MortgagesUndressed

I am reviewing recent e-mails I have received from two of the faithful 25. One describes himself as a bubble sitter. The other forwarded an article about the increasing number of foreclosures and asks the question should we get the mortgage financing to start buying?

The bubble sitter email is from someone in no rush to buy their first home, at least not for another 8 months. Since Kathleen and I have a very bad habit, loving to look at homes, my answer to this person is start looking. This will help you know a good deal when you are getting closer to the time you are needing to buy. Kath and I have looked at homes for a year before pulling the trigger. To us it is a fun thing to do together. If you can make it fun, go look at open houses and brokers opens whenever you can. Drive around neigborhoods, that alone is a decision, what neihborhoods you like. Pick a patient realtor and have them set up a system to email you homes in the criteria you have. Find blogs about the communities you are interested in. And regarding being a bubble sitter, thats ok, just don’t sit too long.

To the second email about mortgage money for investing in foreclosures. My answer here is that it might be a waste of your time to persue these homes. Most coming on the market have no equity. There may be great competition to pick up those that do have equity. Much of the equity will be eaten up in late fees and attorney costs. I know the foreclosure game well, it is a full time job.

There are times good deals fall into your lap, if the price looks good, go ahead. Otherwise, do what you do well for money, it is probably more productive.