Tuesday, August 01, 2006

Foreclosures May Be Less of an Opportunity Than You Think

I'm very interested in foreclosures, because there aren't any other good real estate deals out there right now what with the imminent collapse of the housing market. But this article points out that even with foreclosures up, the deals may not be out there. Banks are wising up to the fact that they're losing potential profits the way they've been handling foreclosures, and they're quickly shutting the arbitrage opportunities.

"Foreclosures sound good in theory, but now the banks have really gotten smart and they have realized they can get market value for their homes"

On top of that, the professional vultures are snapping up any good deals that are available. So I plan to keep watching this market, but I'm not as optimistic as I was a few months ago.