On today’s episode I talk about the current situation with the eviction and foreclosure moratoriums.
The eviction moratorium will be ending this month, and the foreclosure moratorium will be ending by the end of 2021. How will this affect you as a real estate investor?
One of the biggest issues over the past year has been that there has been no inventory for investors. Usually, there is a steady supply of foreclosures and short sales and disgruntled landlords that want to sell their properties.
However with the moratoriums in place, landlords could not evict non paying tenants, and banks could not evict non paying borrowers.
This created a situation where foreclosures and REO’s that would have been listed on the market were not listed since the federal government effectively prohibited banks from foreclosing on borrowers. Landlords that had non paying tenants could not evict their tenants because of the eviction moratorium.
There are an anticipated 9 to 10 million renters that have not been paying their rent. There are another 5 million homeowners that are not paying their mortgage. 15% of FHA Mortgages are currently in default.
How will the expiration of the eviction and foreclosure moratoriums affect prices for you as a real estate investor?
I anticipate that the expiration of these moratoriums will create more inventory and more sellers. I also think that this will possibly slow down and maybe even lower prices. This increase in inventory and price softening will make it easier for real estate investors to find inventory.
Focus on marketing to tired and disgruntled landlords, pre-foreclosure and foreclosure lists, and homeowners that have not paid their property taxes.
This is a great time to learn about investing in foreclosures and short sales. Make sure you understand how the foreclosure and short sale process works so that you can take advantage of the increase in foreclosures. In addition to this podcast, click here to get your free copy of “Wholesaling Bank Owned Properties”, to get prepared.
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