The Housing Crisis

Besides the obvious foreclosure fiasco that is taking place right now, one of the phenomena I see going on right now is a decrease in rent for homes. Lately as I drive through my town I see homes that are sitting empty. Homes that once commanded a decent rent. I ask myself, why are these gorgeous homes still sitting empty? And then I think, probably because they have not adjusted their rents to the current economic situation.
Homes that once were selling here for $175,000 to $200,000 are going now for at least $50,000 less. Some friends of ours just found a home on an awesome piece of property for a song. But, because of the decrease in housing prices, I'm noticing that landlords are having to lower their rents.
So, if you are a renter who started renting before the economic crisis, maybe now might be a good time to start looking around for a new place. You will more than likely be able to find something for the same rent, but much much nicer. Or the equivalent of what you now live in, but for about $100-$300 a month less.
If you own rental property and have a tenant or tenants that have been there since before the economic crisis, hang on to them! LOL Otherwise, once they move out, you will need to adjust the rents to reflect the current situation. That could make it a bit rough on those who depend on that amount to meet the mortgage, but it is what it is.
Also, I think that in the next month or so, if you are in an adjustable ARM mortgage, speak to your lender about restructuring your loan. Sometimes when this happens, you do not make a payment for anywhere from a month to three months. That is time and money you can use to either get caught up on other bills, or use it to make repairs or upgrades.
I recently learned something that will help those of you who are beyond the restructuring point though. If your lender is foreclosing on you, I want you to remember these words, "Provide the note." What that means is this, you want to see the ORIGINAL loan papers that you signed. This can buy you time. Especially if your note has been sold a few times. Chances are they are going to have to dig and dig for it. This will stall the foreclosure process giving you time to possibly be able to catch up.