In Fact, Housing Foreclosures are Once Again on the Rise
And, More Motivated Sellers are Right Behind Them…
Many areas in the United States are seeing a recovering real estate market and, in turn, a definite favor in the seller’s realm, but recent reports show that foreclosures are on the rise again, after hitting a six and a half year low in April, as many of the larger lenders like Citibank, Wells Fargo and JP Morgan Chase had stopped late stage foreclosures for a while to get their own houses in order for compliance with new Federal regulations. Nevertheless, May saw a 2% rise in housing foreclosure filings and bank repos soared by 11%, according to a recent report released by RealtyTrac.
“The foreclosure problem was not resolved; it was simply delayed,” opined Daren Blomquisst, vice president at RealtyTrac, an online real estate information group that publishes a monthly foreclosure market report. According to data, May saw one out of 885 properties in the United States with a foreclosure filing.
While that’s not such great news for many homeowners, it does bode well for real estate investors who are looking for motivated sellers. In addition to that, huge private equity firms have turned their eye toward new construction, given the recent deficits in properties for sale, leaving still yet more space for independent real estate investors.
With robust systems in place, real estate investors, now more than ever, have tools available to find motivated sellers, private moneylenders and cash buyers everywhere; not only that, but systems that allow them to find them in advance.
Nonetheless, it also helps to keep your eye on the marketplace. Some top areas that are experiencing distress are Florida, Nevada, Ohio, Maryland and South Carolina, according to the RealtyTrac report.
“…(the resurgence of foreclosures) will have an adverse impact on home prices in these markets, given that these properties typically sell at a discounted price,” said Blomquist.
The good news for investors, as well as first time home buyers who are seeking acquisition, is that, with rising prices and the shortage of inventory, this recent development on the foreclosure front will give some relief.
The better news is that savvy real estate investors are a now able to get the jump on opportunities with systems at hand that let them know first when properties are becoming available.