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Why You Should Still Invest in Real Estate

By: Heather Burns
2010-01-05 18:39:00

Why You Should Still Invest in Real Estate

New Year, New Decade, New Resolutions, New Course, New Guru... same results as last year...sound familiar?

If last year wasn't what you had hoped, planned, or dreamed now's the time to make a fresh start. Here is a main reason why now is still the best time in your lifetime to start learning the ropes of the fantastic business of Real Estate Investing.

Shadow inventory is made up of all the properties that are in foreclosure or headed toward foreclosure that haven't hit the market yet. There are 7 million homes in this shadow inventory category. What the government isn't telling you is that their moratoriums and loss mitigation programs created a huge surge of foreclosures that are about to pop.

Their effort to decrease foreclosures has backfired. According to the National Association of Realtors, there were 3.6 Million unsold homes this past September. You think there are a lot of homes on the market now? There are 7 Million more coming!!) from this shadow foreclosure inventory. That's 2 times the amount of homes that are currently on the market now!

The government's Making Home Affordable (MHA) modification program and FHA's Hope for Homeowners refinance program DO NOT WORK for borrowers that are too wealthy or owe too much on their homes. The number of foreclosures for high end and luxury homes in increasing and there are a ton of luxury homes in this shadow inventory.

We are in the first phase of shadow inventory right now and it will continue into 2010. The second wave will start in 2010 and will continue into 2011 because the national foreclosure moratoriums ended in March and the government intensified its HOPE NOW Alliance program as well as its Home Affordable Modification Program (HAMP). These programs were released in the first week of March but the problem was that the servicers and lenders did not receive training until the middle of June. Then, the programs had to be updated because they weren't effective and they became more complicated to implement effectively.

This created a huge amount of people that have not paid their mortgage and their houses have not been taken back by the lenders yet. Basically these government programs only delayed the inevitable foreclosure process and now it is worse because all of the homes will be entering foreclosure at the same time and with more debt owed on the mortgages.

This is the ultimate short sale environment...or bargain basement. These homes are ripe for the picking. Many of these homeowners have thrown their hands up and have vacated the houses. These vacant houses are gold for real estate investors.

So instead of shying away from real estate, if you want to change your life, get involved now. The money will follow.

2010 can be better than 2009 but it requires a shift -- a shift in thinking and a shift in action.

About the Author:

Heather Burns is an author and internet Real Estate Investor and businesswoman, with more than 20 years experience. Her real estate blog, with lots more resources and commentary is I have maintained a free site with information on various gurus for awhile with no affitiates, just unbiased reviews. I never promote anything unless I have personally tried it. This is a scam free zone.

Here's one action you can take right now that could make all the difference.  Visit and start getting involved.

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