Houses Foreclosure

Three Types of House Foreclosures

Homer Forteza — Wed, 24 Dec 2008 03:34:19 +0000

When it comes to house foreclosures, there are three many different types. These are the pre-foreclosure, bank foreclosure and government foreclosures. There are also other types of foreclosures like tax foreclosures and bankruptcy foreclosures but this article will focus on the most common three.

Pre-Foreclosures

Many home owners are now close to foreclosing on their home. As an investor you can help to relieve their suffering while also benefiting yourself by buying a property at a very low price in comparison to its previous and future market value. A distressed home owner may be relieved to know that someone is willing to buy their house before the bank takes it from them. You may even be able to offer to rent the home back to them. This relieves them of a massive debt, but allows them to stay in the family home. The best way to find pre-foreclosure properties is through real estate agents, pre-foreclosure listings, business associates and attorneys.

A pre-foreclosure stage is the time between when a home owner receives a Notice of Default and the day that the bank or lender puts the property up for sale or auction. Buying pre-foreclosures can be difficult but well worth it in the end.

Government Foreclosures

When an FHA home goes into foreclosure, the government sells the property. HUD registered brokers are allowed to place bids on these homes, so you will need to contact a broker or agent if you plan to buy house foreclosures from the government. Investors are unable to bid for the first 45 days, only owner occupiers can. This gives new home owners a chance to buy a house at a low price.

Tax Foreclosures

When a home owner can not make tax obligatory payments on their real estate, the property can go under a tax foreclosure. The owner then has a chance to repay the tax liability but in the case of non-payment, the tax authority is able to recover the liability by selling the property.

The above three types of foreclosures give you an idea of the different opportunities that are available to savvy investors and first home buyers who are looking for house foreclosure bargains.

Foreclosures Homes are a Great Investment

Homer Forteza — Sat, 20 Dec 2008 00:54:44 +0000

Foreclosure homes present a rare opportunity to investors. When a home is foreclosed it is normally sold for the absolute minimum price that the bank or lender requires to receive their money back from the debt owing. In some situations this can be well below market value and certainly way below the value of the home when it was originally bought. Whilst foreclosing on a home is very sad and stressful for home owners, investors can find some great bargains and perhaps even make the lives of home owners easier by offering to rent the home to them at a cost that is lower than their mortgage payments – this results in a win-win situation for both parties.

The main benefit of buying foreclosure homes is of course the fact that you are buying at such a low price, and in future there is the chance that your home will drastically increase in value. Because of the large number of property foreclosures currently available, it may be some time until market values rebound but when they do, the price you paid for a foreclosed home will seem miniscule. In some cases people are paying 50% below the former market value for a property. When you consider that property prices generally double every 10 years, this presents a bonanza for investors.

The more foreclosure homes you can afford to buy, the better. If you are a seasoned investor and have a good rapport with your lender or bank then it is likely they will not mind lending you money to buy more properties. If they know you are an experienced investor then you may not suffer the fate of many other people who are currently struggling to get a loan approved due to the current financial uncertainty. Ideally you will want to buy as many foreclosed homes as possible to grow your portfolio while prices are low.

A good strategy is to invest in different cities rather than just one location. This spreads your portfolio out and protects you against any unforeseen circumstances, such as if values don’t rise in one city but do in others.

Why You Should Buy a Foreclosed House

Homer Forteza — Wed, 17 Dec 2008 05:12:22 +0000

A foreclosed house is a great investment for investors and even for first home buyers who will be able to pick up a bargain, provided they can prove their reliability and financial stability to a lender.

Where to Find a Foreclosed House

There are several places and methods of finding homes that are in foreclosure. If you are on the internet you can visit certain websites which list foreclosed properties. Some will charge a monthly fee but this is well worth the cost if you want to spend some time researching different markets and comparing prices. Some popular foreclosure subscription websites include:

Foreclosure.com
Foreclosures.com
RealtyTrac.com

The number of foreclosed properties now listed on these and other similar websites has increased exponentially within the past 2 years due to the housing crisis sweeping the USA. This is good news for investors or first home buyers as it means you have a wide choice and competition is great so you can buy at an even lower price.

Buying a foreclosed house can be a mutually beneficial decision for both the buyer and the existing home owner. Saving a home owner form the stress of losing their home by renting it back to them is a satisfying experience, and you can be happy in the knowledge that your investment will be one that pays dividends in the future as home values rise once again.

A good way to buy a bargain home is when it is in pre-foreclosure. This is the stage before the home has been repossessed by the lender, and after the owner has received a notice of default. This is a stressful time for the owner but if you can step in and buy the house at an agreed price, you will save them the stress of losing their credit rating and also going through the foreclosure process. You can speak to a real estate agent about gaining access to preforeclosure listings.

