Foreclosure Real Estate Investing - Now is the time!
With foreclosure rates approaching historic highs, there has never been a better time for those considering real estate investing to get started. Real estate investing has always a highly profitable business opportunity for those wanting to supplement their income, but specializing in foreclosures is proving to be most profitable with the least risk attached.
The weak economy since 911, has left the Federal Reserve no choice but to set the fed funds rate very low. The ready supply of cheap money has, as it always does, sent the mortgage industry into overdrive. As a result there has been higher than usual levels a regular bank and mortgage lending, but spectacular levels of sub-prime and home equity lending.
Inevitably though, the economy recovers, as it is now, and those borrowers who bought homes with adjustable rates who only able to qualify due to rates being artificially low, quickly see their payment rise beyond their ability to pay and get behind on their payments.
Sub-prime and home equity loans don't wait for the economy to recover, the crushing debt load they impose on their borrowers begins on day one after closing. Deft marketing by lenders pulls the borrowers in with the allure of lots of easy cash, but the reality of the bargain usually only presents itself to borrowers after the deed has been done.
Mortgage lending is always a math game, and lenders always expect some loans they make to go bad. However, the high availability of lending funds and the loosened standards lenders have given their underwriters over the last few years is producung some of the highest foreclosure rates in 15 years.
For real estate investors this is a unique opportunity.
The weak economy since 911, has left the Federal Reserve no choice but to set the fed funds rate very low. The ready supply of cheap money has, as it always does, sent the mortgage industry into overdrive. As a result there has been higher than usual levels a regular bank and mortgage lending, but spectacular levels of sub-prime and home equity lending.
Inevitably though, the economy recovers, as it is now, and those borrowers who bought homes with adjustable rates who only able to qualify due to rates being artificially low, quickly see their payment rise beyond their ability to pay and get behind on their payments.
Sub-prime and home equity loans don't wait for the economy to recover, the crushing debt load they impose on their borrowers begins on day one after closing. Deft marketing by lenders pulls the borrowers in with the allure of lots of easy cash, but the reality of the bargain usually only presents itself to borrowers after the deed has been done.
Mortgage lending is always a math game, and lenders always expect some loans they make to go bad. However, the high availability of lending funds and the loosened standards lenders have given their underwriters over the last few years is producung some of the highest foreclosure rates in 15 years.
For real estate investors this is a unique opportunity.
posted by benji at 4:05 AM
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