It’s becoming clear that one of the largest casualties to the collapse of the housing bubble has been easy access to mortgages. A number of changes to lending procedures has and will be restricting the ability for new borrowers to qualify for a mortgage. For the generation of young adults now saddled with record student loan debt and unemployment, being unable to get loans to by a home might be the next shoe to dro
After several months of improvement, we are beginning to see home foreclosures pick up again. Last month, data showed that nearly half of states are seeing a dramatic increase in foreclosures. It’s not a giant surprise, many experts are expecting 2012 to be a boom year of foreclosure filings and there are a number of interesting developments that help us to understand why.
Adjustable rate mortgages are loans that offer the buyer low interest rates for some set period of time, such as five years. These rates will fluctuate depending on the prevailing market interest rate. Of course, this means that the interest rates rise or fall depending on the market situation. This fact is especially important when you are living in a crumbling economy like that of the United States with hardly any national income growth these days.
Many, dare I say most, people believe that real estate investors caused the real estate bubble. At the risk of upsetting the entire mainstream and non-real estate investing crowds, I don’t believe this is the case. Why? Because few people seem to be realize is that the real estate bubble was actually a result of [...]
I find it mildly amusing when Main Stream Media (MSM) suggests that bloggers, and industry professionals who rely upon the Internet to disseminate their professional opinions/research, should not be considered a trusted resource as a whole. A case in point why MSM’s argument is rubbish: this scathing article by HousingStory.net about the collapse in real [...]
I ran across an interesting article in the New York Times today where it would appear that consumer psychology among homeowners in foreclosure has taken a change for the worse, or better, depending upon your point of view. It [lender giving a home equity loan] was a stupid move by their lender, according to Mr. [...]
There is safety in numbers. Or so says the old adage tells us. So with nearly 25 percent of all U.S. homes underwater, and estimates as high as 20 percent of all foreclosures being strategic defaults, more underwater homeowners are beginning to see others crossing the strategic default bridge. In fact, underwater homeowners are beginning [...]
I’m not much for saying “I told you so” regarding my trends that will influence the markets in 2010, but this story of a young professional getting a free bachelor pad in the gorgeous sunshine state of Florida for 28 months (and counting) is just too newsworthy to pass up. The details: Owner purchased a [...]
For those who believe the financial crisis has passed us by and the real estate market is set for a super quick rebound, here’s an unpleasant dose of reality for you. For every 1 family who got a government mandated mortgage modification, 10 families still lost their homes. 1.7 million families lost their homes in [...]
Think the economy is improving and homeowners aren’t desperate to sell? Think again. This motivated seller is obviously dissatisfied with his Realtor’s performance, and decided to sweeten the pot with by throwing in his Benz as a freebie. Desperate? Yes. Effective? Time will tell. I realize this example is a bit extreme and might not [...]
For some time now, I’ve been considering becoming a real estate investor (>1 property) once again. Even though real estate prices haven’t found their absolute bottom yet (my non-professional opinion only), I’m thinking that 2010 might be a decent time to test the waters, do some bottom fishing, and see what sort of deals are [...]
If you’re a believer in The Stuff You Own Ends Up Owning You philosophy, it’s only natural that you should spend a few minutes of every month actually calculating how much, if any, that you’re leveraged and how much of income goes solely to repay your debts. Yes, I know that for many, topics like [...]