Foreclosure Listings Articles » Foreclosures For Sale

Banks Are Not Cooperating in Foreclosure Short Sales

Julie Parker — Fri, 15 May 2009 13:34:17 +0000

With banks not cooperating in foreclosure short sales it is difficult for the foreclosure rage to be tamed. If the banks lose 19% by opting for short sales and 40% by following foreclosure why are the banks not being prudent and remaining stubborn? There are so many numbers involved that it would have led to the collapse of the financial system of the country. Although the fates of banking and finance are interlocked their activities are opposing.
The main hurdle to the smooth implementation of short sales en masse is the problem of securitization. The parceled and sliced mortgages have been sold as investments to various entities across the globe. Thus with whom will negotiation talks be held? In the event of a loss there is no possibility of workouts in the case of securitized mortgages. When securitization happened nobody ever dreamt that the question of loss would ever arise.
Dave Liniger is a realtor. Speaking to reporters he said, “The most significant aspect is that so many of the banks’ mortgages have been securitized, put together and bundled, sold off to Iceland or China or some godforsaken place. The bank has to go through all of the various people who are stakeholders and it becomes a very lengthy process, and the bank is turning off the realtors by not even getting answers back to them, sometimes for months.”
The banks are not interested in untangling the snarl. The mortgages are listed in their balance sheets at the original value of the loan and if a short sale is completed they have to show a loss. By not showing such a sale the loss is not noted either.

A research undertaken by Campbell Communications note that only 23% sale transactions are completed. Tom Popik of the survey group said, “Three out of four potential short sale transactions fail, principally because the mortgage servicer takes too long to respond to the offer. When these same properties are later sold it further depresses real estate prices.”

Congress too has failed when up against securitized mortgages. No medicine seems to work. Re. Brad Miller (Democrat) said, “We’ve been trying to figure out probably for close to two years now why so few mortgages are being modified when it seems to make absolute business sense for the person holding the mortgage to modify rather than foreclose or to take a smaller loss selling it rather than a bigger loss foreclosing on it.” Miller’s accusing finger points at securitization.

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Obama Facing a Challenge from the Foreclosure Crisis

Julie Parker — Fri, 30 Jan 2009 15:41:00 +0000

Obama is facing a peculiar challenge from the foreclosure crisis. Apart from the fact that it is the primary and root problem of the financial chaos now reigning in USA, it has to be tackled in such a way that the measures do not benefit neither the irresponsible borrowers nor the predatory lenders.The Obama government is bent on following an aggressive path against the surging menace of foreclosures but the leaders have yet to work out the details of the strategy to be put into force.

A six month moratorium is one of the steps being considered apart from reducing the mortgage interest by half and giving tax relief to those who purchase houses through federally sponsored programmes.

It is now two years that the foreclosure crisis made its presence felt and it continues to hold sway. The government and the financial body have not been able to come to a point of agreement largely because of the thorny issue of excluding from the benefits both the irresponsible borrowers and the predatory lenders.

Timothy Geithner (nominee for the post of Treasury Secretary) said that the proposals have yet to be finalized and it is doubtful if a concrete plan will take shape for quite some time. Meanwhile each interested group has been pushing forward its own suggestions.

In the previous week Lawrence Summers (Obama’s choice for directing the National Economic Council) suggested to the leaders of the Congress that the administration should give anything from $50 billion to $100 billion as a sweeping gesture “to address the foreclosure crisis.” His suggestion subtly hints that everyone crying “wolf” does not deserve help. Only “preventable foreclosures” and “economically stressed but responsible homeowners” will be targeted. Just how the grain will be separated from the chaff remains unclear.

Steve Adamske, spokesperson for the House Financial Services Committee said that it is as yet too early to predict when the foreclosure assistance measures will become law.

Kenneth Rosen, economist from Berkeley discussed with the Treasury Department and presented his view of the matter. He wanted a six-month hold on all foreclosures. This would give time to the interested parties to find out a way for sorting the mortgages and categorizing them into those that should and those that should not be saved. For the really needy borrowers the mortgage rate should be brought down to 4.5%. He also suggested tax credits for those buying foreclosed houses in the current year.

