Looking for your next REI project? It may be getting a bit easier…
According to ATTOM’s U.S. Foreclosure Market Report, foreclosure levels are starting to tick up. In the first quarter of 2022, there were 78,271 U.S. properties with a foreclosure filing, up 39 percent from the previous quarter and up 132 percent from a year ago. In fact, March was the 11th consecutive month with a year over year increase in foreclosure filings.
Things are slowly returning to normal but we’re not there yet.
Many of the properties now starting, or restarting, the foreclosure process, are secured by mortgages that have been delinquent for years, not months. Residential mortgages in foreclosure were an average of 1,370 days delinquent, according to the April 2022 Mortgage Monitor Report published by Black Knight. That has come down from a record high of 1,800 days in Dec. 2021, as mortgage servicers have begun to slowly work through the pandemic backlog of distress.
So what does this mean for real estate investors? In a word—opportunity.
More foreclosures mean more opportunities to find a diamond in the rough. As foreclosures normalize to pre-pandemic levels with the expiration of the government’s moratorium, it will put properties that have sat vacant for years back on the market.
Of course, it is still critically important to run through the numbers before committing to your next investment project. Not every foreclosure is a good deal.
Want to discuss your project with us? Give us a call at 888.444.3160 or email us a info@gonavcap.com to see what financing options we can offer. Or, head to our website for a no-obligation quote.