The Next Big Bargain

 The San Jose Mercury News sent me a snippet via email entitled...

The Next Big Bargain

A record number of homeowners are in foreclosure, according to data compiled from April to June by the Mortgage Bankers Association. The problem is caused by subprime mortgages in California, Florida, Nevada and Arizona. According to the bankers' association, "were it not for the increases in foreclosure in those four states, we would have seen a nationwide drop in the rate of foreclosure filings."

What does this mean if you live in California? The Golden State has 17 percent of all adjustable-rate subprime mortgages. Declining home prices have made it hard to refinance the loans. And it's also hard to sell the homes: thanks to a building spree the inventory of homes available for sale in the western region of the United States was at an all-time high in June.

And then there are the investors. About one-in-five defaults in California as of June 30 were from mortgage holders who didn't live in their homes.

 

Yes, it's true foreclosures are going high and only going to increase, yes it's hard to sell homes, yes jumbo loans and guidelines have become increasing difficult.  Life is hard.

In a previous life as an Alaskan Brown Bear I learned if all the fish are swimming one way, it's best to face the other way.  Doesn't it make sense to look at this time as a golden opportunity to buy? 

That reminds me of a line from Cannonball Run

If you are going to be a Bear...   Be a Grizzly!

 

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