September 18, 2012

Written By Charles Sells

Industry experts forecast foreclosures to rise 20% in 2011. There are an infinite number of variables to cause the rise and quite honestly, I could have 3 months of articles/blogs on each variable. My first blog of 2011 alluded to one major cause in the spike of foreclosures – moratoriums causing false sense of recovery. If you put a “temporary hold” on foreclosures by banks, that doesn’t mean people suddenly started to pay their bills, does it!? Instead of the natural progression of foreclosures coming to market a few hundred at a time, we have these “holds” being lifted that hits our economy like a broken dam. Instead of foreclosures quietly trickling into the market, they are flooding the market and causing waves of concern.

What does this mean for the 2011/12 market? As an investor, not much. 2009/10 showed declining numbers in foreclosures, because the numbers were a big fat lie, courtesy of our political leaders. The foreclosures were still happening, but they were not coming to market. This “strategy” insults the intelligence of every American. As a comparative to this concept I would provide the following analogy; If a farmer chose to not take his oranges to market for two months, does that mean his trees stop growing oranges at the same time?


About the author 

Charles Sells

Charles Sells is the founder and CEO of The PIP Group, a turnkey service provider that focuses on investments in distressed real estate assets including tax liens, tax deeds, traditional foreclosures, fix-and-flips and long-term cash flow acquisitions. He has been involved in tax lien investing for over 20 years, during which time The PIP Group has grown to become one of the largest agencies of its kind with nearly 1,000 individual and institutional investors worldwide.

Leave a Reply
{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}