Bad Credit Mortgages
In case you have not noticed, we are currently experiencing the worst real estate recession in decades, with the prices of homes having plummeted to the point that many people are paying more on their bad credit mortgages than the home is worth.
When facing high unemployment rates it is evident that more people will become financially challenged and because of this it is usually the mortgage payment that suffers the most, as most home loan payments are rather high compared to other expenses.
Many of the loan modification people will say just about anything to get your money and then leave you “high and dry” when it comes to dealing with your mortgage company, and could care less about your pending foreclosure.
Often referred to as the “retail” side of the mortgage business, lenders make a profit from loan processing fees, not the interest paid on the loan.
To the real estate investor, all of this means opportunity, with the low interest rates and low housing prices, this is the perfect time to buy and invest in real estate, but this is not the perfect time to sell, however.
If you own real estate, you should not panic and hold onto your investment until the market rebounds, because real estate ownership is one of the best investments you can have as everyone needs a place in which to live.
A short sale is where an owner is in trouble and has a buyer come in and negotiate with the bank to let the home go for a value less than the loan amount owed on the home.
Always ask for a security deposit and do a credit check on any tenant and by doing this, you will have some security that the tenant is of good character and will most likely pay their rent on time.
A good home inspection will uncover any type of problems with the property before you decide to buy it.
Foreclosure listings are reaching all time highs and the banks are feeling the pain of the REO inventories that are building up.
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