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November 10, 2007


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According to the charts that I have seen, the worst is still in the future.

Subprime rate adjustments will peak at March next year. Once it adjusts it may be some time before the houses go into foreclosures.

Another thing is that, overall, rate adjustments peak in 2011, if you are not just looking at subprime. I don't know what kind of foreclosure rates it will be for those who are not in subprime.

It just seems unlikely that the worst is behind us. has money saving packages.

There are some good buys in MI.

Whether or not more foreclosures will mean better buys is doubtfull. After all, the banks offering these houses (REO's) are, in most cases, giving them away.

Here's what I advise on #14 on my "getting started page.

14. To find a house to remodel or renovate or even as just an alternative to building your own home, you might find a 25% savings on a foreclosed house at

Be alert: get legal advice, an inspection, and a good appraisal.

Buy only REO’s. Those are foreclosed properties now owned by the lender. They have already been taken back from the borrower who is now out of the picture.

Most of these homes need rehab, but with you acting as your own GC, you can rehab cheaper!

Carl Heldmann

I was referring to the general impact foreclosures have on the overall real estate market.

A 25% discount sounds nice, but I believe even after that, we would still be above the inflation adjusted historical average for housing prices.

The run up in the early 2000s is an unusual event, and there is a long way to go before things are back to "normal".

It's interesting to see some of the differences in real estate markets nation wide. Some places have just fallen through the floor, where as other markets such as here in South Dakota, prices have remained relatively unaffected.

Hold off a bit longer. The majority of the exploding ARMs adjust by next August so it should get really ugly around that period. What is most interesting about this housing decline is the fact that it is based on market cycles and not economic conditions. Most declines in real estate have occured when the local economy tanked. The Texas real estate in the 80s was due to the oil business suffering; NY and California experienced declines in the 90s when the local economies suffered.

If we see a recession, this will only add gas to the fire. This market cycle correction will really see downward pressure. And, I think we aren't too far from a recession as it stands.

I think it's true that recession could be around the corner. We'll see how much the fed will try to lower rates.

I think inflation is also a concern. If we go through an inflationary period, buying a house may not be such a crappy deal after all.

It is also true that real estate is a regional in nature. For example, it is very difficult to get a jumbo loan at this point. Of course this will have a greater impact on places where people borrow a lot of money for their mortgages (such as CA and NY). You would expect this to have less of an impact in areas such as South Dakota.

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Hi! I work at a foreclosures site. Although some foreclosed properties may offer good deals, it is always prudent to go check around and make researches. That is why foreclosures sites may offer valuable tips or info that may help potential buyers make a reasonable good decision.

Hi, For the most part you can get a list of foreclosures from for free. Often the lenders will have their forclosed properties listed on their website. I have a site set up by my realtor called listing book that gives me all for sale properties in the area I am looking, this includes foreclosures.

Good info! Thank you for the post. Better to check his link for more Foreclosures.

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