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With Accurate Information, Foreclosure for sale Is An Opportunity
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By havygyncwathy havygyncwathyIO
Published on 04/28/2009
 
For many Americans, the economic situations combined with poorly considered home purchases have ended in foreclosure. It’s easy to find fault with the decision to buy a home that, in hindsight, was obviously too expensive to afford, but who is ultimately to blame:

With Accurate Information, Foreclosure for sale Is An Opportunity
For many Americans, the economic situations combined with poorly considered home purchases have ended in foreclosure. It’s easy to find fault with the decision to buy a home that, in hindsight, was obviously too expensive to afford, but who is ultimately to blame: the buyer who grasped at a dream, the mortgage broker who preyed on that desire and arranged the low introductory rate that made the home temporarily affordable, or the bank that approved the loan without verifying the buyer’s income? Or is the collapse of our manufacturing base with its accompanying devastating unemployment rates the real reason that so many neighborhoods are filling up with empty homes?

I’d suggest that instead of spending our time pointing fingers, we support the government in its ongoing efforts to fix things. Plans to assist homeowners on the brink of losing their homes, lessening the Homes foreclosure crisis, combined with economic stimulus is likely what we need to turn things around. And with recovery, comes the confidence to invest once again.

The culmination of these factors is where opportunity awaits for informed investors. Let’s face it, many people have been frightened away from real estate altogether. But with the current availability of foreclosed homes on the market (it’s estimated that 4.8 million homes are facing the prospect of foreclosure), even modestly capitalized individuals can pick up a house or two at sometimes 30% or 40% below market value. At the height of the crisis, despite the temptation of cheap houses, I likely would have said stay away. But with the prospect of economic recovery, there are suddenly sound investment prospects with good potential to increase in value. But be aware that some of the houses have been physically damaged and may require substantial repairs, or they may be in undesirable neighborhoods. An organized listing of properties in foreclosure, accompanied by supporting demographic data, significantly lowers risk, making the possibility to realize significant gains during the turmoil a real possibility.


About the Author:

Franklin Hawthorne is a Tampa Bay based Realtor and investment advisor who now specializes in Homes foreclosure. Hawthorne frequently speaks at public investing seminars and is always happy to provide Free foreclosure information. A number of his articles have been designated as recommended reads by industry associations. The title of his most recent presentation is “Foreclosure for sale: opportunity or trap?”