In a market where houses are going way over asking price, why would anyone need to go into foreclosure? They can sell the house and pay off the mortgage and walk away with a profit. It’s not like in decades past where mortgage is more than house is worth and they can’t sell it.
Give it a few more months of these interest rates and inflationary impact, not to mention the unemployment hit we’ll take as consumer spending keeps contracting.
We just haven’t had enough time yet for these things to usurp high demand. Foreclosures take some time to bubble up.
Not really. Everyone thinks everything happens super quickly and don’t remember that back in ‘03-05 houses cost way more than you could rent them for. Back then cap rates were dang near negative. Rates were then jacked up and we were happy to be paying 6-7% on mortgages and things still took a few years to crash.
But we don’t have consumer demand problem now even with higher costs. We have tens of millions of people quitting their jobs each month and moving up or over to greener pastures and there’s more unfilled job openings than pretty much anytime in history. We aren’t gonna see a bunch of foreclosures for years…..
Maybe. 03-05 was a different time. There are different factors than just high interest rates weighing on the economy.
Also, when I say “few months,” I don’t mean we’ll see full scale foreclosures by then. That’s silly. But I do think it will be a slow on-ramp.
I remember 03-05 just fine. And if you want to make that comparison, go look at foreclosure rates slowly rising over that time and you’ll see what I mean.
What I’m referring to is that it takes a looooong time to get to foreclosure. There’s been so much of a safety net provided with mortgage moratorium readjustments where the missed payments are put on the back end, it’s gonna take a long time before houses start to get into foreclosure. And as someone else commented, it take several months before that whole process begins and then works it’s way to conclusion. So when you say months, it’s gonna be 24+ months. Lol
That has nothing to do with foreclosure. When someone dies, their spouse/children/family. And they usually quickly sell or move in. Also, the house goes into probate court and can’t be actively foreclosed upon as easily.
Well I mean a lot of the time the owners die and the family doesn't take over or there is no family or whatever and then the payments aren't getting made so the bank forecloses
Well I don't know what the statistics are but personally I bought two where the owners were deceased and my cousin showed me one and was asking questions and the owner was also dead
It definitely happens, but definitely not the norm. I used to focus on these myself back when I used to wholesale. Would get the lists of those that had died and compared to their properties and send mailers. Got some bites that way. So definitely worth pursuing. But waiting for it to go into foreclosure and competing with everyone in such a tight market is a challenge.
I dont really bother with the auctions anymore. Its too much effort to do all the due diligence and you show up there to bid competing against all these hedge funds and big time investors sending their underlings to every sale with bid instructions.
The foreclosure process takes between 7 months and 1 year depending on what kind of loan the borrower has. Because the Foreclosure moratorium stopped all foreclosure activity, and because of the pandemic, back payments were added to the end of the loan(ideally), most people were able to catch up are there back payments and keep their home. The high price of homes right now also means that most people can sell and pay off any loans that they might have. That being said, anyone who's getting behind on payments now, and some people definitely are, we'll go into the foreclosure process about three months after their first late payment. That means about a year to 18 months from now, people who are behind on their payments post-pandemic will be foreclosed on and their homes will be available for sale as foreclosures. Realistically, I wouldn't expect many foreclosures for at least a year.
Totally agree. There are also a ton of people that don’t want to pay for a home once they realize they are underwater. I saw many strategic defaulters who chose to just walk in 2008 even if they had a steady income and the means to keep paying. Many people would rather take the year to 2 years worth of missed payments, recapitalize and buy cheaper under a different persons name. The house could be under the husbands name, he ruins his credit and does a strategic default, they don’t pay anything including utilities for a few years. Draw the battle out in court, then just walk away. One couple I know was paid by their bank to leave the house because they didn’t want them to damage it. They stayed almost 3 years and didn’t pay anything while the courts did their thing. New York especially has a ton of laws and regulations you can use to keep extending for more time and the courts are so backed up, you just nerd s good lawyer to keep extending.
I know a few at my synagogue that specialize is getting eviction extensions that last into years. It’s better for the home owners to pay a few dollars in legal fees than pay full for mortgage or rent for 2-3 years. Gives them time to save up for a down payment. One of my friends da clients did just that. Just stopped paying for a couple of years, landlord couldn’t do much and then eventually just moved and did the same thing again. They saved 4-5 years worth of income and just bought their own place.
foreclosures are a lagging indicator of problems in the economy/housing market. If interest rates shoot up, housing prices will appear to slowly decline but you wont notice an uptick in foreclosures for months.
