nationwide, which is up 2.7 percent from Q1. That represents 1.6 percent of all residential properties. Investment proper- ties account for 75 percent of these vacant properties, but keep in mind that may be partly due to investors fixing up properties between tenants or before a sale. The report shows that 19,187 U.S. resi- dential properties actively in the foreclosure process were vacant (zombie foreclosures), representing 4.7 percent of all residential properties in foreclosure — down 3.1 per- cent from the previous quarter and down 30.1 percent from a year ago. “Lenders have been taking advantage of the strong seller’s market to dispose of lingering foreclosure inventory over the past year, evidenced by 12 consecutive months of increasing bank repossessions ending in February and now evidenced by these num- bers showing a sharp drop in vacant zombie foreclosures compared to a year ago,” said Daren Blomquist, senior vice president at RealtyTrac. “As these zombie foreclosures
hit the market for sale, they are providing a modicum of relief from the pressure cooker of escalating prices and deteriorating afford- ability that have defined the U.S. housing market in recent years.” Vacant bank-owned properties were actually down 5 percent from the previous quarter. A total of 43,602 U.S. bank-owned (REO) residential properties were vacant as of May 2016, representing 15.9 percent of all REO residential properties. Metro areas with the lowest vacancy rates included San Jose, California (0.2 percent); Fort Collins, Colorado (0.2 percent); and Provo, Utah (0.3 percent)—all in trust deed states where foreclosures can take place immediately upon non-payment. No won- der trust deed states have recovered more rapidly than judicial states. As frustrating as this government interference is, it also offers a great oppor- tunity to real estate investors. We can buy these now-dilapidated properties cheaply, fix them up to like-new condition, and
rent them out for high cash flow. Plus, we are cleaning up neighborhoods that these government policies messed up. You can see these available properties by joining Real Wealth Network here. •
Kathy Fettke is co-founder and co-CEO of Real Wealth Network, a California-based real estate invest- ment club dedicated to helping
its members create more freedom in their lives through ownership of income-produc- ing assets, with a heavy focus on real estate investing. She is an active real estate investor, licensed Realtor, certified coach and former mortgage broker who specializes in helping people build multimillion-dollar real estate portfolios through creative finance and plan- ning. With a passion for researching and shar- ing the most important facts on real estate and economics, she is a frequent guest expert on such media as CNN, CNBC, Fox News, NPR, CBS MarketWatch and the Wall Street Journal .
LoanMLS gives you the power to connect with over 20,000 loan professionals and investors ― all interested in buying and selling performing and non-performing loans, notes and pools. Visit LoanMLS.com today to get started!
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