Potential good news for Shadow Inventory.
Here are some new survey results relating to the future purchase of a foreclosed property as an investment.
17% of surveyed said they will buy a foreclosed property as an investment. This figure has basically tripled in the past 6 months.
10% plan to pay cash. Very good news for the true fixer upper properties or properties with other issues that would stall a mortgage approval.
12.8% plan on putting 50% cash down and will finance the rest. This should make lenders very happy.
49% Plan on putting less than 50% down.
This looks like very good news if there is a big wave of distressed properties hitting the market. I like seeing that there are investors ready to step in and make an investment. With the sizable down payments many who were surveyed suggest, I'm sure many of these properties will become income producing quickly.
Jason
*Shadow inventory refers to properties that lenders own and have not put on the merket yet. On a greater scale it refers to existing properties in which the current homeowner is 60 days or greater behind on there mortgage payment and the threat of foreclosure is very real. There is also another group of homeowners in very unsafe adjustable rate mortgages that are set to adjust this year and the adjustments could cause more homeowners to fall behind on their mortgages.
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