Here is an interesting article. We are all hearing these horror stories.  Fret not!  This is good news for us.

LOS ANGELES —  The number of foreclosure filings reported in the U.S. last month more than doubled versus August 2006 and jumped 36 percent from July, a trend that signals many homeowners are increasingly unable to make timely payments on their mortgages or sell their homes amid a national housing slump.

A total of 243,947 foreclosure filings were reported in August, up 115 percent from 113,300 in the same month a year ago, Irvine, Calif.-based RealtyTrac Inc. said Tuesday.

There were 179,599 foreclosure filings reported in July.

The filings include default notices, auction sale notices and bank repossessions. Some properties might have received more than one notice if the owners have multiple mortgages.

August’s total represents the highest number of foreclosure filings reported in a single month since the company began tracking monthly filings two years ago.

The national foreclosure rate last month was one filing for every 510 households, the company said.

“The jump in foreclosure filings this month might be the beginning of the next wave of increased foreclosure activity, as a large number of subprime adjustable rate loans are beginning to reset now,” RealtyTrac Chief Executive James J. Saccacio said.

The mortgage industry has been rocked by a surge in defaults, particularly among borrowers with subprime loans and adjustable rate mortgages that initially had attractive “teaser” interest rates but then can adjust upward, resulting in a payment shock.

Many of the loans, some of which adjust in as little as two years, were issued in 2005 and 2006 during the height of the housing boom.

Lagging home sales and flat or decreasing home prices have also left homeowners unable to make their mortgage payments hard-pressed to find buyers.

The latest figures also reflect an increase in the number of homes going into foreclosure that are not being picked up in estate sales and are ending up going back to lenders.

Every day, every month, every year, people put money into the stock market. Where does it go? If we put money into these companies and these mutual funds, why doesn’t the stock market go up? The answer is, corporations use our capital for investments! Yes, they invest your money in their companies. Why not invest your own money? Do you mean to tell me that someone else knows better than you, where your money should go? Mutual Funds are for Old Ladies.

Why is it everyday corporate America puts 3%-5% of their paycheck toward their 401K? Because the company matches it? OK, consider the following:

That is assuming a 10% return!

Practical Math

The $5,000 in the above example is roughly what I started with. I got a job after school and saved my checks until I had 3% down for a first time home buyer program. I purchased a home that people laughed at. They told me I was crazy, that I couldn’t sell it, and that my ideas were simplistic. While I didn’t set out to prove anyone wrong, I did just that. I purchased it for $142,000, and sold it for $190,000. I grossed $48,000. That was more than my annual salary at the time. Needles to say, I was on fire for real estate!

PS - My Return on the $5,000 was over 500%!!! Corporate America and Mutual Funds can’t match that.

I don’t recommend flipping, in fact I recommend against it. Wealth is created from holding real estate, but there are still opportunities to buy and sell. This is an example of a project that I rehabbed and sold for a nice profit. Our experience in Real Estate is invaluable. Call me to consult with you on all of your real estate needs.

I Bought for $195,500.
I Sold for $425,000.

Gross Profit of $230,000, Net Profit Est. at $80,000!