The 2008 first quarter results are in and they do not look good. Foreclosures are up 23 percent from the first quarter in 2007. This marks record foreclosures across the nation. Now one in every 195 house holds is in some sate of foreclosure.
™
We are only four months into the year and already over 156,000 home owners have lost their homes to foreclosure. The real scary thing is that the foreclosure rate is not slowing down, it is actually speeding up. This means we will see more foreclosures each and every month. There were only 4 states in the nation that did not have increasing rates of foreclosure.
So where are the hardest hit areas? Nevada, California, Florida, and Arizona top the list with the largest amount of foreclosures and the trend does not look to be slowing anytime soon. One out of every 54 homes in Nevada is in a sate of foreclosure. This is amazing considering they are still one of the fastest growing cities in the nation. Many people moving to Las Vegas and other areas of Nevada are renting until they see the market bottom.
Many people are wondering if the newly passed government programs created to help stop those falling into foreclosure is helping. Despite all the effort the government has been putting into new bills and laws to help stop the foreclosure nightmare, it just does not have a chance against all the default loans. It is like sending trying to stop a freight train with one box car. The laws that are being created are taking time to create and are only helping a few home owners. They have no chance stopping the foreclosure momentum.
Even more disturbing is the fact that over 360 billion dollars worth of mortgages with adjustable interest rates is going to reset in 2008. This is only going to increase the number of foreclosures across the nation.
So what can you do if you live in Las Vegas, Stockton California, Detroit, or any other area and you are starting to loose your house to foreclosure. There is a simple and easy answer, sell your house. Now you might say, easier said than done right? Well it is in fact that easy. Even though there are not many home buyers looking for houses you still can sell your house.
The best way to sell your house if you are falling behind on payments or see the foreclosure monster coming your way is to contact a local professional home buyer. You see, there are many ways to sell houses and professional home buyers make a living from helping people sell their house, at no cost to you I might add.
Even if you owe more for your house than what it is worth, you can sell your house. Local home buyers will work with the banks to release the loans against your home and they will buy it from you, all this at no out of pocket expense. The problem is many people do not realize that professional home buyers exist, they think the only way to sell a house is through a realtor or for sale by owner, not true.
So, if you need to sell your house to stop foreclosure contact your local home buyer and receive a free offer on your house today. If you contact them today you could have an offer on your house within 48 hours. They can explain to we buy houses you your home selling options and possible solutions. Then you just choose the right one for your situation.
A "bad market" in this instance means a real estate market where there is little to no appreciation, the market is clogged with unsold houses, depressing sales and foreclosures are up; torpedoing home values.
So clearly, the traditional, "buy, fix up and flip" or buy and sell to a rehabber is not going to work in this environment. In fact, it is those very flippers who were late to the party or just plain greedy and are now bailing out and dumping their properties, that are helping to drive down home sales and prices.
So what is a real estate investor to do to make some quick money, especially if he or she is new or has no resources, which describes many flippers?
The solution to this dilemma lies in understanding the needs of property owners who have to sell in the reality of today's market.
People looking to sell in this environment are going to have problems; huge problems if they are forced to sell at this time.
The houses will sit on the market for months with no offers or very low offers. The homes value will slowly erode as the homeowner waits for Godot.
In fact, many people are or will be trapped in their homes; perhaps unable to afford to stay, unable to sell; especially if they have little or no equity in their homes.
In order to get out of their homes, they would have to bring cash to the closing and "buy" their way out of the house. This is impractical for most people, especially if their need to sell is financial as many are.
Rising mortgage payments, the result of financially incongruous mortgages, so prevalent during the recently departed "Boom;" called for "Resets" a few years after origination at 50-100% increases in payments.
Now, many of these families are unable to afford to keep their homes.
Job losses, divorce, illness and death are the other primary motivators that force people to sell their homes as soon as possible, regardless of market conditions.
Most people who have bought their homes or refinanced to "consolidate their debts" in recent years have very little equity in their homes. This means they can't lower their prices to meet the soft market or they will need to bring money to the closing to make up the deficit between their selling price and the fees and expenses of the sale.
These people need help, desperately.
If they cannot get out from under their homes, they face the ruination of their finances for decades to come. Contrary to popular belief, they cannot just "send the keys to the bank" and walk away, free of their troubled property.
If the bank forecloses and sells the property for less than they were owed, the homeowner would be liable for the difference and/or be subject to income tax on the deficient amount! Don't ask. It's just IRS rules.
The only way for these unfortunate homeowners to get out of the frying pan, is to get into the fire! If the homeowner filed bankruptcy, it would protect him from the deficiency judgment and the income taxes due on it.
Herein lies the opportunity to make fast money!
Find these people who are trapped in their homes and help them get out of their nightmare. Refer them to experienced real estate investors who can help them get rid of their property.
The investor will either pay you a small fee for the lead, or pay you a larger fee, say a percentage of the profits, when he or she disposes of the property.
The key is to be flexible. The real estate market changes and you must change tactics if you are to make money in the new environment.
Don't be like the rat who repeatedly went back to the box his cheese used to be stored in, even though it was no longer there.
Duck hunting season is over, Bunky; so go look for some turkeys!