You're undoubtedly hearing reports in the media about increasing numbers of mortgage defaults.  A frenzy of financing in the last few years allowed many buyers to secure loans that were downright inappropriate for them, and now we're experiencing the fallout.

If you're planning to sell or buy a home in the near future, what effect might the number of foreclosures have on your plans?  Either way, banks and lenders are beginning to formulate loans more carefully, which can affect both buyers and sellers in the real estate market.

Buyers can certainly expect a tightening of credit.  It will be more difficult to secure a mortgage if you have less-than-perfect credit.  You'll need to anticipate slightly higher interest rates and/or a larger downpayment to offset the perceived risk on the lender's part.

When buyers have more difficulty obtaining loans, sellers can feel the effects as well.  That's because there may be fewer buyers out there, and they might be spending less because of the less favorable mortgage terms for which they qualify.    That boils down to the possibility of lower offers.

However, there is always light at the end of the tunnel in every market.  Real estate, like the economy, always goes through phases, and always regains its footing.  A home is more than a commodity - it's shelter and security, and always a solid investment.

For more information, contact Michael Sinton, Broker/Owner, Assist-2-Sell Buyers & Sellers Edge, America's leading discount real estate company, directly at 609-587-4227, via email at MSinton@Assist2Sell.com or on the web at http://www.wesellcentralnj.com.