Foreclosures and Tax Deeds: A Future Vision

Tax deed and foreclosure sales are poised to offer a host of investment opportunities throughout the United States. The statistics and emerging trends are proving what I said six months ago that the biggest investment opportunity in the US right now is investing in real estate through the sale of tax deed. Let’s examine why this is so.

Zillow.com, a real estate trend tracking site, has hard figures showing that more than 3 million homes are in foreclosure or will be in foreclosure in the very near future. In fact, in just the next six months and by the end of the second quarter of 2010, most will be in foreclosure. This trend, based on available statistics, is just the tip of the iceberg! As in the terrible tragedy that happened to the Titanic, it is what is hidden under the water that ultimately sinks the ship.

The statistics available only show the visible iceberg, while the real story of tax deeds and foreclosure sales remains underwater, or put another way, under the radar, where statisticians cannot yet see the pain points. from emerging disasters of new foreclosures. The news services are starting to report a terrifying new trend that is causing the banking and financial sectors to freeze due to the implications.

Simply put, the people who have been suffering from the scams that the banking and credit industry imposed on them in recent years are fed up with the Fed, the bailouts of banks and other lenders and the lies they told, to the point that now they are reacting in a real and tangible negative way. When they find out that they are falling behind on their mortgage payments and facing foreclosure, they take matters into their own hands and bail themselves out – literally!

Lenders are now receiving keys to abandoned houses in the mail in increasing numbers! Homes are often stripped of all valuable and profitable fixtures such as air conditioning, kitchens, bathrooms, and even expensive copper wires. Not all houses suffer from this, but a percentage of houses will, depending on how angry the former owners were when they left the house. However, a lot of unadulterated homes left in good condition will also be abandoned and ultimately add to the crazy mix of excess foreclosures.

Another trend that is scaring lenders tremendously is the judicial imposition of a “burden of proof” on banks or mortgage holders to present the “original” mortgage document. Most lenders cannot produce this original document due to Wall Street’s practice of “bundling” loans and reselling them to foreign investment groups.

The unfortunate consequence of this is that if the lenders cannot present the original document, they have no proof that they own the loan. The proof is lost in the mixing of their production, and they are reaping what they have sown. Banks are starting to lose in court, often with the judge awarding the borrower the home debt free! The system is in shock and banks are stagnant. They knew this would come and this is why the governments rescued them.

Now for the good news, as every dark cloud has a silver lining. Given the average two-year redemption period that most counties impose on the property owner to pay property taxes, and since large finances are frozen in place and unwilling to pay taxes owed, foreclosed homes are going to emerge in greater numbers in tax deed sales!

All types of homes, in good and not so good condition, are going through the Tax Deed sale process throughout the United States at this time and in the near future. Get ready for the tax writing boom!

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