Huge glut of foreclosures across the US,

Because so many people in foreclosure do not have equity to work with, most experienced investors are hesitant to work with homeowners in foreclosure unless there is enough leverage, read similar stories here, in the deal to make sense.

To work a deal like this many investors want to structure the deal as “subject to” the existing loan so they can assume it. The “subject to” clause opens up the potential sales market, learn more, for the property while allowing him to sell it without an agent, and thus reduce their holding and selling costs.

Even the first time buyer who wants to start with a bargain foreclosure there are only two reasons why they should buy a property in this market. If it has a margin of profit, to be a real bargain, a great place to locate and find you bargain is Foreclosure-Disclosure.com, or ForeclosureFool.com, if it cashflowed from day one. Some states don’t allow that little used tactic.

But in California prices are too high to have cashflow from a rental. So investors are moving to other states and investments other than real estate. You have a lot of money exiting real estate right now.