Articles For Aspiring & Active Real Estate Investors
As of August 2020, one in every 13,791 housing units has a foreclosure filing against it. While national foreclosures and short sale numbers are down over last year, the numbers are steadily increasing over last month. The top three states in the US to have foreclosure filings are South Carolina, Florida and Iowa.
So, what does this mean for the overall real estate market? Given the pandemic and subsequent economic fallout, increasing foreclosures may become more prevalent as job losses continue and unemployment rates remain high.
The foreclosure process is both emotionally and logistically painful for the affected homeowner. The homeowner will face not only the loss of a home, but severe damage to his or her credit.
A real estate investor’s primary job is to find problems and identify creative, win-win solutions for all of the involved parties. Foreclosure investing is a perfect way to make these solutions. When a solution is found, then money is made!
REO properties continue to present lucrative investment opportunities for many real estate investors today.
That said, many people do not clearly understand what REO foreclosure properties are, how to buy them, and how the foreclosure process works.
These are some of the questions that this article seeks to answer. Read on to learn more about how to find and buy these properties.
A Real Estate Owned or REO foreclosure property refers to property that has been seized by lenders, such as banks, from people who have defaulted on their mortgage payments.
An REO foreclosure property can include condos, detached homes, townhouses, commercial property, multifamily property, and land.
Whenever a borrower is unable to consistency make mortgage payments, the lender has two options for covering the loan including a:
If no bidder at a foreclosure auction comes up with the amount of...