Misery Index Uncovers REO Opportunities

The Misery Index Tallies up the total Bankruptcies, and Foreclosures for a period of time. The attached index shows that last year alone there were 1,089,130 Bankruptcies and 1,285,873 Foreclosures. With the Foreclosure Moratorium ending on January 31 and the Cramdown Bill likely to pass allowing primary residences to be included in a bankruptcy, it is very likely that we will equal or surpass those figures by Q3 of this year. Adding to that likelihood is the record and growing unemployment figure and our current recession that is rapidly progressing toward a depression.

But it's not all gloom and doom...This report shows that many states have very low foreclosure rates which is a strong indicator that home values are somewhat stable in those areas. If you are able to secure discounted REO product in those geographic areas there is a better chance that these properties can be sold at or near retail levels.

Work with your Bulk REO buyers and sellers to encourage them to seek out some of the less sought after areas of the United States. I'm confident they will find the deals easier to close and the pricing much more competitive.