According to CNNMoney.com, foreclosure rates jumped 36% August over last year's August data, and delinquencies and defaults more than doubled this year over last. And...it could get worse: "October is expected to be a peak month for hybrid adjustable rate mortgages (ARMs) to reset, with the interest rates on some $50 billion worth of loans poised to go up dramatically."
Check out these stats: "Nevada led all the other states in the rate of August foreclosure filings: one for every 165 households for a total of 6,197. Other hard-hit, sun-belt states were California (one in 224), Florida (one in 243), Georgia (one in 271), Arizona (one in 289), Colorado (one in 312) and Texas (one in 532). Rust-belt states in the top 10 included Ohio (one in 281), Michigan (one in 288) and Indiana (one in 544)."
Doesn't this mean now is the time to start buying investment properties? This rash of bad news is also a great opportunity for some folks. But if you buy foreclosure property, just make sure you have the right knowledge or the right team of people working with you. There is risk involved in any real estate investment, but foreclosures present their own unique (and sometimes heightened) risk.
The story in full: http://money.cnn.com/2007/09/17/real_estate/August_foreclosures_way_up/index.htm?cnn=yes
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