 Most people are familiar
with the real estate market see this as a time of opportunity
or bust. In reflecting on the last few years you can obviously
see that there may be more real estate investment opportunity
on the horizon. Past action has brought us to a point where
many home owners are faced with loosing their home.
Many of these homeowners have mortgage to value ratios
that are inverted. Meaning the value of the home is less
then the mortgage outstanding. There are many opportunities
out to buy homes. Not only real estate investors but first
time home buyers should consider buying a home right now.
Ideally with this market, you could find your dream deal.
You could buy a new home, fixer upper and everything in between
in the pre foreclosure marketplace.
Home foreclosures and late payments set records over the
first three months of the year and are expected to keep rising,
stark signs of the housing crisis' mounting damage to homeowners
and the economy.
The latest snapshot of the mortgage market showed that the proportion of mortgages
that fell into foreclosure soared to 0.99 percent in the January-through-March
period. That surpassed the previous high of 0.83 percent over the last three
months in 2007.
The report by the Mortgage Bankers Association also found
that more homeowners slipped behind on their monthly payments.
The delinquency rate jumped to 6.35
percent in the first quarter, compared with 5.82 percent
for the three months earlier. Payments are considered delinquent
if they are 30 or more days past due.
Both the rate of new foreclosures and late payments were the highest on record
going back to 1979.
Jay Brinkmann, the association's vice president of research and economics, told
The Associated Press that the slump in house prices was the biggest factor for
rising foreclosures and late payments.
With prices expected to keep dropping, foreclosures and late payments "are
going to continue to go up" in the months ahead, he said.
Homeowners with tarnished credit who have subprime adjustable-rate
loans took the hardest hits. Foreclosures and late payments
for these borrowers also swelled to all-time highs in the
first quarter.
The percentage of subprime adjustable-rate mortgages that
started the foreclosure process climbed to 6.35 percent.
The rate was 5.29 percent in fourth quarter, the previous
high.
Late payments rose to 22.07 percent from 20.02 percent, the
previous high.
The association's survey covers just over 45 million home
loans.
More problems also cropped up with loans to more creditworthy
borrowers.
|
