Foreclosures to Rise
An article from MSN real estate mentions predictions of a 15% increase in foreclosures this year. This is due to the large number of subprime loans, 19% now compared to 5% ten years ago. Subprime loans are given to people who’s credit is not stellar, so they are generally riskier. This in addition to rates going up on adjustable rate mortgages, high levels of consumer debt, and new riskier loans such as interest only ones will drive foreclosures higher.
Foreclosures can present excellent opportunities for real estate investors who know how to take advantage of them.
Oh yeah its only getting worse. In my city its seems like the foreclosures are doubling every 6 months, for the part year. The short sales are really hot right now also. I’m wondering if there would be more foreclosures if it wasnt for the short sales. I guess will see what happens in the next few years.