Acquire, Acquire, Acquire. Perfect time to buy real estate!

Acquire, Acquire, Acquire. Perfect time to buy real estate!

What an unbelievable time to acquire properties. I came across this article on the internet that talked about foreclosures in the near future. Take a look at this:
Foreclosure filings were reported on more than 2.8 million properties in 2009, up 21 percent from the previous year and 120 percent from 2007, according to RealtyTrac. With nearly 10 percent of mortgages now delinquent--which is also a new record--even more homeowners appear headed for foreclosure this year.

"A massive supply of delinquent loans continues to loom over the housing market. "Many of those delinquencies will end up in the foreclosure process in 2010 and beyond."
Homeowners have found themselves in foreclosure for a number of reasons. Some purchased properties they could never really afford. Others lost their jobs--the national unemployment rate remains in the double digits--and had no way to make mortgage payments. But as the crisis rumbles forward, an additional driver of home foreclosures has become clear: Many borrowers have the means to keep paying the mortgage but are simply walking away because they believe it's best for their finances.
The number of so called "strategic defaults" more than doubled, to 588,000, from 2007 to 2008, according to a study by Experian. A separate 2009 survey found that more than a quarter of all existing defaults were strategic. The case for strategically defaulting is linked to negative equity, or owing more on your home than it is worth. With home prices at the national level having dropped roughly 30 percent from their 2006 peaks, and a great deal more in certain bubble markets--a considerable chunk of property owners are now in this fix. Nearly 1 in 4 borrowers currently have negative equity. And rather than continuing to make payments on an investment that's now worth significantly less than what they paid for it, many borrowers are throwing in the towel.
After the historic housing bust, their home is now worth $187,000, but they still owe $560,000. Other homes in their neighborhood, of course, have plummeted in value as well. And if the couple was to purchase a similar, nearby house listed at $179,000, their monthly payments would be less than $1,200. That's a huge savings over their current $4,300 monthly mortgage bill. But since a foreclosure on their credit report is likely to prevent them from buying a home in the near-term, they may have to rent. And about $1,000 a month gets them a comparable rental property in their neighborhood.
"Assuming they intend to stay in their home ten years, the homeowners would save approximately $340,000 by walking away, including a monthly savings of at least $1,700 on rent verses mortgage payments, even after factoring in the mortgage interest tax reduction," White writes. "If they stay in their home, on the other hand, it will take the homeowners over 60 years just to recover their equity--assuming, of course, that they live that long."
The argument against strategically defaulting is much more straightforward: You promised to repay the loan when you took out the mortgage, and it's your responsibility to do everything possible to honor that commitment. Avoiding the guilt and shame that can accompany a foreclosure is one of the top reasons struggling homeowners don't strategically default, White writes. On top of that, a foreclosure significantly damages one's credit--making it difficult, if not impossible, to obtain a mortgage for years afterward.
Many homeowners are ignoring these consequences to do what they believe is in their best financial interest. "Defaulting on their loan is a rational decision: While they forfeit their home, they rid themselves of a mortgage liability of even greater value. The source of the problem is the homeowner's balance sheet: since he has negative equity in his home, it is not worth keeping it by paying the mortgage.
Although Uncle Sam has reduced mortgage payments for more than 850,000 borrowers so far for a median savings of more than $500--the government will remain under pressure to take more aggressive action as long as the foreclosure epidemic keeps churning.


Nice article, the deals are

Nice article, the deals are out there so go make then happen and buy,buy,buy!



This train, Dreams will not be thwarted
This train, Faith will be rewarded
Big wheel roll through fields where sunlight streams
Meet me in the Land Of Hope And Dreams

Bruce Springsteen

Anyone who tries to convince

Anyone who tries to convince you to walk away from your mortgage and destroy your credit is an idiot; there is just no positive logic to it.

If your house is underwater and you can still make thepayments, whats the problem with still paying it and waiting until the market corrects itself??? Yes it is a great time to buy and unfortunately it is true 'ONE'S MISERY IS ANOTHER JOY' but to walk away from your home and risk years of near-permenant credit damage is foolish to say the least.

Good article

I will be looking for many deals this year!!

Properties in Virginia, Mayland or D.C?

Anyone knows any available property in Virginia, Maryland or DC, Please let me know. I'm qualified for $230,000 loan but i can't find any property in these areas. How about paying you $500-$1000 dollars for finding a property i can close. Let me know.



