Jay's Notes:
Foreclosures have dramatically decreased and now that many homeowners are recovering there equity, many are putting there homes on the market, so they can finally trade up into a new home. This has started to normalize the amount of inventory from acute shortage to more of a balanced market. Investors are now able to purchase properties without as much of the frenzied multiple offer experience that jacks up purchase prices. This has made it easier for investors to find the right home, crunch the numbers, and proceed. Cash flow is still ruling the day and we have new construction homes that give a 10% cash return prior to vacancy and maintenance/repair reserves. It is these values that are a hot commodity with investors who want to get defensive with hard assets with high cash flow before that opportunity goes away. Contact us to get more information about our current high-cash-flow offerings.
Foreclosure starts have fallen to
half the level they were a year earlier, according to second quarter
data recently released from the Office of the Comptroller of the
Currency.
In the second quarter, there were 150,592 foreclosures started—down
50.8 percent from the second quarter of 2012. It’s the fewest number of
foreclosure starts in any quarter since early 2008, according to the
OCC, whose report reflects performance on first-lien residential
mortgages.
The OCC attributes the drop to a strengthening economy, aggressive
foreclosure prevention efforts, loan modifications, and regulatory
actions.
By the end of the second quarter, 90.6 percent of all mortgages
reflected in the OCC report were current and performing—compared to 88.7
percent a year earlier.
Source: “Foreclosure Starts Halved over 12 Months,” Mortgage News Daily (Sept. 26, 2013)