Real Estate Bubble News
Investing in Foreclosures & Lease-to-Purchase
An interesting spin to mitigate losses in real estate investing. Palomar Enterprises is banking on the unfortunate situations many overextended homeowners are currently in. They plan on investing in foreclosures and offering the properties to others who have financial and credit problems of their own. By offering a Lease Purchase program to buyers with poor credit. Personally, I do not believe this is a great idea since Palomar is essentially catering to people who are not financially sound and in the end, that is what caused the subprime mortgage crisis in the first place.
"The program, according to the company, allows buyers to lease and live in a home while possessing a homeownership contract that kicks in on a set date. The method also lets borrowers skip the expenses associated with closing costs, traditional down payments, and other fees found in regular home purchases."
Trying Times Mean More Business for Strategic Lenders and Real Estate Developers by Kerri Panchuk
Subprime Loans Defaulting
The inevitable delinquency and foreclosure rates are climbing as mortgage rates climb. Borrowers who purchased more home than they could afford in a time when money was abundant is now looking back with regret.
"The Mortgage Bankers Association, in its quarterly snapshot of the mortgage market released Tuesday, reported that the percentage of payments that were 30 or more days past due for all loans tracked jumped to 4.95 percent in the October-to-December quarter."
Big jump in late home payments by Jeannine Aversa
