Patch Blog: Renters May Be Making Lemonade!

When one hears the word "foreclosure," images are conjured of families unable to meet their loan commitments and forced to consider unpleasant options.  However, it's not only homeowners that suffer from a foreclosure.  Renters can be "out on the street" if their landlord defaults on mortgage payments. 

A report from the Mortgage Bankers Association states that nearly 20% of recent foreclosures have been against investors who did not live in the house, and even tenants in good standing face having to vacate the premises if they're renting one of these properties. 

Why mention this gloom and doom scenario?  Because home values have declined, and buyers are seeing the best deals in many years.  While unpleasant for sellers, price declines increase affordability for buyers, so if you've been renting, now is a fantastic time to turn that monthly payment into equity. 

Interest rates are still-historically low!  That, combined with very affordable housing, yields a formula that should put you in a home that you can own for the same amount you are now paying for rent.  Not to mention that at a lower purchase price, you'll enjoy some great appreciation over the coming years. 

Just because you're renting now, you’re not necessarily safe from suffering the consequences of a foreclosure.   Take matters into your own hands and buy yourself some peace of mind. Low interest rates and low home prices rarely happen at the same time.  Now is a great opportunity in real estate!  Just make sure you do your homework!