Sunday, March 11, 2007

Sub-Prime Lending market in Distress presents opportunities

My Money Blog has a post about sub prime money lenders getting hammered. I also saw that CountryWide will stop doing 100% financing. This doesn't surprise me. About half of the foreclosures that I am getting called on for my direct mail campaign come from CountryWide. I guess that it is not my direct mail campaign that is so successful, its the market for defaulted loans that is skyrocketing. I could probably buy about three times the houses I am buying now if I had more access to cash. Even though most don't fit my criteria for making $20k in profit, most could make me $10k quickly. But the cash access I have doesn't permit me to buy "subject to" existing financing and that is what makes the pre-foreclosure buying really work well.

I've often read that in bad times lots of money can be made. If this is a bad time for homeowners going in to foreclosure, than I can really see this to be true. We will make some good money this year since we are already at 75% of our goal, but I could double or triple that had I been in better financial position.

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