My neighbors homes are in stable area:Schools are award winners.The police %26amp; fire protection rated highest in our midwestern State: Close to outstanding shopping, medical, and transportation. Everyone wants to live here!
So I thought.
These homes are the newest and best, 3-5 years old, and are bargain priced in the 300-500,000. range. Many are telling me that they got into the homes with little down, and flexible/fixed loans which had premiums go up hundreds as the taxes, insurance, and other %26quot;adjustments%26quot; to numerous to mention went well above their earning powers, so they are wanting out.
Some are selling off other assets to keep up, others are using credit cards to make ends meet.
Real estate agents tell them the market is slow. Some lower the asking price below what they had to pay for them.
Still no interested buyers.
Foreclosure simply means an empty home bought by a foreign subsidiary.The morgage holder makes $$ but shows a loss, legally!
What%26#039;s next?
How many people have put their %26quot;prime%26quot; homes up for sale and have received %26quot;0%26quot;offers?interest rate
Could be a slow market in your area. What are employment conditions like?
Maybe the house you%26#039;re talking about is priced too high.
How many people have put their %26quot;prime%26quot; homes up for sale and have received %26quot;0%26quot;offers?
loan
The area is very conservative and was overbuilt and generally, people are not spending on housing. Too much media focused on the delinquency/foreclosures and the steep rise in property tax imposed by our liberal county government. Always a downer for people trying to make ends meet! Report It
|||There is talk that the mortgage rates will be dropping next month. People are probably holding off.|||Home values have dropped 10% in many places and will continue this trend through out 2008 well into 2009. before the market stabilizes homes may loose 25% of current value. It%26#039;s a buyers market.|||Where do you get that a mortgage holder makes money in a foreclosure? Have you not watched the news lately? Do you think the federal government would consider forking over millions of dollars right now to help out both borrowers and companies if mortgage companies were recording profits from foreclosure?
I recommend you get more educated in the mortgage process. This is DEVASTATING to the mortgage industry...have you not seen how many mortgage companies have went out of business and thousands of people have lost their jobs? Do you think multi-million-dollar corporations go out of business because they are raking in the profits?
You%26#039;ll see the backlash soon enough, as a HUGE number of mortgages are set to adjust the 4th quarter and in the 1st and 2nd quarter of the next year, and this will only increase the problem.
The market is slow. I am personally down $60K from last year.
ALL HOUSES sell in any market condition at the right price. If the house isn%26#039;t selling then you must give a price reduction and it WILL sell...if you are not willing to do that, then you don%26#039;t want to sell your house.
Buyers are in total control right now and can be as picky, picky, picky, as they choose.|||Real estate is a market. Just like the stock market prices and values fluctuate. Finding bargains is the golden rule. You can pay too much for a home just like you can pay too much for a stock. ARM%26#039;S / Interest only loans ( Teaser Rates ) initially give you lower payments but adjust to higher rates within a few years. Many homeowners were very bullish on this concept. It may be a sensible short term play if home values continue to rise and or the homeowner%26#039;s income goes up. Personally I do not think it is always a good time to buy real estate. Hence , stock market. People need to educate themselves more using fundamental and technical analysis as you would in the stock market. These practical tools illustrate potential risk as well as reward. Consolidating these parameters into a single thought process would have prevented this situation. you can always start over.
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