Trulia founder Pete Flint and Realty Trac Senior Vice President
Rick Sharga estimated that we my see 4,000,000 foreclosures in 2010.
This would be the highest rate of foreclosures since the real estate crash.
“When the tax credit runs out, inventory will go up and interest rates will
go up. Prices will go down again. We have a long way to go until we have
a healthy real estate market.”
In their forecast, they cited several reasons why things will remain challenging in 2010:
* Mortgage interest rates will move into the 6 percent range.
* The record high unemployment rate will continue forward
* Negative equity will drive many home owners from their homes
* Expiration of the tax credits
* Difficulty buyers and investors have finding new financing for their
home purchases
* Large number of Alt-A and negative amortization loans that will
begin resetting starting July 2010.
For many of us in real estate, we want to be positive about a rebound in our market.
However, the economic factors influencing sales and home prices point to an “ugly”
year. We cannot simply try to hold on for a few more months. Instead, we need to
build our businesses and marketing campaigns around the spike in foreclosures.
To learn how, register to attend a teleseminar I’m hosting on Thursday, where I’ll
show you how to:
- Generate foreclosure buyer and investor leads inexpensively
- Create instant expert positioning as a foreclosure specialist
- Automatically convert leads into clients using proven lead conversion systems
You can register to attend this foreclosure teleseminar at: http://www.DistressedHomes.com
4 replies to "4,000,000 Foreclosures in 2010?"
[…] } Rob Minton, national Realtor mentor in his blog, “Renegade Millionaire Blog” cites predictions of 4,000,000 foreclosures in 2010. In my view, buyers and sellers who are […]
Rob, is your webinar going to focus on REO’s, or on pre-foreclosure lender mediation?
In the past, we have avoided REO work as it is an entirely different business model, and I’m always a believe in focusing on what you do best.
Also, I think it would be prudent for each agent to thoroughly gather statistics on their LOCAL area, especially in regards to future foreclosures and such. Some of our members are in red-hot markets that this may not apply to as much, would you agree?
Rob,
Forget about the REO’s unless the bank will take .30 on the dollar. Buy at the trustee sale pennies on the dollar, clean, paint, etc. and sell for only cash, conventional, and omit FHA and there 90 day bogus rule which is now waived for a year, and the 120% rule which the crooked big boys at Goldman Sacs worked out with Fannie and Freddie. And the beat goes on. And oh by the way, have Bush’s boy, former CEO at Goldman, former Treasury chief Paulson, bail his pals out again in 2012 when all the cronies at both houses, are up for election. Aired enough !!
I would agree this is going to be another hot area in the coming years and most investors should be ready to take advatage of what the marketing is giving us
Mike