If you are, you’re not alone.  According to an MSN Money article, there are an increasing amount of people that are paying mortgages on homes that are valued far less than what they owe.  In addition, many of the adjustable rate mortgages are coming due, and payments are rising faster than expected.

Unfortunately for those people who are underwater, I could have told you this was coming.

As I mentioned in a previous post, when you buy a house, you get once chance to negotiate the purchase price, but you can renegotiate the interest rate on the loan ever couple months if you want to.

But think about this:  When you get a rock bottom interest rate, where do you think interest rates will go in the future?  They really can’t get any lower.

On top of that, when interest rates go up, the market becomes saturated with houses, making them even harder to sell.

This is actually a good thing for investors, given enough patience.  With the influx of homes on the market, coupled with the fact that their owners can’t pay for them, the foreclosure rate will go up.  A good opportunity to pick up a house under the market value.

In addition, when a lender is sitting on a significant number of homes, they’re willing to sell a house for nearly 20% less then they have in it, just to get rid of the surplus inventory.

In other words, to make money in life, you sometimes have to take advantage of others misfortunes.  For investors, it’s a great time to think about buying a house, as long as you have the patience to let the market tell you when to buy.

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