More foreclosure news today… the number of homes with mortgages owned by government sponsored entities (GSEs) Fannie Mae and Freddie Mac entering foreclosure is at an all-time high, and is still increasing. (Full Story from Housing Wire Here.)
Thus far, 1.46m homes have entered foreclosure in 2010. In the same amount of time in 2009, we had 1.68m foreclosures, and 1.25m in 2008. According to a study by Lender Processing Services cited by the article, the rate foreclosure starts are increasing by is the fastest pace yet.
The increasing foreclosure rate may be attributed to borrowers falling out of government mortgage modification programs, or it could be an increase in strategic defaults, which are increasing rapidly amongst more expensive homes. As home values continue to decline, we may see even more strategic defaults as underwater borrowers decide it is no longer worth it to pay the mortgage.
Apparently foreclosure rates amongst mortgages that are not owned by Fannie or Freddie have remained stable. This is a strange discrepancy that I cannot explain. Bottom line, I will be working Fannie and Freddie for wholesale buys. They need investors now more than ever. But you better get your math right (offer a low enough price to lock in at least at 15% profit on your quick resale after all expenses). And you better package your deal correctly for investors, or they won’t give you the time of day.
I will explain how to do both and more Tomorrow Night in my Free Live Webinar at 6pm Pacific (9pm Eastern): “Foreclosure Investors: Your New Success Plan. Make Big Profits, With None of Your Own Cash!” Register Online Here or Call 800-310-7730 x2
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