Recession Over??
Ben S. Bernanke, the Chairman of the Federal Reserve, said Tuesday that the recession is "very likely over." However, a large wave of foreclosures coming from payment option ARM's are about to hit the market place according to an article in The Washington Post that came out yesterday.
For those who are unfamiliar with the option ARM's, these loans vary slightly from a traditional ARM in that a borrower has the "option" to only pay the interest on the loan for a period of time. The catch, as you only pay the interest your principal balance increases. Then at either a specific date or when the loan reaches a certain amount, the borrower must begin making the full payments - the increased principal and interest. That is where the wheels begin to fall off. According to the article, "one in every 357 U.S. housing units received a foreclosure filing last month", and with the option ARM's coming on strong, the number of foreclosures is primed to go up even higher equaling lower prices. This means that the window of opportunity to purchase a cash flow producing property may be open a little longer, but do not procrastinate. The benefits of owning investment are numerous, and at Investor Nation we understand how owning some of these assets can supplement your already existing retirement portfolio. Call us today and discover how real estate investing can act as another avenue of building long term wealth. The option ARM's may bring more supply to the market, but the demand will soon catch up and the opportunity will be gone. Do not hesitate, call today! Investor Nation1-888-35-INVEST
