Many homeowners went a little crazy during the recent real estate boom. Convinced that prices would continue to rise indefinitely, people felt free to supersize their homes; the median size of an American home has increased 16 percent in the past decade, to 2,227 square feet. Bigger homes, of course, come with higher property tax bills, and they cost more to wire and keep heated and cooled. Meanwhile, lenders churned out new types of loans with low initial payments and, as the real estate market spiraled to new heights over the past few years, loosened borrowing restrictions. Stretching the limits of affordability wasn’t a problem when interest rates were plummeting and home prices were zooming. Then, homeowners who had trouble making payments could easily refinance or unload their home for a big profit. That’s no longer the case. Recently lenders have begun tightening their standards, and if your home hasn’t appreciated, you may not be able to refinance easily. The Pre-Foreclosure Property Investor\'s Kit : How to Make Money Buying Distressed Real Estate -- Before the Public Auction

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