Friday, April 06, 2007
Dyersburg,Tennessee market conditions and foreclosures!
As many of you are reading in the news, there are lots of B-paper foreclosures across the country. Let me be the first to inform our readers that we too are experiencing our share of foreclosures. There are a few things driving the foreclosures here.
One, the desire of the subprime lenders to make loans regardless of the credit. Many of these purchasers should never have been allowed to purchase in the first place as their credit is bad.
Second, new real estate companies here working with these "marginal" purchasers. I would love for everyone to be able to purchase a home but sometimes people cannot afford to purchase. The loans these subprime lenders are pushing are ARM loans which has the payment locked for 2 years then a variable rate for remaining 28 years with the sky as the limit. These realtors are not doing their clients a service locating this type of financing. Most of these foreclosures happen just after the initial 2 years has passed. I do BPO's for mortgage lenders that have made these bad loans and getting these houses back. Some of the loans are not even going as long as 2 years.
I am getting a new listing that I just finished the BPO on. That home was just purchased in August 2006. I currently have several listings that are foreclosures.
To be a successful realtor in the Dyersburg market or any market, you have to have repeat business. With lenders going out of business that have been making these loans and these "clients" losing their homes and not repurchasing, there will be no repeat business for these realtors in this market niche.
Now what does that mean for the Dyersburg market today? It means foreclosures are going to sell 20-40% under what they sold to these marginal buyers. Initially, I was afraid that it would reduce our prices across the board but I do not see that happening. We currently have a real shortage of rental homes. These foreclosures will be purchased by investors who see the rental need. This should actually help the availability of rental homes in the Dyersburg market. There are lots of people moving to the area with many of these looking to rent initially.
If you are considering investing in rental property, there has never been a better time to buy than right now. There are many realtors buying up these foreclosures but there are more deals coming online everyday. Call me if you are interested in investing in Dyersburg foreclosures.There is lots of money to be made by savvy investors.
Labels: Buying opportunities
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