Whether you are pro or con government intervention, the bottom line is that the recent moratoriums and loss mitigation programs are going to yield another 7 million or so homes for sale. Like a parallel universe, these properties are poised to enter the real estate market from the famed shadow inventory. But buyers of investment properties stand to take advantage of some incomparable foreclosure opportunities.
These shadow inventory properties are currently in foreclosure or are headed that way and are just not yet on the market. So while the government’s efforts to decrease foreclosures have backfired, the foreclosure purchase opportunities will be rampant for investors.
The National Association of Realtors has reported that there are currently 3.6 million homes that are unsold; we are now looking at twice the current inventory that will be available to investors and even to homebuyers looking for foreclosure opportunities.
In addition, since the governmental modification programs and refinance programs didn’t avail themselves to homeowners who were either too wealthy or owned too much on their homes; a very large percentage of the shadow inventory homes are luxury class. Many of these homeowners have given up and have vacated their homes.
These are the hot real estate investment opportunities: the chance to buy a high-end investment property by offering a home owner a short sale proposal. And while we need to reiterate that short sales have to be processed through experienced short sales Realtors, these are the veritable spoils of war that make for brilliant real estate investments.