People who say that the proposed $25 billion foreclosure settlement between states and five major lenders is near are perilously close to the boy who cried wolf, but this time a resolution may actually be near.

The question now becomes this: If/when this settlement passes, will homeowners receive any significant benefit?

On the surface, the question is a bit silly. One would expect homeowners to receive some kind of restitution for being wrongfully foreclosed on by banks like Bank of America, Citibank, Wells Fargo, JPMorgan Chase, and Ally Financial. Previous versions of the settlement, though, did little to assuage the doubts of consumer advocates – including several high-powered attorneys general involved in the negotiations.

The latest incarnation of the settlement does provide for some monetary compensation for homeowners who suffered as a result of the banks’ alleged practices, but former owners of home foreclosures will not get their homes back.

Of the $25 billion, approximately 68% of the amount – $17 billion – will be allocated toward principal reduction to help owners of distressed properties and underwater homes. Roughly 20% of the amount – $5 billion – will be targeted toward state and federal programs that include a provision to give roughly 750,000 Americans checks worth $1,800 apiece. The remaining amount – $3 billion, or 12% – will go toward assisting homeowners with refinancing their mortgage loans at a lower interest rate around 5.25% – higher than today’s incredibly low rates but lower than most of the interest rates for today’s outstanding loans.

There could also be measures of reform contained in the bill, but one of the most contentious measures – civil immunity for banks – is still very much on the table and a real possibility. Limited criminal immunity may also be included, but banks will be vulnerable to some legal action by the states. Already several states have promised to initiate investigations into faulty foreclosure processes, including Delaware, New York, and Massachusetts.

In the end, if the settlement passes, nearly a million Americans could see a $20,000 reduction in their principal balances on their loans. That will help some homeowners, but large swathes of underwater and distressed homeowners will not receive any benefit from the settlement.

Since this is an election year, the Obama administration will likely pressure all sides to make this latest itineration of the settlement the final one. Even if states decide to not sign the agreement, it will likely pass – still leaving the door open for major legal battles down the road.

The foreclosure fraud crisis that started in 2010 when five major lenders – along with a host of smaller ones – were accused of widespread fraud, deception, and negligence in foreclosure processing that allegedly led to unethical and/or illegal foreclosures across the nation.

Now, well over a year later, and after several false alarms of a settlement between a coalition of state attorneys-general and the five major lenders at the heart of the case (JPMorgan Chase, Wells Fargo, Bank of America, Citibank, and Ally Financial), a deal may be within striking distance according to Washington insiders.

Naturally, those in the real estate industry who have been following the foreclosure fraud case for the past year are skeptical; after all, the deal was supposedly close to completion on many prior occasions before the coalition of AGs virtually splintered in 2011 over several unpopular components of the deal – including the notion that the deal did not go far enough in punishing the banks for their illicit processes and ensuring that they would not conduct themselves the same way with future home foreclosures.

Since 2012 is an election year, the Obama administration – the impetus behind the meeting of the minds going on in D.C. – is under more pressure than ever to arrange some kind of workable solution. This version of the deal apparently incorporates principal reduction for close to one million borrowers across the country, a move that is much desired by housing advocates and one that could serve as a mini-stimulus – paid for by the banks rather than the taxpayers.

The rest of the details – a $25 billion settlement split amongst the banks – still leaves some housing advocates critical. To them, including California AG Kamala Harris and NY AG Eric Schneiderman, the deal doesn’t do much to create a viable framework to protect against future abuses in the system. Even a principal reduction for some borrowers would not be a punitive measure to the banks, and those who could not stop foreclosure wouldn’t get anything for their troubles.

With that being said, some kind of arrangement will be made between the states and the banks, even if the Obama administration has to engage in heavy arms-twisting behind the scenes with California and New York. Too many foreclosure properties are in the market, driving down prices, for the administration to take anything less than an aggressive stance with their solutions to the housing crisis.

For those wanting to buy a home, finding lending can be tough. These days, private lenders are very tight with their purse-strings and are reluctant to lend at rates even remotely approaching pre-2006 levels. This can easily leave you in a bind as you try to find some way to purchase a home, be it a traditional home or a foreclosure.

Fortunately, the federal government has several avenues that you can take to obtain a loan from a private lender. Note that the federal government is not in the business of issuing primary loans. It does, however, guarantee loans issued by private lenders, which basically helps to make it far easier for you to obtain a private loan if you qualify for the federal program.

