Inland Empire Foreclosures Create Opportunity
This entry was posted on 6/3/2008 7:57 AM and is filed under uncategorized.
There are a lot of foreclosures in the Inland Empire right now and there are many more coming. While this is bad news for the existing homeowner, this news is GREAT for home buyers. Now is the time for first time home buyers to enter the market and find great deals. As a matter of fact, the next few years are going to be great times for first time home buyers to enter the market. The prices are so low that the mortgage payment is oftentimes hundreds of dollars LESS than a comparable rent payment. It's unbelieveable!
It's a great time for investors too. With a 20% down payment, which is a much smaller chunk of money than it used to be when prices were higher, the monthly mortgage obligation is significantly less than the current rent value. Take the money left over after paying the mortgage and put directly to principle and have that home payed off when you are ready to retire and don't forget that after all those years the home will have appreciated significantly from what it is today.
And the rental market will be strong for a while. Everyone who is currently losing their home to foreclosure is going to need to find a place to rent. Fannie Mae recently commented on a changing the length of time out of foreclosure from 3 to 5 years and requiring at least 10% down payment. That means that a conventional loan will be very difficult to obtain for at least 5 years. And who knows, Fannie might come out with another change as foreclosures continue on this year and next and make it so that you must be 7 years out of foreclosure to even be considered for another conventional loan.
It's a great time to be in real estate folks. It's a great time
Chris
