Plenty of distress followed the popping of the housing bubble and the hard landing of the economy.
Lenders are taking hits from all directions — they lose money on short sales, and often face worse damage from foreclosures.
But as the excess paper value of homes from the bubble era is shed, and red ink on the lenders’ balance sheets grows, investors see opportunities.
They’re out there looking for opportunities to pull off what I call “foreclosure flips.” The concept is simple: Buy low, sell high.
An investor may scan upcoming foreclosures or research new bank-owned offerings to identify a property that can be purchased for well below its market value. They buy it, fix it up as needed, and try to sell it for more. If it works, the…