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Foreclosure Opportunities May 10, 2007

Posted by W. Keoki McCarthy in houses, Invest, Investor, market conditions, real estate, real estate investing, REO, Seattle Real Estate, short sales.
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Foreclosures are up 27% in the greater Seattle area according to defaultresearch.com.  That sounds like a great opportunity to invest in real estate.  An investor could call on people in preforeclosure and try and work out a way to help them sell their house to that investor.  I would guess that banks are going to be a lot more willing to do short sales knowing that if they don’t their REO inventory will go up.

There is a lot to know about short sales and getting them to come to fruition.  However, if done right it can be a win/win/win situation.  The bank wins because they don’t have the costs to foreclose on a property and then the costs to sell it later.  The homeowner wins because they can sell a house for less than they owe on it allowing them to get out of an upside down situation and avoid a foreclosure on their credit report.  And, the investor wins because he/she gets a home for a better price than maybe they would have if it were listed.

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Comments»

1. gonzalez - August 17, 2007

I totally agree with your posting. I’m glad this kind of arrangement exists. I’m actually interesting in becoming an agent for preforeclosure investors. Except I’d like to do this within the Hispanic community where I know foreclosure rates are also going up, considering they were a prime target for subprime lenders. I work in the field of real estate right now and know the ins and outs really well. Right now my job is to get people into their mortgage contracts. I’d also like to help them get out of those contracts when the going gets tough. Please contact me if you’d like someone bilingual to help you acquire properties.

2. mia gonzalez - August 17, 2007

I read an article in the Wall Street Journal last week that mentioned Deutsche Bank was going to be willing to renegotiate loan terms with people or even refinance them in order to prevent them from defaulting. This of course comes long after the damning report they came out with, showing their high number of defaults (which I can see myself, going thru foreclosure listings in the paper). I’m glad they’re doing this. I wonder if any American banks will follow suit? I think it’s a win-win decision. They keep their customer$ and also keep their next financial report from looking as depressing as the last one. The industry’s going to have to start saving some of those defaulted loans unless they want the market to keep deteriorating even further…

3. Keoki McCarthy - October 12, 2007

I think you are right. The banks are going to be a little more flexible. I’ve already seen some banks extending foreclosure times in an effort to help their client. However, that extension helps but it still hurts because huge late fees and interest keep racking up. If the bank could refinance them into a favorable loan the homeowner would have a much easier time getting their payments back on track.

4. property in france - November 4, 2007

yes!
i agree, but all of us cant become the investor.


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