Pre-Foreclosures May Be Best Bet Now
Bankrate.com has this Q and A on buying a foreclosure. "Dear Real Estate Adviser, I am thinking of buying a foreclosure home to live in and possibly another for an investment some time in the next year or so. I am wondering: Is this a good time to look?""It might be the best time in years, which would mean it's perhaps the worst time for thousands of financially strapped U.S. homeowners struggling to hang onto their homes."
"Many economic experts are predicting that mortgage delinquencies will rise, up to 15 percent in 2006, among homeowners with higher-cost or 'subprime' loans. About 19 percent of all U.S. home loans are now subprime in contrast to just 5 percent 10 years ago. A lot of those homeowners with adjustable-rate subprime loans will see their loans reset at higher interest rates in the coming months and that will spell trouble."
"Foreclosure buying is a very competitive game right now, with so many real estate gurus advocating the strategy in books and seminars, and on TV and the Internet. Just do a Web search under 'foreclosure opportunities' and you'll see what I mean."
"While there's not space here to go through all the strategies, buying a 'pre-foreclosure' from a defaulting or financially strapped owner might be the best way to go on the consumer end. The county clerk's office keeps lists of such pre-foreclosures. Seek out titles where a 'lis pendens' notice has been filed by the lender."
"The foreclosure-property auctions that you see advertised are usually the realm of more heavily bankrolled professional investors who stand ready to pay cash for a property."
"If you are brave and well capitalized, you might try your hand at it. You might want to attend one or two for observation before acting. Whichever approach you try, don't give up if your first few efforts don't pan out."
posted by Ben Jones @ 9:51 AM
2 Comments:
This is nonsense. You won't be able to cut deals on these properties until the banks have a portfolio full of them and are being pressured to dump them or risk bad quarterly reporting and/or failing.
It's way too soon for this game.
TxChic,
I agree, it is way too soon. The fact that there is competition for these properties shows that a contrarian should wait.
I did want to post it, as it had a little info. It's curious, because right before Xmas, foreclosure reporting all but stopped. I guess no one wants to read this stuff around the holidays.
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