So why are so many people renting? Inventory! Major banks that foreclose daily on properties or receive keys to a property when the owner walks away are holding thousands of homes. Why you may ask. Well in many minds it’s due to the federal bail that look at the banks balance sheet and see their dyer need for capital. A home held on the banks books as an REO (Real Estate Owned by the bank) is a liability, with no off setting entry on the asset side.
So why sell. Or some believe they are letting them out slow to increase the value so less home owner will not walk away from their upside down investment. But then there are a few that actually believe, the banks aren’t holding any properties. They believe there are so many buyers that can qualify and not enough properties to cover the needs.
It’s anyone’s guess what the truth is, but beware. The housing industry, especially the mortgage side is changing so fast in reference to guidelines and regulations that the story of qualifying could be shrinking on a daily basis. Everyone seems to agree though, if you are in the market to own a home, owner occupied, second home or investment, keep after it! The time and effort will pay off in the long run better than any other investment.