It had to happen sooner or later.
Subprime loans are vanishing. And now they’re taking some of the biggest high-risk lenders with them.
Case in point- New Century.
Not only has [tag-tec]New Century[/tag-tec] been taken off the New York Stock Exchange but it is having trouble meeting its own financial obligations.
It’s a warning to others. Countrywide, whose [tag-ice]subprime[/tag-ice] business amounted for up to 7 percent of its loans, is getting stricter. No more deals for shaky customers.
How does all of this affect us?
There will be plenty of investor deals out there. Don’t wanters won’t be hard to find. With the proper advertising and word of mouth you will probably have [tag-self]distressed homeowners[/tag-self] calling you. Knocking on doors just got much easier in this market.
Ditto for banks. Get your message out. Let the banks know you’re an investor who is willing to take unwanted properties off their hands. Remember, banks are not really in the real estate business.
Where will the best deals be?
Concentrate on areas where people are upside down in their mortgages. Those are places where values have decreased. These folks owe more than their properties are worth.
Another point- this twist of the market affects high properties as well as those on the low end. There may be some luxurious properties available for good deals. Keep looking and take action.