| In some of the worst housing markets in the country, | | | | even more homeowners will find themselves facing |
| deflation has reached double-digit proportions. While | | | | the reality of being unable to pay their monthly |
| the entire country is reeling from this economic | | | | mortgage payments in certain markets. When that |
| downturn, California appears to be poised to rank | | | | happens they will be forced to either face foreclosure |
| among the worse. One of the primary reasons for this, | | | | or in some cases make a short sell on their home as |
| is the fact that in the last several months, California | | | | refinancing is becoming less and less of an option for |
| has experienced the largest rate of deflating home | | | | many homeowners. |
| prices. In fact, home prices in California have fallen at | | | | According to most statistics, the remainder of 2008 is |
| levels that have been unprecedented. | | | | not looking well in the housing markets. Many statistics |
| Miami, Florida is another major city that has been hit | | | | indicate that home values could continue to drop and |
| hard at the moment. A twofold reason for this is | | | | new homes could experience a loss of up to 18% |
| because of the weak mortgage market and record | | | | before the year is out. |
| high rates of foreclosures have lent to decreasing | | | | While there are some indications that the market could |
| home values as well. In fact, Miami has been among | | | | begin to level off at the end of 2008 or the beginning |
| the worst home markets in the country for two years | | | | of 2009, many experts are quick to warn that when |
| running. The condo boom in Miami just a few years | | | | the market does begin to rebound it will not reach the |
| ago has fueled further problems that have now | | | | point where it left off. In comparison to the housing |
| spiralled into a massive real estate bust. | | | | peak of 2005, the rebounded market could still be quite |
| While Florida and California may have been easy to | | | | a bit lower. Part of the reason for this is that in many |
| predict as being among the first housing markets to | | | | areas, prices escalated so quickly that there is simply |
| crumble when the real estate market crashed, there | | | | no way for prices to rebound back to that point. |
| are other markets that are on the precipice of falling | | | | Still, there may be some hope for certain areas. In |
| which have not been as easy to predict. Because | | | | many markets sub-prime mortgages have either left |
| home values escalated so rapidly, only a few short | | | | the market through quick sales or foreclosure. The |
| years ago due to the real estate boom, places like | | | | stimulus package that is on the horizon is anticipated to |
| Florida and California were poised to take a dramatic | | | | help the housing market in many areas. |
| fall. | | | | First-time homebuyers may soon find the relief they |
| Other markets; however, did not rise as much or as | | | | have been seeking since they were forced out of the |
| quickly, which could be one reason why they have | | | | market; however, it may be longer before |
| managed to avoid reaching the top of the list; at least | | | | homeowners begin to experience that same kind of |
| until now. These markets include Arizona, Nevada, | | | | recovery. This is because most homeowners are still |
| Indiana and Massachusetts. Declining home prices as | | | | reluctant to sell and lose the equity they once had in |
| well as high rates of foreclosures in these states are | | | | their homes. The simple fact is that many |
| also contributing to their worsening real estate market | | | | homeowners have yet to accept the fact that they |
| conditions. In Michigan, where layoffs have been | | | | can no longer get the same prices for what was |
| significant, the economy is playing a strong role. | | | | possible just a few short years ago. |
| Problems are expected to grow worse in many | | | | So what can you do if faced with foreclosure? Are |
| markets as several million adjustable rate mortgages | | | | there steps that you can take to prevent losing your |
| are scheduled to be reset in the coming months. As | | | | home? Yes there is! |
| these mortgages are reset, it is logical to assume that | | | | |