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Over 10 Million Distressed US Homes Ripe For Real Estate Investors

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on Thursday, 18 June 2015
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New data reveals more than 10 million distressed homes that could be ripe for US real estate investors…

Even though some real estate investors say they have been feeling the pinch from fast rising property prices and a lack of inventory, there are many more distressed properties out there than many can fathom.

While US home equity has been racking up hundreds of billions of dollars in positive gains many US homes are still deep in distress. According to National Mortgage News there were around 5 million underwater homes in America in mid-June 2015. But that’s only a small part of the story. CoreLogic data shows 85% of homes under $200,000 are still underwater!

Think that’s a bigger number? Then add another 20% of mortgaged US homes, or just shy of 10 million homes that have less than 20% equity. These represent homeowners that are also in a tight spot. Between Realtor commissions, taxes, closing costs, pre-payment penalties, back interest and fees, HOA and condo dues, code enforcement violations, property taxes, and marketing expenses most of this group may not be able to sell conventionally either.

Want MORE deals? Check out the 50% to 74% rise in bank owned REOs revealed in this real estate blog post. Then ice that with fresh new residential and commercial mortgage delinquencies. And then there are all the properties that are not mortgaged, but are in distress due to property condition, divorce, past due taxes, and more. 10 million is just a small piece of the pie.

US banks just got slammed with new regulations in June 2015 too. Some of the biggest have finally found that skirting their obligations to help homeowners, grant short sales, and approve real loan modifications has caught up with them. In some cases this means they are banned from increasing their mortgage loan portfolio size. That means they have to shift bad loans and old loans off their books in order to make new ones and make more money. That’s a whole new world of motivation for banks to help investors buy these properties.

There may be some negotiating, and creative deal structuring and financing to be done, but it’s unlikely we’ve seen opportunity this big for US real estate investing since the days of the pioneers heading west.

 

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding and hard money loans for real estate wholesalers in the US, where 100% financing, and saying “Yes” is what we love doing all day long.

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Bank REOs Surge 50% in 2015

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on Wednesday, 03 June 2015
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Distressed property opportunities are surging in 2015. So where are they, and who’s buying?

While some newbie real estate investors that have gotten into the industry since 2008 have been griping about a lack of deals, the data shows there are even more distressed properties coming up for sale. In fact; according to the stats there are twice as many.

Rocketing REOs

While some appear to have forgotten there was a foreclosure crisis RealtyTrac reports that bank owned properties leapt up 50% year over year to April 2015. There are a lot more distressed properties in the works too. RealtyTrac reports an almost equivalent number of pre-foreclosures and auction properties too. The Mortgage Bankers Association reporting commercial and multifamily delinquency rates reveals that the number of Fannie Mae loans that were 60+ days delinquent almost doubled in Q1 2015 as well. Many of these are properties which aren’t even included in foreclosure figures yet.

California Foreclosures and Fast Growing Markets

It’s no secret that California has been one of the fastest rebounding housing markets in America. In fact, it dominates Realtor.com’s recent list of the hottest US real estate markets; claiming 10 of 20 places. Yet, even in CA where property prices are up, and days on market are shrinking RealtyTrac says bank owned REOs have climbed even higher; by 74%.

Demand is up too. Online listing portal Realtor.com says visitor numbers have doubled in 2015. So more distressed properties are coming down the pipe. But there are plenty of buyers eagerly looking to snap them up. These are perfect conditions for real estate wholesalers that can virtually flip an unlimited number of house deals using transactional funding.

 

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding and hard money loans for real estate wholesalers in the US, where 100% financing, and saying “Yes” is what we love doing all day long.

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