On March 27th, the CARES Act came into effect to help lessen the economic impacts of the current coronavirus pandemic. The policy states that no federally backed mortgage loan servicer can:
1. Move forward with foreclosure proceedings.
2. Seek a foreclosure judgment or order of sale.
3. Or execute a foreclosure sale or eviction for a 60-day period beginning on March 18th.
This policy will impact the number of available foreclosure homes for real estate investors to purchase. If you’re an investor curious to understand how this policy will affect your future investments, continue reading as we detail what you can expect in the coming months.
If buying foreclosure homes makes up a big part of your real estate strategy, consider other types of properties until the forbearance period is over. It’s important to note that the CARES Act doesn’t apply to vacant or abandoned properties. Hubzu markets hundreds of vacant properties that might help you turn a profit much quicker than you think. While there may be fewer foreclosure homes on the market, similar types of properties will still become available over this period. Once the forbearance period is over, you should start seeing more foreclosure properties hit the market.
Lower Home Prices
With the foreclosure moratorium taking place, along with rising rates of unemployment, most Americans aren’t thinking of buying a home anytime soon. Because of this, the prices of many homes on the market will fall as demand decreases. If your income is stable and you feel comfortable enough, this might represent an excellent opportunity for you to purchase an investment property and add to your real estate portfolio.
Many types of properties are still available for real estate investors
While the foreclosure moratorium may cause a temporary decline in available foreclosure homes, there’s still plenty of other types of properties up for sale on Hubzu. And with less competitors looking to invest in property right now, you can look forward to cheaper housing prices as an effect.
For additional resources to help you navigate the current real estate market, please visit our COVID-19 resource hub by clicking here.
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