Archive for February, 2009
A Brief Guide to Buying Richardson Foreclosures
Friday, February 6th, 2009While the continuing foreclosure problem continues to plague many of Richardson’s home owners, buyers in the region are looking at foreclosure affected homes with particular interest. This is because, while median prices in Richardson have fallen on the whole, foreclosure affected homes tend to sell at even cheaper prices.
If you propose to buy amidst Richardson foreclosures, understanding the foreclosure process would definitely help.
Foreclosure proceedings are initiated by a bank/lender when the owner continuously fails to make the mortgage payments on time. The home enters pre foreclosure when the bank/lender intimates the home owner of its intention of foreclose upon the home. You can buy a home from a home owner while the home is still in pre foreclosure.
The next stage is the foreclosure auction sale. Here, you would find yourself placing bids for homes along with other interested parties. These homes normally go to the highest bidders.
Unsold auction sale homes are then passed on to the lenders/banks that hold the respective mortgages on these homes. These home foreclosures can be bought through the banks/lenders. While some banks/lenders undertake the selling of these homes themselves, some others are known to sell them through real estate professionals.
The easiest way to find out if a home is turning out to be a good deal is to undertake a thorough inspection of the home. Before you make an offer on a home, you should consider all the different things that you would have to spend money on in getting the home in shape.
With Richardson having a reasonable number of foreclosed homes to choose from, you should ideally go through all the options that present themselves to you.
A Brief Guide to Buying Atlanta Foreclosures
Friday, February 6th, 2009While Atlanta (like other parts of the nation) continues to battle with the ongoing foreclosure crisis, many financial analysts are of the opinion that the market could witness its bottom point some time in the near future (anywhere in the next 12 months). Promises made by President Obama seem to echo this sentiment.
This is why many home buyers in Atlanta who had their buying plans on hold, are looking at this to be a good period to buy a cheap home. Atlanta foreclosures present interesting options for those homebuyers looking for discounted prices.
If you do plan to buy a foreclosure home, your search for the right home should be well thought out. You can start by going through the vast number of foreclosure listings websites on the internet. Local real estate agents often have up to date neighborhood specific listings, and banks are usually quite willing in giving away their lists of home foreclosures. Going through foreclosure notices and ads in local newspapers is also recommended.
Once you’ve made a list of homes within your budget, it is essential for you to inspect these homes. Inspecting these homes would tell you if the homes are worth their listing prices. The inspection of these homes should be meticulous. Structural damage is quite difficult and expensive to fix. Take into consideration everything you would have to spend money on before making any offers.
Since foreclosed homes can be bought in different stages (pre-foreclosure, foreclosure auctions, and foreclosure homes), and through different bodies (banks, lenders, the government); you should ideally go through resource material on the internet to get an understanding of the process.
With there being a number of foreclosure homes in Atlanta to choose from, you can very well afford to take some time in making your decisions.
Foreclosed Homes in Michigan – An Overview
Friday, February 6th, 2009Michigan, in 2008, had the 6th highest rate of foreclosure, as per a recently released report by a prominent foreclosure tracking agency. The same report also showed that foreclosure properties increased by 21% when comparing 2008 with 2007. Between 2006 & 2008, that amounts to a 108% rise.
As per data collected from the office of the ‘register of deeds’, St. Clair county witnessed a 26% rise in its foreclosure numbers when comparing 2008 with 2007. County records for Sanilac County also show an increase, with 232 foreclosures in 2007, and 259 foreclosures in 2008.
While foreclosures continue to rise, so do the relief measures. The Michigan State Housing Development Authority recently said that it is all set to receive $3 million to help combat this situation. These funds are to be used in various ways, including providing counseling to troubled home owners.
The high numbers of foreclosures, the low prices of homes, in conjunction with talks about the market bottoming out soon, is encouraging many prospective buyers to look at the options that are available.
Foreclosed homes in Michigan present an interesting option simply because they do often end up being sold at substantial discounts. However, if you do intend to buy a foreclosure affected home, you must make sure that you study the process beforehand.
Looking for these homes is fairly simple. The internet is a good source for starting your search. You can approach banks for their lists of home foreclosures. Getting in touch with real estate professionals is also a good idea, and so is going through local newspapers and newsletters.
