Millions are being spent on maintaining REOs and billions are being handed out in grants to enable investors and nonprofits to rehab foreclosures. Have you claimed your share yet?
Many real estate investing companies and individual investors often work incredibly hard to find funding and attract private mortgage lenders while others are positioning themselves for big handouts, tax breaks and are even getting paid by lenders and government agencies to flip houses.
Maintaining, holding and improving REOs is an incredible burden on mortgage companies and local cities. In 2010 alone Freddie Mac and Fannie Mae spent just under $1 billion for maintenance on their vacant inventory. With vacancy rates rocketing even further more pressure is being put on servicers, GSEs, banks and cities to encourage the flipping of these houses.
Plus vacant homes don’t just cost money to keep up themselves; they also drag down area home values even further. Cities are fed up and are cracking down. Following the lead from Chicago, Las Vegas recently passed new regulations which force lenders to register vacant properties and maintain them or even face jail time on top of the already hefty fines. Smart real estate investing pros can put themselves in the perfect positions to profit from this with a little creativity.
Cities like Detroit have run many programs, including $20 million in 2010 to enable the flipping of houses to get them occupied and looking more attractive. Other Michigan cities have also given millions away in free property. Wells Fargo has even announced that it will be donating $5.53 million to nonprofits for the purchase and rehabbing of foreclosures. However, this all pales in comparison to the whopping $6 billion HUD has dished out in the last 3 years to real estate investing companies and nonprofits for rehabbing and flipping homes.
Don’t you think you ought to be getting a piece of this pie?