The Foreclosure Moratorium – How it Affects You as a Real Estate Investors

Many people have emailed me asking how the moratorium with affect them as a real estate investor. Simple – it’s basic laws of supply and demand.

Close to 50% of all houses sold (more than that on the low end of prices) are bank owned properties. If all several major banks halt foreclosures for a few months, inventory will quickly dry up. This means prices will go up in the short run. If you have a house you are planning to sell in the next few months you are in luck!

However, the other side of the coin is that lower inventory of bank-owned properties means bidding wars over what little left there are to make offers on. You should not focus on bank-owned properties the next few months, but rather FSBOs.