Wow, this is bigger than we anticipated - even though Bruce Norris talked three plus years ago about the fragile nature of the real estate market, and the fact that banks and financial institutions would soon reap the reward of their reckless lending practises. At that time, the real estate market was thriving, multiple offers were still common place, and people were reluctant to believe that things would take such a dramatic turn for the worst.
But here we are today and more disastrous news for the American tax payer. This recent news on Freddie and Fannie and their financial woes is important to stay on top of – interests rates have gone down, and stock markets are rallying on the news of the bailout by the federal government. This could turn out to be the biggest and costliest government bailout ever of private companies...
All of the information in the news seems to indicate that the majority of home owners in the US are experiencing financial troubles, or are in various stages of foreclosure. The truth is that 50% of homeowners in the US own their homes free and clear, and approximately 10-15% are experiencing financial hardship. Banks are lowering payments for people and assisting them to reduce their payments - if you are having difficulty in this regard banks are the first port of call - they want to work with you. Additionally, a large percentage of properties on the market today (in CA) are short sales or REO's. This will present many opportunities for investors to participate in this recovery - just be patient and educate yourself as to how you will finance these deals -the non-traditional financing options available. At the SJREI Association http://www.sjrei.net/ we will be focusing on this topic over the next couple of months. This is the way to go right now for us investors.
Tuesday, September 9, 2008
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