Unusual real estate market ahead

We appear to be heading to an unusual period for the real estate market.  In the past, buyers who wanted to purchase with little down would be required to purchase mortgage insurance to cover part of their loan if they went into default.  A few years ago, many mortgage companies started offering "80/20 loans", this eliminated the requirement to purchase insurance while still allowing buyers to purchase with no money down.  Unfortunately many of these loans were at adjustable rates. 
In addition, since many of these buyers were at the top end of their budget, they were also offered an interest only option for the beginning term.  Now that many of these loans are entering their 2nd or 3rd years, the interest rates are escalating and the interest only options are now requiring larger payments to principal.  This has caused many of these homeowners payments to nearly double, putting their house payments out of reach for their budget.
This has resulted in an unusually high amount of foreclosures. When the government indicated they would step in and hold the lenders accountable for putting these homeowners in this position, and all of these lenders then sold the loans to other lenders and closed their doors.
What happens now?  The high amount of foreclosures will result in some deals for investors who will be purchasing these homes at auction or from the homeowner before the foreclosure is completed.  Many will then place these homes back on the market for a profit.  This is resulting in an increase of homes for sale creating a buyer's market.
If you or anyone you know is facing the possibility of losing their home, please contact us as soon as possible.  There are ways to get out of this situation before foreclosure.
If you are considering investing in Real estate or purchasing a home, we are aware of many great deals that may be on the market soon.