Is The Foreclosure Market Right For You?

Is The Foreclosure Market Right For You?

As the number of foreclosures rise the the market for them continues to heat up. Close to 1.5 million have recieved foreclosure notices in the first half of 2009. The dismal failure of the federal government's 50 billion dollar program designed to help 4 million financially challenged borrowers is glaringly apparent. Only 9% who have missed 2 months of payments recieved the 3 month trial modification allocated for those qualified under the program. A mere 15% of eligible homeowners have been offered any assistance. Meanwhile over 400,000 to 600,000 people per month are having their jobs cut. All of this suggests there are many foreclosures in the imediate future.
Foreclosed homes are assuredly one of the more promising investments in real estate today. These homes can be purchased at a steep discount. After making repairs and cosmetic touch ups a home can be placed back on the market and easily sold for substantial profit. The lenders who wind up with this property are eager to unload it and willing to sell at very reduced prices. Up to date foreclosure listings can be obtained from websites or real estate agents. Of course you do not have to sell it. You may prefer to rent it out for positive cash flow. Many people have become rich buying, selling or renting foreclosed property.

When looking at prospective property find out if the taxes have been paid on it. You can lose the property to the government if they remain delinquent. Take care to asses damages and calculate how much money will be required to get the house ready for the market. Talk to a real estate agent and get information on what houses in the area have sold for recently. You need to know the value of the home after it is repaired. Do not be too afraid of doing some restoration. Sometimes the bank or home owner can be daunted by the poor condition of the property when in fact it is not that big a deal to get back looking good. If they do not realize that, they will often be willing to take less money. Primarily the lender is concerned with the outstanding loan balance and often would be content to sell for that.

Perhaps you prefer to use the current foreclosure market to procure your own house. This might be the perfect time to buy that home you've always wanted. Purchasing at 50% and more under market value is certainly not out of the question. In fact it happens all the time. If this sounds like it apeals to you start finding homes and making offers. With patience and careful analysis a lot of serious money can be made in this current foreclosure market.