In America foreclosures now are at an all-time high.
Did you know that experts predict nearly 1.
5 million home owners will face foreclosure in this year itself! While it is also predicted, that the residents of Texas, California and Florida will face the worst of the wrath.
Why did this real estate crisis occur and why was it allowed to escalate? This is the first question that arises in my mind.
The answer is the typical American dream of home ownership.
It wasn't surprising at all that when zero-down, interest optional loans were offered there were more Americans attracted to them than sand in a desert! The result is what we experience today, the effect of all those people who indulged in taking those sub-prime loans and invested in their dream homes which could never be their reality as it was way beyond their means.
Now that the flexible interest rates have increase, mortgage payments have gone skyrocketing.
What was imagined to be a small amount, now quadrupled simply is way out of the financial means of the average American.
The dream homes have now suddenly seemed to become more like haunted homes.
It's not only the average American, who is affected, but also the financial institutions and the whole economy.
Taxes are significantly higher in areas where foreclosure rates are high.
This seems to be one of the best times for real estate investors as there are thousands of distressed properties.
Although one must be very careful while investing as not all distressed properties make great deals.
What does one do to avoid the effects of foreclosure or at least minimize them? Here are a few things one should do: oImmediately contact your lending financial institution oAsk for free credit counselling from the government approved agencies oAfter proper counselling request for an agency to assist you negotiate with your lending institution Over a period of at least three to five years experts claim the housing crisis will improve.
There is definitely hope for the real estate market to boom, although currently it looks very bleak.
The current challenge can be overcome by anyone with proper counselling, investment advice, persistence and determination and last but not the least 'commonsense'.
Did you know that experts predict nearly 1.
5 million home owners will face foreclosure in this year itself! While it is also predicted, that the residents of Texas, California and Florida will face the worst of the wrath.
Why did this real estate crisis occur and why was it allowed to escalate? This is the first question that arises in my mind.
The answer is the typical American dream of home ownership.
It wasn't surprising at all that when zero-down, interest optional loans were offered there were more Americans attracted to them than sand in a desert! The result is what we experience today, the effect of all those people who indulged in taking those sub-prime loans and invested in their dream homes which could never be their reality as it was way beyond their means.
Now that the flexible interest rates have increase, mortgage payments have gone skyrocketing.
What was imagined to be a small amount, now quadrupled simply is way out of the financial means of the average American.
The dream homes have now suddenly seemed to become more like haunted homes.
It's not only the average American, who is affected, but also the financial institutions and the whole economy.
Taxes are significantly higher in areas where foreclosure rates are high.
This seems to be one of the best times for real estate investors as there are thousands of distressed properties.
Although one must be very careful while investing as not all distressed properties make great deals.
What does one do to avoid the effects of foreclosure or at least minimize them? Here are a few things one should do: oImmediately contact your lending financial institution oAsk for free credit counselling from the government approved agencies oAfter proper counselling request for an agency to assist you negotiate with your lending institution Over a period of at least three to five years experts claim the housing crisis will improve.
There is definitely hope for the real estate market to boom, although currently it looks very bleak.
The current challenge can be overcome by anyone with proper counselling, investment advice, persistence and determination and last but not the least 'commonsense'.
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