Another aspect to the current high foreclosure rate investors should be aware of is this: With lenders stung by losses related to mortgage defaults, the amount of available credit may be restricted and that may prevent some potential buyers from purchasing their own homes. One solution is to help buyers with strategies such as lease options.

The credit issue is discussed in “Credit Crunch May Follow Mortgage Crisis, Warns Study.”

“New mortgage laws that restrict access to certain loans would be an overreaction to the current foreclosure situation and deprive hundreds of thousands of Americans the opportunity to own their own homes, according to a study released today by the American Financial Services Association (AFSA).

The study, conducted by the Center for Statistical Research (CSR), finds that more restrictive mortgage regulation would deny credit not only to those who would actually experience a foreclosure, but also to the whole class of borrowers in a particular risk category -- the vast majority of whom would otherwise use the credit successfully.”

To read the entire article, click here.

Jackie