for the future.

I agree. You can make some incredible change to the foreclosed properties and be bought again. Though, repairs are very hard. Still, it can give you very big amount of money.

Nice article! Great post about foreclosures!

A great book for many who need an investment! Good also for those who need urgent cash to sustain their survival for this hard time of economy.

This article goes over the scams that hit consumers last year. I also found some important guidelines that I was not aware of before: the IRS will never contact you by phone, mortgage counselors do not charge fees upfront and I need to keep an eye on my Internet bill next year.

I have the ability to search my market for homes that are in a pending state of foreclosure and homes that are already bank owned that are not on the market. From my perspective some banks appear to be keeping their REO’s on the side line or they are ok with a six month plus lag in bringing them to market?