Foreclosure Investing Made Easy by Jeff Adams

The New Year seems to be going quite well with the real estate market showing marked improvements. However, real estate investors are leery. Will the real estate market improve in 2015? Is investing in real estate at this time a good idea or should they wait around until the market starts showing a definite trend?

These are legitimate questions and investors are right to ask these questions. After all, they are investing their hard-earned money in foreclosures and they want to be sure of making a profit.

Foreclosure Real Estate Investment Picks For 2015

Investors can rest easy as the foreclosure market is still looking good. Almost everyone thought that the foreclosure process was in the past but it was just a temporary lull. The reasoning for this is simple. The government put in several relief programs during the 2009-2010 recession to help people with their mortgages. The economists at the time thought that the economy would recover by 2015. They were half-correct.

The economy did improve but it did not improve as much as economists projected. On top of that, almost all of the private economic programs implemented by the government will expire in 2015. Interest rates will go up again in 2015 as the economy improves.

Real estate professionals like Jeff Adams estimate that there will be defaulting payments of almost $50 to $79 billion in mortgages and this will result in an increase in foreclosures. More than three million borrowers are still behind on their mortgage payments and an estimated 1.24 million homes are in the foreclosure pipeline.

Many of these homeowners are already looking for short sale buyers to prevent foreclosure notices. Due to the steadily increasing credit rate, homeowners could end up owing more on their mortgage than the total value of the house. They can choose to refinance their homes but this will result in a tax bill on the forgiven debt and their only option is a short sale or a full foreclosure. Due to judicial foreclosures occurring in several states, longer liquidation times are now becoming the norm and investors may no longer be able to find short sales to invest in.

The Bottom Line

According to industry experts like Jeff Adams #1 Real Estate Trainer, this is a good time to invest in the foreclosure market. Short sales are rare and full foreclosures or bank repossession/ REOs are going to increase. However, the situation is different in every neighborhood. States like Nevada, Florida, Michigan, Illinois and Rhode Island are the most affected with approximately one third of homeowners teetering on the brink of foreclosure.

States like Texas and California are seeing an improvement in property prices due to the solid local economy and job growth that has fuelled housing demand and spurred construction. As a result, research is necessary before you can invest in the market. Market experts like Jeff Adams state that it is hard to predict exactly how many additional foreclosures will spring up but a second foreclosure spike is very likely.





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