I've watched my daughter and her fiance (class of '20) make offers on several houses over the past few months to no avail. There just aren't many starter homes around Justin. I've been wondering if the world of foreclosures is something that the average person (or smart Aggie) can figure out and would it be a good route to go in the north Fort Worth/Denton area?

I've researched a little bit and know that the sheriff's sale and the HOA foreclosures all have a redemption period, so that sounds a little too risky.

And in this market, it seems like people would just sell and avoid being foreclosed on. What am I missing here?

I have not made a loan on a foreclosure in years, like 10. And not a single client focused on them the last two. Remember the Feds gave folks a huge get out of foreclosure card 2 years ago with free forbearance program. So millions did not lose their homes.

I'm afraid that market will be just as difficult as the starter market is.

You have to find a bank foreclosing, first.

With free money from the Fed, the market incentives are whacked and many would-be foreclosures are left unfiled. But at least they are spending your tax dollars nicely.

Your post makes no sense.

Thanks for your reply. You can get a loan for a foreclosure? I didn't know banks would do that. That sounds a little better.

The loan is no different then a standard purchase transaction. They are more difficult on the ground and dealing with an additional layer of admin, the bank. Power and water turned on for inspection, access, and banks tend to want just as-is deals so no remedial work done on their part.

But for me it's just a loan.

SteveBott said:

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Your post makes no sense.

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I'm not concerned that you can't understand it. I'm sure most who have helped pump out the easy money don't really want to understand the full life cycle of what happens when loans go bad.

America used to have a healthy foreclosure process. Loans defaulted, the lender takes a hit, and someone else gets a house at a discount. However, now, with government-backed lending taking such an outsized role in the markets, the normal lender incentives to foreclose in a timely fashion on underwater loans are distorted.

Hence, fewer foreclosures exist than *should* exist based on existing default rates. The proverbial can keeps getting kicked down the road, and I'm sure some type of government bailouts will come around to 'help' even more--instead of letting the negative consequences of bad lending run their course.

In short, easy government money has broken the normal foreclosure process. I'll not explain it again if you choose to remain obtuse.

OP,

I am a local DFW Aggie realtor. Just wanted to plug myself as a great tool to help them navigate this complex market. We not only offer great service, our business model really helps set up those looking to buy quite nicely. We offer 2% rebates on the commission, which means $6,000 given back to the buyer on a $300K purchase. Plus we've also been one of the few companies to actually have been successful in helping clients get their purchase bids won.

Give me a call if you'd like to discuss! 214-785-1750

website: www.MyRedPear.com

We bought a house from HUD. Watch hudhomestore.com. House needed a ton of work, but it was a good deal. Those are fewer and farther between now days though.

www.auction.com