Newman Asset Management Blog

New round of foreclosures threatens housing market – washingtonpost.com.

Just when some were beginning to speak of the rebound of the single family housing market, a report in the Washington Post suggests that the next wave of foreclosures may be just around the corner.As we at Newman Asset Management and Newman MIS have be saying for some time, those who thought the foreclosure peak was behind us may not have been seeing the entire picture. Sure, some of the worst loan programs of “100% financing – no verification required” may be gone, but that was only one aspect of the single family foreclosure crisis.

The larger secondary problem, which has grown due to the poor economy and mass government spending, is an even larger block of “close to conforming” and “conforming” loans where the owners were just hanging on. Now with falling home values, increased unemployment, and only small improvements in lending, these homes are now going into default. This block or segment of foreclosures could grow in size to 8-10 million more foreclosures if trends keep going.

So, why talk about it here? For two reasons, really. Most importantly, it will effect everyone if this tsunami of foreclosures comes rolling through your area. It will effect people you know, it will effect your home value, and it may even effect you directly if you are in a tight financial situation. So for all our clients, friends, and viewers, keep a close watch on your community and financial health. You need to financially position yourself to (1) ride out the storm, and (2) put yourself in a position to gain from it if possible.

The second reason to discuss it here is that for those with available funds, there will be a boon of opportunity to pick up choice real estate pennies on the dollar. You’ll have to have most of the funding..no more 100% financing…but for those that do have the means, this may be the greatest shift in wealth we will see in over a century – certainly in our lifetime.

So if you have self directed retirement funds - either in an IRA or 401(k) – or if you have trusts, personal cash,  or high equity positions you can tap into, your train-load of opportunity for grabbing a large share of the real estate market is coming to a town near you.

…we hope all of you are on the buy side of this coming event!

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Key Related Links

• The Good Effect Of A Down Housing Market « My Blog
• The effects of the housing market on the U.S. Economy | Equity Line Site
• Housing Market Positioned to Grow in 2010 | Mortgage Rates & Trends: Mortgage Blog from Total Mortgage
• Real Estate: Next wave of ARMs primed for resets in 2010-11
• TOM D. PLANT’S HOUSTON REAL ESTATE BLOG » Blog Archive » HOUSTON’S SINGLE FAMILY HOME SALES DECLINE 5.7% AS PREDICTED
• Extreme Home Makeover Harper Family Held Raffle to Avoid Foreclosure? | Zillow Blog – Real Estate Market Stats, Celebrity Real Estate, and Zillow News

Tags: foreclosures, Real Estate, retirement accounts, self directed IRA

This entry was posted on Monday, March 15th, 2010 at 10:13 pm and is filed under Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.