There has never been a foreclosed house which didn’t have potential profit written all over it. Today, several indicators including the firm RealtyTrac have released 1st Quarter 2017 data which shows foreclosure filings and default notices, scheduled auctions and bank repossessions are down over 5% from the prior Qtr, over 2016 and are the lowest since 2007.
Knowing the true value of real estate is critical, try to do a deal without it and see. The guidance and data within REIAComps has consistently shown investors how to determine both solid acquisition value and after repair value to earn lasting profits.
Some of the most stubborn foreclosure cases are finally being flushed out of the foreclosure pipeline, and we all can expect to see more noise in the numbers over the next few months as national foreclosure activity makes its way back to more stable patterns by the end of this year. Thus, while foreclosures are down, they will always be with us. As investors, this s a good thing!
The data tells us a total of 152,147 U.S. properties started the foreclosure process for the first time in the first quarter of 2015. This number is down 11 percent from the previous quarter and down 8 percent from a year ago.
Other high-level findings from the report: States where first quarter foreclosure starts increased from a year ago, counter to the national trend, included Massachusetts (up 58 percent), Virginia (up 11 percent), Michigan (up 11 percent), and Illinois (up 8 percent).
States with the highest foreclosure rates in the first quarter were Florida, Maryland, Nevada, Illinois, and New Jersey. Properties that completed the foreclosure process in the first quarter took an average of 620 days, up from 604 days on average in the previous quarter and up from 572 days in the first quarter of 2014. Regardless of how long it took to foreclose, these are ripe to be valued properly and make a nice profit wholesaling or flipping.
So you will know, the length of days to foreclose is primarily contributed to those states which require litigation to complete a foreclosure. The states with the longest average days to complete a foreclosure in the first quarter were New York (1,475 days), New Jersey (1,115 days), Hawaii (1,058 days), Florida (975 days), and Kansas (963 days).
Although they are dwindling, the REO opportunities are not gone yet; for the astute investors and buyers, there are still some REO and distressed opportunities in the South Florida market. This is as healthy a market as we have seen since the boom. The same can be said of Georgia, Ohio, Virginia, Nevada, Texas and a handful of other states.
Investors, businesses and government institutions can contact RealtyTrac to license bulk foreclosure and neighborhood data or purchase customized reports. For more information contact their Data Licensing Department at 800.462.5193 or firstname.lastname@example.org.
As you build and grow your business, make sure to keep an eye on REO’s and Bank Owned Real Estate. The use of REIAComps to determine the best acquisition and ARV for every deal you look at is the best real estate decision you will ever make. Don’t for one moment let someone tell you the value of a deal. Use the six musts and let REIAComps show you the value for yourself. Now go make some money!
Source: Foreclosures on the Move?