This post is about nothing.

The real estate market is slow these days. Given the constant stream of bad news I can understand why. It’s easy to get misdirected by the media. I’m not saying they are lying to you; their numbers and facts are likely accurate. What is happening, with out question, is this. They are misdirecting you. They are focusing on the foreclosures and the overall downturn housing is going through. When in reality that is a good thing if you’re in the market to buy a house. Prices are down – as much as 40% in some areas. Interest rates are historically low. There are loan programs available for very little money down. It is a good time to buy a house; without a doubt. Here is a free ebook for you that list 7 Reasons why now is a great time to buy a home.

Real estate has historically been a safe investment. Yes, markets go up and down but you have to pay to live somewhere anyway. Real estate is not a short term investment or a get rich quick scheme. The home you buy today can be the asset that pays your during your retirement. If your on the fence I’d be happy to talk to you about you concerns. Please feel free to give me a call.

Strategic default has become a buzz word in the past year. You could probably gather from the name a general idea of what it is. Strategic default is when a home owner decides to let their house go into foreclosure even though they could still afford to make the mortgage payments. Now in certain state consumers are protected from financial recourse based on anti-deficiency legislation. This is not however, the case everywhere. In some state banks have the right to pursue the original borrower for any shortfall they suffer. When a property goes into foreclosure the bank will either sell it at an auction to the highest bidder or they will take the house back and put it back on the market through a Realtor. Once the house sells the bank will realize some loss between the original loan amount and what they sold the property for. This amount is called the deficiency and the original borrower could be on the hook for that money. Another way to resolve a mortgage you can’t afford is through a short sale. I’ll write another post on that topic soon. For now, here is a short video from the Daily Show. I saw this today and thought is was ironic. Hope you like this clip.