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scoobyjim44 asked:
retiring in two years, best time to buy while market is down ?
retiring in two years, best time to buy while market is down ?
Tags: Best Time, Home Foreclosures
July 7th, 2008 |
Tags: Best Time, Home Foreclosures
July 9th, 2008 at 11:05 pm
Failure to pay the monthly payment for more than 90 days.
How did people end up in that predicament?
STUPIDITY: Could not understand their loan terms.
GREED: People expected housing prices to rise indefinitely.
July 10th, 2008 at 6:48 pm
Because people can’t pay their mortgage.
If you’re retiring in two years, make sure you have enough money to make your monthly payments even after you retire. Get a full financial needs analysis to determine if what you intend to spend will jibe with what you’ll be bringing in.
July 13th, 2008 at 1:30 pm
high or flexible interest rate, getting a loan they can not afford, and the banks giving them a loan they could not afford. This is the basic of why there are so many foreclosures.
July 15th, 2008 at 11:01 am
The reasons for the wave of foreclosures is that a lot of people were getting adjustable rate mortgages thinking that if the rates went up that they would simply refinance. Well that didn’t happen because the mortgage companies started being more strict to qualify for the fixed interest loans and people were stuck with mortgages they couldn’t pay for.
And for your second question: Yes, now is a great time to buy if you can qualify for a loan with the tighter restrictions.
July 16th, 2008 at 4:35 pm
I think a lot of people bought more than they could afford. Top that off with the current economy, lay-offs, etc. and it’s more than they can handle. On the other hand, a home is in foreclosure one year before the owner is evicted. Honestly, they have an entire year to figure out another plan, and many of them flee in the middle of the night just before the sheriff shows up at their door to carry them out. So I don’t know. I guess if you quit paying your loan for 12 months, yeah. You probably deserve to get the boot.
Not sure I understand your second question, but yes. Now is a good time to buy. Rates are still pretty low, and there are a lot of foreclosures out there and people on the brink. If you want to buy, do it now before the interest rates go up, which is what they are predicting.
July 16th, 2008 at 11:54 pm
The main reasons? There are a lot of reasons.
Relaxed lending requirements (no longer)
Over inflated home values (declining values nation wide)
Jobs continuing to go over seas (loss of jobs)
The devaluation of the dollar (look at the stock market)
People’s inability to budget their income (over buying)
Secondary Lending issues (fraud)
The price of gas (who can afford to drive to work)
General Inflation
You name it…
The best time to buy is now. Its hard to time the market…if you could…everyone would do it. Will prices continue to drop? Probably…but I doubt to much more. Your question should probably be…can you qualify for a mortgage now?
If you already own…a good option for you may be a reverse mortgage…if you have equity.
Good luck and happy retirement!
July 19th, 2008 at 11:10 am
Excellent answer AN-MN Centaur.
Lenders also approved applications for borrowers, even if all the requirements were not met. Thus, borrowers and lenders get stuck and so the vicious cycle begins-foreclosure.
The market maybe down, but prices are still high depending on the area you want to buy. Check the business page of the Chronicle, or, other Newspaper, you’ll find some useful information.