OfflineWith mortgage interest rates rising, smaller investors are seeing fewer opportunities for excellent cash flow from rental property purchases. Rising rates cut the cash return for the small investor, while the cash buyer can still find some great deals. However, recent news about foreclosures in Judicial States may provide opportunities for investors large and small.
Non-judicial sales have largely kept pace with foreclosures, as the courts not being involved in foreclosures kept them moving right along. However, they have become really back-logged in states where the courts are involved in the process. Some states are years behind in moving them through, and this presents a whole new influx of low-priced properties that can work for any investor.
Foreclosures are up by 34 percent this year over last in judicial foreclosure states. One in every 164 housing units went into foreclosure in June. If you’re in one of those states, keep watching the market for deals, as there are more coming.
Where can I go to keep track on this information? Being a new investor. And what is a good sign to look for in that site. Do I need to read between the lines when I read it?
Reynolds & Haidee
How do we find out which states are judicial and which are not?
Karen
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Twenty two states use judicial procedures as the primary way to foreclose.
These include:
Connecticut, Delaware, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Vermont and Wisconsin.
Hope this helps.
Thank you, Lanette!
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
Thank you for this information had not heard of this before
There are some states that are both judicial and non-judicial foreclosure states. A judicial foreclosure must go through the court system. This takes much longer and can explain why Florida is backlogged with pending foreclosures.
In non-judicial foreclosure states, lenders act without a court's approval. This is because in these states, most transactions involve deeds of trust instead of mortgages. A deed of trust is between a lender, a borrower (or trustor), and a third party - the trustee. It includes a power of sale clause which gives the trustee the power to revoke the property. This out-of-court process is much faster than going through the courts.
Here is some more information on the subject: http://www.bankforeclosuressale.com/foreclosure-laws.php
http://www.mbaa.org/files/ResourceCenter/ForeclosureProcess/JudicialVers...
I live in NJ which is a Judicial state and foreclosures here are taking a minimum of 1000 days to go through the court system.
Short sales are taking an average of 12 to 18 months to get approved
There are barely any REO properties on the market as they are all stuck in the court back log.
Almost all of the properties here are under water so there is not much negotiating on price.
Unless you find an Estate property with little mortgage balance in a Judicial state you will not be seeing many great Investment deals for a while. At least this is the case here in NJ.
Do not fear, for I am with you; do not be dismayed, for I am your God.I will strengthen you and help you; I will uphold you with my righteous right hand. Isaiah 41:10
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