Via

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Washington DC Foreclosures For Sale

Kevin Simpson — Mon, 29 Dec 2008 15:17:50 +0000

As a new investor, you have found the property you want, negotiated the terms of the contract, struck a deal and closed. Hopefully you have also included a clause in the agreement that includes and inspection contingency. This is particularly important if you have not been able to inspect to purchasing your Washington DC foreclosure for sale. This could happen in the case of an auction, but is very rare in cases where the Washington DC foreclosure for sale has been purchased from the bank, or in pre foreclosure.

If this is the case and you have submitted an offer, “sight unseen”, then the inspection contingency clause will protect you and you may be able to back out of the purchase if things look too bad, or at the very least submit a revised offer.

If you are not qualified to inspect the property, as most of us aren’t, except on a very superficial basis. You will need to hire a professional to conduct this inspection for you. They will take an objective view of the property, prepare a report and advise you accordingly. This is a significant monetary transaction you are making; it is an investment of your hard earned money and needs to be treated accordingly. Your new property needs to be confirmed that it is in good condition.

Property inspection services can be found virtually anywhere, online, in the yellow pages or the phone book. You need to find a professional who has knowledge of both old and new homes, interior and exterior. A professional home inspector has to crawl around the entire property looking for every possible repair or serious defect contingency. A written report such as this takes part of the gamble out of purchasing a Washington DC foreclosure for sale.

The inspector should be from an independent company and have absolutely no vested interest in the sale of the property. Member of the American Society of Home Inspectors are a good choice to make as they have to abide by a specified code of ethics and procedures. Avoid part- time inspectors any anyone who does not engage in this business on a full-time basis.

The inspector can save the new property owner a great deal of money by identifying existing and potential problems. They check the general condition of the electrical, mechanical and structural state of the property, but they will not recommend whether you should or should not purchase a particular Washington DC foreclosure for sale. The inspector is able to make recommendations on costs for repairs or replacement, and they generally look for only significant defects.

Inspectors do not routinely look for asbestos, radon or termites; they have to be specifically requested to do this. They also don’t report on whether the oven or refrigerator works correctly. Items outside of the house will have to be detailed to the inspector; these items include tennis courts and swimming pools.

Washington DC Foreclosure for Sale

Kevin Simpson — Thu, 11 Dec 2008 17:58:36 +0000

Virginia Foreclosures for Sale

Kevin Simpson — Wed, 03 Dec 2008 14:08:03 +0000

Investing in Virginia foreclosures for sale is not the same as it was several years ago. There is an increased improvement in the economy, and many banks and lenders who have foreclosed property on their inventory are selling this at more realistic prices. However this has not prevented the foreclosure listing industry from coming up with some unbelievable absurd claims in order to entice investors to purchase their foreclosure listing services. We discuss some of these here:

* “Buy premium Virginia foreclosures for sale directly from banks and make tens of thousands of dollars”. – it is unlikely that “premium” foreclosure properties are ever seen by the general consumer. Insiders and industry professional will grab these up before a person who is not versed in the industry even gets a look in. Everyone wants a great property at a low price, however only seasoned investors know how to go about this process correctly.

* “Market value of Virginia foreclosures for sale $125 000, commence bank offer at $39 000”. – Another fallacy, not even professional investors who know the foreclosure market inside out are achieving this kind of discount. Advertisements of this nature are misleading to the extreme. This statement, “commence bank offer at” is a completely invented price, the bank would probably laugh at anyone offering $39 000 on a property valued at $125 000.

* “During your subscription period, if you purchase a Virginia foreclosure for sale from our listing, we will refund the unused subscription portion.” – What kind of a marketing tactic is this? A refund should not be contingent upon the ability to use the product. This might be an effective marketing tool, but research show that perhaps 3 in 10 000 customers are able to make use of it.

