So much news and so little fact about where the real estate market is going.
Though it is true that foreclosures are up over 10% in comparison to 2006. As all know, 2006 saw a spike of foreclosures in the 2nd 1/2 of the year.
As with many economists, include the lead economist for the Association of Realtors, the bust in the secondary finance market has been the linch pin in the up swing !! Unfortunately, as with any investment, high demand for the commodity leads to speculation. Such happened with buyers seeking homes and lenders willing to provide financing that was a stretch for the buyer.
What kind of interest would you like from a buyer with a 500 credit score and no cash for closing?? Would you want a guarantee period of return and a rate a few points above the pervailing rate? I bet you would and so did the lenders willing to aid the marginal buyer.
No it wasn't the buyer's fault...they only want to find a house. But we are where we are.
So actually for the buyer, it is a great time to buy with a great inventory of homes and perhaps that right home at a great price. For those facing foreclosure, it is time to call the bank and work out an alternate payment schedule, if possible...the bank really hates to foreclose...looks bad to all those in the press and the public. If needed, those who see foreclosure in the near future can contact a Realtor for instant help in valuing the house and getting it sold. And perhaps getting you out of the dilemna before it overwhelms you.