With there being number of options in Michigan to choose from, do take some time in going through all available options.
Foreclosed homes in Maryland – An Overview
Thursday, February 5th, 2009While the increasing numbers of foreclosed homes in Maryland is not quite the situation that many home owners wish to associate themselves with, many home buyers within the region are looking at more home foreclosures as more options to choose from.
The reason that foreclosed homes are being viewed with favor is mainly the discounted selling prices that are increasingly being linked to these homes. Moreover, it’s no longer just the investors who are looking at these homes. Many people who wish to use these homes to reside in (including many first time home buyers) are also looking to buy amidst the foreclosed homes in Maryland.
If you do plan to buy a foreclosure home, it is best that you equip yourself with some information about the process.
You can buy a foreclosure affected home even before it has been foreclosed upon; and in doing so, you would have to deal directly with the home’s existing owner. It is necessary that you look into the arrears (unpaid taxes, secondary liens) linked to these ‘pre foreclosure’ homes before making your offer.
Homes, as part of the foreclosure process, are then put up for sale at foreclosure auctions. Here, the house is open to public bidding and the highest bidder normally gets the home.
Unsold auction homes are then transferred to the banks that hold the respective mortgages. Banks are known to clear the arrears linked to homes after the conclusion of the foreclosure process. This is why buying a foreclosed home through banks is often advised to first time home buyers.
With Maryland having a fair number of foreclosure homes to choose from, it would be best if you went through a number of options before making your final choice.
Restriction of the $350 Financial-Rescue Funds and Creation of Foreclosure-Relief Program Mandated by the House of Representatives
Wednesday, February 4th, 2009Provisions for discharging the remaining financial-rescue funds worth over $350 have been approved by the House of Representatives. This is a crucial move informing the administration of President Barack Obama of how lawmakers want the money used.
The legislation mandating the Treasury Department to create a foreclosure-relief program and instruct banks acquiring money to report how it is being utilized has been approved today by the House with a 260 to 166 vote.
However, according to the Senate Banking Committee and House Financial Services Committee, there have already been hints that the Senate will not plan to act on the bill, meaning Obama will not be compelled to accept the terms. The 260-166 vote meant intensifying the House’s part in assuring that the Treasury will do what the former thinks is needed even if it does not become a law to alleviate foreclosure.
At Obama’s request, the administration of President George W. Bush last January 12 asked Congress to release the remaining funds from the $700 billion rescue package endorsed last October, causing a 15-day deadline for lawmakers to block the money. An assessment to prevent the release was discarded by Senate last week. The House is anticipates on voting on a similar resolution tomorrow.
Bush has been criticized by the House Financial Services and other lawmakers for neglecting to put limitations on Bank of America Corp., Citigroup Inc., and other companies that obtained money from the initial $350 billion, which further intensified the foreclosure problem.
The House Financial Services wants as much as $100 billion of the rescue funds spent to reduce foreclosure. In addition, reducing bonuses and executive pay packages for top executives are also the Financial Service’s plans.
In a January 21 letter addressed to congressional leaders by the director of the White House’s National Economic Council Lawrence Summers, Obama’s staff is set to work with the Congress on courses of action to avert foreclosure properties, supervise lending by banks acquiring aid and place executive-pay limits for firms getting “exceptional assistance.”
Foreclosure-Induced Reduced Rates Led to Mortgage Application Outpour
Wednesday, February 4th, 2009Mortgage applications suddenly soared in the first full week of this year due to the lowest interest rates in more than five years. But the demand for loans must stimulate the home industry to stabilize the foreclosure crisis, since repossession caused this entire ruckus anyway.
Mortgage Bankers Association announced that its seasonally adjusted index for loan application increased 15.8 percent to 1,324.8. This has been the highest mortgage application since July 2003 at 1,358.2.
Since the Federal Reserve’s announcement of a $500 billion mortgage security (a step that hopes in controlling repossession), the thirty-year mortgage fee fell rapidly, now at 4.89 percent, down by 0.18 from last week. This program also wishes to buy $100 billion worth of debt of foreclosure troubled homeowners to the Federal Home Loan Banks, Fannie Mae and Freddie Mac.
