Foreclosures are in the news lately. Many fingers are being pointed at the sub-prime lenders who had loosened their guidelines in the rush of the hot market allowing many people to buy, often more than they could afford. Now that the adjustable or interest only rate loans are hitting their spike in rates, many people find themselves unable to afford their homes. With the drop in the market prices, some are "upside down" in their loans or owing more than the current market value making it extremely difficult to sell.
This means more homes will be coming on the market from desperate to sell owners potentially flooding an already loaded market. It also makes Wall Street nervous because sub-prime lenders are going under because they cannot fund their new loans because of the default rate of current loan holders. This in turn can affect the business forecast creating a self-fulfilling prophecy of a potential recession or spike in interest rates further slowing the ability of buyers to enter the market.
If you are thinking of buying, now is the time. Interest rates are still low, the inventory is quite extensive and there are still plenty of reputable lenders able to fund your loan. Be SURE you are using a reputable lender...many a horror story can be shared with buyers sitting at the closing table without the funds to close due to the failure of their lender.
Ask me for reputable lender recommendations if you aren't sure where to start.
Anita
Providing safe navigation through every real estate transaction.