Foreclosures & REO RAISE House Prices, Economic Activity & Taxes. How did Everybody get Brainwashed to think otherwise?
The entire world is now brainwashed to think foreclosures are a bad thing for the housing market. Perhaps four years ago when a million loans all went into default & Foreclosure at the same time but not today. They want you to believe Foreclosures are a bad thing so they can continue to kick the can, which benefits politicians and banks.
Most misunderstood facts on foreclosures…
a) Foreclosures and distressed sales INCREASE neighborhood house values and create a positive economic benefit when investors buy low, rehab and resell higher. Moreover, rehabs create jobs and the resale makes for TWO existing home sales transactions, commissions etc in a short period of time. Lastly, they make for a substantial increase in property tax revenue on rehab and final resale.
b) Foreclosures and distresses sales BENEFIT the neighborhood and local area economy when they are sold to an owner-occupant who purchased in the open market and then rehabs, maintains and occupies.
You can check out c) through f) here…
About Mark Hanson…
Mark Hanson, Managing Director — Mark@MHanson.com
Mark Hanson is a seasoned mortgage banking veteran that during his career specialized in wholesale and correspondent sales, operations management, and bringing financial institutions into new lending markets. His primary focus was on residential mortgages working closely with most mortgage and Wall Street investors.
Since 2006 he has worked as an independent real estate, finance, and related sectors analyst, consultant, strategist, and risk ‘enlightener’ to the financial services sector.
His years of real-life experience, extensive on-the-ground research, and absolutely unique leading looking proprietary data has led him to make an extraordinarily large number of early and accurate predictions about the ‘great mortgage and housing meltdown’ and company-specific events.