Applications to refinance rose to 85.3 percent from the 79.8 a week earlier. This is the highest since 1990.
Though MBA seasonally adjusted purchase index dropped to 14.1 percent to 295.8, the 4-week moving average of mortgage application is up by 10.8 percent.
Real estate servicing companies says loan requests doubled from November. Loan requests on pace is expected to reach 25,000 and loan quotes on pace to 200,000 this month.
Seasonally adjusted index of refinancing application reached 25.6 percent to 7,414.1 highest since June 2003.
The adjustable-rate mortgage rose to 1.1 percent, from the 0.9 of last week. While the fixed 15-year mortgage rates are at 4.63 percent from 4.67.
Experts see that interest rates may continue to be low with the government’s efforts in preventing foreclosure through purchasing mortgage-backed securities. And since rates are really unpredictable, dealing in times when rates are lower is really smart.
The affordability of interest gives some tinge of hope for the housing industry. Foreclosure may be prevented if reasonable payments can be done in time.
Loan Modification: An Aid to Homeowners Facing Foreclosure
Tuesday, February 3rd, 2009Loan modification is just one of the ways troubled homeowners could use once they cannot afford their mortgage payments anymore. However, this process is quite complicated and is not offered to everyone since qualifications are set by the lenders.
What loan modification does is to make the payments more affordable—most common of which is about 38 percent of the borrower’s gross income. Lenders such as Chase, CitiMortgage, IndyMac Federal bank, etc. have loan modification programs, which come up with affordable payments for qualified borrowers and collect all payments, even if just as much as the principal. However, offers vary among lenders. The most common offers are interest rate reduction (temporary/permanent), extended payback period, and deferral of principal.
These loan modification programs aim to prevent unnecessary foreclosure properties. It is not an easy process but it is something troubled borrowers can do to prevent unnecessary foreclosures.
Some lenders send out offers to borrowers whom they think are qualified. Whether or not you receive such offers, you better call your lender and inquire. Do not just assume that you are not qualified, a conversation with your lender is still the best first step you can do. But remember, lying about your finances and other information is no help.
The length of the entire process depends on how fast your lender processes applications and how quickly you surrender requirements.
Also, lenders need proof of the bad situation you have gone through such as divorce, death in the family and disability. This is expressed in the hardship letter you have to submit as you avail the program.
Consulting an HUD–approved nonprofit mortgage counseling agency is an alternative if you feel uneasy contacting your lender. Just beware of the foreclosure rescue scammers who take advantage of such a situation.
Hopefully, loan modification programs can have a significantly reduce the number of home foreclosures now that the housing economy is in a tough situation.
Foreclosures Continue to Make an Impact on House Costs
Monday, February 2nd, 2009The rapid increase in foreclosure properties has greatly affected the house market in Southern California last year. The home price went down to a 5-year low and reached the lowest level of sales in 20 years, said an industry tracker last Monday.
DataQuick said that foreclosures are expected to reach a high record this month after the tally is finalized. It is also to be blamed for the 30%, or maybe more decline in price across a 6-county region in Southern California.
A 50.5% sales pour back in December was not able to recover the gloomy 2008 performance.
The said company, based in San Diego, said that 19,926 pre-owned and new condos and houses changed proprietors last month. The sales went up compared to 13,240 the previous year, but new houses sales were only 1,813. It was the lowest December sales according to the company’s records.
Half of the total number of properties cost more, the other half less. Unfortunately, the sales continue to deteriorate because cheaper homes are accountable for the majority of the sales.
Andrew LePage, a DataQuick Analyst, said that nothing is sure for now due to the economic crisis. In addition, no one can tell as to which location foreclosures will take over in the coming weeks or months.
Meanwhile, he also stated that the firm credit market happens to be one of the main causes of the home crisis slowing down these days. It applies to properties that are on the bottom of the price scale.
The more expensive ones are still waiting in line. Lenders are still reluctant to approve loans that are for the quite pricier homes. A report stated that among the participating lenders are Bank of America, Wells Fargo and Countrywide.
Across the nation, over a million homes entered some stage of foreclosure in 2008 and more are expected as a significant percentage of ARMs is about to reset this year.
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