What impact will this have on the market and investors?
Non-Performing Loan Activity on the Rise
Isn’t the foreclosure crisis over? Well the “crisis” part may be over (or at least under control by many measures), but defaults continue to stack up. Take a look at the latest digits.
1. Home seizures have been rocketing in more than half of U.S. states. This includes a 96% spike in IN, 88% in AR, 87% in MO.
2. Foreclosure filings continue to surge with FL (up 20% in the 3rd quarter), NV, and IL taking the tops spots with around one in every 300 housing units receiving a filing last month.
3. In some areas, foreclosure related sales have been jumping, too. Take a look at Miami which has recently experienced an almost 50% surge in this activity, with distressed sales making up over 30% of all transactions.
4. HUD recently announced the unloading of 9,400 non-performing loans, the first trench of 40,000 planned FHA loan sales of 700,000 non-performing loans for this year.
This could just be the tip of the iceberg, and we could see even more dramatic repossession numbers if short sales wind down as we roll into 2013.
Locating the Sweet Spot for Investors
Despite the above statistics, most experts still see very little need to worry as distressed properties are being snapped up so fast.
Besides many lenders are trending toward the strategy of just shifting the non-performing loans off their books. This offers great opportunities and discounts for investors buying notes from banks.
HUD’s latest round of non-performing mortgage loan sales certainly comes with too many restrictions for most investors, so for those who want to see what is really going on and find where the sweet spot is, they need the software to peak behind the scenes to discover who is holding the default loans and who they should be approaching.