The last few weeks have seen a surge of news headlines focused on the foreclosure halt by a number of banks and mortgage lenders as well as the fraud surrounding hundreds of thousands of foreclosures by banks and law firms. There were many predictions when the news first came out as to how long this was going to last and what affects it would have on the housing market and real estate investing. So what is really happening and what should those who are flipping homes be looking out for?
As I predicted it was less than a week before Bank of America announced a solution and said it was going to be re-filing thousands of foreclosures. However, in the mean time those involved in real estate investing have seen home prices in areas like Orlando, Florida rocket by $10,000 on many homes in just a week! However, there is now predicted to be a flood of new foreclosure homes hitting the market as banks process more REOs. VP of the Florida Association, John Sebree says he expects that this will put more motivation on banks to unload these properties quickly at bigger discounts as well as possibly work harder at approving short sales. This is great news for real estate investing. This means more great deals for both flipping homes as well as rehabbing and holding onto rental properties.
This whole media mess also offers an incredible advantage for real estate investing and flipping houses. Buyers really shouldn’t be afraid to by REOs direct from banks but they are and will be. This makes any homes you have to offer as a real estate investor ore valuable and able to go for premium prices. So now is the time to strike and get out contracts on bargain properties that you can sell for better profits.