Types of Government Home Loans Available

There is a myriad of government home loans available to you, both at the state and federal level. State programs vary, so here we will discuss the federal options that you may qualify for when purchasing a new home.

Basic Federal Housing Administration (FHA) Insured Home Mortgage

This mortgage loan, sponsored by the Department of Housing and Urban Development (HUD), helps families purchase a single home for residency. You can apply through FHA-certified lenders, which involves almost all major lenders and most community lenders. First-time homebuyers can obtain an FHA loan with a down payment as low as 3.5% and receive up to 6% toward closing costs for the home loan.

Department of Veterans Affairs Mortgage Loan (VA Loan)

The VA loan is offered to eligible veterans and spouses and allows these individuals to purchase a home up to a certain limit with 0% down and a small funding fee of 0 to 3.15% of the loan amount. This means that qualified veterans could potentially buy a home without paying a down payment or closing costs.

U.S. Department of Agriculture Section 502 Loan

A Section 502 loan is a direct loan for low-income individuals buy homes in rural areas in the U.S. (as defined by the USDA). Applicants generally need to have no greater than 80% of the area median income (AMI) for the county in which they live. Those who have up to 115% of the AMI can qualify for a guaranteed home loan that is created with a private lender.

Indian Home Loan Guarantee

For those individuals who are of American Indian or Alaska Native descent, HUD offers a Section 184 home mortgage loan for those residing on or off of tribally designated housing entities, tribes, villages, and other lands.

Incentives for Pursuing Government Loans

One of the main incentives for obtaining a government home loan for your mortgage is the prospect of actually being able to buy a home, versus being declined by a private lender for a variety of reasons. Many people are ineligible without these home loan guarantees because they do not make enough money, or can’t put down a large down payment, or have poor credit or other negative circumstances. Since lending is tight, private lenders need some kind of reassurance that can only be provided by the government in most cases.

Another incentive is the prospect of obtaining a home loan with a very low or non-existent down payment. Typically, lenders like to see 10-20% of the loan amount paid down at the beginning, with 20% quickly becoming the norm as it once was. Not many people have 20% of a home loan saved up. With an FHA loan, for example, you can buy a home with just 3.5% down. A VA loan could potentially give you a 0% down payment.

Additionally, you can use government home loans to purchase a variety of homes that otherwise you would not be able to buy, including foreclosed properties. The allure of these properties – steep price discounts and widespread availability – means that they are affordable. But, private lenders do not always want you to buy a home foreclosure. Getting government guarantee for a loan could enable you to go to a foreclosure listing service, like ForeclosureDeals.com, and find a cheap home for sale.

Finally, you can use government funds to rehabilitate a fixer upper home, or even to rebuild a home that has been destroyed by a natural disaster. Did you know, for example, that the Section 203(k) program administered by HUD will give you money to not only buy a home, but to also rehabilitate it? It’s true – and that is something useful for homebuyers and investors alike.

Qualifying for These Government Loans

Qualifying for a federal loan involves more paperwork than a conventional, private home loan, but the benefits are worth it. You will need to provide, at a minimum:

- Proof of income for you and your co-signers, typically in gross monthly income format

- Addresses for your past and present places of residence (last two years)

- Social Security numbers

- Names and locations of your past employers (last two years)

- Financial info for your current checking and savings loans

- Financial info for any assets you have (stocks, bonds, real estate, etc.)

- Approximate value of your personal property

- Check stubs and W-2 forms (last two years)

- Info for any other current loans or debts

For VA loans, applicants will need to provide two things:

- Certificate of Eligibility (obtained from the Department of Veterans Affairs from their website)

- DD-214 (the official discharge paperwork from the military)

For additional requirements, you will need to talk to the appropriate loan official or representative for the specific loan you desire.

Quick Steps to Obtaining Government Loans

If you want to try for a government home loan to purchase a property, you are in luck. The federal government has made the process easier over the last few years as a way to give people an incentive to buy homes.

One of the best ways to get a great start is to assemble your paperwork completely and thoroughly. Take time to collect a total package, like the one outlined above. Then, do your research on the loan itself. What are the requirements? What are the loan limits? How much is a down payment? What specific things could disqualify you?

