Another Round of Foreclosures

Another Round of Foreclosures

"Strategic Defaults and the Foreclosure Crisis"

That is the title of an article in Yahoo Finance that was posted yesterday. It basically talks about how more and more people are just walking away from their mortgages (strategic defaults) because it make financial since to them.

Even though the main stream media has not been talking about foreclosures lately... the latest numbers are:

{Foreclosure filings were reported on more than 2.8 million properties in 2009, up 21 percent from the previous year and 120 percent from 2007, according to RealtyTrac.}

Here is a few section that jumped off the page at me:

{The number of so called "strategic defaults" more than doubled, to 588,000, from 2007 to 2008, according to a study by Experian and Oliver Wyman. A separate 2009 survey found that more than a quarter of all existing defaults were strategic. Meanwhile, a growing number of academics are touting the financial benefits of walking away. "Homeowners should be walking away in droves," Brent T. White, a University of Arizona law school professor, said in a recent paper. "The financial costs of foreclosure, while not insignificant, are minimal compared to the financial benefit of strategic default."}

{...But since a foreclosure on their credit report is likely to prevent them from buying a home in the near-term, they may have to rent...}

To see the whole story please click the link below:

My thought is, this is still the perfect time to get on and start talking to people about investing in foreclosures and if people are in the mentality to rent vs. own... maybe a buy and hold strategy would be best to create wealth.

Just a thought. Smiling
Hope y'all enjoy the post and I can't wait to get Dean's new book.


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