Today the New York Times is reporting that we’ve only just seen the beginning of mortgage troubles. No sooner than you wrapped your mind around the subprime fiasco, enter the prime mortgage defaults. Time for the rest of us to start having trouble with the monthly payment.
Homeowners with good credit are falling behind on their payments in growing numbers, even as the problems with mortgages made to people with weak, or subprime, credit are showing their first, tentative signs of leveling off after two years of spiraling defaults.
Not only is this next wave of foreclosures expected to be worse than its sub-prime precursor, we apparently won’t see the peak for another one to two years.
“Subprime was the tip of the iceberg,” said Thomas H. Atteberry, president of First Pacific Advisors, a investment firm in Los Angeles that trades mortgage securities. “Prime will be far bigger in its impact.”
Yay! This could be depressing, or not…
The Business of Foreclosure
Have you ever wanted a little piece of land out by the lake, or a rental house that’d be a cash cow by the time you retired? Have you ever wondered how much you could make flipping fixer-uppers?
If only there were some way to get more information…
You’d need to spend a day researching the various foreclosure information websites and courses before getting started learning about actual foreclosures. Forget about real estate, your money may be safer with the consultants.
And they’re not the only ones. According to an ABC World News report earlier this year, all kinds of business are profiting from the current economic woes.
Process Servers – One company in Miami has doubled their business in the past year and a half, using 55 office and field employees to deliver 5,000 foreclosure notices a month.
Moving Companies – Evicted families need a way to get their things from A to B.
Cleaning Services – Repossessed homes often need a little sprucing up. One California company that specializes in this type of cleaning increased their payroll from 10 people to 60 in the past two years.
The Dream of Ownership
Back to land. Should you invest the time in learning about foreclosures? Should you invest? Or have you missed the boat already? According to seasoned Miami investor Luis Valdeon , we’ve got time. He told ABC that banks aren’t yet offering bargains, but he’s confident that will change soon.
“Banks will be so full of properties, they’re going to be discounting them because they can’t rent ’em, they can’t do anything with them, so they’re going to start lowering them,” he said.
So what do you think? Buy some property or just start a website?