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

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

last updated Sunday, July 13, 2025
#Loan Foreclosure Ambiguities #HARD MONEY LOANS

by John Burson

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In 2011, homes sold in foreclosure were disposed of 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 at an average of 4.3%, foreclosure purchases accounted for only 20% of the total residential homes sold in 2011.

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

Most people expect that the mysterious cloud surrounding property foreclosure procedures will eventually dissipate in the coming years. When this happens, it will open more floodgates for commercial hard money foreclosure loans, making it easier for new interested real estate investors to purchase foreclosure properties.

Businesses will be significantly impacted when more commercial hard money loan lenders enter the market, as most commercial hard money loan financing is typically done on foreclosed properties. Therefore, this will create an excellent opportunity for new investors equipped with ready capital to provide these commercial hard money loans in a short-term manner and to generate almost double the profits in the process.