FORCLOSED PROPERTIES TO BE HOT ITEM IN 2007

There are some very interesting statistics out there with regard to Adjustable Rate Mortgages (ARMs) and what will be happening in the coming year. With the rocketing real estate market during the last 5 years, more people sought and purchased property with ARMs than ever before. Statistically, today nearly 35% of those mortgages are interest-only, as compared with 2% as far back as 2001.

In 2007 some 9,000,000 ARMs are scheduled to re-adjust and will create an opportunity for savvy buyers to jump back into the market taking advantage of those unfortunate people who simply will not be able to pay the new adjusted schedule or whose properties are now worth less than what is owed. In either case, coupled with the decline in property values, the rise in foreclosures is going to be dramatic.

2007 should see some investors back in the marketplace using strategies to take advantage of these foreclosures. Although it is not the easiest task in the world, if you are smart and understand from a business standpoint exactly where it makes sense, purchasing foreclosed properties can be very lucrative.