We have had zero foreclosures for at least a year and that is about to change. I have heard predictions that foreclosures will increase by 1500% over the next three years as the market softens and interest only and ARM loans adjust for the first time. I've noticed one agent that specializes in foreclosures has gone from 3-4 lately to almost 10 just recently.

yep,i am specializing in foreclosures and also condemned properties.There will be alot of listings that investors will be salivating at the glands to snap up in the future.

I can't wait!

Two years ago in New Hampshire (recently named one of the most affluent states in the nation and one with the lowest poverty rate), we had about 50-70 foreclosure in the entire state every month.

March 2005 we had 170, which was the high for this year so far. October has 120 so far. We're a very fast foreclosure state, approximately 3 weeks. So listing a foreclosure is difficult here. However, a good listing agent can often get the bank to hold off for awhile. We are working on one right now.

(Warning: Another shamless plug coming) My goal for 2006 is to put together a team of real estate agents around the country specifically to help people survive (not just stop) foreclosure. I've already set up a website to that effect ( ForeclosureSurvivalKit.com ). There are a lot of vultures out there and a lot of misinformation. As real estate professionals, we should be the first line of defense. Let's face it. Sometimes they don't HAVE to sell. Sometimes they do. Only accurate information will help them in the long run. Wouldn't it be nice to be the one to provide it?

Mike@AssistedRealEstateSolutions.com

Do you think NH is in for another sizeable correction like the last big one?

I think many areas will be affected. In California the affordability index is 14%, that is 14% can afford to buy a home.

broker...

It's hard to predict. But I have five houses for sale right now in various parts of the state, and they are definitely NOT moving very fast. The main Nashua->Manchester corridor is still ok, but if you get off the beaten path, things are very slow.

I have seen some very nice houses here in the Lakes Region of the state on the market for a year or more. And yes, I've already made offers on them.

I do believe there is a way to make money from the coming downturn, without turning into a bunch of vultures (jackals, sharks, insert your favorite term here). I'm working on building a team to do just that (see below).

I've been doing forclosure bailouts for a few years. Basically, we get the owner caught up long enough to sell and still keep most of their equity. I'll do up to 80% LTV in California. Other states max out at 75%.

I wouldnt say it was extremely lucrative since most people are encumbered to high LTVs already and there just isnt room to stick alot of fees in there. Every once in a while you come across a good one though.

Interesting.... I never thought of that side of the business. What parts of San Diego do you specialize in?

how do you get the owner caught up with back payments? do you partner up with them and use your own cash to make it up then sell it? do u take it subject to?

what if they have little to no equity at all?

how do you get the owner caught up with back payments? do you partner up with them and use your own cash to make it up then sell it? do u take it subject to?

what if they have little to no equity at all? [/QB][/QUOTE]

Investors do many things in many ways... BUT Partnering with an owner in default or in distress is one sure way of loosing money and many nights rest.

Investors tend to make a very sharp and clean break from distressed owners... generally by taking the deed. Many ways exist for this and different investors handle it differently depending on your state laws. If your state has a good set of Land Trust Laws... taking it into a Land Trust and then changing Beneficial Interest with a Sub2, is often the less costly and most secure way. This is particularly good when your Exit plan is to Flip. You save transfer fees and you get additional asset protection by using the techniques.

The question on Equity is a math calculation based on your Investment Plan's criteria. Most investment plans call for making money at as many of the three stages as possible, Purchase below Market Value, Positive Cash flow during any hold periods and profit at sale. It is nice if you meet all three but often you will only have two or possibly one. The fewer points of profit you have make it less of a potential investment and more of a speculation or gamble. Your numbers will tell what is a deal and what is a dog.

I just saw on the news last night that the real estate market is in trouble in just about every state. I didn't catch it all, but I think they said it was because interest rates were rising.

Clint

Yeah that was why.

Arms are adjusting and for people who should not have had a home in the first place.

Some loan officers use these arms to meet debt ratio requirements. They also like to decide for the customer rather than giving them options and a choice.

I am sure things will get ugly and many investigations will open when more folks start defaulting.

The only "Trouble" would be with those foolish enough to have over paid and/ or over mortgaged... including interest only loans in the hope that the excessive appreciations would continue forever with out correction.

The sky isn't falling and interest rates are not the only factor that causes market adjustments and in this case not even one of the more significant.

Yeah that and negative am.

I see the ad all over TV for the Smart Choice Loan from Quicken Loans.

What a bad thing to push and market to everyone!

So many things are going to have people losing homes left and right.

What would be more interesting is the thought of how to solve this from happening.

Ouch I got a headache from typing the idea.