Is the U.S. going to undergo a new wave of foreclosure? Where are the best opportunities for wholesaling houses emerging today, how do investors find the excess liquid capital to scoop up as many of these deals as they could while they last?
National statistics reveal foreclosures declining, and the catastrophe phase may certainly be over, but that does not mean there are not countless distressed properties prices waiting to become fuel for real estate wholesalers.
The crisis may be over and home prices could be rising but there are still countless distressed homeowners out there with some cities and states visiting 100% climbs in foreclosure filings, repossessions and auction activity.
Some have disregarded this as being solely because of the huge backlog of properties in the foreclosure process in states like Florida and New York, but that isn’t the entire story. Recent data shows real internet surges in brand new foreclosure filings as well as new information showing around 46% of homeowners getting loan modifications under the HAMP application are re-defaulting.
Without a new help from the very best on the road for struggling homeowners that the foreclosure pipeline will continue to flow and provide inventory for wholesaling massive volumes of houses for several decades. It is correct that Fannie Mae and Freddie Mac have rolled out a brand new compact modification offer, but without a transparency how many will be offered a deal, and still failing to offer principal balance forgiveness it is unlikely to have any noticeable effects. Adding another decade or more to a borrower’s loan, even at a reduced interest rate frequently increases over all costs and the authentic APR, while burying them deeper beneath negative equity.
Where should investors be searching for deals today? There are still quite appealing bargains available all across the country. But honing in on lists of those that modified loans over the last five decades and are defaulting again, appearing to the most troubled areas, and even tapping into luxury houses where more affluent homeowners are only now giving up could be very fruitful niches to explore.
The best part is there is even more funds available than ever today and lenders are eager for it to be put to work in real estate. Crowdfunding and private lenders can offer attractive rates and simple processes, while transactional funding and industrial bridge creditors will provide 100% short term funding for securing great deals with almost no danger.