Here are some interesting new statistics about distressed real estate from July.  Nationally, just over 14% or 1 out of every 7 mortgages is not being paid.  When narrowed down to the subprime category, the number of mortgages in default shoots up to 40%.  The lenders finally get it———there are many people out there that cannot pay their mortgages in today’s economy.

For those able to repay the loan under better terms, the banks are willing to modify the loans.  But these are only for people that have extenuating circumstances, like reduced work hours or one spouse is out of a job but the other is still working.  There must be enough income to make the modified payment.  Banks prefer modifying the loan to a short sale.  Most require owners to first go through the modification process before the bank will look at a short sale.

What does all this mean to you, the real estate investor?  Simply put, it means now is the time to buy short sales at a huge discount.  There are literally more deals out there in your area than you can cover or ever hope to.  So, what are you waiting for?  Get after it!!!!!!!

Larry Holder is a seasoned 25 year real estate investor with millions of dollars of real estate under his belt.  Contact Larry at 417-839-6680 or Legacyoneinc.com for information on coaching and mentoring in your area.  Get the one on one training before you jump.

Respectfully,

Larry