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.

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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.