CT Real Estate Success Strategies
The nation has faced unprecedented records in the number of foreclosures in recent years. We are affected by the largest increase in mortgage loan defaults in postwar history. Foreclosures have increased 300% since 2005. HOW LONG WILL HOME PRICES KEEP DOWN? In Norwalk, Connecticut. only home values have plummeted and the foreclosure rate continues to fuel this dangerous economy. Merrill Lynch estimates that home prices could plunge 20-25% more across the country over the next two to three years. As real estate investors, we must examine this horrible market and see what is available for one to be successful as an entrepreneur. The real estate market is flooded with a large number of unwanted homes. As mentioned, foreclosures are at an all time high. People losing their homes are up 71% in just one year, and the number of people behind on mortgage payments continues to rise. There are 1 million homes in foreclosure in the first quarter of 2008, which is the highest rate in history. Unfortunately, this number is expected to increase before we see improvements in the market. Before things get better, it will be hard to stop this tidal wave of mortgage defaults.
However, there is a ray of light that shines in the world of opportunity for investors and homeowners. Real estate investing has proven to outperform most other businesses in providing highly successful people. Whether the economy is thriving or in recession, real estate continues to offer tremendous rewards. The opportunities that are presented to us today increase with the number of motivated sellers. They may own an unwanted home, need repairs, or the home is vacant. Owner can move, get divorced, owe liens, or be 100% financed. These are common problems that can happen to any of us. Here we see that the current trend of depreciating home values is caused by the large number of foreclosures.
The banks do not want to seize these properties. Lenders are not in the business of owning real estate. This gives investors the green light to find alternative ways to buy and sell real estate. With the real estate sector we can be creative and find solutions to this mortgage crisis. Lenders would prefer to come up with an alternate plan to avoid foreclosure proceedings. For the investor, there is money to be made and the homeowner has the opportunity to save the house or credit rating. Today it is common for borrowers to choose a forbearance or short sale as a solution. The current market situation, as bad as it may seem, is opening up a world of opportunities for qualified buyers looking to save money on real estate investment through auctions and short sales.
