Let's see, almost 4 million homeowners with mortgages either in foreclosure or late on payments heading toward default. Only 10% of these are on the market. And 25% of the homes on the market are vacant. What could be the conclusion here?
Things are changing: Loss reserves for lenders are being depleted and need to do something about it soon. Lenders are now considering short sales without a hardship. Investors are buying distressed mortgages from distressed lenders at a big discount. Maybe lenders also see prices falling further which means their mortgage securities will be worth even less. So, they are dumping them as quickly as they find buyers. Most of these are institutional investors.
It's unlikely it will get much better than this to buy a distress sale. But what percentage of the employed can qualify for a mortgage at this time and want to buy? I'd like to see a pole taken on that.....
Re/Max Suburban... more