More than 300 lenders have gone out of business in the DC Metropolitan area resulting from sub-prime loans. Many of such borrowers are not able to pay their loans now resulting in foreclosures of homes. Many of these stated-income and no-doc borrowers took out 100% financing loans and since they had no equity in it, it is easy for them to walk away from their homes.
We are likely to see an increase in foreclosures in the next year in our region. That's more competition for sellers as appraisals are headed lower and an opportunity for investors to buy.
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