Currently, housing markets around the globe are on a downward trend, and many homeowners find themselves treading water to stay afloat of their current mortgage. Fortunately, in the United States, the federal government has enacted a number of programs to help struggling homeowners stay in their homes. However, there is also another population in the country that has escaped any type of financial crisis whatsoever, and many of these same individuals are poised to make a run in the housing market that will surely pay off in the future. For both categories of individuals, there is no better time than the present to take advantage of federally mandated programs and all time real estate lows, which is why an understanding of certain aspects of the real estate and mortgage sector is a must.
Housing Help
For some people, the downturn in the global economy and the nationwide mortgage crisis has left him or her in a stressful situation. Many people have found that the loss of jobs has led them to be unable to pay their monthly mortgage payment. For these individuals, the best help he or she can receive is from his or her lending institution. With so many people on the verge of foreclosure, the United States government has enacted mortgage relief programs, which have infused a certain amount of funds to lending institutions across the country. This infusion of funds has allowed many banks to halt foreclosures or suspend actions against homeowners that are delinquent on his or her payments. Many of these programs revolve around lowering interest rates and consolidating one’s total debt to make their payments manageable. Although these programs do not benefit everyone, the people that can take advantage of government subsidies are encouraged to do so. One should understand that foreclosures have become so great that banks are making almost every attempt to keep people in their homes. If one is in doubt of whether he or she qualifies for one of these programs, the best thing to do is to call his or her lending institution immediately.
Buyer’s Market
Completely the opposite of some people’s unfortunate circumstances are those individuals who did not buy when the market was hot and are now poised to make purchases at greatly reduced prices. For instance, there are many deals to be had in short sales and foreclosures. As the old saying goes, “one person’s loss is another person’s gain,” there are many homes available during the present at a fraction of the cost they were just eighteen months ago. Some foreclosures may sell for 50% less than their tax value. Deals like this do not come around very often and should be taken advantage of. Along with home prices being rock bottom, interest rates are also at all time lows. During the present, one can purchase a home for less than its tax value and receive an interest rate that has not been available in over two decades. There have been cases where a $150K loan has a monthly mortgage payment of less than $1000. With so many homes available for historically low prices, a little research and smart investing could lead to an early retirement for some.