Saturday, November 22, 2008

Advantages Buying Properties in the Time of Crisis

If you have some excess of money every month for loan repayment with good credit score history then, you seriously need to consider the opportunity that comes together with home loan crisis or known also as subprime loan squeeze.

In recent years, many financial institutions have been giving out lots of loans to Americans to purchase their dream homes without much concern about their credit history. As a result, many of these borrowers have defaulted their loans which have grown to a substantial amount and triggered the America's home loan crisis.

What does it means to you is there are lots of properties that are in the stage of pre-foreclosure or already foreclosure by the financier. Many of these properties actually are located in strategic locations nationwide, and the banks who call for the foreclosure could be selling them a very much lower price then the market value. This is because they are trying their best to recover their money as soon as possible to save themselves from being further sucked into this loan crisis.

Properties are known to be sold in the range 30% to 60% off its current market value by the financiers who call for a foreclosure. A person who is buying a property which is much lower than its market price enjoys almost instant home equity which could be used in future. Just imagine buying a property that has market value of USD200, 000 at only USD100, 000. You could save thousand of dollars. The property could be used either for own use or just as an investment. Many home investors are very keen towards foreclosure properties because of the high profit margin that the properties could offer.

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