BluegrassForeclosure.com

Not only are there a multitude of homes on the market for the investor to choose from, but the credit crisis has really squeezed many individuals to the point that they cannot get credit nor do they have the 20% down it takes to get a loan.  Thus, as we’ve already discussed, many would be homeowners are now forced back into renting.  Little to no money down along with somewhat reasonable rental prices and rental demands are on the rise.

As Cincinnati.com is reporting, home ownership nationally is at its lowest level in six years.  According to the article, increased rental rates will be seen in neighborhoods where the median value of the homes is $100,000.00 or less.  If you begin finding potential properties to own in those areas, it will be worth consideration, since you have a fairly large pool of potential renters to choose from.

The Wall Street Journal runs an article regarding the increase in rentals.  The forebodes well for the foreclosure investor.  With so many homeowners losing their homes, they still have to have somewhere to live.  Since mortgage loan requirements have tightened considerably, most of these individuals have to go back to renting.  Which means that homes or apartment complexes near schools, or multiple bedrooms are poised to increase, simply because families with children will need that extra space.  While they may not have been able to afford owning a home, they will go back to renting, where you don’t have to have a big downpayment, you don’t have to carry insurance if you choose not to, and credit checks are mostly minimal.

Now is a great time to flip a foreclosed home back to renters or invest in multi-family units.  Check out the WSJ article.

So you want to get into the foreclosure market, but do not have the time or inclination to track down individual deals.  Check out UVestor.com.  I am not necessarily offering an edorsement, but it looks promising on a national level and now includes listings in Louisville.  If you try out the service, please send an evaluation of it and let us know if it is worth it.

The Columbus Dispatch had an interesting article that the recent boom and bust was not a housing price bubble that burst, but rather a credit bubble.  Credit became too easy to get and so more and more consumers went after the home of their dreams, knowing full well that they wouldn’t be able to afford the payments.

This makes sense to some degree.  Houses are still being bought and sold, even today.  Albeit, for much more reasonable price.  Things are still moving.  Credit can still be gotten by individuals.

Also, this particular article went on to discuss how much value homes in the U.S. have lost since 2006.  According to the Federal Housing Finance Agency (there is an agency for everything), estimates that homes have lost value equal to $4.2 trillion.  That’s a pretty big number.

With that much value lost, you make the call, was it a housing bubble or credit bubble?

For more on the article, click here.

In a positive sign, www.Cincinnati.com, is reporting that first time home buyers are entering the market.  Apparently this is a direct correlation to the Feds tax credit for first time buyers.

While the foreclosure investment market has never been better, it is certainly encouraging to see signs of new life in the housing market.