I’ve read that Texas has the highest rate or number of foreclosures in the country, quite opposite of what this Inman article states. Texas has strict foreclosure laws; you get only 27 days to get caught up on your late mortgage. Why do trust deed investing? What’s the return they are promising, and what is the risk you are taking on?
Personally, I am saving my cash to buy real estate at the bottom of the cycle. Why risk losing the money in trust deeds? I expect a national housing slowdown in 2007 – 2009, as $ 1.5 tril of exotic loans reset. I know I’ll get slammed for saying this, but I think most of those borrowers with adjusting loans will default.
