An Update on Foreclosures

by Simon Lindsay on Foreclosures

Over the last years there have been a ton of distressed properties on the market, which are ideal for foreclosure investing. From residential foreclosures to commercial foreclosures, the opportunities to obtain an incredible property well below market value are still alive and well. However, everyone acknowledges that the key to real estate market recovery involves improving consumer/investor confidence.

Investor confidence is pertinent to improving the current real estate market because these investors will be the ones putting money back into real estate. Despite the incredibly low interest rates and low home prices, some investors are still weary due to the instability of the United States economy. However, if these investors hold out too long they may be missing out on exceptional opportunities.

Fannie Mae and Freddie Mac Coverts Foreclosures to Rentals

Due to the high lending standards, demands for rental properties have risen in many parts of the country. Furthermore, many lenders have incredibly high foreclosure inventories and have even resulted to demolishing properties in an effort to reduce their liabilities. Now, Fannie Mae and Freddie Mac are trying to convince investors to purchase some foreclosure properties and turn them into rentals.

Between Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA) over 1/3 of REO homes are part of their inventories, which is a significant burden to the lenders. Therefore, something has to be done to get these properties into the hands of investors.

Occupy Foreclosure

Furthermore, with Occupy Wall Street protesters actually encouraging homeowners who were foreclosed upon to take back their homes, many abandoned properties are being vacated. However, they are not only being vacated by the former homeowner, but also by criminals and the homeless who often vandalize the property.

As a result, it is essential for investors to act now to secure the distressed properties that are currently on the market. Now is the perfect time to invest in foreclosures as banks are willing to practically give away unwanted properties to reduce their foreclosure inventories. Plus, if you have to finance in order to purchase the investment property then interest rates are incredibly low, allowing you to save a ton of money over the years.

In the end, there are still a ton of foreclosures on the market and the investment opportunities are endless. If you are an investor that has been considering purchasing a foreclosure property or two to fill up your portfolio then take a look at the distressed properties on the market and start investing!