Home Foreclosure
Get Free Foreclosure Listings For 14 Days: Click HERE
Home Foreclosure
As a result of these slow economic times, the home foreclosure market has been going off the scales. People today are buying at lower rates than ever from the rapidly-growing pool of people trying to sell off their home equity before the bank takes it. As a simple matter of supply and demand, these low rates mean enormous profits for us investors when we relist at market value. Short-term flipping in the home foreclosure market is probably the easiest and most lucrative investment you can make today.
Home Foreclosures Began Slowly
In order to understand why a recession is actually good for the home foreclosure market, we first must take a look at the events leading up to it. During the spurious economic growth of the 1990’s and 2000’s, banks were lending very freely to people who could not realistically expect to make the minimum payments on these loans in the case of an economic slowdown. This is what is commonly referred to on the news and elsewhere as the “housing bubble.”
Home Foreclosures Rapidly Grew
Well, as the natural forces of the economic ebb and flow began to do more ebbing than flowing, the bubble burst. All at once, thousands of people were unable to make their minimum payments on their mortgage. As a result, the amount of foreclosures went through the roof. Banks, finally realizing the consequences of having all these bad assets, stopped lending. This led to the credit crunch of mid-2008 and only further exacerbated the already skyrocketing rate of home foreclosures.
Supply Is High – Demand Is Low
So what does this mean for us investors? Simple: with so many home foreclosures on the market, supply is high and demand is low. Therefore, it is easy to buy a seller’s equity in his home for often as low as 60% of its market value. He needs to sell and sell now, and can’t afford to wait around for a price he likes. In normal real estate, a seller may leave his house on the market for two years or more. However, when facing foreclosure, and individual will usually have 90 days or less.
New Investors Are Making Mad Cash
As a result of this bursting of the housing bubble, competition to buy foreclosed homes has been severely thinned out. This means that it has never been easier for new investors to get involved in the market. In fact, there are many websites popping up now offering subscription services that make it easy for new investors and old alike to make some nice money in the home foreclosure market.
Let The Lists Do The Work For You
Generally, these lists will provide you with enough information to asses the property’s actual market value so that you never actually have to visit or inspect the property. A good website will have already done that work for you. From there all that’s left is to do sales comparables and sell it at market value, and pocket the difference.
Investors Found The Hot Spot
Lately I have been having greatest success with RealtyTrac; they have the largest database around that I have seen, and provide very thorough details on their listed home foreclosures. And they’ll give you a free trial too, so sign up and see for yourself how deceptively easy this business is.
Photo by Mortgage Foreclosure
