When the real estate bubble burst in 2007, speculators and homeowners alike were left adrift in a sea of overvalued properties and bad debt. Credit ratings took a hit, mortgages went into delinquency and foreclosures spread like wildfire. There’s no question that a down housing market hurts homeowners that were over leveraged during the booming days at the peak of the bubble. Those with a more measured real estate investment approach and more diversified portfolio probably weathered the storm better. If you are one of the lucky few who wasn’t wiped out the crash, there are some real estate investment opportunities present that you should consider taking advantage of.

Refinance your debt

If you have lousy credit or you purchased property during the thriving economic days of the late 90s, you may have agreed to a high interest rate. Since the economy began shrinking in the last decade, the Federal Reserve has kept interest rates at all time lows. The price of money is cheaper now than it has ever been before. If you survive the economic downturn without defaulting on your mortgage or filing for personal bankruptcy, you may be eligible to refinance your mortgage at the more desirable current interest rate. So stop making exorbitant payments on a sky high mortgage rate and start paying down your principle today!

Preforeclosure investment

Investing in foreclosures can be a deceptively alluring proposition. If you are a real estate speculator you probably see cut-rate housing prices everywhere. These prices may seem appealing, but flipping foreclosures can be a risky business. A safer way to profit from the tumbling housing market is to seek out homes in preforeclosure and negotiate favorable deals. When a homeowner enters preforeclosure, he is looking to unload his property as fast as possible so that he can pay down his mortgage debt and avoid bankruptcy. Take advantage of this weakened bargaining position and avoid all of the deadly financial baggage that comes with bank-owned properties.

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This is filed under Home Loans/ Mortgages.


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