Some Experts Believe That The Worst Is Behind Us
Although foreclosures hit a new high in the Atlanta area this month, the number of foreclosures nationwide dropped in April to 74,570 homes - down more than 5% from March.
While this might be good news, the current outlook is still rather bleak. Foreclosures in the Atlanta area are still double what they were a year ago, and this juggernaut is taking its toll on the residential resale market.
While this market makes it difficult to be successful in selling your resale home - it does make it easy to find good values as a buyer… and the conditions for buyers should remain extremely favorable for the next few months.
While I have been bullish for buyers for quite some time, I am starting to get bullish for investors, as well. Most of the previous owners of foreclosed properties will eventually be in the rental market… and since it is unlikely that lenders will finance these folks with the same type of loans that were used in the past, it might be a while before these previous owners will become homeowners anytime soon.
Since the rental market is improving, the attraction of acquiring rental properties at a good price-to-rent ratio is undeniable… especially when many investors are able to attain good positive cash flow with only 10% down.
And let’s not forget that the Congress will be passing legislation designed to help cushion the blow that the tide of foreclosures has delivered. While I am not in favor of many of the provisions of the proposed legislation that have been thrown around - I do understand that there can be legislation that would be beneficial to the crisis - and one can only hope that the right legislation will prevail.
As the tide turns, the incredible selection of properties - and their great values - will begin to fade. It’s simply the nature of the beast.
So whether you are considering purchasing your first home - or investing in rental properties in Atlanta - jump in… the water is getting nice and warm.



Former American League MVP Jose Canseco has lost his Encino, California home to foreclosure.