Next, make sure you contact the right lender. Not every lender is qualified to originate an FHA loan, for example. Use an online search to find an FHA-certified home loan originator. It further increases your chances if the lender manually underwrites its own loans, as opposed to having them automatically underwritten. That means the lender has a bit more discretion (or “wiggle room”) in who qualifies, and can work with you to get a loan accomplished.

Also, consider multiple lenders and shop around. Even if they are offering the same type of government loan, they could still offer various incentives that differ.

Finally, take some time to repair and boost your credit score if it is low. Those with scores below 500 do not qualify for FHA loans, and you really should have at least a 580 score. The higher, the better. Those who have at least a 620 score stand a much better chance of obtaining a government home loan than those with sub-par scores. Talk to a credit counselor. Pay off past debts, consolidate debt, and take on a second job if needed to boost your income. Sometimes, waiting a few months to boost your score is a great idea.

Government home loans are out there for the taking. With this guide, you hopefully will be one step closer to obtaining one and buying a home of your own.

The home buying process can be rather intimidating – especially if you are a first-time homebuyer. Rest assured, you can enter into the home-buying process with confidence by utilizing these essential tips to making home buying easier, regardless of whether you are a novice or experienced homebuyer!

Tip #1: Always Be Several Steps Ahead

When it comes to buying a new home, the most important part of the process is being prepared and staying a few steps ahead of the process.

First and foremost, it is essential that you have a general idea of what you are looking for in a new home. How many bedrooms do you desire? Bathrooms? What areas of the home are the most important? For example, if you spend a majority of your time cooking in the kitchen, then you may need to make finding a home with a spacious kitchen a priority.

Along with knowing what you want in terms of bedrooms and bathrooms, it is also important for you to know the type of home you desire. Do you want an apartment, a condominium, or a house? Would you like a rural home or one in a neighborhood? These are essential questions that must be answered before entering into the home-buying process. Furthermore, knowing these answers before you start looking for a home will allow you to quickly eliminate homes that are not a good match for your family, which will save you a significant amount of time.

Another essential part of staying ahead of the curve is knowing the area in which you desire to purchase a home. Do your research on the neighborhood. Is the area safe? What schools will your children attend? What is the closest grocery store? Make sure to obtain all of the essential information ahead of time to ensure that the area is truly where you desire to live.

Finally, being several steps ahead also involves knowing your budget. There are numerous foreclosure properties on the market that can be purchased for up to 60% below market value. You can utilize popular listing services like ForeclosureDeals.com to locate distressed properties near you at discounted prices. Regardless of whether you desire to purchase a foreclosure property or not, go into the home buying process with an estimated budget and look for properties that are within that budget.

Tip #2: Talk to an Agent

After answering essential questions and educating yourself on the home buying process, it is then time for you to talk with an agent.

Utilize the information you obtained from your research and provide them with detailed information on what you desire in a new home. Make sure you tell them your budget so that they can tailor the search to homes that are within your budget. Be sure to ask essential questions such as the agent’s availability and speed. You want an agent that will be able to provide you with individualized attention and are able to quickly find homes that meet your expectations. The last thing you want is an agent that is too busy to help you find a home in a timely manner.

While talking to an agent, you can also ask any questions that you may have about the home buying process. Experienced agents will be able to give you a detailed picture of what to expect throughout the process, which will better prepare you for the remainder of the process.

Tip #3: Avoid Certain Homes

When looking for a home, it is essential that you make sure to avoid properties that have a lot of damage and/or liens. These homes may come at incredibly low prices, but the amount of work you will have to put into doing all of the repairs or dealing with the liens may not be worth the discount. If you desire to get a great price on a new home and avoid messy negotiations, then you may also need to avoid homes that have a long list of people desiring to purchase the property. If several people are making offers on the home you desire, then you may have to pay more than you expected to purchase the property due to the competition.

In the end, you can enter into the home-buying process with confidence by utilizing these three essential tips. Do your research ahead of time and remain steps ahead of the process, talk to an agent, and avoid homes that may cost you time and money that are unexpected.

Those in the real estate market today looking to buy a home should use the best tools out there to make a smart purchase. After all, in today’s market, wise choices are at a premium – and tools like online mortgage calculators can help prospective homebuyers make the right decision.

Here is a brief guide to the benefits of using an online mortgage calculator to help you determine the finances behind purchasing the next home of your dreams.

