Does anyone have any analytics on the future foreclosure market? I was speaking to a HUD representative and he informed me HUD is sitting on thousands of foreclosures. They intend to start releasing them in the 3rd of 4th quarter this year. My concern is what will happen to those of us who are purchasing homes in this hot market? We are all paying top dollar even with off market homes. Cost of supplies have risen like crazy, cost of the homes are no where good deals and everything is a risk.
My concern is that not only HUD homes will flood the market but also the lower to middle class homes will also take a hit, similar to the 2008 crash and if our timing is off we will get stuck with homes that are overpriced in the future foreclosed market.
How do you guard against this? Stick to high end over 800k homes, go into rental homes? Fix and flip quadplexes? I'd love to have some knowledgeable input and discussion.
HUD is not sitting on those foreclosures, lenders who have portfolios of FHA mortgages are sitting on them. In recent years, many lenders have attempted to sell their foreclosures(CWCOT) before conveying to HUD and collecting on the insurance. If the market continues to be strong late 2021 and 2022, I would expect that to continue. Additionally, once HUD takes possession, it typically takes 2-6 months or more for HUD to get the property on the market. So my guess is we are looking at mid 2022 and beyond until the majority of these properties begin to hit the market
Hud foreclosures have represented more than 90% of my buys over 30 years and I typically only purchase their aged inventory. So I am not expecting the "deals" to be had until at least mid 2022
I appreciate your input. Correct, it's not HUD but FHA mortgages. Although I am not in that market, I am aware of many people who have not paid their mortgage and these too are a concern. I don't have enough faith in the government bailing out homeowners as they didn't in the 2008 crash where I lost just about everything. Maybe now I'm gun shy but, the housing atmosphere now is reminiscent of 2008. (to me)
Thanks again for your input