By Keith Junor
The real estate market, all over the country is suffering. The ailment is the unprecedented amount of folks going into foreclosure.
It's all over the news. It's all over the internet. It's all over the newspapers.
Take a look at what's happening all over the U.S.
U.S. foreclosure filings surged 58% in 2007. A total of 573,397 homes were subject to some form of foreclosure filing in the period, including default notices, auctions and repossessions.
The group that seems to be having the largest problems are those with adjustable rate mortgage s that adjusted and have caused their payments to increase substantially, even doubling in some cases.
More millionaires will be created during this time period than any other time in history due to the factors such as:
A, largest supply of foreclosed homes ever, banks with large numbers of people that are no longer able to meet their mortgage payments, historically low interest rates due to the federal reserve reducing the funds rate to ward off inflation and the willingness buy the banks to move these homes at 20-40% below current market values due to the sheer numbers of these homes currently on their books and the anticipated additional ones to come.
Banks and lenders are over burdened with these foreclosures and especially pre-foreclosures and order for them to lend more, they must "liquidate" their inventory. The only way to do that is to sell the loans for 20-40% below the value of other homes for sale in the area. Thus, the power of the short sale.
What is a short sale?
A short sale is when you negotiate with the lender to accept a discount as full payment for the loan.When a property is in pre-foreclosure, the homeowners have a short redemption period to cure their loans, that is, to bring it current or have it auctioned off at the local courthouse.
Prior to this action you can negotiate with the lender to accept a smaller amount for the loans to avoid the foreclosure auction.
Lets say that you find a house worth $100,000, you can negotiate with the lender to purchase it for maybe $70,000 and then flip it to an investor or hold it as a rental or ylive in this bargain property.
Banks are willing to do this because it frees up money to lend, they have a lot of expenses when there is a foreclosure such as carrying costs, repairs, maintenance, wear and tear on the properties that increase the longer it is empty, vandalism, etc.
The beauty of this is that there are still ways to buy these properties with no or very little down if you know how.
One thing to be wary of is that you can still get your self into a bad situation if you do not know what you are doing.
Get some training from books, courses, mentors etc. to learn about all the different techniques for finding, funding and flipping these properties. Learn about the ways to protect yourself when putting in an offer to purchase a property as mistakes can be costly.
So, go and find out the best ways to buy these properties and you could benefit from what is going on in this unprecedented real estate market and become the next real estate millionaire.
Here are my recommendations for great info on how to become a real estate investor . they are inexpensive but pack a wealth of information re; buying with no money down, flipping the properties quickly, learning about contracts, how to find and negotiate the lowest prices and a whole lot more.
Remember that knowledge is power.
The Ultimate Real Estate System- This training was created by the person who taught me how to buy property with nothing down.
Massive Fortunes In Foreclosures- Ten of the top Real Estate Investors in the country came together to develop this course.
Keith Junor is a Licensed Realtor and Mortgage Broker in Florida with 17 years experience. He authors a Blog at The Experts In Real Estatethat gives timely advice on buying and selling, credit repair, mortgages and foreclosure. He can be reached at Send Mail
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