There are lots of ways that sub prime lenders contributed to the mess we are in, and I would like to point out just a few.
1. Approving loans that never should have been approved. It’s no secret that many of the loans that were underwritten should never have happened. The aftermath is families were wounded financially, and now as the government continues to step in, we the tax payers, get to carry the burden from the unscrupulous lenders that contributed to this.
I guess it’s a bit of poetic justice to see the companies fail and the government also step in and actually press charges against the guilty parties.
What’s the upside? If you are an investor, would-be investor, or know any investors there are LOTS of properties out there to pick up and I am hearing of more and more real estate deals every week, if not daily.
2. Not requiring tax escrows. I am not sure why these banks thought that near insolvent borrowers who proved that they had little to no ability to save or pay bills on time, would find a way to pay tax bills. I predeict that we will have more tax lien properties coming available due to this. This will result in yet another investment opportunity whether it’s investing in the certificate held by the government for a return, selling the certificate, or actually getting a property for pennies on the dollar.
So how do you learn about all of this and how to capitalize on it? Check out one of our free online real estate investing seminars or a live local seminar (in multiple US cities. Visit http://www.azrebsi.com/rei-webinar.php for more info or to register.
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