How an Online Mortgage Calculator is Used

As with any tool, an online mortgage calculator is only as useful as what you use it for – and that is especially true with making a big decision like taking out a mortgage.

Planning for the Future

The main purpose of an online mortgage calculator is to help plan for the future. Heading into financial decisions – especially buying a home – without doing the necessary planning to plot a smooth course of sailing is ill-advised. A mortgage calculator allows you to project 5-30 years into the future and see what the costs will ultimately be for your new home.

Calculating for any Scenario

An online mortgage calculator also helps you calculate for any scenario. How much will it cost if your interest rate is 4.25% versus 4.5%? What if you decide to go with an adjustable-rate mortgage instead of a 30-year fixed-rate loan? What about a down-payment? All the variables are easily calculated and are at your fingertips for any scenario.

Deciding to Rent Versus Buy

One of the most important decisions facing prospective homeowners today is the decision to buy a home rather than rent one. It can be a tough decision, especially given the real estate market as it stands today.

Many people use online mortgage calculators to determine if the price of a mortgage is worth the venture – or if it is more expensive to buy rather than rent. In today’s environment, you might very well find that availability of discounted homes – particularly foreclosures – and low prices makes buying more attractive; if so, you can use an online calculator to make that decision.

The Benefits of Using an Online Mortgage Calculator

An online mortgage calculator delivers plenty of benefits to those who want a capable and versatile tool to assist in a crucial decision-making process.

One key benefit is the ability to use numbers that fit your situation, not those of other people. Everyone’s circumstances are different. Some people can put down a large down payment; others can’t. Some will be able to have access to super-low rates of below 4%; some will have to use higher interest rates, or will desire longer payment terms. Whatever your case may be, your circumstances can be accurately reflected in the tool.

Additionally, you can prepare several different scenarios and analyze them to find the right scenario for you. It gives you the ability, at a glance, to take in several paths to home ownership and find the most affordable or the most sustainable one. Maybe a fixed-rate, 15-year mortgage with 20% down at 4.25% is the best course of action for you. Unless you see all the numbers, though, you’ll never know.

Furthermore, an online mortgage calculator can give you something to take to the lender to demonstrate your ability to afford a particular mortgage. This not only saves you time but also allows you to support your argument if the lender disagrees and shows reluctance with the loan, as many are wont to do at this point in time.

An online mortgage calculator is a terrific tool that any prospective homebuyer should use before he or she makes a move in the market.

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For personal use of the infographic – Use the code below in your website or blog's HTML:

<p><center><a href="http://www.foreclosuredeals.com/wp/2011-rent-vs-buy-infographic-choose-the-best-real-estate-investment/"><img src="http://www.foreclosuredeals.com/images/rent-vs-buy.jpg" alt="Rent vs Buy Infographic 2011: Choose the Best Real Estate Investment" /></a></center></p>

What is Currently the Best Real Estate Investment: Rent Vs. Buy

Over the past 3 years, the real estate market has undergone a great deal of change. Home values nationwide have fallen as a result of the housing bubble, and widespread foreclosures have kept prices low and flooded the market with available properties.

But as home prices have fallen, the cost of rentals has risen dramatically in almost every state. Nationwide, the cost of rent has already increased 60% since 2008. Analysts currently predict that by the end of 2011 that figure will rise another 4.5%, and by at least another 3% in 2012. So what's behind this dramatic increase?

Experts point to several reasons for the increase in rental costs, but the main reason is that rental properties are simply in higher demand. After the world economy became sunk in recession in late 2008, home sales plummeted. Many buyers decided that it was better to rent properties and wait out the storm than it was to buy them. No one was sure how low housing prices would fall, and that trend continued over the years, resulting in more people looking to rent. In addition, buyers who had bought property for high values before the crash found themselves unable to sell their purchases for anywhere near what they paid. As a result, they turned to renting their investments at higher rates to both pay off their mortgage and earn profit on their investment.

So what does this trend mean for today's potential homebuyers?

The fact is, with home values low and rental costs high, it's the perfect time to stop throwing money away on rent and buy your own home. With banks offering mortgages with historically low interest rates, many buyers are finding that they can actually buy their own property and pay less on their monthly mortgage payments than they would in rent.

