What is Happening in the Mortgage Market

The foreclosure problem will clearly “hurt” millions at the individual level. But, as a market event, the chaos produced by the problem can offer you unforeseen opportunities. Beyond those actually in foreclosure, the people who will be hurt by this national problem will be those who don’t act and create their own outcome. 

As an individual, there has never been a better time to acquire rental property.  Return on "cash" deposits is at an all time low. Why not invest your cash in a 20% down payment and secure historically low interest rates while picking up bargain foreclosure properties?  We can help you find foreclosure listings by clicking here.

This is totally new ground for everyone. No one can be sure what the impact of the foreclosure situation will be, whether affected by a moratorium or allowed to run its natural course. Having said that, here are a few things we think merit consideration if the issue is weighing on your mind:

• The measurable impact will be localized.
• The overall impact in the short term will be noise and anxiety for realtors, sellers and buyers caused by the uncertainty.
• The overall impact in the long term and on a broad scale will become a memory fairly quickly once the market is allowed to take its natural course of dealing with the inventory for sale.
• In the short term, prices in very localized markets may actually increase for the inventory that is not part of a moratorium.
• There is nothing any one of us can do about the day-to-day impact, so we need to look for the upside that we can control or at least influence.
• Low interest rates and low prices can only serve to boost the market over time
• Real estate agents can continue to “work” the market and be the selected agent for when the moratorium does stop.

After all, one thing is fairly certain…since the issue is procedural, the lenders will resume the process eventually, homes will be back on the market, buyers will return to take advantage of the low interest and low prices, and lenders will be there to process mortgage applications.

Recently, executives at the National Association of Realtors released an informative video discussion on this topic. You may want to watch this 6-minute video to better understand how this issue impacts you.

If you would like more information about foreclosures or would like to purchase investment properties you can start with an application here, or just call me.

Richard Woodward
Banker / Senior Branch Manager, NMLS ID 217454
When Trusted Advice Counts

Office: (972) 661-5136   Visit Us Online - www.Envoy-Mtg.com

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Texas Mortgage Banker Registration #45300 NMLS ID 6666