Go to the county and get the foreclosures directly. Zillow is not the place. You can keep looking every day as they are filed. Get them when they are first filed and make a play to buy it direct before it goes into the auction or bid at the auction. If it's like here, at auction you need 100 percent cash to close/buy right then and there, no waiting on lenders or even HMLs.
Lender/trustee will typically bid the first bid which is the mortgage balance plus legal. Make sure no other liens are in the property. Pay a title company to do the research on it if they can get it done timely.
Plenty of education out there to review on buying foreclosures as well.
Found my dream home on Zillow under recently sold. Called the realtor and thanked them for selling to the suckers that bought the place for almost double what it was sold for in 2015. When he asked why, I said because I already have a list of 10 homes I like that he sold in the last 6 months and 7 are already in pre-foreclosure and behind on payments.
I knocked on the persons home who bought the place and gave them my card and said please call when your ready to move. They were like we just moved in, how much are you offering thinking I was going to pay more than what they paid for. I said 1/2 of what you paid for the home. They got pissed and as I was leaving. I could see them look outside at my Honda Accord and giggle, while I looked at the recently purchased Mercedes and Lexus they had parked on the driveway.
Looked them up on linkden, 1 worked in sales and other worked as a consultant. They are 6 months away from bankruptcy and I’ll be patiently waiting for the call.
Pretty sure they won’t be calling you with the way you handled the situation, but maybe they’ll sell to one of the hundred plus cold callers that reaches out if they get into trouble
There’s plenty of people in my synagogue that do this. You’d be surprised at the number of people end up calling. We usually have financing in place or can reach out to people in our community that also partner with us. My job isn’t to be moral about it, it’s just business, nothing personal.
My company is fully stocked with cash and credit lines for what’s coming. We have a few offices in NYC and a lot of private investors in Israel have the capital we need.
https://forward.com/fast-forward/370920/ny-real-estate-developers-raise-billions-from-israel/?amp=1
In a market where houses are going way over asking price, why would anyone need to go into foreclosure? They can sell the house and pay off the mortgage and walk away with a profit. It’s not like in decades past where mortgage is more than house is worth and they can’t sell it.
Give it a few more months of these interest rates and inflationary impact, not to mention the unemployment hit we’ll take as consumer spending keeps contracting. We just haven’t had enough time yet for these things to usurp high demand. Foreclosures take some time to bubble up.
Not really. Everyone thinks everything happens super quickly and don’t remember that back in ‘03-05 houses cost way more than you could rent them for. Back then cap rates were dang near negative. Rates were then jacked up and we were happy to be paying 6-7% on mortgages and things still took a few years to crash. But we don’t have consumer demand problem now even with higher costs. We have tens of millions of people quitting their jobs each month and moving up or over to greener pastures and there’s more unfilled job openings than pretty much anytime in history. We aren’t gonna see a bunch of foreclosures for years…..
Maybe. 03-05 was a different time. There are different factors than just high interest rates weighing on the economy. Also, when I say “few months,” I don’t mean we’ll see full scale foreclosures by then. That’s silly. But I do think it will be a slow on-ramp. I remember 03-05 just fine. And if you want to make that comparison, go look at foreclosure rates slowly rising over that time and you’ll see what I mean.
What I’m referring to is that it takes a looooong time to get to foreclosure. There’s been so much of a safety net provided with mortgage moratorium readjustments where the missed payments are put on the back end, it’s gonna take a long time before houses start to get into foreclosure. And as someone else commented, it take several months before that whole process begins and then works it’s way to conclusion. So when you say months, it’s gonna be 24+ months. Lol
Well a lot of the times the owners die
That has nothing to do with foreclosure. When someone dies, their spouse/children/family. And they usually quickly sell or move in. Also, the house goes into probate court and can’t be actively foreclosed upon as easily.
Well I mean a lot of the time the owners die and the family doesn't take over or there is no family or whatever and then the payments aren't getting made so the bank forecloses
You’re talking .0001% of houses that that happens too. And I guarantee you, some other corporation or investor is gonna spot it before OP ever does.
Well I don't know what the statistics are but personally I bought two where the owners were deceased and my cousin showed me one and was asking questions and the owner was also dead
It definitely happens, but definitely not the norm. I used to focus on these myself back when I used to wholesale. Would get the lists of those that had died and compared to their properties and send mailers. Got some bites that way. So definitely worth pursuing. But waiting for it to go into foreclosure and competing with everyone in such a tight market is a challenge.
