Increase in Foreclosures Brings New Investment Opportunities
Are you on the lookout for your next — or first — real estate bargain to leverage for a flip-or-fix initiative? Don’t forget to check out the host of foreclosures that are poised for a takeover by new ownership. ATTOM’s newly released Q4 and March 2024 U.S. Foreclosure Market Report reveals that “there were a total of 95,349 U.S.
properties with foreclosure filings in the first quarter. That figure was up 3 percent from the previous quarter but down less than 1 percent from a year ago.”
The report articulates the 10 ZIP codes with the highest foreclosure rates in Q1 2024, which gives you a good place to start if you want to save some of your own research time.
U.S. Foreclosure Activity Continues to See an Annual Increase
This ATTOM post also sheds light on the foreclosure arena. This post includes the quote: “The annual uptick in U.S. foreclosure activity hints at shifting dynamics within the housing market,” said Rob Barber, CEO at ATTOM.
“These trends could signify evolving financial landscapes for homeowners, prompting adjustments in market strategies and lending practices. We continue to closely monitor these trends to comprehend their complete effect on foreclosure activity.”
Read this link for a higher-level and more state-based analysis of the foreclosure opportunity market conditions (as opposed to the statistical analysis in the prior one).
Discover More About the Process of Purchasing a Foreclosed Home
Do you see a foreclosed property that intrigues you with its possibilities, but you are not sure how to proceed? This article from U.S. News & World Report outlines how to buy a foreclosed home, and parses out the different paths, depending on who is directing the sale. According to David Reiss, law professor and research director of the Center for Urban Business Entrepreneurship at Brooklyn Law School, there are multiple paths to buying a foreclosed home – including directly from the homeowner, via an auction or directly from the bank. "It is very important to realize that each of those types of sellers has very different incentives," Reiss says.
Click the link to see the pros and cons of buying a foreclosure and to learn how the process plays out, depending on the circumstances.
Demery diligently researched and identified a promising fix-to-flip opportunity:
a 3-story twin home in foreclosure in the Harrisburg area. Despite initial challenges, including unfinished updates and a costly roof repair, Demery's thorough budgeting and contingency planning enabled her to proceed with the rehabilitation. In the end, she successfully flipped the property, earning a substantial profit of $45,000.
