Home Foreclosures on the rise because of the Federal Reserve and Inflation Fears

Home Foreclosures on the rise because of the Federal Reserve and Inflation Fears

An excellent Press release today artiulates house foreclosure rise due to Federal Reserve's raising of interest rates.

(PressMethod) - The recent rise in interest rates is contributing to a rise in property pre-foreclosures and foreclosures in Northern California and some home sellers find themselves trapped inside an interest rate bubble!

Wisdom shows us that home owners are getting squeezed by unconventional loans and are now finding that they cannot refinance in a falling market. Ed Fitch of Fitch Properties / http://www.realtydollars2u.com notes that "Sellers were sold a bag of goods by some mortgage lenders looking to make a fast buck and many sellers are now in trouble, and my fear is that it will only get worse." Negative amortization type loans, adjustable loans, interest only loans, 100% financing, 125% financing and now 50 year mortgages. It appears no thought went into the reality that interest rates do rise too! Right now if you are not in a fixed interest rate mortgage you are very likely feeling the pinch. "I am in the trenches, and it is very clear that listings are beginning to stagnate at the low end of the market, there is downward pressure there, and the low end is the driving force of the real estate market." "It can truly be said today that these are interesting times for real estate, and if the fed continues to push too far ... watch out!" Furthermore, with shrinking equity, real estate owners are finding it difficult to replenish their pocketbooks and/or payoff debts through the tool of equity lines that were the norm just a few months ago. Inflation fears continue to spook the market....
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