October 12th, 2009 7:37 PM

Fact: Every 13 Seconds Another Home Goes Into Foreclosure.

Fact: There Are Nearly 7,000 Foreclosure Filings PER DAY.

Fact: There are Roughly 7,000,000 lender  ‘Shadow Inventory’  homes  ….  homes destined to become Real Estate Owned (REO) ... homes for sale that are already owned by lenders.  'Shadow Inventory' homes are homes that the lender has foreclosed, but does not want to sell now since home prices are depressed.   Compare this with the forecasted sales from the National Association of Realtors for 2009 ( 5.1 million homes for 2009)

Fact:  It's Simply Unrealistic To Assume That There Will Be Any Sort Of  ‘Market Correction’  For Years ( and that home prices will miraculously snap back to previous inflated levels).  Recent sales show that 70% of the homes that are selling are distressed property sales - foreclosures, short sales, etc.).  The glut of foreclosed properties will continue to depress market prices.

Fact: The FHA Will Have To Raise Standards For Loans,  Raise Mortgage Rates, and Require Higher Credit Scores for Buyers.  The intention is to restrict home buying only to those who are creditworthy.

Fact: Over the next 3 years more than 6,000,000 more homes may be lost to foreclosure (that's in addition to the 7,000,000 above!). This is because luxury home owners are now defaulting on their loans too.

 

Investor , Buyer, or  Seller	Trigger	What Do Do Now
Real Estate Investors	People Who Have Been Foreclosed Still Need A Place To Stay.  Investors With Rental Properties Will Have Their Pick Of The Best Tenants. There are home bargains galore and you must be selective and do the numbers to know which properties are winners.	1) Market Your Existing Rental Properties to People Displaced By Foreclosure, etc. 2) Offer properties as Rent-To-Own to encourage better quality tenants and help them rebuild their credit. 3) Offer properties as Lease-Option or Lease-Purchase, encouraging the tenant to take better care of the property. 4) Selectively Acquire Rental Properties near Areas That Have Been Hardest Hit By Foreclosure.
First Time Home Buyers	As a first time buyer, there are more fairly priced homes than ever available.  This means that right now is your best opportunity to buy a home.  The government even wants to "pay" you to buy. P.S.,  Don't expect that the government will extend the Tax Credit.	1) Check with a lender and see whether you can qualify to buy a home now.  2) Search for homes that are fairly valued, in your price range, and do not need burdensome, extensive repairs. 3) By acting quickly, you may also qualify for up to $9,800 in Homebuyer Tax Credits.
Move-Up Buyers	As a move-up buyer there are more fairly priced, move-up homes than ever available.  This means that right now is your best opportunity to buy a home.	1) Check with a lender and see whether you can qualify to buy a home now.  2) Search for homes that are fairly valued, in your price range, and do not need burdensome, extensive repairs. 3) Check with a Realtor to determine what your present home is worth so you can determine whether this is the right time for you to make a move.
Sellers	The time crunch is on for you.  You need to sell before the glut of foreclosures hit the market and further depress prices.   If you want the best price, you simply cannot afford to wait for the "market to improve".  This may be an ideal time for you to be a "move up" buyer.	1) Check with a Realtor to determine what your present home is worth so you can determine whether this is the right time for you to make a move. 1) Check with a lender and see whether you can qualify to buy a home now.  2) Search for homes that are fairly valued, in your price range, and do not need burdensome, extensive repairs.

 

Similar Posts:

1) Flood of Foreclosures Coming Now

2) Luxury Homes Lose Value

2) Breaking News: Existing Homes Sales Slide - Continued Price Declines.

 

Tags: foreclosures, short sales, distressed properties, "shadow inventory", National Association of Realtors, NAR, Federal Housing Administration, rising mortgage rates, tighter credit criteria, higher credit scores, luxury home foreclosures, real estate owned, bank owned homes, REO, tighter lending standards, sellers, buyers, first time home buyer, "move up" buyers, real estate investors, home sellers, homebuyers, ATLShortSales.com

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