Attention Georgia Home Shoppers: Mortgage Foreclosures Mean a Buyer's Market

By Richard Barrington
Local Lender Columnist
Oct 24, 2007
"It was the best of times, it was the worst of times, it was the age of foolishness, it was the age of wisdom..." Reading the beginning of A Tale of Two Cities now, it may be hard to believe that Charles Dickens was writing about 18th century France rather than predicting the early 21st century U.S. real estate market.

The press has been full of the worst and the foolishness of the current mortgage situation. But home buyers who make this the age of wisdom may find it to be the best of times. This is especially true in areas like Georgia, where mortgage defaults have been especially severe.

Georgia Among the Worst For Mortgage Foreclosures

Mortgage lenders continue to report increased foreclosure rates. Foreclosures in July of 2007 were up 93% over those in July of 2006. Nationally, the rate of mortgage foreclosures reached one in 693.

This problem is concentrated in five states, which account for half of all foreclosures nationally. Georgia was one of those states, with a July foreclosure rate of one in every 299 households.

Contrarians May Find Eager Sellers, Lower Rates

While that kind of news may scare some people away from the real estate market, this is a perfect time to be a contrarian. Home shoppers in Georgia should find a buyer's market--if sellers aren't actually distressed, let's just say most will be eager.

But what about mortgage lenders? Remember: mortgage lenders are in the business of making loans. They may be more selective in choosing customers, but they certainly want and need new business.

With a little shopping around, most borrowers will still find willing lenders, and with interest rates turning downward recently, they may be able to lock in an unexpectedly good rate on their mortgages.

Source
Atlanta Journal Constitution

About the Author
Richard Barrington is a freelance writer and novelist who previously spent over twenty years as an investment industry executive.