For the first time in a LONG time, I'm seeing some real deals start to hit the market. Foreclosure pricing is more reasonable, bids are fewer, and properties are NOT being snatched up by owner-occs. That said, I do not think the worst has hit. The foreclosure backlog is huge. That inventory is huge. At the same time, demand is flat, especially after the homebuyer credit has expired. This suggest pricing will be weak.
In other words, I think it is a good time to dip a toe in the water. Keep your cash close, as the deals should get better.
I'm not talk and no action. I just signed a contract on a fixer. Considering land value and the value of the bare structure, I am in well under cost. After repairs, I'm still in for well under current cost to build, and the location is prime. In other words, the time nears when nice returns are accompanied by modest risk.
BTW, dealing with Fannie Mae is an absolute pain in the ass. Their incompetence and inefficiency is staggering. Fannie Mae is eating a good $100k loss on this property. That's a lot, considering I paid $60k for it. Thank you, fellow taxpayers, for subsidizing this inept agency and system.
Jurgen in TN