Buyers in many areas are finding that real-estate owned (REO) properties—homes that have been
repossessed by lenders and put back on the market—often are selling in one day, sometimes faster.
According to the founder of Foreclosure.com, offers on REOs are coming in immediately after the listing
comes on the market, and some homes have been put into contract in less than 90 minutes.

KEEP THIS IN MIND

• On average, inventories of California homes priced less than $300,000—the most-popular
price point for foreclosure buyers—have shrunk from a nearly 10-month supply a year ago, to
less than a three and a half-month supply in July, according to the CALIFORNIA
ASSOCIATION OF REALTORS® (C.A.R.)

• Because inventory levels of homes priced in the lower end of the market are low, some buyers
are finding that sellers are not willing to negotiate on the price. In many instances, sellers
expect the first offer to be the best and highest possible for the buyer.

• Instead of holding onto REOs for the best prices—and paying the property taxes and
maintenance and heating costs—many banks are selling the homes as quickly as possible,
according to Foreclosure.com. “In this market, if they can liquidate them fast, it makes more
sense to get them off the books,” said the company’s founder.

• Despite efforts by lenders and the government to prevent foreclosures, many economists and
housing analysts predict there will be another wave of foreclosures by year’s end, and many of
those properties will be offered for sale. According to the U.S. Comptroller of the Currency, 53
percent of loans that were modified in the first half of 2008 fell back into arrears.

Buy foreclosures now - before it’s too late [CNN Money]

A study conducted by economists at the University of Chicago, Northwestern University and the European University Institute found that:

Up to 26% of U.S. homeowners who stop paying their mortgage may be doing so intentionally, not because they can’t make the payments but because they don’t want to put money into a house that’s worth less than what they owe. [The study] raises some doubt about the approach the Obama Administration has taken toward stabilizing the housing market.

We’d like to hear from our readers.  Have any of you decided to stop paying your mortgage because you’re under water?

Mortgage Defaults: Many Are Intentional, Study Finds [TIME]

There have been rumors circulating for months that banks are holding on to thousands of foreclosed properties so that they don’t flood the market to further depress prices.  Over the last few weeks however, those rumors have started to surface from credible sources, including The Washington Post, where Renae Merle takes a closer look at a family that wants to foreclose, but can’t due to the bank back-log.  Some would argue that we have not yet seen the bottom of the housing slump and if investors are looking for opportunities to purchase foreclosed property, all they have to do is sit tight and wait for more distressed property to hit the market.

The backlog of seriously delinquent mortgages, which so far affects about 1 million borrowers, is a shadow over hopes for a rebound in the nation’s housing markets. It masks the full extent of the foreclosure crisis and threatens to depress prices even further just as some parts of the country are hinting at recovery. For lenders, it could portend even more financial losses tied to the mortgage meltdown.

Not Paying the Mortgage, Yet Stuck With the Keys [The Washington Post]

As the credit market tightens up, now is an even better time to be looking at foreclosures.  If you have cash, or can get private money, you can really get into some amazing deals.

Our latest marquis partner is www.foreclosure.com, who has integrated eRealAnalyzer on its thousands of foreclosure listings on their property details pages.

If you have a foreclosure.com account, you would find the Cash Flow Calculator link on this page. When you click Analyze This Property, it would take you here

All foreclosure sites can be integrating our software, as it enables primary homebuyers and investors to be one click away from determining the financial attractiveness of a purchase!