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Defy the Credit Crunch - the time to buy is now

Author: James Dyson Total views: 2 Word Count: 350

The housing bubble has popped, home values are dropping faster than winter rain and the credit crunch has become tighter than Pee Wee Herman’s bow tie. This is the state of affairs for not only US real estate but the global markets in general.



What relief is in sight for homeowners struggling to stay afloat of adjusting mortgages? It was believed the Emergency Economic Stabilization Act of 2008 (bailout) would relieve the credit crunch with the government purchasing mortgage backed securities from the few banks that are left, who are posting multi-billion dollars losses each quarter. President Bush signed an act into law and yet still the US real estate market and banks, US and globally, refuse to lend money to one another, let alone consumers.



Relief for homeowners is grim but slight hope still remains with the shift in direction by Treasury Secretary Hank Paulson, who just last week, decided to use a portion of the bailout money to help homeowners facing property repossession. This change in direction has infuriated many congressional members because the act was signed to aid ailing banks and not individuals. Despite the backlash Henry Paulson is receiving, his new found authority as a result of the bailout has enabled him to tackle the issues he deems necessary and right now, it’s the thousands of struggling homeowners.



The homeowners who purchased at inordinate prices are the real victims but for the lonely few who have good credit and substantial income, opportunities in the real estate market run abound. The days of interest only, negatively amortized and 80/20 loan options are gone, cash is king! The slew of mortgage lenders who thrived in early 2000-2003 are no more and while commercial banks struggle to stay afloat, loan options for homebuyers are bleak.



If you have above standard credit scores, substantial cash and a sound job, there remain loan options. The time to buy real estate is now! Historically, home prices have appreciated 5% annually. In the long run, real estate values will return and appreciation will continue.

Article Source: A Free Content Articles Directory for Authors and Publishers

About the Author

James Dyson has built a career from property development and has used his experience in real estate investment to allow many struggling homeowners to sell and rent back their current homes

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