Good time for US foreclosure auctions

Many economic experts are predicting that mortgage
delinquencies will rise, up to 15 percent in 2006, among homeowners
with higher-cost or “subprime” loans. About 19 percent
of all U.S. home loans are now subprime in contrast to just 5 percent
10 years ago, according to the folks at Fitch Ratings, an investment-analysis
firm. A lot of those homeowners with adjustable-rate subprime loans
will see their loans reset at higher interest rates in the coming
months and that will spell trouble.
Other factors expected to contribute to the default phenomenon
are already-high consumer debt levels, rising energy costs and the
advent of somewhat risky interest-only mortgages. So expect to see
a lot of defaults on low-to-mid-level homes in 2006, although your
opportunities will vary from market to market, of course.
That said, foreclosure buying is a very competitive
game right now, with so many real estate gurus advocating the strategy
in books and seminars, and on TV and the Internet. Just do a Web
search under “foreclosure opportunities” and you’ll see
what I mean. Obviously, more and more buyers — particularly investors
— are looking for an advantage in the game.

Related posts:

1. ForeclosureS.com: 364,000 Homeowners Face Foreclosure So Far This Year
2. California Foreclosure Auctions Reach Record High
3. Foreclosure Activity Increases 8 Percent in January
4. PropertyShark.com’s Quarterly Report Tracks Foreclosure Auctions in NY, LA and Miami
5. Foreclosure Auctions Set for Northern California