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Planning to Venture into the Real Estate Industry? Loan Foreclosure Ambiguities


paperfree Aditi Bansal

Updated on Monday, May 22, 2017

Even after recovering from the property crash in the year 2008 to the year 2009, several researchers who have conducted surveys in the real estate industry have discovered that foreclosing homes are sold at a less amount compared to other properties. This has created a big opportunity for interested real estate investors especially due to the availability of commercial hard money loans.

tags  #Loan Foreclosure Ambiguities  #Hard Money loans #

 

In the year 2011, homes sold in foreclosure were disposed at a discounted rate of 34%. This is a lower amount compared to the amount sold for non-distressed homes. The main difference is that although foreclosure inventories may remain still at highs of an average 4.3%, the foreclosure purchases are accounted for only 20 percent of the sum total of residential homes that were sold in the year 2011.

Most people wonder why that happened and professionals say it’s because of the ambiguity that surrounds foreclosure procedures.  Professionals continue to say that the sooner markets get clarity about foreclosure procedures that are acceptable, mainly through the pledged settlement between major commercial hard money loans lenders and multiple states attorney generals, the sooner markets will be able to efficiently sell these distressed homes.

Most people expect that the mysterious cloud that has been surrounding property foreclosure procedures will disappear at one point in the coming years. When this happens, it will open more floodgates on foreclosure commercial hard money loans, and it will be easier for new interested real estate investors to purchase the foreclosure properties.

When more and more commercial hard money loans lenders enter the market, businesses will be highly impacted because most of the commercial hard money loans financing is done mainly on foreclosing properties. Therefore, this will create a great opportunity for new investors equipped with ready capital to provide these commercial hard money loans on a short term manner and to generate almost double the profits in the procedure.



This page with a focus on Loan Foreclosure Ambiguities, Hard Money loans was shared by Aditi Bansal.

 
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