Whats ahead!

I think one things for sure: we have all either have been touched (and not in such a good way!) by this "market" or know someone who has. I think it will be late '09-'10 before we start to make any kind of real headway. But we are still in for some really bad days short-term. Hiring is down, gas and food are up, homes are down, mortgages are tight, second mortgages are getting tighter.... I listened to 6 "market/economic gurus Friday night! Totally split on where we're going. As Gomer Pile would says, "surprise, surprise..!
New blood in that Oval Office might offer some relief...but if the two branches can't "play nice", we're screwed, again! We have to balance the budget, don't we have to do that at home and our businesses? What the hell! I hope it comes in the form of less spending, but there are only two choices to get it balanced, right! I think housing is always a great bet long term, the only issue with a market like this is when to buy? Monitor your neck of the woods and look for the inventory of listings to get down to 60 days or less (meaning enough buyers to purchase all the listings in 60 days).
In the mean time fix any financial or credit issues you have so you will be in a position to take advantage. Keep your house payment @ 25% of your gross income, I have seen some qualify at 50%, don't do it! Get rid of your non-deductible debt. Don't get involved in "multiple offers", have the house "inspected" (different than an appraisal), take a 30 year fixed, refi if they go lower, don't pay it off sooner if you have the dicipline to eliminate non-deductable debt and max every retirement account you can. If you still have money left over invest it in taxable places (you can usually get at this money if you need to,always helps). If you get a mortgage now, you are borrowing money at about 4.5% depending on your "tax bracket", you can make this all day long with long term investments. Keep in mind when you ay your mortgage down and the market tanks liks this, you can't get at the equity, and if the "values" went down you
lost it for now anyway! More ARMs will adjust this year than last, Kevin knows of what he speaks, the foreclosure volume will surely double in the foreseable future. That inventory will get added to what's already there and "around and around we go". Look for the Mortgage insurance companies to start going down! Keep your "House" in order, you will be fine.
The mortgage, credit guy!

PS. Donna Summer says it best " I (we) will Survive"! It was her wasn't it????