Tomorrows foreclosures are today's opportunities

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Tomorrows foreclosures are today’s opportunities

admin - Monday May 8, 2023

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The real estate market is always evolving, and keeping up with the latest trends and data can be crucial to success in the industry. Recently, some surprising statistics have come to light that could have significant implications for real estate professionals and their clients.

In the first quarter of 2023, 47.2% of all mortgaged homes had over 50% equity, according to recent data. This is a much higher percentage than many industry insiders would have predicted. Additionally, only 3% of homes were seriously underwater, which is defined as being at least 25% upside down on your LTV. This is a positive development that bodes well for the industry.

However, there are some challenges on the horizon. Profit margins on typical home sales fell from 48.7% in the fourth quarter of 2022 to 44.2% in the first quarter of 2023, while median home prices increased just 1% to $321,135. This suggests that the market is becoming more competitive, and real estate professionals will need to be proactive to continue to succeed.

One way to stay ahead of the curve is to explore new opportunities and strategies. For example, recent data from ATTOM shows that about 238,000 homeowners were facing possible foreclosure during the first quarter of 2023, which represents 0.4% of the 58.2 million outstanding mortgages in the country. Of those facing foreclosure, about 219,000, or 92%, had at least some equity built up in their homes. This means that these homeowners could potentially sell their homes and avoid foreclosure, while also putting some money in their pockets.

Real estate professionals who are looking for new ways to grow their business and help their clients should take note of this opportunity. By reaching out to homeowners who are facing foreclosure, it may be possible to help them avoid a damaging and stressful experience, while also earning new business for yourself.

Of course, some real estate professionals may be skeptical or unsure of how to approach this opportunity. It’s important to remember that contempt prior to investigation leads to ignorance, and that exploring new ideas and strategies is an essential part of professional growth.

To get started, consider speaking with your title company or other data service to get more information about homeowners who may be facing foreclosure. You may be able to get details on 90-day lates that have not yet been recorded as nods, as well as loan balances and other key data points.

Once you have this information, you can reach out to homeowners who may be facing foreclosure and offer them an alternative option. By selling their homes, they can avoid the stress and damage of foreclosure, while also putting some money in their pockets. This is a win-win situation that can benefit everyone involved.

If you’re skeptical or unsure of how to approach this opportunity, it’s important to remember the words of Herbert Spencer: “There is a principle which is a bar against all information, which is proof against all arguments and which cannot fail to keep a man in everlasting ignorance…. That principle is contempt prior to investigation.” By investigating this opportunity and giving it a fair chance, you may be able to grow your business and help your clients in the process.

In conclusion, the real estate market is always changing, and it’s up to real estate professionals to stay on top of the latest trends and opportunities. By exploring new ideas and strategies, such as reaching out to homeowners facing foreclosure, it may be possible to grow your business and help your clients in the process. So don’t be afraid to investigate new opportunities and strategies – the future of your business may depend on it!