CRR Blog

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!

The news that is bouncing around the internet is that Florida has the most foreclosures in 2012. 

But any statistic these days is inherently unreliable, especially when you consider how many foreclosures in California were put on hold or cancelled due to the irrational level of litigation from attorneys and lawmakers in California while the new laws were being debated.

We prefer to consider California to be in an un-natural limbo caused by the wet-blanket of government and attorney intervention.  What will inevitably happen is that the stemmed tide will become a flood as lenders convert to new structured policies that incorporate the new laws while they refuse modifications to those who chose to voluntarily default.  The number of these is much larger than anyone will admit, as is the number of properties that are renter occupied.  Therefore you will see a much higher number of discounted properties as the lenders finally turn troubled assets into cash so they can turn that cash into assets before the bond bubble bursts.

The results will be an excellent period of investing for those with cash reserves, including those abandoning stocks and bonds themselves while the getting is good.  Anticipate the larger lenders sweetening the opening bids this quarter and next as they themselves invest their QE Handouts into Real Estate and distance themselves from toxic derivatives.

Don't wait!!!  Real Estate!!!

This is a lingering question on the mind of many investors these days....

Especially those of us who see Foreclosure Investments as more or less of a safe haven.

Our belief is that the impact has already started.  Q$ of 2012 saw an increase in cancellations as lenders elected to refile foreclosures that may have otherwise opened a door for litigation.  In addition, the larger lenders who carry first TD's also posted applications for Foreclosure Prevention that were weighted toward requiring that borrowers show a significant positive change in their economic circumstance, as well as a good record of payments to be considered.

We therefore believe that the result will be a streamlined foreclosure process moving forward on those properties that do not qualify for foreclosure prevention, while we will see a focus on peeling off thise where prevention is possible.

We foresee less postponements going forward, and more sales that will close without dispute.

This is good news for you.