Property in Maryland

What kind of property are you looking for? How many Sq Ft, how many Bed and bath and how much garage space are you looking for.

Turning negatives into positives...

Very enlightening this article is. It's really a bad time right now, but it doesn't have to be so bad if one knows how to extract the best from it. There's always a "flip-side" to things... This is the perfect opportunity for investors to lend a helping hand to those who need it, and make some serious money in the process.

Thanks for this article.

Don't agree with you

I believe there can be situations when walking away can be a good thing, at least that is my experience, after walking away I'm on my way of getting a better and bigger house and all of this with really bad credit.... maybe you are missing something, and credit is not as important as you think...


"Don't compare your life with others. You have no idea what you are getting into."
"No compares tu vida con otros. No tienes ni idea de lo que se trata tu travesía."

It would be nice to get paid

It would be nice to get paid in gold, instead of cash for a deal lol

The time is now to buy!

I often think of the holiday movie classic, "It's a Wonderful Life". During a tough time there is a run on the local bank and the town's people are selling at any cost, even willing to take 50 cents on the dollar for their shares in the Bailey Building and Loan. George Bailey states "that we are all a little panicky but Potter is not. Potter isn't selling Poetter is buying!" Thus, durign tough times it is time to have a vision or a gut feeling that drvies you to make the best decion you can. The time may not be the time to sell but to buy. Especially if you can buy for less than 50 cents on the dollar of FMV. Good luck. Believe and Achieve! Smiling - Joe


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Anywhere in Maryland.

I'm looking for multi-family (4plex,3plex and duplex) and single-family homes of 3-4 bedrooms in Maryland. Spring field would be my first choice. But, i'm open to any propeties in the area. Let me know.



Thanks for the article

Thanks for the article, now that I've finished reading the BARM book, I'm ready to get my feet wet before taking a dive in the deep end.

This week I'm going to be talking with a few friends, one is an RE attorney, one is an RE Broker, another is a Mortgage Broker and of course I can't forget my friend who is a BCM at a BOA branch in my area.

Thanks again,



Robin Potter - REI

" All things are possible to him who believes. " [Mark 9:23]

mwalton wrote: Although

mwalton wrote:

Although Uncle Sam has reduced mortgage payments for more than 850,000 borrowers so far...

This is a great article! However I must disagree with the stats for Loan Mods in this article. The sad reality is that the banks are not modifying mortgages. They would rather foreclose and collect the "Shared Loss Agreement" funds from the FDIC. The FDIC is refunding the banks up to 90% of their loss in a foreclosure.

Here are the TRUE Loan Mod statistics

Though this is GREAT news for Investors it is really sad news for homeowners.


Do not fear, for I am with you; do not be dismayed, for I am your God.I will strengthen you and help you; I will uphold you with my righteous right hand. Isaiah 41:10 FREE wholesaling tips and resources!

To your success,
Carol Stinson

Need Advise

Hello Everyone, I been wanting to get involved in REI for over 5yrs, but haven't done a deal yet. I've read numerous books and been to seminars, but have not taken that first step. I've just purchased Dean's 3rd & newest book and his course(not recv'd yet). However, I have a local REI, who's been investing in my area over 40yrs and who's willing, (at no cost to me), teach me everything and help me do my first several deals. The only thing is, he believes in paying cash for everything he buys through credit card debt or any other way to accumulate money. He's not into creative RE, because I've asked him.
If I was to have the local guy help me, I was thinking that he could possibly hook me up with a team of people would also be willing to help me.
I know that I've made up my mind that I will be doing something this year, but I'm torn between jumping in feet first and having this local REI help me and create massive debt on credit cards, which scares me, OR spend the money and goin Dean's Academy. I still plan on learning everything in Dean's books and applying them at some point, but I feel I've wasted so much time and I need to jump in NOW. Please any advise would be deeply appreciated on the route I should take. Thank You to All! God Bless Beth


Faith is being sure of what you hope for and certain of what you do not see. Hebrews 11:1

Good Article ..

It's true banks are not cooperative , at a time when they really should be !

But nonetheless , it is an opportune time to buy , buy , buy. So use that as your motivation and inspiration !!


Credit card is not an option, especially now. It would be better to work with a small bank in your area or a credit union. The interest on the credit cards are huge. I had a 9% and it was increased to 19% even though the balance is a little over $500. I am eliminating credit card services and using credit union, where the interest rates are very low and no headaches. God Bless.



