Note Investing News: 53% of Market Has Above Pre-Recession Foreclosure

Good news for note investing: over half of America’s housing markets are still flush with distressed property deals.

While every single foreclosure is still a tragedy, those searching for distressed property deals will find there is plenty of inventory out there, according to the latest data.

A new foreclosure report from Realtytrac and ATTOM Data reveals that only 47% of US markets have seen foreclosure activity roll back to pre-recession levels. Over half are still dealing with the ongoing hangover of the financial crisis. In the first quarter of 2017 alone, almost a quarter million housing units received default notices, auction scheduling notices, or became bank repossessions. This may also hide a much larger number of distressed properties already in the process, or in REO status. While these figures may be the lowest since the end of 2006, the foreclosure crisis actually began before that in some markets.

According to RealtyTrac the cities with the most foreclosures in March 2017 included:

1. Trenton, NJ
2. Atlantic City, NJ
3. Philadelphia, PA
4. Rockford, IL
5. Peoria, IL
6. Reading, PA
7. Las Vegas, NV
8. Ocala, FL

A number of areas also saw foreclosure activity rise in March 2017, including:

• DC
• NJ
• OK
• LA
• Ct
• AZ

Markets with notably fewer foreclosures than before the crisis included:

• Detroit
• Atlanta
• Miami
• Houston
• Dallas
• Los Angeles
• San Francisco
• Dayton
• Cincinnati

The overall market has definitely improved in terms of equity, property prices, demand, and default rates. This has caused a lot of competition in certain metro areas. However, there are many parts of the country which are still being hit hard. That presents great opportunities for note investing, if you have the right connections, and know where to look for deals.

Investment Opportunities

Find out more about investing in secured debt and real estate, go to NNG Capital Fund

Image of Kim Heimbuch in Pixabay