Recently, Brandon Turner made the case that increasing the minimum wage will help real estate…
The current real estate market is very volatile and can experience further depreciation with high unemployment rates and foreclosure rates. Are you prepared?
It seems that everywhere you look now days the news stories, regardless of their source,…
It looks like the Obama White House really does have its job cut out for…
The White House keeps telling us that we’re in a recovery, yet anyone watching the…
Foreclosures Jump 5 Percent From Summer; Government Effort To Curtail Foreclosures Sinks Like Lead Duplex
In my previous posting with the VERY long headline the other day, I challenged any and all to contradict me when I —and a Congressional oversight committee—concluded that the Obama administration’s attempt, thus far, to gain meaningful mortgage modifications has totally flopped.
In even less time than I thought would be the case, I have been proven sadly right: A new RealtyTrac report just out says that foreclosures are up a full 5 percent from summer to this fall…..meaning almost 940 thousand properties were impacted….
Has the real estate market bottomed? No, nope, not a chance. We are through 1 of 3 storms and have a crippled economy and really high unemployment. The good news is that we are through the worst. With terrible times come tremendous opportunities. After the last up cycle where everything went way higher then it should have, this had to happen. It is inevitable. If you are like me, you see the next 3-5 years as the opportunity of a lifetime. Here is why.
As real estate investors everyone of us have to be thinking… “how in the heck do I profitably navigate in a market as defined in the title of this article?”
And that is the million dollar question, which I will respond to in just a minute, but first lets look at a few of the facts:
A Look at the Current Housing Picture
- Let’s start with the economy. Depending on who you are listening to, we are either at the bottom, still moving downward or possibly even worse. If you invest in California, Michigan or Ohio you don’t need to be told the state of your economy… it stinks! The message here is that if people aren’t working, they will not be buying real estate or making good renters.
We’ve all heard the saying that opportunity only knocks once.
Do you feel like you missed the boat?
Many investors that were not prepared for this current historic market of record low prices and interest rates feel that their boat has set sail and they did not get a chance to participate.
American author Louis L’Amour said it best. He said, “Some say opportunity knocks only once. That is not true. Opportunity knocks all the time, but you have to be ready for it. If the chance comes, you must have the equipment to take advantage of it.”
Well, I have good news for you my friends. Another wave of foreclosures is coming and you have some time to prepare for it. The historic market you think you missed is coming back and better than ever.
So Winston, where is this second wave of foreclosures coming from?
The 2nd wave of foreclosures is coming due to the following 4 reasons:
I wrote several months back that unless the courts are given the power to alter the terms of a mortgage–the way bankruptcy judges can alter just about everything else–the road to a real estate recovery would be long, bumpy and increasingly painful.
And, here’s the proof.
RealtyTrac reports that home foreclosures have set yet another record for the month of July—-As Reuters reports, this, even though there are reportedly federal and state programs out there that are supposed to bring relief to the home market.
Why do I say “reportedly?” Because, frankly, they really aren’t working all that well. Relatively few people have managed to get mortgage modifications and, when they do, it is almost always a modification of just the interest—which means, in the long run, they may end up actually being even more in debt to the bank.
Four million homeowners saved from foreclosure just this week! Major banks agree to modify mortgages…
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