Foreclosures Good for the Economy?

Strange as it may seem there actually might be a consumer spending benefit to the economy due to increasing defaults on home mortgages.

WHAT ??!!

Yes, the latest rise in consumer spending numbers is juiced by the simple fact that as more and more Americans stop paying on their mortgage…that frees up cash which finds it way into retail coffers.

YOU HAVE GOT TO BE JOKING??!!

No, strange but true. Check out this latest report from CNBC and Realty Trac.

Though someone might seem to think this is good news, think again, Foreclosures, NODs and Short Sales are INCREASING at a record pace which is continuing in the 3rd year since the burst of the bubble. Home values continue to suffer.

Let’s not forget that the single most important asset to the average American family is the “HOME”, which is being wasted. What this country needs is a paradigm shift back to values, and Government needs to do all it can to support “HOME VALUE” by creating JOBS and stimulating (or rewarding) HOME BUYERS.

Market Advisors…Focus on the Sweet Spot

Successful investing in today’s real estate markets requires discipline, patience, and cash. The cash component is obvious, however, the patience and discipline is what most Investors lack resulting in missed opportunity or even disaster.

The “Sweet Spot” in today’s investment market is based on the following parameters:

• Market Momentum principles point to “BUY FLIP” strategies…check out Robert Campbell’s Real Estate Timing and get his newsletter.
• Location is still key as you must invest where demand is high
• Price Point is crucial…stay in the 100,000 range. See why in Diana Olicks blog.
• Know where and how to source properties at wholesale discounts…Trustee Sales and Short Sales.

Finally, you must exercise determination and patience as competition is high…Rewards extraordinary.