Will a ‘Pre-Foreclosure Wave’ Sweep Across the Real Estate Market?

Winter is coming and, along with it, a pre-foreclosure wave. So says investor and residential real estate expert Cameron Dunlap of Real Estate Wealth Network. With housing prices hitting record highs and inventory at an all-time low, a homeowner facing foreclosure can sell their home before it goes back to the bank. Hence the term “pre-foreclosure.” 
“When a homeowner has equity,” says Dunlap, “and they don’t want to destroy their credit, they can sell their home and forego a loss. And real estate investors look at these types of opportunities as a way to help someone out of a bad situation.”
As much of a black swan as COVID has been, as long as interest rates stay low, demand will remain high. Dunlap also predicts that mom and pop investors will see upticks in activity in markets where iBuyers (like Zillow) have exited, which is occurring in many major markets. Instability in the market that caused Zillow to exit is not unique to them, so other iBuyers may also pump the brakes.
“We have not seen a decline in property values, so there’s a lot of equity,” adds Dunlap. “Property owners have the opportunity to sell because they don’t owe anywhere near what the property is worth. This gives investors and sellers a chance to negotiate a win-win transaction. In 2009-10, it was most likely a short sale because you had to get the bank to take less than they were owed. Today, we have the opposite – properties that are in trouble whose owners owe much less than what the property is worth.”
What else can the real estate market see in 2022? As Dunlap likes to say, “Desperation is often the cause of inspiration.” 
Cameron Dunlap is the CEO and Founder of Real Estate Wealth Network.
For More Information: Mike Zimov   info@rewn.com
Source: Real Estate Wealth Network