The real estate business everywhere in the United States has become a tragic mess. Mortgage lenders are filing for bankruptcy or begging for the federal government to bail them out. News of record breaking foreclosure rates are permeating the media. Just yesterday, I even heard that a builder, Neumann Homes is filing for bankruptcy. Is there any wonder why the real estate buyers seem to be heading for the hills or searching for cover?
Fear of real estate has taken us over, but there seems to be no real explanation. Yes, foreclosures are up; yes lenders are tightening their restrictions on credit and looking for larger down payments; yes there is a lot of negative stuff out there. I believe the media has overblown things and, as far as real estate goes, is actually causing an unnatural knee jerk reaction in the public.
Let's look at things from less of a fear mongering point of view and more of an opportunistic point of view. The interest rates are still at near historic lows. It appears that the federal reserve will be lowering rates again in an answer to the current "crisis" in the housing market. Housing prices have moderated and short sales and pre-foreclosures are presenting even greater opportunities for buyers. The job market is still very robust. As a reaction to people fleeing toward rentals, landlords are now commanding some of the highest rents in history, making it more sensible to buy than ever. So what is stopping people from buying?
Fear.
Don't be afraid of real estate people! This has happened before and will, in all likelihood happen again in the future but if you aren't a flipper, or someone who only has the very short term picture in mind, then you should seriously re-evaluate your position on making a purchase.
The banks are even getting wise and starting to help out. Take for example my friends at e-loan. I trust very few lenders these days. Ask me personally and I'll only give you a handful of reccomendations, (because I want my deals to close and if you are a buyer so do you). But e-loan has come up with a program for people on the bubble; people who want to buy but whose credit is just short of what they need to commence a transaction.
So what is e-loan doing differently? They are offerring in house credit counselling that will help you improve your credit scorese and get you the loan and the home that you want. It's a bit of a pilot program and I'm one of the few Realtors or real estate agents out there who has been made aware of it but I want to shout it from the rooftops.
If your credit scores are just short of the mark, at least there's a bank out there that will help get you to where you need to be. No costs or gimmicks, just some guidance and help to get you to your real estate goals.
I'm hoping other lenders will follow suit.
The smart people will see this as an opportunity. This market is currently full of opportunities but, as with any opportunity, the window is likely small.
I'm reccommending to anyone who is interested in real estate either as an investment, as their first entry into the market, or as an improvement to their current situation: this is a buying opportunity.
If you have any more questions, please ask me, e-mail me, or click on one of the links on my sidebar.
I'm happy to help you and will be happy to answer any of your real estate questions.
You're trusted Realtor in the Chicago area.
Rick
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