The Foreclosure Market: Be Open, Optimistic and Most of All - Educated
A record high in defaults, foreclosures, and distressed property owners has created an unprecedented window of opportunity for short sale, foreclosure, and owner financing investors. The window is there, but you must go and open it. I think that your mind set, perception, and motivation are the most important factors in taking advantage of these unique market conditions.[googmonify]4494413162:right:250:250[/googmonify]
The reality is that this market is highly static, ever evolving, and you need to be prepared to roll with the changes.
Short sales have been described as challenging by many. But my fellow investors and I have been surprised by how rapidly the lenders are changing their guidelines, and doing things now that 90 days ago was unheard of. For example, they are doing short sales for homeowners that have not even missed a payment!
They have also been bending over backwards to structure loan modifications for distressed homeowners to keep them in their current loan. It does make sense, they ultimately want to avoid having REO’s (foreclosed properties that don’t sell at auction and end up in their inventory). So to stem the tide they are accepting short sales and providing loan modifications.
SO… BE OPTIMISTIC!
Short of having a crystal ball the best thing any of us can do is to stay educated.
I say “stay educated” because in this market, education is not a one time event. You must constantly stay up on the latest news and trends. Timing is key – we are just at the start of what will probably turn out to be the largest, and steepest increases in foreclosure activity – ever. Short sales and REO’s will be commonplace.
Your specialized knowledge will allow you to make a profit, where other investors can’t figure out how to structure the deal. So don’t listen to the guys hanging out at the water cooler saying that it can’t be done…….Roll up your sleeves, dig down and learn about what people did in the last downturn to become millionaires. Most people who are hesitating to get into investing are experiencing some level of fear. Education is the best medicine for fear.
SO GET EDUCATED!