Banks across America are mounting a hiring surge right now. Why? They are gearing up for what lies ahead…more defaults, more short sales and more foreclosures. Collectively, the big 4, including Bank of America, Chase, Wells Fargo and Citi have recently added over 17,000 new employees to their payroll to help manage the volume of loan modification and short sale requests as well as the disposal of foreclosures. And the most ambitious are those that have a large number of Alt-A (Interest Only and Option ARM) loans. Wachovia, for example, is loaded with these loan products. They were recently acquired by Wells Fargo so now it's Wells Fargo's responsibility to deal with the mess that is going to be hitting them this summer when many of these Alt-A loans begin re-casting to fully amortized loans.
Experts are predicting that there is plenty more mortgage mayhem to come as this graph depicts:
Now you can see why banks are on a hiring surge. 2010 and 2011 are shaping up to be as big (if not bigger), than the sub prime meltdown of 2007 and 2008. Believe it or not, this graph shows that 2009 was the “eye” of the storm.
When you study what the banks are doing, hiring tons of employees to gear up for more defaults, short sales and foreclosures, that should give you a clue as to what lies ahead…you guessed it…more defaults, short sales and foreclosures.
I spoke with a new investor the other day who said he was told by another investor in his area, “short sales and foreclosures don't work, stick to deals with tons of equity.” Amused, I asked this new investor if he felt this council was sound advice. He said, “Yes.”
“Oh, dear,” I said, “This other investor is simply steering you away from short sales and foreclosures so that he can have more for himself. There has never been a better time in American history to be in the short sale and foreclosure investing business. It's so blatantly obvious that only lies could suppress the truth.”
Needless to say, he instantly recognized the folly of the advice he had been given.
The reality is that the truth will always be revealed. So you don't have to take my word for it, or all the banks who are currently on a hiring surge, or all the other investors in America who are profiting legally, morally and ethically from the current short sale and foreclosure boom. No, you can just take a walk down your street. Have the courage to talk to some strangers you've never spoken with before and ask about the homes that are for sale in your area. The truth will be revealed then. That short sales and foreclosures dominate the residential (and soon to be commercial) real estate markets.
In fact, they are so plentiful, everyone reading this article could do a deal a week in their respective area, make hundreds upon hundreds upon hundreds of thousands of dollars each year for the next few years and it wouldn't even scratch the surface of all the homeowners that need your help. The opportunity is so incredibly large, much like the ocean, that no matter how big of a splash you think you can or will make, it's like filling up a bucket with saltwater and worrying about draining the ocean. It's ain't gonna happen. This is a world of abundance. There is no shortage of short sales and foreclosures in your area or in this country.
So now the ball is in your court. What are you going to do about it? Are you going to sit on the sidelines and watch others make money and help their fellow American? Are you going to let this extraordinary opportunity slip through your fingers?