SLOW MARKET FAVORS HOME BUYERS

Unless you have been away on a long journey without access to modern communication, you must know that real estate values are facing a strong downward pressures. You must also be aware of the fact that mortgage interest rates are considerably low. The astute home buyer knows that this is a winning combination: it is time to make deals.
Where to look for deals:
. Lender owned properties: the increase in foreclosures means that lenders are now holding a huge inventory of homes despite the fact that some of them have finally begun implementing some of the remedies we talked about earlier.(loan modifications, loss mitigation, etc.) Lenders can not keep all the borrowers in their home and foreclosure becomes the only solution. Contacting the REO departments of those institutions could yield significant results.

. Builders: the sale of new homes has suffered and builders are eager to unload their unsold properties. Some offer very attractive packages ranging from free upgrades to interest subsidy. There are reports of new homes going for tens of thousands of dollars less than they previously sold during the hot period. Getting a new home gives you peace in mind because you will not have to deal with repairs.

. Distressed home owners: with so many people facing rates adjustments and being unable to refinance, a qualified buyer stands to benefit. I am not advocating a sinister plot here to take advantage of the weak but this is in line with Darwinism.

. Tax Sales: every county conducts tax sales every year. Properties are sold for a fraction of their value for unpaid taxes. You must continue to pay taxes until the owner redeems them. Returns for this type of investment are usually high.

. The general market: gone the time where multiple offers were made for the same listing, now homes are more conservatively priced. Take the time necessary to locate that property you wanted but could not afford before.

What it takes to be effective:

. Full documentation or cash: of you can pay cash, finding the right property is all you have to do. If you rely on financing you must be prepared to fully document your income, your assets and exhibit a near perfect credit history.

. Buyers of principal residences may benefit more in this environment as opposed to those who intend to buy rental properties. Conditions for so called investors have tightened: higher down payments are now required.

. Shop for the best financing options available: lenders are looking for borrowers who fit their new criteria and they are willing to offer better terms such as no or low closing costs.
. Keep an eye on the rental market: the need for shelter is a constant one and this will become more attractive now that many people will be unable to meet lenders' loan qualification requirements.

Now is the time for you to get involved. Prices may continue to fall but no one knows for sure. A bird in one's hand is better than the multitude than flock the tree tops.
We offer a free mortgage analysis to our readers, all you have to do is select "free mortgage analysis" below to get the process started.