For anyone interested in buying into the real estate market as an investor, now is the time to do so. There are great deal everywhere because of low interest rates and a record number of foreclosures over the past few years. You will not see another deal like this for decades; it is truly a buyers market. The problem is if you are an investor and you bought a home over the past five years. You more than likely overpaid for the property and agreed to a higher interest rate. Now the market is so poor that you will not be able to sell if and get your money back, but you will also not be able to pay the monthly mortgage rates if you rent it out. No matter what you do it seems you will lose money.
When a real estate investor has a home they can not sell and get their money back on, but the rent would not cover the monthly mortgage payments you need to look into loan modification. Now a deal like this will not be easy because you are stuck in a situation where the bank does not want to lose money, but you have no other option but foreclosure. A loan modification will allow you to restructure the transaction, usually for a lower interest rate and save hundreds of dollars a month. This will help you rent out the property and not lose money as you await real estate prices to go back up.
Many banks will not work out a deal with you unless you are in serious danger of foreclosure. If you are not in danger of this, but would like to save hundreds of dollars a month you can look to a loan modification company. These companies are great because they will not only help you find the best deal, but they work directly with the bank to make sure you get the verdict you want, and quickly.
By David George