The year of 2008 is starting to look like the "The Year of Foreclosure" in the sense that the mortgage companies who have gotten property back are getting extremely aggressive in pricing their homes. In some cases, taking an assessed value of around $210,000 single family residence and listing it at the $150,000 range, thereby, devastating the market values of all the homes in the same neighborhood. A mortgage broker recently told me that 80 percent of the loans he did in January of 2008 were on foreclosed properties. In one sense this is good because it is flushing out the excess inventory of homes. In another sense, it is making extremely difficult for some people, even with great credit, to refinance out of an ARM because their home just won't appraise.
THIS IS THE TIME TO BUY!!!! Interest rates are 5.5 % or lower. Prices are excellent. Choice of homes are many. It almost seems like the perfect environment for the long term investor. Only time will tell on how the rest of the year will unfold. But it would appear to me that the previous 30 days more than likely foretells "The Year of the Foreclosure".
To search for homes in the Minneapolis area go to www.MinnesotaSearchHomes.com
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