Analysts foresee a herd of new short sales stampeding into the real estate market between 2010 and 2012. According to data compiled by Credit Suisse Bank, hundreds of billions of dollars in Alt A loans are set to recast starting in 2010. And add in the fact that U.S. unemployment is higher than 10% and the economy is showing few signs of improvement and it’s predicted that this will create a short sale stampede far larger than what we already seen.
In years past, many bad loans ended in foreclosure. However, now that President Barack Obama is fully committed to seeing his American Recovery and Reconstruction Act through to success, along with lenders and real estate professionals capable of handling large quantities of short sales; experts agree that in the coming years, short sales will be the fastest growing segment of the real estate market.
In other words, all signs point to years and years of more and more short sales.
Local governments are beginning to take proactive measures to encourage the purchasing of short sales too. In San Francisco for example, the Mayor’s Office of Housing First-Time Buyers Program gives first time buyer’s down payment assistance, up to $60,000, on the purchase of short sales. This is a trend that many other municipalities are looking to adopt.
Therefore, if you think short sales have been a great opportunity the past few years, just wait. The best is yet to come…
So how can you profit from this stampede? Get on your horse, grab your rope, and start lassoing some deals! Now is the time to be in short sales and the sooner you learn, the faster you’ll be making more money.
Ohh, one more thing…for those of you in the real estate investing world who are choosing to ignore short sales (for whatever reason), I’ve got news for you. This stampede just might run over those who choose to ignore it. This latest information is telling us is that “doing short sales” is no longer an option if you are a real estate investor. It’s now mandatory. Welcome to the future.