Just when you thought it wasn't possible, the bad economic news just got worse: home foreclosures, which are among the most visible signs of the current financial downturn, rose by 30% in the month of February. This discouraging statistic comes on the heels of President Obama's widely publicized mortgage plan to curb the devastating foreclosure crisis, efforts which have spurred some of the biggest names in home mortgage loans, such as Fannie Mae, Freddie Mac, and Bank of America, to relax their foreclosure policies in order to work with struggling homeowners.
The Bad Foreclosure News
It doesn't end there, however: many banks are foreclosing on homes and holding the foreclosed properties in reserve, waiting for a day when the market comes back to recoup some of their staggering losses. What that means is that the glut in available housing is going to be around for a very long time to come, keeping prices low and foreclosures high for the foreseeable future.
The Good Foreclosure News
No one likes to profit from another person's misfortunes, but let's face it, when it comes to real estate, Americans have entered the buyer's market of all buyer's markets. While foreclosures are obvious examples of this, it's also critical to point out that real estate values in general have tumbled in all but the most recession-proof parts of the country, and many analysts agree that they're going to keep on falling for another year or two, at least. What that means for prospective home buyers are lots of bargains, lots of options, and lots of leverage.
As grim as all of this news is, it's important to remember that there are opportunities in the midst of chaos - and the moment that enough people start to take advantage of those opportunities is the moment the crisis begins ease.
Are you interested in purchasing a foreclosed home? Let us know how the experience has been.
