COVID Restrictions on Foreclosures may be Ending
At the start of the COVID pandemic and the institution of protective measures such as social distancing, the government put a hold on the processing of current or newly filed foreclosures. There was a 90-day pause instituted to give homeowners and banks a chance to work through the market uncertainty. And, as anticipated, the unemployment ratio exploded. The government knew that this would put even more stress on the home foreclosure systems across the country.
But driving around today while running some errands, I noted an increase in postings on homes. Notices that indicate a vacant property soon to be put under (or already under) a property management oversight. These new postings are not due to homeowners in distress due to job loss situations from COVID. These were in process long before COVID became a national concern.
Home Foreclosures from an Investor Perspective
As these houses start to run through the process (again), you will see a new block of inventory coming to the market that is appealing to investors. For many investors, these represent easy acquisitions as bank-owned (REO) assets. But, bear in mind, these are often hitting the market at 70-75% of their market value. Any good investor knows, even at $.70 on the dollar these are going to be risky purchases due to the uncertainty of the buyer market in the coming months or early 2021. Right now, real estate values are still strong and rising (read our latest review on Connecticut’s market), but this will either continue or we will see a price value downturn. It is more likely that any price downturn will be temporary. But this may be enough to push away investors until they see stability return.
Selling a Home? Not sure how to do so?
We are are always in the market to purchase real estate. Selling a property always comes with stress and uncertainty, but this is a period that creates even more question. That said – sellers are in better position to sell their home at 98%+ of market value (listing price) or better depending on the condition of the home. Unfortunately, not all homes are renovated, updated or even well maintained. These are the homes that fill up the inventory and sit on the market. Sound like your situation? We can help. And, we can provide you with multiple options to sell your home and meet your goals.
Give us a call. We’re a local company and we can help.