Buying a foreclosed house has many benefits and by utilizing the services of foreclosure listing companies you will be able to get a clear idea of the types of properties that are available the approximate price that you can get them for.

HUD Foreclosure

Homer Forteza — Fri, 12 Dec 2008 23:24:55 +0000

A HUD foreclosure presents a unique opportunity to buyers who are hunting for a property bargain. HUD home is a property which has been acquired by HUD because of foreclosure action on a mortgage that is FHA insured. That is alot of acronyms so let’s look at what this all means.

HUD stands for Department of Housing and Urban Development in the United States. The FHA is the Federal Housing Administration which was established in 1934 with the goal of providing mortgage insurance, thus allowing lenders to lend a larger percentage of the property value to borrowers. Unfortunately for home owners, many people have found themselves unable to repay this extra large debt ad as such their homes have had to be put under foreclosure as a way for lenders to recoup their debt. Put simply, FHA foreclosures are known as HUD Homes.

The value of the HUD home is obtained by an appraisal that is carried out. The value is generally at a fair market value considering the quality of the home and the location of the property as well as any other factors influencing the market in the local area. If the home needs repairs then the price is adjusted accordingly. New owners will be responsible for all repairs on a HUD foreclosure property, as the home is sold ‘as is’.

A bidding process is a common way that HUD foreclosure homes are sold. This involves an offer period where bids are given to the agent. At the end of the offer period HUD will normally select the highest bid as the final offer on the property.

Like any home, an inspection is recommended before committing to buy a HUD foreclosure home. If major repairs are required this will affect your offer and even your decision to bid on the property. Older homes may contain various hazards and problems that can end up causing major expense in future, so ensure you keep that in mind when looking at possible HUD foreclosure homes to bid on.

One little known fact about HUD foreclosures is that if the property is not sold within 6 months of going on the market HUD sells them for just $1 to government agencies or non-profit organizations! These properties are then used to create housing for people in need.

How To Buy Foreclosure Properties

Homer Forteza — Wed, 10 Dec 2008 07:49:44 +0000

Buying foreclosed homes is an exciting experience as you know that you are getting a deal that does not come along very often. With more and more properties coming under foreclosure however, competition is hotting up amongst buyers. You need to know exactly how to buy foreclosure properties if you want to have the best chance of buying the right home for yourself or as an investment.

You can find foreclosure homes that are available by checking out your newspaper classified advertisements under the Foreclosure Notices, Sheriff’s Sales and Auction Sales. You can also tell your local real estate agents that you wish to buy foreclosed properties and they will be able to provide information to you about available properties.

You can also find out about foreclosed properties in your chosen area by contacting the Federal Housing Administration, Veterans Administration or Department of Housing and Urban Development. You will need to be familiar with the foreclosure process in your own state as it can differ between states. A real estate agent and attorney will be able to assist you with this.

Once you have found a property that interests you, you must inspect it to find out what condition it is in. You should also determine the current market value as well as its past market value. You should find prices of other properties in the area that are similar. You can do this through a real estate agent and property data reporting services.

You will need to conduct a title search on the foreclosed property in order to determine the ownership as well as to identify any potential problems as well as researching any existing liens. This is a vital step and one that will protect you from any mishaps or problems after buying the property.

Before putting in an offer, contact the trustee of the sale to find out what the minimum offer is so you can gain an idea on how much you may need to pay.

Learning how to buy foreclosure properties legally and responsibly will put you in a position to buy the best property at the best price and with minimal fuss.

Help Stop Foreclosure

Homer Forteza — Sat, 06 Dec 2008 04:27:01 +0000

If you are close to going through a foreclosure on your home then you need urgent help and advice. Your bank is unlikely to be sympathetic to your situation, unfortunately. Put simply, they are in business and your home is just another statistic to them.

If you can not afford repayments then they must repossess the home in order to recover the money owed to them. When this occurs it is termed as a foreclosure and you can quickly find yourself without a house to live in. This is a stressful time but if you realize your situation early enough you may just be able to help stop foreclosure before it happens.

There are many companies out there that will claim they can help you stop foreclosure on your home. But do they really help? Or are they just there to zap away more of the money that you don’t have at this critical time? It is vital that you can sort out the reputable companies and those that have only their interests in mind rather than yours.

Most of the time you wont even need an external company help you stop foreclosure as you can undertake most, if not all, of the actions yourself. Some options for you include:

Refinancing loans
Shortfall forgiveness
Loan restructuring
Supplementary loan

Sometimes banks and lenders will be open to the above options and sometimes they won’t. It helps to be on friendly terms with your bank if you are to negotiate to avoid foreclosure. After all, the banks only want to receive their money, whether it is through you or through selling your home.

