Foreclosure’s Hurting and Helping Property Management

There are about 2 million homeowners that hold $600 billion of subprime adjustable-rate mortgage loans, known as ARMs, that are due to reset at much higher amounts during the next eight months

We are constantly speaking with property managers throughout the United States and we asked them how the foreclosure situation might be affecting their businesses.

Our findings are positive and negative for some property managers.

The positive: In many cases, foreclosures have opened the supply of investment properties. Many savvy real estate investors are focusing on foreclosures and renting them out. This allows the property managers to gain more properties under their portfolio.

The negative: In some cases, those that need to foreclose are the non savvy or unlucky real estate investors. When this happens, the property manager loses the property because it has gone into foreclosure.

What are your thoughts on the foreclosure situation and property management?