Foreclosure Freeze Is No Reason To Stop Making Money- By: Karim El Sheikh
The real estate market went down the drain pretty rapidly over the past 10 years. The amount of foreclosures quickly rose because of people were unable to make their ballooning mortgage payments.
Even the wealthy are now selling their luxurious homes at deep discounts.
Foreclosures are dominating the housing market. This is a horrible occurrence for the families in peril, but these foreclosures leave a great opportunity on the table for investors.
Recently, there has been a foreclosure freeze placed on the market. This is highly due to improper legal proceedings that have taken place. Employees have pushed legal paperwork through the system without the proper authentication. Large mortgage lenders are taking a closer look at the procedures.
There is a lot of speculation of what may happen. It is thought that home prices will rise in the short term and the low priced bargain deals will be taken off the market. Some worry that banks will continue to pull lending even more than they already have. However, this is likely only to be a short-term effect and shouldn't distract you from the gold mine of foreclosures.
With a smart investment, the real estate market is a gold mine for those that do their homework. There is a lot of doubt from lenders and investors about diving deeper into the foreclosure market, but that is unnecessary caution due to poor decisions in the past. Right now, there are historically low mortgage rates and prices. The options for a foreclosed home are outstanding as well. This is one of the greatest times to jump into the real estate market.
Many people mistake a foreclosed home for being a run down and undesirable property. This just isn’t the case. In today’s market, you can easily find luxury homes in the best neighborhoods for unbelievably low prices. You have two options for purchasing these foreclosed properties. You can either purchase them at a public auction or you can use the lender for the purchase. Banks or real estate offices own most of the foreclosed properties.
These foreclosed homes are priced at a much lower rate than what the market value states. On top of this, you can always use the power of negotiation to bring the price down even farther. These foreclosures are turning into an excellent long-term investment. You can even find some homes that are priced almost 75 percent less than their high selling price just a couple years ago.
Due to even the nicest of houses being foreclosed on, you can find yourself saving a lot of time and money not having to improve property conditions as well. Many of these foreclosed homes are brand new or newly renovated. Using the “buy low, sell high” principle here will provide you with a great return on your investment – sometimes, very quickly.
Foreclosures are a great place to find the good deal you’ve been pursuing. The market conditions right now make it an ideal for small investors to purchase these homes. Even if you’ve had your eye on that beachfront property for a long time, now is the time that you could own the property.
You must keep in mind that not every foreclosure is going to be a home run. You can find properties that are being foreclosed on as cheap as 30 to 40 percent less than market price, but in most cases, you can expect to buy the property for at least 10 percent less than market. Make no mistake: Even this 10 percent less than market can turn into a great return when you improve the property.
Before you start investing into the foreclosure market, you should understand the process. You want your time to leverage with the payout. It can take quite a bit of time to research the right properties, find the right real estate agent, and find the right investor. You don’t want to spend more time than the return will be worth to you. Even finding a home has a low price but needs a lot of renovations can end up costing you more in the end.
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