There Will Soon Be Plenty of Product Available Again
RFG constantly hears complaints from its clients that there is less and less distressed inventory on the market, and more and more investors, making getting their bids accepted difficult. That is about to change . . .
During 2008 – 2011, many foreclosures nationwide were delayed due to the perception that many major lenders were engaged in inappropriate loan servicing and foreclosure practices (such as “robosigning”). In many states, foreclosures were halted, pending an audit of servicing and foreclosure practices. Other lenders and services, in an abundance of caution, halted their foreclosures, even when not legally ordered to do so, to review their own practices. This caused a delay in foreclosures, sometimes for years.
In late 2012 and throughout 2013, the government reached settlements with the lenders and servicers, that allowed the filing and resumption of new and pending foreclosure cases. Over the next year or so, the market will see the culmination of these foreclosure actions, and a whole new wave of distressed, foreclosed properties will enter the market.
Remember, in many cases, the defaulting owners of these properties were not being foreclosed on improperly, they had not made any payments in years. It is these people who were most advantaged by the delays, allowing them to live free for up to three years, while the foreclosure issues were resolved. In most cases, no maintenance or repairs were done to the properties, as the occupants knew that eventually they would be forced to leave. When the lenders are finally able to obtain possession of these properties, most will assuredly be in a distressed condition.
It is these properties that will present a tremendous opportunity for RFG’s customers. Existing and pre-approved RFG customers will be in an excellent condition to submit their offers quickly, and offer close closing dates to potential sellers. Keep your eyes upon for great deals coming on to the market.
Please contact us to discuss your borrowing needs!
RFG wishes you all a wonderful Thanksgiving as we head into the holiday season.