Snapping Up Foreclosures

Snapping Up Foreclosures
With two million home foreclosures already in 2009 (and possibly millions more to come in the next couple of years) it is clear that for those in a position to purchase, there eventually will be plenty of money to be made.

This idea clearly has not been lost on real estate investors throughout the country, particularly those in states hardest hit by the crisis (California, Nevada, Arizona and Florida), as available buyers have been plentiful in 2009 compared with the previous two years. In fact, many analysts believe those markets will demonstrate how the overall recovery will take shape throughout the country.

Uvestor Opportunity:
A recent article by CNNMoney points out that REOs are going like hotcakes. Competition amongst those making offers is very stiff, so the best strategy is to decide on one’s best offer and deliver it immediately. With such a heavy volume to manage, many banks are their putting emphasis on turning over properties quickly (and eliminating maintenance costs and property taxes), which means that deals can be had if one is crafty enough to come in as the high bidder.

Remember, though, banks are getting a lot of bids. A lowball offer is only good if it is accepted. At this point, enough REOs have been processed that a little research on prior sales should serve as a guidepost for future bids.

Indications are strong that the earlier moratoriums have set up a situation where a large number of properties will become available in the next few months. Uvestor’s recommendation is to position accordingly and find a deal that makes sense.