[quote]Contrary to what you may have heard, homes in this prices range are selling very quickly. With everything the government is now doing to fix the housing market, by the middle of 2009 all of the subprime mortgages will have been modified or foreclosed on and resold. At that point property values will increase because the supply of homes will decrease dramatically.
You might be asking how this is possible. Here’s how. In 2005 and 2006, ten thousand homes were sold and financed with subprime mortgages. These mortgages were a time bomb because the interest rates were set artificially low for the first two years. After that their interest rates skyrocketed. This two year reset of the initial rate is what made it unaffordable for those homeowners to hold onto their properties. It’s now late 2008, two years past the date most of those loans were created. Subprime lenders have been foreclosing or modifying those loans like crazy. The huge bubble of 10,000 subprime mortgages will be gone by mid 2009.
Currently 60% of homes listed on the realtor Multiple Listing Service are subprime foreclosures or short sales. By next summer there will be 60% fewer home coming up for sale. There will be a shortage of homes for sale next summer and as a result, home prices will rise, probably much more than most people think.
Now is the time to purchase a home at affordable prices with low interest rates and super safe Government Guaranteed 30 year fixed rate loans.[/quote]
Hurry before those 10,000 homes get sold.
I pulled this off of a craigslist ad, not from this area.
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