A cooling real estate market and investment in Pre-foreclosures

With cooling in the housing market and mortgage demand fell and banks and other lenders are turning to non-traditional mortgages and risky sometimes to additional work and make their introduction.
Turned many lenders mortgage products designed to lower monthly payments and a loan to help borrowers qualify more easily for larger loan amounts, while others require little documentation during the approval process. These loans make it easier for some people to get mortgages, but they can also raise the possibility that some borrowers may find themselves in foreclosure. A real estate investor or a home buyer these market conditions represent a window of opportunity

As housing appreciation rates slow monetary value, more mortgages going into default. Foreclosure notice increase slightly in recent months, providing another sign of calm in the real estate market throughout the United States, for example, in San Diego County, California. Posted by banks and other lenders 1266 letters of default to borrowers in the third quarter, pointing out that the owners 90 days notice to update on payments before moving to the foreclosure auction.

At the peak of the housing boom, meaning double-digit increases in equity clients home can withdraw funds from equity increased to bask on the lifestyle they can not really afford. Survey with the ability to take advantage of home equity loans, and withdrew cash from homeowners to buy new cars, furniture, vacations and other luxuries. The last payment was issued to their way of life when homeowners refinance using adjustable rate mortgages that reduce monthly payments.

But now, circumstances change, in many parts of the country on the real levels of real estate prices and rising flattening even in some real estate markets. With little or no increase in shareholders' equity in the home, or even disappear equity, homeowners can find themselves in a difficult situation.

Additional forces also have an impact on the housing market: the transfer of new federal laws on credit card payments to an increase in the minimum wage required on credit card debt. For many people will now be double payment from what it was in the past. With rising energy prices and health care costs continue to walk up to new highs. An increasing number of people in the financial situation where they exceeded those monks gained.