The majority of news "sounds" bad at first hearing, reading or seeing. There is alot of truth to the fact that there is bad news today - scary news.
But take some joy because here are FOUR absolutely wonderful POSITIVES about today's economic situation:
1. Housing prices are lowered in the vast majority of markets.
For all the people who could not afford the home they wanted 24 months ago the news is great. With 20% down they can get a home with fixed rates in the high 5% range. (Our rate today in Georgia with no bait and switch misleading ads or quotes is 5.875 with an APR of 6.010 - for the AVERAGE borrower. Your rate may be lower or your rate may be higher based on the risk you pose to the lender.)
2. Rural property loans are still available with no down payment for qualified home buyers.
For the nay sayers the problem today is not "these crazy no down payment loans" the problem, in part is loans to unqualified buyers through non-conforming (sub-prime) loans. The people those loans were made to did not deserve the loan. These USDA insured loans are made ONLY to people who can demonstrate their ability and willingness to repay. It is not a sub-prime loan made to someone with bad credit, shaky income and a home they can never afford. Rates are low and fixed. (Available in Georgia and Florida by calling 866-946-0120)
3. Bank REOs are everywhere at literally 60 cents or less on the dollar of actual value.
These are not just for real estate investors. They are for anyone looking to buy real property. They also are not limited to residential properties - many commercial properties have also been returned to the bank through foreclosure and deed in lieu. I will be covering this more and more in the BlackBelt Real Estate Investor's Workshops and Seminars as time rolls on. Just download the free e-book called "Ten Mistakes Every Real Estate Investor Makes" to get started.
4. We WILL recover and this is no time to be afraid to buy the home you need.
The people of the United States are not all greedy, arrogant, ignorant, fools. Just most of us. The few who are not will now do our best to take over while the rest stand like deer in the headlights. There is no reason to have any fear about buying a home today. Even if the value were to decline another 10% over the next two years (which in light of current events is highly unlikely) it is still better than throwing your money down the apartment rent waste disposal. And, AND the value will eventually recover. Values have consistently climbed over the long term since people started keeping track.
See you at the polls in November. I dare you to vote for inexperience in a time like this.
THE OPINIONS IN THIS COMMENTARY ARE STRICTLY KEN COOK's PERSONAL OPINION AND NOT REFLECTIVE ON ACTIVE RAIN, NOVATION MORTGAGE, or ANY SPONSOR OF THIS WEBSITE.
EDUCATION BEATS LEGISLATION EVERY TIME. Get your clients, friends and family members to a LENDER RUN home mortgage seminar as soon as possible.
Copyright©2008 Ken Cook. Georgia and Florida real estate investment loans, FHASecure and FHA Home Loans, nationwide commercial hard money and small business loans, non-recourse loans for real estate investors
Novation Mortgage, 2501 E Piedmont Road, Suite 201, Marietta, GA 30062 Georgia Residential Mortgage Licensee 20014. Florida Mortgage Broker Business MBB 0703760 FHA Lender - Equal Housing Lender
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