Foreclosures Up in January
Key Points to note:
- 1 in every 624 homes in the US got hit with some sort of Forclosure Filing
- Foreclosures increased 3% of December 2011
- While Foreclosures are down since January of last year, it is mostly due to a slower foreclosure process by the banks.
For investors with CASH to purchase investment property, this is great news. The new glut of foreclosures will push property values, particularly values in heavy rental census tracts, even lower.
While banks will tell you that buying rental homes is a risky move, it is not. What is risky is financing these homes, but most banks won't let you anyways, which is why this is the market for CASH buyers.
CASH buyers have all the power in this market, and can dictate extremely low purchases prices on these distressed properties, becuase the only competition they have are other CASH buyers which in itself limits the seller's or bank's ability to play the "buying field."
The Big Financial Institutions are paying a very heavy price for their greedy and poor lending judgments through the first 7 years of this century. The other thing hurting the financial institutions is their unwillingness or inability to lend money currently.
Investors like AMOSO Properties will continue to take full advantage of this situation until the banks figure out how to sort their mess out.
It is sad to say for the economy but the mess that these banks, Fannie and Freddie have created created is still years from being overcome.
If you would like to learn how you too can make money in this housing downturn, please contact AMOSO Properties by CLICKING HERE.