North San Diego Real Estate Market & Bubble forecast

A big reason the San Diego Real Estate and the North San Diego Real Estate Market are in the condition they are, is largely due to the Adjustable Rate mortgages that were so popular in 2002-2006. These loans would offer a very low introductory interest rate, with a rate adjustment in 2-5 years.

The sales pitch by lenders was simple, don't worry about the rate increase, we'll refinance this way before then. Unfortunately, this didn't happen. Prices dropped, lenders increased the requirements to obtain a loan, debt to income ratios become more stringent, loan programs disappeared and lenders stopped offering 'Stated' loan programs (not proving income).

So what happens to these tens of thousands of North San Diego homeowners? Well, they do have some options. Unfortunately, most of them are not great.

A few options:
1. refinance (if possible)
2. create a second income (get a part time job)
3. Loan Modification (work w/the lender to drop the interest rate)
4. Short Sale (sell the home for less than is owed)
5. do nothing and foreclose. (the worst option)

(There are other options like a forbearance, deed in lieu, etc. but these aren't as common)

So what does the future hold? Tough times ahead for North San Diego real estate market. According to the number of resets (loans about to adjust upward) we can see 2009 will have thousands of loans coming due.



So, when do we hit the bottom? I hear that question daily, and while no one really knows, we can look at key indicators to identify and get an idea of what the future might bring to the North San Diego Real Estate Market.

NOTE: This doesn't mean you can't sell a home! This simply means you must have an expert on your side that can help you through this tough market!!!!

For buyers, you couldn't have picked a better time to buy a home! Prices have dropped a ton, interest rates are fantastic!

Call me for a free evaluation of your real estate situation and we can develop a winning plan for you!

All the best
Marc

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Everything you need to Survive and Thrive in the current North San Diego Real Estate Market, go to http://www.MarcVonMusser.com

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