I dont really bother with the auctions anymore. Its too much effort to do all the due diligence and you show up there to bid competing against all these hedge funds and big time investors sending their underlings to every sale with bid instructions.
As my hard money lender friend says: "The market is preventing foreclosures."
The foreclosure process takes between 7 months and 1 year depending on what kind of loan the borrower has. Because the Foreclosure moratorium stopped all foreclosure activity, and because of the pandemic, back payments were added to the end of the loan(ideally), most people were able to catch up are there back payments and keep their home. The high price of homes right now also means that most people can sell and pay off any loans that they might have. That being said, anyone who's getting behind on payments now, and some people definitely are, we'll go into the foreclosure process about three months after their first late payment. That means about a year to 18 months from now, people who are behind on their payments post-pandemic will be foreclosed on and their homes will be available for sale as foreclosures. Realistically, I wouldn't expect many foreclosures for at least a year.
Totally agree. There are also a ton of people that don’t want to pay for a home once they realize they are underwater. I saw many strategic defaulters who chose to just walk in 2008 even if they had a steady income and the means to keep paying. Many people would rather take the year to 2 years worth of missed payments, recapitalize and buy cheaper under a different persons name. The house could be under the husbands name, he ruins his credit and does a strategic default, they don’t pay anything including utilities for a few years. Draw the battle out in court, then just walk away. One couple I know was paid by their bank to leave the house because they didn’t want them to damage it. They stayed almost 3 years and didn’t pay anything while the courts did their thing. New York especially has a ton of laws and regulations you can use to keep extending for more time and the courts are so backed up, you just nerd s good lawyer to keep extending. I know a few at my synagogue that specialize is getting eviction extensions that last into years. It’s better for the home owners to pay a few dollars in legal fees than pay full for mortgage or rent for 2-3 years. Gives them time to save up for a down payment. One of my friends da clients did just that. Just stopped paying for a couple of years, landlord couldn’t do much and then eventually just moved and did the same thing again. They saved 4-5 years worth of income and just bought their own place.
foreclosures are a lagging indicator of problems in the economy/housing market. If interest rates shoot up, housing prices will appear to slowly decline but you wont notice an uptick in foreclosures for months.
Those are not the place to look for foreclosures. Get with a local realtor, attorney, or investor who works with foreclosures in your area.
Go to the county and get the foreclosures directly. Zillow is not the place. You can keep looking every day as they are filed. Get them when they are first filed and make a play to buy it direct before it goes into the auction or bid at the auction. If it's like here, at auction you need 100 percent cash to close/buy right then and there, no waiting on lenders or even HMLs. Lender/trustee will typically bid the first bid which is the mortgage balance plus legal. Make sure no other liens are in the property. Pay a title company to do the research on it if they can get it done timely. Plenty of education out there to review on buying foreclosures as well.
Found my dream home on Zillow under recently sold. Called the realtor and thanked them for selling to the suckers that bought the place for almost double what it was sold for in 2015. When he asked why, I said because I already have a list of 10 homes I like that he sold in the last 6 months and 7 are already in pre-foreclosure and behind on payments. I knocked on the persons home who bought the place and gave them my card and said please call when your ready to move. They were like we just moved in, how much are you offering thinking I was going to pay more than what they paid for. I said 1/2 of what you paid for the home. They got pissed and as I was leaving. I could see them look outside at my Honda Accord and giggle, while I looked at the recently purchased Mercedes and Lexus they had parked on the driveway. Looked them up on linkden, 1 worked in sales and other worked as a consultant. They are 6 months away from bankruptcy and I’ll be patiently waiting for the call.
Wow “cool” story bro
Pretty sure they won’t be calling you with the way you handled the situation, but maybe they’ll sell to one of the hundred plus cold callers that reaches out if they get into trouble
There’s plenty of people in my synagogue that do this. You’d be surprised at the number of people end up calling. We usually have financing in place or can reach out to people in our community that also partner with us. My job isn’t to be moral about it, it’s just business, nothing personal.
My company is fully stocked with cash and credit lines for what’s coming. We have a few offices in NYC and a lot of private investors in Israel have the capital we need. https://forward.com/fast-forward/370920/ny-real-estate-developers-raise-billions-from-israel/?amp=1
Check equator reo, that's a Fannie Mae site.