People everywhere are being touched by Foreclosures. Now, they are becoming more of an upscale issue. After working for a major mortgage institution for eleven years, and transitioning back to my realtor hat, I have seen the market basically become a place where people who once were in a buying frenzy, stop in their tracks.
One of the main issues out there today is being able to obtain attractive financing. Many lenders and mortgage companies require condo complexes to keep half their units occupied by owners, not renters. However, it is getting harder as foreclosures are dragging down property values. Though the rates are great right now, you have to have a perfect two year history for a full documented transaction, or cash.
Condo cash buyers- it is important that you know the occupancy ratio of the condo. The website Condoreports.com gives you free valuable information on specific buildings and markets. Home cash buyers- know how the other homes in the area are going to effect your home price in the appraisal process.
I really do not believe anyone knows when we are going to see the foreclosure market peak. What I do know is if you do your homework, you can actually be the benefactor in this very difficult market cycle. I am including an article I read in Business Week and feel the video portion of this is really a great explanation.
Article: http://www.businessweek.com/magazine/content/09_24/b4135026913979.htm?campaign_id=bwdaily_related
