The Pre-Foreclosure Property Investor\'s Kit : How to Make Money Buying Distressed Real Estate -- Before the Public Auction Slow sales and dropping prices aren’t normally the stuff of real estate industry presentations. If they are mentioned at all, they are usually quickly skipped over or tempered with a quick nod to other, more positive economic signs. The housing industry, from Realtors to developers to builders, must adapt to weather the rough waters that are probably ahead for the real estate market. Homebuilders must provide products that focus on quality, not quantityt. Gone are the days when cookie-cutter designs that scrimp on design will be snatched up by buyers who are eager to get into the home-buying frenzy.

Concern about what will happen when the payments on all the loans taken out last year increase plagues many builders. If home prices do not rise significantly many borrowers with interest-only loans could be stuck with higher mortgage payments. Absent higher prices, the buyers won’t be able to refinance by cashing in on anticipated equity. It’s the loans that were taken out in 2005 that there’s an upside-down concern about. However, if those borrowers had two- or three-year introductory terms, many borrowers will manage to maintain their payments. It’s possible that borrowers could be actually helped in the next few years if interest rates — and consequently mortgage payments — come down.

click here for article

search for : , , , , , , ,