If you're an investor, buying now offers a double bonus. Not only is it easy to find low prices on a home, apartment, condo or commercial property, but you can turn around and rent it for a high monthly value. Experts agree that while housing prices are low now, they won't be forever. Many in the field believe prices are already starting to climb, and in many areas the market has reached its bottom. And while you wait for your investment to appreciate in value, you can put your investment to work by renting it and watch it pay for itself.

But the best way to take advantage of today's real estate market is to invest in it's most valuable commodity: the foreclosure homes. Foreclosure properties offer the lowest prices available on real estate available anywhere, and there are currently higher levels of foreclosure properties out there than there have been in many years. These homes sell for 10%, 25%, and often 50% off their actual market value. And with a flooded market, investors are seeing incredible deals at almost every auction.

As you can see in the infographic, the difference is clear. Taking advantage of the gap between rental costs and home values can save you money, whether you're buying your first home or investing for the future. Explore foreclosures in your state today to see the deals available to you. There's plenty out there, and with our help, you can invest in a fantastic property that will earn for you for many years to come.

Rent VS Buy Calculator

This calculator helps organize information for users to understand what may be a better solution when it comes to living expenses, and what may give better results when it comes to living cheaper.

Those engaged in foreclosure investing are sensitive to any indicator, when released, that could reveal some morsel of valuable information about the foreclosure market and where it is headed. The future, after all, is anything but certain, and investing in distressed properties carries with it some degree of risk.

Today’s news that foreclosure activity hit a seven-month high in the month of October is one of those valuable pieces of information that undoubtedly perked the attention of foreclosure investors across the country.

What, exactly, does this mean at this point in time and for the future?

First, we will look at what was revealed. The number of properties that received a foreclosure filing – from a notice of default to a notice of sale – rose by 10% from September to October. That is a sizable increase, especially when one considers the fact that a key piece of information – the percentage of homeowners who were at least two months behind on mortgage payments – also rose heavily.

Additionally, 22.5% of all properties – nearly 11 million homes – were underwater, or owed more than what the property is worth with today’s values. Since underwater homes are forerunners of residential foreclosures, the statistic is troubling for some experts.

What do these statistics, collectively, mean? The spike to a seven-month high is one data point, but it is revealing of a greater trend. Foreclosure filings, as a whole, are increasing and have been since the end of July. Coincide this data with analysis of the market and of banks and other lenders resuming foreclosures and one can see the trend: More foreclosures will enter the market soon.

Supply will be enlarged, which will drive down prices even further. As an investor, you will have more ample access to buying opportunities, with plenty of single family homes and multi family homes to choose from per market.

The added supply will make these properties cheaper, and the super-low interest rates will add to that affect. Indeed, this week rates on 30-year fixed-rate mortgages fell below 4.00% for only the second time in recorded history. The two pieces combined indicate that the market will be defined by one, central theme for the next year: Affordable foreclosed homes for sale with plenty of supply, enormous profit potential, and dirt-cheap financing.

To sum it up, should the trend hold – and all signs indicate that we are in for a very lengthy trend – this market will be an investor’s dream.

Part of the American dream is homeownership, which has definitely not changed despite the increase in foreclosures across the country that leaves many homebuyers weary. Take the current real estate market out of the picture and imagine a normal economic situation—why do people buy homes? One reason people purchase homes (apartments, single family homes, etc.) is to save money on rent, while building equity. Another reason is the expectation of appreciation, which essentially makes the investment increase in value every year. Basically, people buy a home to fulfill the American dream and because they view it as a better deal in comparison to renting.

However, do homes really appreciate as much as we think? According to a recent survey, the answer is no.

The survey concluded that 42% of people believe that home values increase 7% every year. Obviously, if this number were factual – which it is not – then the increase would be much less due to the recent fall of home prices. So exactly how much do homes appreciate each year? Home values increase somewhere between 2% and 5% each year when the real estate market is stable.

Unfortunately, these numbers are definitely not indicative of the current real estate market, which has experienced huge decreases in home prices over the last five years.

So what does all of this information mean for potential homebuyers?

With the current home prices being incredibly low, now is actually a great time to invest in real estate. The housing market will recover (and so will the United States economy); however, it will take time. Therefore, you should only purchase a home if you expect to live in the house for around 7 years. This amount of time will allow the housing market to get back on stable ground (which will raise your home value), while also allowing you to build up equity.

There are several advantages to purchasing a home that extend beyond investment opportunities, including tax benefits. Homeowners are able to deduct their home loan interest each year. Furthermore, with rental properties being in high demand, rental prices are increasing – often making mortgage payments lower than your monthly rent.

