Good News for Buyers: Wisconsin Reflects National Mortgage Trend

By Richard Barrington
Local Lender Columnist
Nov 12, 2007
Mortgage foreclosure rates are up in Wisconsin, as they are around the country. While the media have tended to paint this as an ugly time for the real estate market, the truth is that it may be looking better all the time for buyers.

Wisconsin Foreclosures Around Middle of the Pack

As has been widely reported, mortgage foreclosure rates nationally have been on the rise. A combination of reckless lending (and borrowing) practices and rising interest rates have left many homeowners unable to make their mortgage payments.

Wisconsin is not immune to this problem, but it's far from the poster child for it either. Nevada, California, and Florida--areas that saw high levels of real estate speculation--had the highest foreclosure rates in August of this year. Meanwhile, Wisconsin's total of 2,199 in August ranked it 23rd in the nation, or about the middle of the pack.

Why Bad News is a Buying Signal

While these trends have almost universally been reported as bad news, let's keep in mind that there are plenty of new buyers who stand to get a break as supply-and-demand conditions have shifted to favor buyers.

Stocks and real estate are among those rare items that seem to become more attractive the more expensive they get. In truth, it is lower prices that create opportunities. Far from being intimidated by mortgage foreclosure rates, new home buyers in Wisconsin and around the country should see this as the time to step up to the plate. The key is to learn the lesson of those foreclosures, and be sure to borrow responsibly.

Source
Wisconsin State Journal

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