Real estate investing websites >> Real Estate Articles >> Jeff Adams Articles

Foreclosure dip shows that the market is about to start recovering

Abstract : Foreclosure figures dip shows that the real estate market is about to start recovering says Jeff Adams.

In the real estate market time is always against you. There is a clock ticking in when to file property deeds, advertise a property, meet a buyer and close a sale. There is a clock ticking in when to decide that a foreclosure is not worth the hassle and move onto finding another one to negotiate with the bank and there is a clock ticking in when you can make money.

That last one however is perpetual. Provided you find the right niche at the right time money is always there to be made. Before I get to the point where I explain this in detail let’s look at some interesting facts that have come to my attention.

Sharga, a property watch firm active across each US State recently reported that in September the number of foreclosures recorded dipped against those of August. In fact they reported that figures coming in from 39 States showed that a decline in the number of foreclosures.

In terms of the time available before a foreclosure is filed time is crucial. Typically, borrowers must be 60 to 90 days past due on their mortgage payments before their lender will consider them in default and start the initial stage of the foreclosure process. If a home owner can't find a way to get current on payments, the home is then often put up for auction, and if it doesn't sell that way, it eventually goes back to the bank which then has to find a way to get rid of it and claim back at least some of its money.

The dip recorded in foreclosures shows that the real estate market is about to start recovering. It is still at the very early stages of recovery and, I expect, more foreclosures will come right until the end of the year but the declining number, overall, is the first indicator that real estate investors buying up foreclosures and getting them ready for the inevitable appreciation (or selling fast and cashing in on built-in equity) are already beginning to have an effect.

This means that time is fast running out for those thinking about whether to take advantage of foreclosures and try to make a killing or play the ‘wait and see’ game. As the number of foreclosures continues to decline so will the number of real estate investment opportunities and investors will need to work both longer and harder in order to reap the rewards they expect from investing in real estate. The time to act, in real estate, is always now and this has never been truer than at this very moment.