The foreclosure inventory has steadily been dwindling, at least on the non zombie end. Additionally, the toxic mortgage delinquencies have fallen 43% according to Kerry Panchuk of HousingWire,
The housing market continues to recover from post-meltdown levels with mortgage delinquencies down 43% from 2010 levels, Lender Processing Services Applied Analytics [Editor’s Link] said Monday.
The number of borrowers who remain underwater – or who owe more on their homes than their current worth – also fell a sharp 47% from Q1 2012 to Q1 2013, LPS said in its Mortgage Monitor Report.
The Inventory Remaining
There are currently 1.525 million homes which are on the official foreclosure data set list which is down 26%+ from this time last year. How does that translate? Well, there are currently 26% less job opportunities than this time last year! What has NOT dwindled are the amount of Contractors (if you want to call them that) willing to do work for pennies and cut every corner known to man. So, we now are encountering a Supply vs. Demand Equation. Whom do you think this is going to work out for?!
Rehabs and New Construction
Overall, the biggest need for Contractors when one examines the highest Return On Investment (ROI) is rehab. When we look at Blackstone picking up rentals and properties moving towards rentals it is not hard to do the math. Goldman Sachs Group Inc. estimates the rental market to be topping $2.6 TRILLION with New York based Blackstone controlling $17 billion on more than 100,000 homes over the past two years. Do the math: Do you think these people are dealing with Robert Klein of Safeguard Properties (SGP)? No, these types of Titans are dealing with Contractors dollar on the dollar. Now, if you still have the need to have someone tell you what to do, when to do it and how to do it you will want to stay with SGP and the other monolithic National Order Mills.
According to the National Association of Home Builders (NAHB), a total of 255 metro areas throughout 49 states and the District of Columbia qualified as an “improving housing market,” according to the National Association of Home Builders.
The hey days of Property Preservation have started their downward spiral according to the Bell Shaped Curve Models. Oh, none of the Big Boys are going to admit it; I guarantee the National Association of Mortgage Field Services (NAMFS) cringes when they look out upon the Industry today, the Industry has done what it was created to do. The Property Preservation Industry was always a job not a career. As opposed to plateauing it is now declining. Why? First and foremost GREED! Second, the property purchasers are, by in large, Institutional Buyers. These folks need the properties rehabbed and rented. The typical Contractor in the Property Preservation Industry is not capable of doing this. Not just any crackhead is able to pull permits, read a level and operate heavy machinery.
If you have finally opened up your eyes and seen the writing on the wall, why not begin your orderly migration into the Profitable Sector? Why fight amongst the crackheads out there begging for 1099 quasi employment status wherein your bids are dictated and your pay stolen from you when it comes time to be paid? The reality is that no Association is going to change the facts. The Industry has reached its zenith about a year ago. The folks whom will go forward are those whom shift gears and get into the rehab and other lucrative federal contracting arenas. Want help? Thought you’d never ask! Reach out today and have Foreclosurepedia do a Comprehensive Evaluation of your Company, put together a DUNS and SAM Account and align you with a GSA Schedule on the federal side and partner you with the Companies really doing the rehabs out there today!