I was a little stumped on what to write about today, however, something has been bothering me so I though I would share… I meet with my tax accountant the other day and we got into the discussion of real estate, which happens a lot to me. He mentioned that we are going to see more foreclosures and short sales in the next two years than we’ve seen over the past two years. This was not the first time I’ve heard this! Why would that be? The problem is that there are a large number of adjustable loans coming in to their adjusment period over the next two years. A lot of these homeowners have already lost a lot of their home’s value, and now have less incentive to modify their loans. The prediction is that a lot of these homeowners will face foreclosure or short sale their properties.
As I sit in my office, I wonder what will happen to the real estate market… Will we see that “W” that everybody has been talking about? Or will the market stay flat?
Let me know if you have any thoughts on the next two years in the real estate market.