Here's a few links you may want to peruse. I personally have a friend who's company is traveling throughout the Country buying up about $500 million in REO's. And that's only one company. There are several.
"One of the most bullish investors is Carrington Capital Management, which has teamed up with Los Angeles-based OakTree Capital. They have created a $450 million fund to buy foreclosed homes in bulk and rent them out.
"In a marketing document for one of its funds, Carrington claims that without using leverage or borrowed money it can generate an annual yield of 7 percent from rental income alone. Its long-term strategy is to package the fund into a publicly traded real estate investment trust. If that strategy is successful, Carrington projects investors can see an internal rate of return of 25 percent over three years."
"Meanwhile, the battle for inventory continues between investors and traditional buyers, and supply shortages could be alleviated if more foreclosures were allowed onto the marketplace, he said. â€œMost of you are having your inventory stolen out from under you,â€ he said to the audience of real estate agents and others in the industry."
"Big hedge funds with millions of dollars in cash under their control are gobbling up single-family homes in the capital region with the intention of turning them into rental properties. Or some could be packaged and peddled to real estate investment trusts, who will then sell shares to the public."
This may add a little fuel to the fire. Bottom line? I think the jury's still out. I've also heard that there could be as much as another 5 million new homeowners that are starting to fall behind on their payments this year.
It's like everything else our information Nation is getting from all sectors be it RE, stock market, politics or Obamacare. opinions, interpretation, attitudes and philosophies are all over the charts. I'd just like to see two people in any walk of life agree on the time of day whence standing shoulder to shoulder looking at the same clock.
Some of the "Big Ones" are truly offering assistance to the Borrowers wishing to modify their loans even on second homes and/or investment properties. Lenders have also implemented better programs to expedite short sales.
REO wave in 2013?
I believe they will released at a pretty steady rate, not to flood the market and lower home values. I also believe the will be auctioned off to investor for rehabs. Investors along with 1st time home buyers makes up 80% or our market.
Boca Raton-Miami Beach, FL
This is a great time to buy based on interest rates and lower prices and with a demand for inventory some listings are getting multiple offers.