In the end, home values do not appreciate as much as many people think. Instead of increasing approximately 7%, most homes appreciate 2% to 5% when the market is “normal.” Clearly the current real estate market is far from stable and these numbers are not accurate representations of where we stand today. However, there are numerous benefits of homeownership and great investment opportunities for anyone seeking to live in their home for around 7 years.

Taking a look ahead to what any market will do in the upcoming year is always tricky – especially in today’s economy. Doing so for the real estate market is less problematic than forecasting for the stock market because it is less volatile (and has been going in only one direction – down – for the past few years), but getting ahead of the curve still requires a good grasp of market fundamentals.

With that said, the real estate market outlook for 2012, at this moment in time, is a mixed bag. In some markets, certain segments of the industry – like commercial real estate – will outperform. In other markets, residential real estate will continue to struggle to gain traction, although some markets will be stronger than others.

Here is a look at what we can expect from residential and commercial real estate in 2012.

Commercial Real Estate Strong Only in Key Areas

Commercial real estate has been a surprising contender over the past year, with office vacancy rates dropping and rental prices rising in key markets (primarily in metro areas on both coasts). The Midwest has been particularly strong. But, all in all, 2011 saw only apartment rentals outperform national trends – and 2012 will be more of the same.

Expect demand for multi family homes to be high throughout 2012 as foreclosures continue to take their toll and send millions looking for alternate housing. High foreclosure rates are correlated to demand for apartments, so where you find one, you will likely find the other.

Cities with positive job growth – particularly in the tech and medical sectors – will see demand for commercial real estate increase. Everywhere else, though, will see this sector continue to struggle.

More Residential Foreclosures Will Drop Prices Even More

We have battled low home prices throughout 2011, and 2012 doesn’t look to be any better. In fact, given the notion that banks are beginning to restart the foreclosure process across the country, it will probably be worse.

A veritable flood of foreclosed homes for sale is set to hit the market over the next 12-18 months, the result of a year’s worth of backlogged foreclosure inventory as a direct result of the foreclosure fraud settlement that is as of yet unresolved. We expect the settlement to be reached by the end of the year, and so far industry insiders agree – which is why many banks have already increased their foreclosure filings.

Foreclosure investing will become easier because more properties will become available. Prices will be lower, and demand for single family rentals will be high – which means 2012 will be a terrific time for investors to take advantage of a federal foreclosures-into-rentals plan that we expect will begin next year.

Interest Rates to Remain Low

Finally, for those wondering about the state of interest rates and whether or not they will rise, rest assured that no foreseeable increase in interest rates is on the horizon. The Federal Reserve wants to keep rates low to spur investment and financing – which is great news for real estate investors who want to lock in ultra-low rates and obtain cheap credit. For those who qualify, this is a good sign – and is good for the market, ultimately, in the near term.

Next year may see an increase in home sales, although most of the increase will be made up of foreclosures and short sales. By the end of the year, we expect prices to be somewhere between where they are now and 10-15% below today’s mark – depending on the severity of the next foreclosure wave and how well the market absorbs the impact.

One thing is certain, though: Next year will still be a great time to buy real estate as an investment vehicle.

The shadow inventory is comprised of distressed properties that are either facing foreclosure – because they’re delinquent or have not yet been listed at auction. In other words, these are homes that more than likely will enter the foreclosure market – but are not yet counted in foreclosure filing figures.

This is why just looking at foreclosure rates can be deceptive. You have to also know what the shadow inventory is doing so you can make an accurate assessment of the foreclosure market – and therefore know how to time your entry into the market.

Today, new numbers released indicate that the shadow inventory, on average, has decreased across the country by as much as 18% from its peak. Currently, there is about a five month supply of homes in the inventory that have yet to be processed, at today’s rates.

Shadow inventory is declining in some areas because of the effect of loan modification programs and their impact on homeowners who are in distressed properties. These programs are helping homeowners push back foreclosure or avoid it altogether. A slowdown in foreclosure filings by banks and lenders also contributed to the decline, although this is viewed by most as being temporary and largely artificial.

A large shadow inventory and high foreclosure rates contribute to lower prices, so a reversal of one or both could mark the beginning of a slow and gradual recovery. If so, now is definitely the time to look into buying a foreclosed property at cheap prices.