Old habits are hard to break... even harder if you are having trouble finding a job, your unemployment has run out, and they involve defaulting on your house-payment. An April 24 article in Mortgage News Daily by Jann Swanson is definitely worth reading.
It points out that as of March 31, 2013, the oldest loan modifications from Q3 and Q4 of 2009 are defaulting again at rates of 46.1 and 39.1 percent respectively. Wow. It also points out that while banks got 75 percent of the TARP money, homeowners got less than 2 percent. What this means is that you will see at least 40 percent of the foreclosures from the last 4 years that were modified are going back into foreclosure over the next few years, if not sooner. That is nearly half. It also means that the majority of defaults from that period never even got help at all. With an average of 455 days per foreclosure here in California, according to RealtyTrac, how many of these older foreclosures have yet to hit the auction block? And how many that have are still in postponement and cancellation limbo? All these properties will be heading to the auction, and with no elections on the horizon, the politicians and regulators will do the will of Wall Street.
What are we saying? You have half of the Foreclosure Tsunami yet to hit. It is far, far, far from over. Anyone who tells you otherwise is uninformed or selling you something. Look for a steady growth through the summer, punctuated by spikes that others will be surprised about. If you are paying attention to the facts, you will be ready. Have your plan and be ready to buy at auction. Use our bidding service to capture the low bids as they come with the least amount of effort. There are many commercial and multi-unit properties that will be hitting the block and that is where the smart money is going. There will be flip properties as well, and you should be ready to turn these as soon as you can so you can get into rental income for the long haul. Retire in comfort, with a little help from CRR.
Buy smart and buy safe. Let us help you.