2007 Year of Alarm for Adjustable Mortgages and Sacramento Foreclosures
SACRAMENTO, Calif.--(BUSINESS WIRE)--As the new year begins thousands of local homeowners will find it difficult to shape up their finances because they will see their adjustable rate mortgage payments increase dramatically. “Imagine what people living paycheck-to-paycheck or on a fixed income are going to do when their mortgage payments jump by hundreds of dollars,” said Patrick McGilvray, J.D., President of www.TheHomeBuyingCenter.com, Sacramento's #1 Home Buyer. “We are a network of local real estate investors and short sale experts who help people who need to sell their homes faster than the traditional way of using a real estate agent. We help them avoid the risk of letting of their houses sit on the market for months.”
“We still think there’s so many homes that prices are going to decline in most areas by 10%.”
www.TheHomeBuyingCenter.com predicts that thousands of Sacramento homeowners will be facing foreclosure in 2007 because of higher mortgage payments, declining home sale prices and longer times on the market due to a large inventory of homes for sale. This combination can make it difficult for sellers to sell their house if they are behind on their payments.
“We have a unique business model,” says McGilvray. “There is no publicly available information to track homeowners who fall behind in payments when no foreclosure proceeding has started on their home. The Home Buying Center team is known for having a finger on the pulse of the pre-foreclosure market because hundreds of people are calling us at 916-920-FAST when they’re about to miss a payment on their home.”
The forecast of declining home values is supported by many national and local experts such as Sacramento broker Mike Lyon, of Lyon Real Estate, who, in response to a question about area home values, said recently, “We still think there’s so many homes that prices are going to decline in most areas by 10%.”
William Longbrake, a senior policy adviser to the Financial Services Roundtable, an industry group, said he is among those who believe “the worst is still ahead in the housing market” and home prices will continue to fall. Homeowners are not the only ones feeling the pain as builders scale back their plans to construct new homes, and many people in the mortgage and title industries are joining real estate agents in looking for new lines of work.