As you may have heard today, the economy contracted in Q4.
Those of us in the the actual economy knew this. It felt like the collective masses were holding their breath. QE is for the Bankers on Wall Street. Main Street is struggling. So the huge number of foreclosures that we have been expecting to hit are still coming. What was being described as an improving economy by some people who call themselves economists was simply the eye of the storm.
The lenders were cancelling and postponing a huge number of Trustee's Sales last year. Note that the lenders were looking at new laws coming into effect, which now clearly define who is not going to get a modification. They were also held up by a backlog in the Bankruptcy Courts caused by the combination of strategic defaulters partnering with Bankruptcy Attorneys and the strategic cutting of funding to Civil Courts by the State as part of a concerted effort to pressure voters into agreeing to tax increases.
Now that the foreclosure processes have been adjusted and clarified, and the courts will have funding restored, the flood of forclosures can move forward. The lenders will be going ahead and taking properties to auction. Many of those in foreclosure will not meet the smell test for a modification. Now that the elections are past us, the politicians have nothing to gain from standing on the foreclosure soapbox. They have moved on.
What does this mean to you? It means that the floodgates are going to open. It means that the lenders will be selling the properties at auction ahead of the collapse of the dollar that QE will ultimately cause. It means that hard assets like real estate are where you need to place your dollars, because the QE Inflation of the Stock Market will not last. Your properties will go up in comparative value as the dollar falls.
As investors leave treasuries and stocks and go into commodities and hard assets, your investment now will gain in value later. So now is the time to consider your options. Don't just take our word for it. Consult your financial advisor and do what is best for your business and your family. But don't count out foreclosures as the best investment today.
Do your own research and start bidding. Don't miss the boat!