My Huge concern for homeowners

This is not an advertisement, but a warning. In my field of business I keep a pretty good pulse reading on our home values. I am seeing appraisals on a daily basis. Here is my concern: We are starting to see a bit of a decline in our home values in King and Snohomish counties. While I am sure this will come back, and believe it is still a great time to buy a house. ( After all, interest rates are down, and we will probably see recovery in the market over the next year.) I am more concerned for those who currently own a home on an adjustable rate mortgage. We have already seen a tightening in the guidelines, especially on refinances. The problem is, the strength of many refinance loans lies in the home value. I have recently seen many folks in my office near tears because they can not get out of their adjustable rate mortgage. They bought their house with very little down payment, and now the home is worth less than what they paid. They can not sell it and the payment will be too high. They are facing financial ruin.

This is what I would like to offer. If you have any questions about your situation, you can either post it here, or send me an email. The important thing is not who you speak with; but that you speak with someone who is concerned for your situation more than themselves.

Please do not wait, even if you are 2 years away from your ARM adjusting, there may be some things you need to consider to prepare yourself for the tighter guidlines.