This scenario is not only possible, however, for the uber wealthy. With mortgage rates at record lows, if you have good credit you too can reap the benefits of this buyers' market. Personally, I am in the market to buy rental property as a way to save for my children's future. And I know many other real estate agents who are doing the same. When you see so many professionals gobbling up real estate, I think that is a pretty good sign its a great time to buy.
Good luck to you all and if anyone wants some help navigating this exciting and everchanging market in the Twin Cities, just give me a call. I'd be delighted to help! Tammy Maddrey 952-738-1331
Thankfully they don't put all of them on the market at the same time, if they did we would see property values spin out of control something the banks are aware of so they feed properties onto the market at a slower pace to keep their assests at a higher value and their losses to a minimum.
Just my two cents....Good Luck!
The stages are:
1. Behind on the mortgage at some point it is published.
2. Sheriff's sale notification is sometime between 90 days and a year.
3. Sheriffâ€™s sale is generally 60-120 days after notification unless stopped by lender for Short Sale, Loan Modification, Deed In Lieu of Foreclosure, Reinstatement, Forbearance or Repayment Plan, Rent the Property, Bankruptcy or Refinance, .
4. In Minnesota after a Sherriffâ€™s sale there is a six month right of redemption. That means a party or owner can pay the amount due (generally the lender many times lower than the amount owed) plus fees redeeming the property from foreclosure. If it is a third party they must wait for possession until expiration of the redemption period.
5. If not redeemed it is now lender owned and it enters the process which for different lenders/investors is a different timeline.
6. In the metro Minneapolis market there are about 4 lender owned (shadow inventory) homes for everyone one for sale. Many times they donâ€™t put them all up for sale because of what it would do to property prices further reducing the price of lender owned.
In the metro Minneapolis/St. Paul market the median sold prices are lender owned $105,000, short sale $143,000 traditional sale $205,000.
If you are interested in zip code 55391 that is where I work (Wayzata) and office.
There's a lot going on behind the scenes.....
Many are asking the same question but one of the reasons is because some of the larger banks are making deals with investment companies that allows them to approach home owners that are nearing foreclosure and making arrangement with them hand over the title in exchange for not foreclosing and having their credit intact. These arrangements usually involve attorney groups and bulk numbers of homes.
This is one of the major contributors to the mysterious evaporation of the "shadow inventory" of foreclosed homes. It's a win-win-win situation. The bank gets the debt off their books, the homeowner's credit is not trashed further, and the investment group make a profit.
One that we were personally involved in saw the invenstment group gain title for between $80,000 and $90,000 and then put it on the market in the $150,000 range. We were told that this south Florida investment group had agreed to handle 50-60 of these destitute homes.
So the answer to your question is that the lenders are resorting to a more creative means of handling their problem. Let's fact it....what owner wouldn't hand over the keys and title for a clean bill.
Hope this helps,
The banks have to pay a lot of expenses (legal fees, trash outs, maintenance, etc) for people going into foreclosure. And what many do not realize is that if the foreclosure is not handled correctly by the people going into foreclosure, the banks can recover the expense they have incurred. The banks can also sell the debt to collection agencies to go after the people liable.
We don't feel much like experts;
We can't understand the wisdom of this:
The Government doesn't want them to hold Real Estate;
They can't be making any money by holding them,
They are not collecting rent,
Many houses are vandalized
They would have to insure them, at least with a "blanket" policy,
Maybe the error in our thinking is that there is some WISDOM behind this.