Upcoming Foreclosures

Is now a good time to be investing in real estate foreclosures and short sales?

Public Comments

1. Sure but first you have to find them. That means contacting a lot of banks and savings and loans. Next, you don't get a lot of opportunity to inspect these places so you could buy one and find it is in much worse shape than you thought. Last, there are a million other people out there trying their hand in it as well. You will have some competition.
2. If you're looking to invest, I suggest making investment on properties that are only in need of minor TLC. This is the perfect market for great deals, but sometimes things are too good to be true, so make sure not to purchase anything without first consulting with a home inspector.
3. I am buying right now. I have 5 offers in the pot. Prices are low, and the interest rate is low. Unlike the other poster I am not having ANY trouble viewing property. I am in CA, maybe other states are different. I pull my data from the MLS, run my comps, etc etc etc w/o difficulty. You do have to call to get the lockbox combo's though, most are not on regular real estate keys, but the old fashioned combination locks. Great deals are being snatched quickly, within 48 hours, and the compitition is heating up. I started having numereous bids this month, where I was the loan bidder for the last several months.
4. It depends on where you are and what you are trying to accomplish. I'm an investor in SLC, Utah. I'm buying all I can find at the moment. But I believe that Utah will rebound in the spring and we will begin to appreciate again. I bought two duplexes in the last 8 weeks and will be looking for more. Winter is normally a slow time and with the credit crunch on top of that it is a very slow time. But some people still need to sell. One duplex the owner had a conservator because of being incapacitated and the other was an out of state seller that just wanted out. There are plenty of deals like this in our market. Both properties were purchased for long term investment. The 60 year avearge yearly appreciation for the US is 5%, Utah is about 6.5%. So long term is not really much of a risk. There may be flippers out there too, but our market is so slow right now that I don't think that would be such a good idea. If you were willing to buy, rent it for 6 months and then sell it though, that would be a reasobably good strategy. Good luck!
5. Absolutely. Contact a Realtor who is an Accredited Buyers Agent to help you locate foreclosures and then determine if they're good deals. Go from there, but don't expect to make money in just a year. Plan on holding some of these for 3 - 5 years or more for the best appreciation. Best of luck to you!
6. Yes, but like any other real estate offer, be thorough and complete in checking out the property, appraisals, inspections, etc. Don't be forced into making a rush decision because it's "not going to last" or they say the price might go up. Also, don't buy property with the hopes of renting it out. That could lead to real trouble.
7. I have several investors looking at everything on the market, not just foreclosures and short sales. Alot of novice investors believe that lenders are selling their REO properties for a small fraction of real market value because they have to "clear the inventory" or some such nonsense. Lenders are in a position to sit on a property for awhile and wait for their price. But they certainly don't want to own them, so don't be afraid to make a reasonable offer. One downfall of working on REOs and short sales is dealing with the lenders. It can be a slow, frustrating process. Lenders routinely ignore deadlines you put in the offer, won't return calls or take quite some time to answer questions. Don't bother with the foreclosure sites. They are not accurate, even the ones you pay for. Contact your local tax offices, HUD website, lenders or a Realtor.
8. yes....
9. Yes it is. Even in this down market distressed properties can still be profitable for those willing to invest. There are many websites that can help you find distressed properties as well.