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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Jill who wrote (24610)	10/18/2004 1:35:39 AM
From: GraceZ	Respond to of 306849

The foreclosures show up first in the HUD housing, the FHA financed stuff. They finance people who are high risk to begin with then they usually wind up financing the down or the closing costs or the 3% insurance FHA charges so that they are immediately underwater as soon as they sign the papers at closing. The foreclosure rate is already around 2.9% in FHA loans, whereas conventionals are a fraction of a percent. I have a good friend who is the ultimate bottom picker and he goes and looks at every one that is in any kind of decent area. It's got to be work you love to do because it's time consuming and rife with unknowns but he's always made his money on the day he closes. I know I don't have his kind of patience. Back when we were trying to get a good deal up here, where I now live, I remember a friend (who is a real este investor) telling me to wait for a nasty divorce. She said that people eager to get out from under a mortgage that takes two salaries to pay will often sell without an agent if offered a decent price. She said the way to find them is ask the rental agent at the townhouse community in the area who's looking to rent because that's where all the displaced spouses wind up. Her method seemed a little creepy to me. On my two rental properties I get at least one letter a month with investors offering cash for my houses, people are still trolling for property.