Delinquent mortgages numbering 1 million will default in 2009.
That’s the perfect storm being reported by Realty Trac.
What are the major culprits?
Job loss and subprime foreclosures that are now beyond help. That includes any kind of help the government is dishing out- too late, I might add.
All of this sounds bad, of course, unless you’re a buyer.
With a flood of reo properties flowing back to banks that don’t want them- just about anything can happen.
Yesterday I had my 24-year-old nephew over for Sunday dinner, and along with his very worry-free appetite, he left me with quite a lot to think about.
He’s currently looking for his first house and isn’t being frightened off by the current market. Instead he’s viewing it all with a lot of anticipation and as an opportunity.
He knows the deals are out there and he has plenty of time to look. But it doesn’t hurt that his mom is a realtor and his grandparents have given him a terrific deal renting one of their condos.
"It’s great for first time buyers," he said.
"They don’t have to worry about taking a loss on the house they’re trying to sell because they don’t have that problem."
He went on to give his advice on how the government can get things moving again. He’s also a CPA, I’m very proud to report.
"Keep going down on the interest rates," he said while grabbing another heaping helping of my roast beef.
Hmmmm. Maybe he’s on to something.
Out of the mouth of babes….
Lower interest rates would give a lot of people the chance to refinance at a much lower rate…