Risky Mortgages Push More US Homeowners Into Foreclosure While Smart Investors Know Where To Put Their Money

Real Estate and Housing Trends

Homeowners in many US states continue to become casualties as their homes go into foreclosure and their property values sink.  This is according to RealtyTrac Inc. in Irvine, California, who just released foreclosure data for July.

It's Really Ugly Out There

As more of those risky, but alluring teaser-rate, adjustable mortgages reset, homeowners are in a pickle, unable to make their mortgage payments.

Here's the highlights of the current data released:

• There was a 93% increase from a year ago in NODs (Notice of Defaults), scheduled auctions or bank repos.
• California, Florida, Michigan, Ohio and Georgia made up more than half of the country's total filings.
• California foreclosure filings are triple the previous year totaling 39,013.

Six California metropolitan areas reported foreclosure rates among the nation's top 10 in July including: Stockton; Merced; Modesto; Vallejo-Fairfield; Riverside-San Bernardino and Sacramento.

• Florida foreclosure filings came in second with 19,179, a 78% increase.
• Michigan took third place with 13,979 filings.
• Nevada has the coveted title of having the worst foreclosure filing record of three times the national average, with one foreclosure for every 199 homes.
• Georgia came in second place with one filing for every 299 homes.
• An estimated 2 million foreclosure filings are predicted in 2007
• 43 states had year-over-year increases in foreclosure activity.

Bargaintown USA is an Oasis for Smart Investors

All is not gloomy.  RealtyTrac's research and other Realtor sources cited states with slow but steady price appreciation.  They include Texas, South Carolina and Utah.  For example:

• Salt Lake City, Utah, saw median prices jump by nearly 22 percent from the second quarter of 2006 through the same period this year. 
• In Binghamton, N.Y., median prices rose by 19.8 percent during the year.
• In Salem, Oregon, prices gained by 16.7 percent. 
• Sales are up in Houston, Texas from a year ago with the only sector showing some weakness is the $80,000 to $150,000 range, which is clearly the result of the mortgage and lending problems now dominating the news.

What's a real estate investor to do?

Commercial property investment is an excellent choice, either for investment or to live in. You can buy with as little as 10% down, even 3% for some property types.  You'll enjoy monthly cash-flow along with property appreciation.  

For example, you can buy a nice apartment complex, live in the nicest unit, let your tenants pay your mortgage, let a professional management company deal with the tenants while you keep a low profile and earn a passive monthly income.  I'd be happy to help you get your commercial loan to make your purchase.  Click here for details.

Target Discounted Property – pre-foreclosures, short sales, fixer-uppers.  Buy below current market values – which is relative in a declining market so be cautious.

Target Bargainville Real Estate Markets – Put your money in Bargainvilles like the ones I mentioned.

If you want some direction on how to get started, visit the Real Estate Investing Guide Section for articles and educational guides written by experts in their investing niche.  Check it out.

Sources: 
http://www.bloomberg.com/apps/news?pid=20601087&sid=abusHto2TOJo&refer=home
http://www.reuters.com/article/ousiv/idUSN2030024220070821
http://www.houstonrealnews.com/news/contentview.asp?c=199529

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