Going through foreclosure will pose a negative light upon your credit score for many years to come. This can make it hard to get another loan in future which means you will likely to have to rent a new house rather than buying, or resort to government housing. This can be a stressful time and is best avoided at all costs.

Once you have accurate information you can then move forward in your quest to help stop foreclosure. After all, this is your family home and it is certainly something worth fighting for.

Buying a Foreclosure

Homer Forteza — Tue, 02 Dec 2008 22:54:43 +0000

Buying a foreclosure can be both a nerve-wracking and exciting time. Although it is a sad time for the people who must sell their home, or who have already lost their home, as a buyer in this downturned market you have the opportunity to pick up a true bargain property. In some cases homes are now selling for half of what they were valued at just one year ago. Once the market picks up again (as it always does) your cut price house will increase in value back to where it should be at. You will then be very happy that you had the foresight and courage to buy a foreclosed home.

The first step is to find a property that you are interested in. You can do this via pre-foreclosure notices or lis pendens, or bank or government owned for repossessions (REOs) or finally, at auction for Sheriff’s Sales or Trustee Sales. Each of these three methods of finding foreclosures can lead to you picking up a bargain.

The next step is to organize financing. Work out what you can afford and approach a foreclosing lender.

After this is done, contacting an agent is what you must do. Although this step is not mandatory, it is useful for newcomers in particular. Agents with experience in foreclosures are best.

Then you need to contact the owner – this can be the seller or the lender in charge of the foreclosure such as a bank or government.

Now you are ready to make an offer. A real estate agent can assist you in this step. Make sure you always find out the approximate market value of the property beforehand. Because buyers are generally desperate in this situation, your offer needs to be appealing and offer them just enough to ensure them that they will be out of financial trouble.

Once you have decided that buying a foreclosure is the right step to take, start looking for properties that are within your budget. Never be afraid to look at homes that are priced well above your maximum spend as in some cases the price will drop significantly.

Foreclosure Services For Home Owners and Buyers

Homer Forteza — Sat, 29 Nov 2008 01:12:57 +0000

Foreclosure services are becoming more and more apparent theses days due to the increased number of homes in or near foreclosure. Foreclosure services also relate to services that assist buyers in buying foreclosed homes. I will address both types of services here in this article.

So what can a foreclosure service do and do you really need one?

If you feel that you are having trouble meeting your mortgage commitments and that foreclosure may be imminent, hiring the skills of a professional foreclosure company could save your house. The services are able to show you options from lenders that may help you to avoid foreclosing on your home. It is vital to find a reputable company as there are some unscrupulous dealers out there who will take your money but still not stop the foreclosure from occurring.

On the other side of the coin are the foreclosure services that assist buyers to find bargain foreclosure homes. Foreclosure services will assist in a number of areas including:

Property valuations
Fees and taxes
Investment return estimates
Finalizing the sale

Valuating a property is difficult for the average person. Foreclosure services are able to use their expertise and resources to pick the good properties from the bad on the foreclosure market. This can save you many months of searching and certainly lower your stress levels.

There can be many fees and taxes attached to some foreclosure properties so these services are able to research these and figure out just what is involved. They can also work out if you have missed any back taxes or charges.

Most people buy foreclosed properties in the hope of selling them later for profit, so it is vital to know what the potential returns may be. A foreclosure service has experts that can analyze properties for their future resale potential.

All of these things and more make foreclosure services well worth investing in. Compared with the money saved, the small outlay in hiring a professional firm is exceeded by the benefits. Just make sure you pick a trusted company by asking for opinions from family, friends, and colleagues.

Foreclosure Statistics

Homer Forteza — Wed, 26 Nov 2008 00:40:48 +0000

Foreclosure on a home is when a lender must recover the money owning on the loan. A home must be foreclosed (or taken from the owner) if payments can no longer be made. Currently many countries are experiencing a high rate of foreclosure due to financial turmoil. In the United States, millions of families have lost their home to foreclosure as more and more people find themselves in financial trouble and unable to meet their loan commitments.

The bank or lender then has no choice but to seize the property and then sell it to recover costs. This usually means selling the house for the minimum required price in order to recoup the debt – resulting in an opportunity for savvy buyers.

Some current statistics on home foreclosures in the USA are outlined below:

Foreclosures in June 2008 had increased by 53% compared with June 2007.
Over 250,000 home foreclosed in both May and June 2008.
Around 6.35% of home loans in the USA fell delinquent in the first half of 2008.
One in 20 homes are in foreclosure in Manassas Northern Virginia, making it one of the hardest hit regions.
In April 2008, over 14% of homes for sale in the US were a result of foreclosure.

