Real Estate Slowdown Opportunities Ahead

Real Estate Slowdown Opportunities Ahead



Real Estate Slowdown: Opportunities Ahead
With national foreclosure default filings continuing to​ soar in​ the​ five months of​ 2018, evidence mounts that increasing numbers of​ U.S .​
homeowners are struggling to​ stay current on their monthly mortgage payments .​

Now builders are facing a​ downward market pressure from the​ rising numbers of​ foreclosures .​
As evidenced by the​ drop in​ home sales reported by builders, speculators are realizing their investment are starting to​ lose equity as​ property prices drop, they in​ turn are forced to​ lower their asking price.
Add to​ the​ problem an​ increase in​ mortgage rates and​ a​ hit to​ the​ budget for​ gasoline, and​ home buyers have lost a​ huge number of​ their buying power
All these downward real estate market pressures continue to​ build and​ as​ foreclosures start to​ flood the​ market, prices will drop even faster.
Consideration points:
1 .​
Foreclosures are adding to​ supply .​
2 .​
Home builders are still adding to​ supply .​
3 .​
Real estate investor psychology has changed, reducing demand .​
It is​ these market conditions that will enable the​ shrewd real estate investor or​ first-time home buyer a​ unique opportunity to​ obtain real estate proerty during the​ market slowdown .​

Foreclosure Process Overview
Each state has its variation on the​ foreclosure process: two processes a​ foreclosure can happen:
Judicial Foreclosure: (Time Period – 10 to​ 11 months)
1 .​
Homeowner defaults on payments for​ three consecutive months .​
2 .​
Lender retains services of​ an​ attorney .​

3 .​
The legal firm will file a​ Notice of​ Default (NOD) in​ the​ county court .​

4 .​
a​ notice of​ default will be published for​ four consecutive weeks for​ public information .​

5 .​
At the​ end of​ four weeks, the​ house will be auctioned off to​ the​ highest bidder at​ the​ steps of​ county court house .​

6 .​
The homeowners is​ given six months to​ bring their account current and​ pay off lender .​

7 .​
If the​ homeowner succeeds in​ refinancing or​ selling the​ house or​ some how raises the​ enough cash to​ pay the​ mortgage off, they can still save the​ house in​ this six-month window of​ time .​

8 .​
After six months, the​ bailiff from the​ courthouse will come the​ homeowner house and​ evicts the​ residence and​ change the​ locks .​

9 .​
The house is​ now officially foreclosed and​ belongs to​ the​ bank or​ the​ investor who purchased the​ house during the​ courthouse auction .​
Non-Judicial Foreclosure: (Time Period – 4 to​ 5 months)
1 .​
Homeowner fails to​ make payments for​ three consecutive months .​

2 .​
Lender will transfer the​ matter to​ an​ attorney firm .​

3 .​
The legal firm will file a​ Notice of​ Default (NOD) in​ the​ county clerk office .​

4 .​
a​ notice of​ default will be published for​ four consecutive weeks for​ public information .​

5 .​
At the​ end of​ four weeks, the​ house will be auctioned off to​ the​ highest bidder at​ the​ steps of​ county court house .​

6 .​
The eviction process happens within 3-4 days after the​ auction and​ the​ property reverts back to​ the​ lender or​ the​ investor who bought the​ house at​ auction .​

Foreclosure Profit Opportunities
There are three phases to​ a​ foreclosure opportunity: Before the​ trustee's sale, at​ the​ trustee's sale, or​ after the​ trustee's sale.
* Before the​ Sale -Time between when the​ homeowner has stopped making mortgage payments and​ when the​ properly is​ actually put up for​ sale at​ auction .​
Investors take this opportunity to​ deal directly with the​ homeowner .​
* At the​ Sale -When the​ courts seize the​ property from the​ homeowner and​ sell it​ to​ the​ highest bidder .​
The county sheriff or​ a​ trustee handles this process, depending on the​ state
* After the​ Sale -If the​ property fails to​ sell at​ auction, or​ if​ the​ lender ends up as​ the​ highest bidder, the​ home becomes REO, or​ real estate owned by the​ bank .​
Banks then try to​ sell these REO properties on the​ open market, often through a​ real estate agent or​ third-party marketing company.
Finding Foreclosure Listings
a​ number of​ on-line web sites offer trial memberships, try a​ number of​ foreclosure listings sites and​ evaluate which offers the​ best most current listings .​
Since foreclosure listings can be found by visiting the​ local recorder's office and​ making photocopies this can be daunting since listings are added on a​ daily basis .​
Using the​ Internet, a​ number of​ web sites allow searches by state, county, city, and​ zip code .​
Like with any product, performing your own comparison of​ foreclosure list sites will give you the​ best price and​ value for​ money .​
Take advantage of​ the​ free trial period offered evaluate their listings .​
The sites should offer the​ latest listings with daily/monthly updates.




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