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Real Estate News Releases
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(EMAILWIRE.COM, August 18, 2008 ) CHARLOTTE, NC – The epidemic of American homes being lost to the foreclosure process has been wreaking havoc in countless families across the nation as well as innumerable boardrooms and investment funds around the world.
The homes being lost to foreclosure are one link in a large global chain of credit and investments. The pain is widespread, and many experts predict that it will get worse to the tune of billions to trillions of dollars of lost investment value.
But, for a few opportunistic home buyers and investors who buy houses for a living for rental purposes or for 'flipping' purposes, the time for bargains is near. In many parts of the country the homes being sold by foreclosing mortgage lenders and banks are being liquidated at rock-bottom prices.
From Denver, Colorado to the Central Valley of California, to Tampa, Florida, investors across the country are reporting that they are actively buying houses that are facing foreclosure or have been repossessed in foreclosure proceedings already. The best part, according to some of these investors, is that they are immediately able to rent these houses out for less than the costs to pay a new mortgage, taxes, and insurance.
Many real estate experts have long said that the market will be approaching its bottom when the cost to buy a house and cover the costs of ownership is significantly less than what a renter would pay on a monthly basis. In such a scenario an investor can earn a positive monthly cash flow by renting a property for more than the monthly expenses.
One foreclosure expert, Patrick McGilvray, president of Sacramento, California based www.TheHomeBuyingCenter.com, reported that the professional home investors as well as families looking to buy a home that he works with are excited about the discount buying situations this market is starting to present them. "For many people who sat on the sidelines as the market went to insane price levels, now is the time for them to enjoy bargain house buying opportunities. There are many American families who are experiencing tremendous financial and emotional pain that will likely last for years or decades, and their pain, tragically, is partly what has made this a historic real estate buyers' market."
Other experts are concerned that we are still somewhere in the middle of the housing crisis and that one to three more years of falling home prices could be in store for the United States housing sector. They point to the pending wave of mortgage resets for "option-ARMs." These option arms were quite prevalent in California, Florida, Arizona, and Nevada during the housing run up which ended in 2006. Many of these mortgages allowed homeowners to pay interest only at a very low rate for a number of years, with resets occurring at large numbers in 2010 and 2011.
www.TheHomeBuyingCenter.com
Patrick McGilvray
916-821-6200
patrick @ thehomebuyingcenter.com 
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