What Does The REO Future Hold?
I am trying to come up with an investment strategy for the next five years. In your estimation how long will the REO market be so profitable?
When do you think it will be a better strategy to invest in pre-forclosures again?
pre-foreclosures right not are not really the way to go as a lot of homes are way over-valued...
I beleive the opposite to be true. Give that the bank here are not offering a significant discount for REO, sometime you can negotiate better deals as pre-foreclosure.
An example is buying the 2nd that you can cure and step into the shoes of the first. Basically a sub-to transaction.
Quote:
On 2008-10-04 18:46, ITBInvestor wrote:
I am a firm believer that all real estate investing is local.
I will agree with that. In my neigborhood prices are still going up. Slowly but still going up.
you will be able to evict, but there are ne timeframes in CA,
Also, have do you have visibility to the balance of the1st until you own the property?
Thanks for the support!! I went to the auction but it was postponed homeowner, who is licensed real estate agent, filed for bankruptcy. more info, the 4th mortgage foreclosed about a month ago for about 297,638 on 8/20/2008. The first mortgage was for $403,000 from jan 2000. Im hoping to negotiate the first to about $250k. If i can get the current owners to sign papers to allow me to assume the 1st that would work as well.
watch the chain of title and lien precedence.
It sounds like right now the 4th TD holder is the owner of the house.
If you buy the first at a discount, realize you are buying the note and not the property, there still has to be an event of default under that trust deed so that you can foreclose and hopefully get the property.