Some foreclosure statistics from the Mortgage Bankers Association show some startling facts:

1 in every 200 homes will undergo foreclosure each year.
250,000 families enter into foreclosure every three months.

It is also alarming to know that many people who are close to foreclosure are not aware that they can possibly avoid it by taking particular actions. A Freddie Mac/Roper poll in 2005 found that 6 out of 10 home owners wanted to understand the details of the mortgage better and the same number of people were not aware that lenders can offer services and help to people having issues paying their mortgage.

These statistics prove that people need to become more educated about foreclosure and the options available to them when times are tough. Foreclosure statistics like these are alarming but with the new President determined to tackle the financial crisis, things may be looking up in the near future for home owners.

Foreclosures and Loans

Homer Forteza — Thu, 20 Nov 2008 08:35:23 +0000

If your property is facing foreclosure, does it make sense for you to take on another loan? Will you be able to use this additional source of funds to protect you and save your property? Before you go ahead and apply for a loan, there are several things you will need to consider.

You need to assess your present condition, as well as gauge how your future will look in the coming months. To help you, ask yourself these questions:

1. How much of the value of your house or property is tied up in the loan?

2. How much of the value is in the form of equity?

3. Is your equity large enough to make you attractive in the eyes of bankers or institutions that will extend a loan to you?

4. Is your equity rather small, which may compel banks to lend to you at higher interest rates?

5. What is your contingency plan if you lose the source of income needed to pay off this second loan?

Let’s face it. When you are facing foreclosure, that means your financial situation is not exactly that great. And when lenders see that, they will usually give you difficult terms. That’s why you will need to ask yourself if the solution you are thinking of (i.e., getting another loan to forestall foreclosure) might end up giving you new or additional problems (i.e., being unable to pay this second, tougher loan in case you lose your job or income source).

Another example of stringent requirements for your second loan is that bankers might require you to put up additional property as collateral. You might start off with one good property and another which is in danger of foreclosure, but if you get pressured into putting up your good property as collateral, you might end up losing that one too if you are unable to liquidate the second loan.

It is all too easy to feel desperate during this situation, and in your haste you might make certain decisions you will regret later on. As a suggestion, speak with a friend (who is not in a similar financial situation) so that you may get a sober viewpoint. Yes, this is just a webpage you are reading, so please do not underestimate the power of a face-to-face conversation with your friends.

In numerous cases, getting a second loan to forestall foreclosure is not a good idea. Please don’t keep your problems bottled up. It is better to involve your friends and family, so that you may make a better decision to protect and even recover your assets.

How To Buy Foreclosures

Homer Forteza — Mon, 17 Nov 2008 14:00:29 +0000

Buying foreclosures gives you the opportunity to pick up a bargain property. Knowing how to buy foreclosures is something you must pay close attention to as the process can differ slightly from buying a regular home or property that is for sale.

What is a Foreclosure?

A property is foreclosed when the lender or mortgagee forces the sale of the borrower’s property in order to recoup the debt owed. This generally occurs when the home owner can no longer meet the repayments on the mortgage. In the past year or so the US has seen more properties than ever being sold as foreclosures. Although this is unfortunate for the owners, buyers will reap the advantages of buying properties for well under their normal market value.

Types of Foreclosed Properties

Once you start researching how to buy foreclosures you’ll come across a few different types of property statuses and opportunities to buy. These include buying at a public auction, buying bank owned properties and buying during the pre-foreclosure process.

How To Buy Foreclosures

The steps to buying a foreclosure can be outlined as follows:

1. Find the property you wish to buy
2. Get Financing
3. Contact the agent
4. Contact the seller
5. Make an offer via a real estate agent

These above 5 steps are just a brief outline to what occurs when you are buying a foreclosed property. Each step consists of many smaller steps and the process that you are buying through (eg via auction, pre-foreclosure) etc will determine exactly what you need to do to obtain the house you want.

Bank owned properties are considered relatively safe to buy and the can have less costs involved as they normally do not have taxes or liens. You should still consider the costs though even if the house seems very cheap. If it is an investment, will you have trouble renting it out?

It is always wise to seek professional help and advice regardless of the type of property you are buying. The process can be daunting if it is your first foreclosure experience, however the benefits are endless as you can literally buy a home for up to half of what it was valued at in the past.

Getting Ready…

Homer Forteza — Mon, 10 Nov 2008 10:36:15 +0000

The Houses-Foreclosure.net site will bring you information about foreclosures, and how you can protect your home. Just the same, you are encouraged to work with a professional legal adviser, because this site is for informational purposes only.

Please stay tuned while we prepare this website for you. Thanks!