"You can never get to the top, if you are not willing to climb. Do not look at the difficulty of the climb, only anticipate the view from the top."
"Can't even walk without you holding my hand." (Song)
"Is anything too hard for the Lord ..." Genesis 19:14
"In all things, wait on the Lord."
"Think not of your own deliverance, but trust in God who will give in abundance."
"When you are down to nothing, God is up to something." Unknown
"Our lives begin to end, the day we become silent about those things that really matters." Dr. Martin Luther King Jr.


You hit the nail on the head about loan mods. I dont' believe they are not designed to help homeowners.

danyatborder, I understand what you are saying. Being in the position of facing foreclosure and all the money behind it for some it seems sensible to think what the heck, why bother? However it isn't only future loans that are affected but insurance on cars, renters insurance, getting a job in some instances, etc.

SPR Property Solutions, LLC

Need Advise

Thank You Sandra for your advise. I do have a credit card through my CU right now that's at a fixed rate of 6.9% on cash advances as well as purchases and a 13,000 limit. The Investor I was talking about said he can get houses that need only cosmetic for starting at 6,000 on up in descent areas. That's why I thought if I could get at least 2 houses to start it would only take a year or so to pay off the credit cards. I was assured by the CU that the rate would always stay at that. I've already talked to them about getting into REI and to see if I could take out a cash loan and they said they don't make loans any higher than 5,000 and I'd have to apply for a regular mortgage. I'm doing this on my own and I don't have support from my spouse or family, so any other advise on the best way to get started with no money, would be appreciated. Thanks Again, God Bless Beth


Faith is being sure of what you hope for and certain of what you do not see. Hebrews 11:1

property in virginia

I may be able to help you in virginia. what part of virginia are you looking for? Also what type of property are you looking for? Feel free to call me at 757-566-3244

Good Luck

Good reading materials...keep going..I am so motivated to read all your articles...dom


Let me make sure I understand. Your investor said he could get you houses in decent areas for $6000. each that only need cosmetics? Where in the world is this?

Anyway, "cosmetics" can be in the thousands and it's always more than you think it's going to be. Get a contractor or a rehab investor to help you determine fix-up costs.

Also you have to factor in the closing costs which are at minimun usually $2000. And what about the investor that's bringing you the deals? How much does he want on each deal?

In my opinion, I would be very careful funding your deals with a credit card, especially in this lending environment. These banks can change their terms anytime they want regardless of what they may tell you today. Just my opinion.

Have you considered a hard money lender or partner? It may not be a bad idea to partner with another experienced investor on your first several deals to get in the swing. Offer them a percentage of the profit if they will put up the money or help in some other way.

Just a thought.

Thank you for your imput.

Thank you for your imput. The investor showed me several houses on the realitors multiple listing site and there were several houses that were 6000 on up in areas that are not in warzones but still in the city.

I live in central Michigan so there's numerous homes in foreclosure or REO's and many people are leaving the state. I felt that maybe working with someone who has his experience would be good, because he's right here in town and he could get me connected with the right people. He's thinking about retiring, so he's been selling off alot of properties.

He said when he started 40yrs ago that credit cards were how he started. He said he's helped about 5 people in his career time get started and some are doing better than him. I've been to seminars on investing as well that have said to use them, so I just thought maybe that was how alot of people start out.

I think I'm just going to go through Dean's program and possibly pay for coaching, which is very expensive, because I checked last year. I know I need to do something. I'm not sure who would partner with someone like me, if they can invest on their own without anyone? Well, thank you again, I feel better on which way I should turn. I certainly don't want the debt hanging over my head, especially if I lose a renter. The credit cards still need to be paid. Thanks Again, Sorry it's so long. God Bless Beth


Faith is being sure of what you hope for and certain of what you do not see. Hebrews 11:1

I cant agree more

I have to agree this is the time to buy. This is a great thing for investors. This is a incredible time filled with lots of opportunities. I know that a lot of people are afraid because of the economic uncertainty, however we must remember as investors to do the complete opposite of the crowd. The best time to go to a store is when its a HUGE sale going on. Right now its a huge DISCOUNT sale going on in real estate I actually dont think we will see a better times to buy in our lifetime than now.

Happy Investing everyone !


*Disclaimer I am not an attorney nor am I offering any professional advice, just some thoughts I am sharing*

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