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We are currently in the eye of the storm of impending foreclosures. The foreclosure pace has seen a slowing in the past few weeks and will slow even more in the coming weeks.
For November the decline was caused by the robo-signing scandal which forced lenders to slow the roll of foreclosures until they made sure all of the blank spaces were filled and all sentences made sense. The triple checking of paperwork caused a slow down in foreclosures. Many people on the chopping block were given a temporary reprieve.
Starting on the 20th of December banks will get into the holiday spirit, and halt foreclosures for the last two weeks of the year. But then promptly restart foreclosures on the 3rd of January. These factors contribute to what will look like a slowing in foreclosures for the end of the year, then January will see a hard spike in foreclosures due to the catching up by the banks.
What impact will this have on property values?
Property values for the end of December will flat line then in January; there will be a decline due to a housing surplus from lenders proceeding with foreclosures. The robo-signing scandal did have a positive impact on property values. With lenders going at a slower pace, making it appear that the overall inventory was shrinking.
Once the banks begin to pick up the foreclosure pace again we will see another decline in property values.
This is great for buyers but sellers in areas where pre-foreclosures and foreclosures are on the rise, the value of the property may suffer.
How can this benefit a private lender??
Even with a decline in property values a private lender may still make a profit in a real estate venture. Lending on commercial property- people who have been foreclosed on will need to rent a place- or lending on a single family residence then taking quarterly, monthly, or a one time payment depending on the situation of a particular property. So even in a down market you can still realize a return. Visit our website to learn and possibly earn more http://www.BackedByRealEstate.com
