| With the rising numbers of foreclosures, lenders have | | | | than necessary. |
| far too many properties to sell. To avoid eroding the | | | | It's a vicious circle. As more homes are listed, the value |
| value of their repossessed properties, banks often hold | | | | of individual houses slips even further. In fact some real |
| an inventory of unlisted repossessed homes. These | | | | estate experts estimate that only about a third of |
| unlisted properties may be referred to as ghost | | | | foreclosed properties are listed for sale. The rest are |
| inventory and you can profit from these unlisted | | | | held as inventory. |
| foreclosure homes. | | | | Banks don't like carrying ghost inventories. And that's |
| How did all this happen? Job losses, subprime | | | | where you can profit from these unlisted foreclosure |
| mortgages, a slow economy; all of this has led to the | | | | homes. Lenders eventually sell these properties at |
| current situation. | | | | auction or in bulk, for a fraction of their value. |
| Homeowners in droves have walked away from their | | | | As an investor, or even an individual looking for a |
| homes because they can no longer afford to make | | | | house to rent out, you can take advantage of this |
| their mortgage payments. Because they owe more | | | | ghost inventory. Plan to attend auctions, check out |
| than the house is worth, they can't sell for enough to | | | | listings on foreclosure websites, or directly contact local |
| pay off their mortgage. So often the only solution is to | | | | banks for addresses of local foreclosures. |
| allow their homes to slip into foreclosure. | | | | As a buyer you are in the driver's seat. The longer a |
| With this huge glut of homes, the value of houses has | | | | bank has to carry property, the more it costs. Taxes, |
| slipped more and more. Lenders aren't anxious to lose | | | | maintenance and repairs, not to mention the money |
| even more money, so they avoid listing all of their | | | | the lender has tied up in this ghost inventory, are all |
| foreclosed homes, so as not to flood the market. | | | | reasons why you can profit from unlisted foreclosure |
| On the other hand, they don't really want the expense | | | | homes. |
| of holding onto their foreclosed properties any longer | | | | |