Foreclosure, No Closure

The press and real estate investor education circuit is currently abuzz with foreclosures. The reality is very different than the headlines or seminar promoters would have you believe. Says trust deed expert Troy Fullwood of Pinnacle Investments, “smart lenders do not want to collapse homeowners who are behind in their mortgage payments - Pinnacle Investments This does two undesirable things: it places real estate in the hands of a bank and evicts a prospective homeowner that with a little counseling may remains a desirable borrower. If we can restructure the note (forebearance) and keep a homeowner in place and catch up payments, this is a better solution than an empty house and trashed credit.”

With the sub-prime hiccup, significant amounts of non-performing loans have come to market. “This is the ultimate “fix and flip” opportunity,” says Fullwood. “Understanding how to buy discounted trust deeds and repair these files is significantly faster, simpler and less risky than “fix and flip” projects as eight times out of ten you already have the buyer in place.”

And then there are those borrowers who just decide the dream of home ownership is no longer for them. A successful franchise from the UK, A Quick Sale, uses proprietary strategies to identify disillusioned homeowners and win quick sales for their licensees. They have launched in Arizona and are now successfully selling exclusive territories to investors nationwide.

“Safe as Houses” is no idle saying when you realize the average home in Averageville America has never seen negative appreciation year over year. Oh and those subprime borrowers…87% are diligently making their payments.