I read the article below and wondered about the
1.2 mil homes in foreclosure, is that a high
number?
Foreclosures are substantially up. Many borrowers took loans that put
their finances on the edge of trouble. A temporary unemployment, a
medical expense, a projected raise that didn't come through, all and
more made adjustable rate mortgages good for making the real estate
industry hum, but hurt many borrowers seduced by hot real estate
appreciation.
With freedom comes responsibility. Free enterprise inherently
includes personal failure stories.
The pendulum swings. The secondary loan market may react to losses
with stronger underwriting requirements. Competition keeps everyone
on the edge. Those who predict the future most accurately win.
I might note that buying a home today requires expert advice
including financial. Exceptions noted. Alas, my regard for Realtors
has diminished over the years. Choosing a good one also requires--and
taking--good advice. Most people think they know better. A couple
magazine articles or fifteen minutes with Google makes instant experts.
I find fault with this article only in regard to interest rates. We
have now the best sustained low-interest rates in the 35+ years I
have been involved in the real estate business. These are
extraordinarily low interest rates. And I think they are likely to
remain low for the foreseeable future.