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THE FORECLOSURE WAVE
Just three to five years ago, money was flowing freely. It seemed anyone who wanted "free" money at the time could get it, and in any increment. Well, we all knew those two and three year arms would eventually come to fruition and many have and continue to do so. Fair enough, as we knew this scenario would become a reality. There is however one tremendous problem that cam with this "free money" wave as non stated income loans and refinancing to place. Home owners were borrowing large sums of money against their overly inflated home values nad equity which were created by this easy money scheme of it's time. Mortgage brokers were making money hand over fist while they continued to put homeowners in very potentially poor equity positions in the future. Some of us, myself included, decided to sit tight during these times, keep our thirty year loans with favorable interest rates and did not borrow against the inflated value of our homes, the lucky few. Which brings us to the above graph. We live in a satellite resort community here in Eagle, Colorado. Many professionals think we drag 12-18 months behind the rest of the country with our real estate trends, which makes this graph even more alarming. As we begin to feel the pinch here legitimately, it appears the bottom is yet to come as the above graph estimates when the peak of the loan foreclosure wave will hit the rest of the country, which is March, April and May of this year. What this means is there are more great deals on the horizon if you are sitting and waiting to make you move in the near future. Great opportunities for buyers will continue to surface in the near future. We are already seeing some amazing deals up valley in the resort properties. There are units up valley which have been reduced 40% and are starting to move, and these include some woderful opportunities in the Avon/Beaver Creek market where I now work. For more information on thes properties call me today at 970-376-1244.
Just three to five years ago, money was flowing freely. It seemed anyone who wanted "free" money at the time could get it, and in any increment. Well, we all knew those two and three year arms would eventually come to fruition and many have and continue to do so. Fair enough, as we knew this scenario would become a reality. There is however one tremendous problem that cam with this "free money" wave as non stated income loans and refinancing to place. Home owners were borrowing large sums of money against their overly inflated home values nad equity which were created by this easy money scheme of it's time. Mortgage brokers were making money hand over fist while they continued to put homeowners in very potentially poor equity positions in the future. Some of us, myself included, decided to sit tight during these times, keep our thirty year loans with favorable interest rates and did not borrow against the inflated value of our homes, the lucky few. Which brings us to the above graph. We live in a satellite resort community here in Eagle, Colorado. Many professionals think we drag 12-18 months behind the rest of the country with our real estate trends, which makes this graph even more alarming. As we begin to feel the pinch here legitimately, it appears the bottom is yet to come as the above graph estimates when the peak of the loan foreclosure wave will hit the rest of the country, which is March, April and May of this year. What this means is there are more great deals on the horizon if you are sitting and waiting to make you move in the near future. Great opportunities for buyers will continue to surface in the near future. We are already seeing some amazing deals up valley in the resort properties. There are units up valley which have been reduced 40% and are starting to move, and these include some woderful opportunities in the Avon/Beaver Creek market where I now work. For more information on thes properties call me today at 970-376-1244.
