If the battered real estate market has not already taken enough blows, get ready for another round of downward price pressure and increased inventory levels as a result of national mortgage lenders taking drastic steps to forego the rising tide of foreclosures.
A lender’s willingness to take a loss, consummate a short sale and forego an expensive foreclosure is about to soar. The reason is simple – the huge volume of loans falling into default. And a lender’s worst nightmare is owning all these foreclosed homes.
As a result of this wave of homes that will hit the market and the lenders’ willingness to sell at fire sale prices, there will be a major transfer of wealth that takes place. Buyers and investors that purchase real estate over the coming months will be the ones who gain and gain big.
As we prepare for the tsunami of housing inventory and the incredible prices that will accompany it, we are positioning buyers and investors to take advantage of buying these properties quickly as they become available.
We are in the midst of tough real estate recession; the worst this country has seen in decades. Real estate prices in some areas have fallen to the point where many people are paying more on a mortgage than their property is actually worth!
Posted: May 14, 2008
I just heard the most amazing news. I still cannot believe it. Bush, Paulson and Bernanke just announced sweeping changes to take place at the Federal Reserve. If I understand it correctly, the FED - which now lends to institutional banks at the Discount Rate of 2.25% - will allow these same banks to lend this same money to home buyers at just ONE PERCENT above what they have to pay for the money!
Posted: Apr 01, 2008
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