Record Number of Foreclosures Means a Record Number of Bank Owned REOs
With the recession looming, homeowners are in a financial bind
. It is in equal parts bad and good news. Bad for average real estate agent as property purchases are hitting the record low. Good for real estate investors as property foreclosure are hitting the record high. Foreclosures end up as Bank Owned REO Properties, and banks, having no interest in bothering with upkeep, sell them in bulk for pennies. Pennies that turn to dollars when bulk bought properties are resold. Real estate investors' dream.Hard facts back up the promise.
With the 2010 unemployment rate hitting 10.5%, the number of homeowners defaulting on their mortgages is surging. Foreclosures are reaching as many as 7 million mortgages, with additional 5 million being at risk of default where borrowers owe more than the property is worth. The 2010 US Foreclosure Market reports 15% percent increase from 2009, with total increase of 38 percent from 2008, meaning that roughly one in every 409 US households has filed for foreclosure. This is the highest foreclosure rate since the real estate buckling began in 2005.
The Bank Owned REO activity is up 31 percent from January 2009 with default notices up 4 percent from 2009 and scheduled foreclosure auctions up 15 percent. California, Florida, Arizona, Illinois, Michigan and Texas are focal points accounting for 60 percent of national foreclosed properties with Nevada, Georgia, Ohio and New Jersey following close behind.
Faced with deteriorating situation, lenders are moving in on delinquent loans and pushing foreclosures. As banks and loan servicers work their way through loan-modification applicants, Bank Owned REO Properties are increasing and starting to choke strictly scrutinized bank system. According to current trends, bank owned REO properties are expected to peak at 538,000 by fall of 2011. Desperate to clear the books of accumulated REO bank are selling them in bulk at the lowest observed rates. Financing is not an issue. With rapid and convenient Bank Owned REO Property sales process, lenders typically respond to written purchase offers within 48 business hours.
Market is flooded with Bank Owned REO Properties.. Banks do not want them. Real estate investors need them. Prices are at the record low and the time to strike is now. With so many players in the game, the trick to get ahead of the curve is to get access to Bank Owned REO Property lists. Without lists in hand the pickings are slim and the profits partly. While the lists are kept in good confidence, savvy real estate investors know - where there is will there are means. Getting to bank owned REO lists is as easy as singing up with trusted REO expert.
Bank Owned REO Properties are a nice a convenient way to get your money maker going again. While some consulting is advised to get to best Bank Owned REO Property lists, the effort and the time spent is well rewarded. Bank owned REO properties - the best way to make money today.
Record Number of Foreclosures Means a Record Number of Bank Owned REOs
By: Mark Bradley