When the economy took a nosedive about five years ago, many people had troubles paying their mortgage. Many people lost their homes to foreclosure, and the real estate world was in serious trouble. Things are starting to look a little bit better for the real estate world and consumers that are looking to purchase homes. The percentage of homeowners that are more than 60 days late on their mortgages has dropped significantly in the past two months. Even though the percentage of homeowners that are 60 days late or more on thier mortgages has dropped.
The rate is still not as low as it was before the economy crashed. The improvement is a good sign, and homes are starting to sell again all over the United States. It is anticipated that the number of homeowners that are late on their mortgages will continue to improve throughout the rest of the year. Roughly 76% of all cities in the United States saw improvements, but there are still a lot of delinquent home mortgages out there.
HUD or the department of Housing and Urban Development has a lot of these delinquent mortgages on their hands. They recently announced that they will be auctioning off $1.7 billion in delinquent home mortgages. The government is trying to recoup its losses by selling these homes at extremely low rates through auctions. The auctions will take place next month. The homes associated with these delinquent mortgages are located all over the United States.
Some areas have more selection than others. Chicago, New York, New Jersey, and Arizona are some of the states that have the highest numbers of delinquent mortgages that will be in the auction. The average balance remaining on these loans is right around $182,000. The Federal Housing Administration expects to auction off over 9000 delinquent mortgages in the month of September.
Investors are lining up to get their hands on these properties. Opportunities like this don’t happen very often, these opportunities are a great way for a real estate investors to increase their portfolio significantly. Investors are looking to get discounts as high as 65% on these auctions. That leaves investors a lot of room for a very high profit. Many of these home loans are already in the foreclosure process. The whole reason that these investors buy property is to make money. Buying low with opportunities like this is a great way to make a lot of money very fast. Smart investors will sit on all of the property that they purchase at the auction, and wait for the real estate market to come back to life.
Investors that choose to wait can see profits of over 200% on each property that they purchase. There is a reason that these are called investments. Investors that are looking to make a quick buck will quickly unload any properties that they by any auction, but the real investors will wait 10 to 20 years for the huge payoffs.
Many of these investors will be seeking funding for these real estate auctions. Loans.net is helping real estate investors and current homeowners find better interest rates on a wide variety of loans.