This weekend the Southern California Coast was blessed with fantastic weather and more open houses than hungry homebuyers could devour. Investors were still trying to figure out what is happening with the "mortgage deal" announced last week. Already states are starting to dip in and take the money for their own use according the Huffington Post Article.
Investors are now watching to see how the banks react to the news they are being fleeced by the states and the homeowners aren't going to get as much as the banks and investors expected.
The word on the street though is that home loans are happening again. Banks are still holding tight on continuing foreclosures and letting any real short sale deals shake loose. Now that the banks are getting fleeced by the government for playing the game, they are looking very closely at everyone's ability to pay their loans.
Big companies can hire big law firms to move assets and spend cash to appear even more bankrupt. Homeowners only have credit cards and auto loans to build up their proof that they can't afford their homes. For many they are going to find out they are stuck. A few will get lucky and renegotiate their loans.
With all of this going on, you wouldn't know the housing market wasn't hopping driving around Southern California. Open house signs where everywhere with the occasional driveway hosting a moving truck. Agents were working like it was 2005, and people were in the homes.
It is too early for me to put in writing that the home market has bottomed, but we are defiantly close and people are feeling a lot better about looking for and locking in their dream homes.
If you have the ability to get a loan, this might be a great time to get the house that you want at a pretty reasonable price. My advice, don't stretch to thin yet, but start learning your market. The time is coming soon when you will be looking at a deal that could be a great long term money maker.
Right now is a great time for a buy and hold or buy and rent strategy. If you have the time and liquid cash, getting a foreclosure that needs some work can be a flip opportunity. Step lightly here though since their are still thousands of home owners that haven't made a payment in years. For now, the banks still hold the wild card.
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