Start Rebuilding Your Credit Score Today!

Homes in some areas are selling for as much as 80% off 2005 prices. And the general consensus is, it will probably get worse. Many knowledgeable experts expect current home prices to drop at least another 11% by the end of 2011.

You May Be Saying; “What’s that got to do with me”?

SIMPLE: About once every 35 or 40 years there’s an opportunity for someone (like you) to buy a home at an absolute STEAL. But you need to have your credit scores in line or you’re going to miss the boat.

Here’s What’s Happening, And How It Affects You

We are in the middle of the worst housing crises this country has seen since the great depression. And it is bot getting any better. It began when subprime borrowers started defaulting on their loans.

But if you think subprime lending was a mess, are you familiar with ALT-A lending? These were the Option ARM, Stated Income, 125% Loan-To-Value, and other types of “Exotic Loans” that were so popular in 2005, 2006, and 2007.

ALT-A Loans represent 1.5 TRILLION dollars of home loans. ALT-A loans are even more of a mess than subprime loans. ALT-A loans were generally made on more expensive properties and by wealthier people with great credit scores. But when these loans started going upside down (no equity), the borrowers would just walk away when the loans reset to higher payments.

After all, if the borrower had $50,000 to $200,000 dollars in the bank, and a good credit score, they weren’t too concerned about the consequences of defaulting on their loans. Unlike the subprime borrowers with no cash or credit to back them up, the ALT-A borrower could rebound quickly from a foreclosure on their record and purchase another home.

The First Sign Of Trouble

The first sign that subprime loans were in trouble was when 14% of subprime loans were in default. Now, since the first quarter of 2009, 14% of ALT-A loans are in default.

There were a total of 500,000 subprime loans made. Compare that with a total of 750,000 ALT-A loans made. (50% more). The majority of subprime loans averaged $200,000, while the majority of ALT-A loans averaged $400,000. That means there were half again as many ALT-A loans which are double the average loan amounts of the subprime loans.

Many financial experts rightfully predicted that ALT-A defaults would start hitting big time around JUNE / JULY / AUG of 2010. They also predicted that those defaults would continue through 2011 or even until mid 2012. If they are right (and so far it looks like they are) the worst is yet to come.

When Opportunity Meets Preparedness

However, as bad as it is, the housing crises has created an opportunity for you to purchase your “dream home” at a severe discount… but only if you are prepared! And NO! It does NOT matter what your credit scores are like today!

Start Rebuilding Your Credit Score Today

When you begin applying for financing, lenders always place the most weight on the last 12 to 18 months of your credit history.

SO, maybe the smart thing to do would be to start working on rebuilding your credit history today, so it will be there when you need it a few months from now. And, there’s never been a better way to clean up your credit scores fast, than by using the ideas and methods you can find here.

Plan ahead. The future belongs to those who are ready for it!