Forclosure rate and expectations

September 6, 2007 | Filed Under Mortgage and Finance 

According to AP, foreclosures and the delinquency rate (which tracks the number of homeowners behind on their payments but not yet in foreclosure) recently rose to record highs due to the problems with subprime mortgage rates (see article). Welcome to the world of adjustable rate mortgages. Creative financing with adjustable rate mortgages can be tricky. Creative financing can be smart if you have the money to put down but would rather invest it elsewhere, or you are a medical resident and expect a large pay increase in the next year or two. However, many people took adjustable rate mortgages in the past few years because they couldn’t afford the record low mortgage rates being offered. Bad move. If you took creative financing because you couldn’t afford a 30-year fixed rate of say, 5.8%…honey, you couldn’t afford the house. With millions of adjustable rate mortgages scheduled to reset this year, you may be one of many Americans facing foreclosure.

For all of you Boston buyers out there waiting to pounce and swoop up forclosure and pre-forclosure properties at discounted rates, get ready to be disappointed. Just because foreclosure rates are up nationwide doesn’t mean you will find anything in Boston’s prime neighborhoods. In fact, you probably have more chances to find a bidding war than financially distressed sellers in Back Bay, Beacon Hill or Downtown.

This is  a great site to look for Mortgage Rates and Foreclosures.

Share This

Comments

Search

As Boston Real Estate professionals, our mission is to provide you with the best home-buying or home-selling experience in Boston. Search MA properties through MLS on our website, www.bushari.com. We pride ourselves on exceptional customer service, and look forward to sharing that service with you.

Bostonian Lofts is the premiere website for information about Boston Lofts. Read about Boston Loft Developments and how we can help you purchase or sell your Boston Loft.

We write the quarterly Boston Real Estate Market Report to help our clients better understand the real estate market in some of Boston's most popular neighborhoods. The Boston Real Estate Market Report breaks down the real estate market of each Boston neighborhood into categories based on the number of bedrooms. The report gives clients a detailed look at localized market trends. Subscribe for FREE today!

MLS Search

Property Types

Condo / Townhouse Single Family Multi Family Commercial Land All     Attributes Parking Fireplace Waterfront Pool Penthouse Full Service Price / Region Any Price 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 550,000 600,000 650,000 700,000 750,000 900,000 950,000 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000   to  Any Price 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 550,000 600,000 650,000 700,000 750,000 900,000 950,000 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 10,000,000+ Select an Area Any Arlington Belmont All of Boston Allston Back Bay Beacon Hill Brighton Charlestown Chinatown Dorchester East Boston Financial District Fort Hill Hyde Park Jamaica Plain Leather District Mattapan Midtown Mission Hill North End Roslindale Roxbury Seaport District South Boston South End The Fenway Theatre District Waterfront West End West Roxbury Brookline All of Cambridge Agassiz Cambridge Highlands Cambridgeport Central Square East Cambridge Harvard Square Inman Square Kendall Square Mid Cambridge North Cambridge Porter Square Riverside West Cambridge Chelsea Dedham Everett Framingham Lexington Malden Medford Milton Natick Needham All of Newton Auburndale Chestnut Hill Newton Center Newton Highlands Newton Upper Falls Newtonville Nonantum Waban West Newton Peabody Quincy Revere Somerville Waltham Watertown Wellesley Weston Advanced MLS Search