* “All you have to do is take over low monthly mortgage re-payments”. – This is complete BS. Once the foreclosure has taken place, the mortgage is no longer in existence. The bank or lender is the new owner of the property and in order to purchase the property from them a new mortgage agreement has to be drawn up. That is if the investor is going to be paying for the property by means of a bank loan. There is no way to take over low monthly mortgage repayments if there is not longer a mortgage agreement in place. While it is possible to negotiate low monthly payment of a foreclosed property, this will be dependent on the ability of the investor to prove to the lender that they are indeed creditworthy and deserving of a low monthly repayment.

* “A government agent will visit you in your home and explain one on one how you are able to purchase their Virginia foreclosures for sale”. – The only way any government agent is going to visit you in your home and explain anything one on one with you is if you are in trouble with the IRS, Immigration, FBI or CIA.

Foreclosures in Virginia Top Counties

Vermont Foreclosures for Sale

Kevin Simpson — Mon, 01 Dec 2008 14:29:40 +0000

There are a number of things that the potential real estate investor should know when considering making an investment into Vermont foreclosures for sale. One of these aspects is the services of a foreclosure listing company. There are many differing types of information available and this can be confusing to the investor. There are even some professionals in the foreclosure investment industry that don’t understand precisely what to make of these services.

While it is understandable that research has gone into the drawing up of these lists and time is after all money, it is also difficult to understand exactly what kind of information should be listed. Unfortunately there is a great deal of misinformation available for the potential investor in the real estate foreclosure industry.

Originally listing services in the Vermont foreclosures for sale market evolved from companies that actually did courthouse research. This information was used by professionals who were already involved in the industry and the information contained therein was reliable and accurate. The companies that conducted this research realized there was a market place for the information, so they expanded their market to include making the same data available to investors.

There are still many companies that offer top notch listing services, and they do indeed deliver correct information to their customers. They have a good understanding of the Vermont foreclosure for sale market, and the processes involved in investing in it. However there are also companies who offer listing services that are not so reliable. The do not conduct their research properly and deliver useless information or make false claims.

One of the false claims they make is that a potential investor will get rich if he makes use of their listing service. While it is true that an investor has the ability to become financially independent when making use of this investment process, this is not solely dependent upon using the services of an unreliable listing service. It is more of a case of learning to understand the Vermont foreclosures for sale industry in order to be successful.

Telemarketers from unreliable listing services who make false claims, are just doing the job they have been told to do. They generally know nothing about the industry; they are just sales people wanting to flog the potential investor a list.

The realities are that the real estate industry is not what it was a few years ago. There have been improvements in the economy and lenders or banks are not just giving away properties for a song as they were years ago. Bank owned properties were far more abundant in the past and today many lenders and banks are actually selling these properties at more market related prices. However there will always be opportunities open to the investor in Vermont foreclosures for sale, and this means using a reliable listing service and taking the time to learn about the industry, and how to operate within it.

Foreclosures in Vermont Top Counties

Tennessee Foreclosures for Sale

Kevin Simpson — Mon, 24 Nov 2008 15:50:04 +0000

Buying Tennessee foreclosures for sale at the courthouse has its disadvantages, especially if the investor does not know what he is doing and has not conducted proper research. There is a big cash outlay required for this method of purchase and often cash or certified checks are needed on the day of the sale in order to qualify to bid. In some instances the entire amount will have to be paid within 30 to 90 days. Some states only allow you a matter of hours to pay the full amount and this involves great risk.

It might not be possible for the investor to view the property prior to sale, and this means that there is no chance of assessing damage to the property and repair costs. This in itself will hinder the ability of the investor to determine a market value and what their maximum bid should be capped at. It also makes it incredibly difficult to determine what the profit margin on the resale of the property will be.

Successful bidders who purchase Tennessee foreclosures for sale at the Sheriff’s sale might have to evict tenants or even the previous homeowner. This can take several months to effect and will interfere with any plans to repair and resell the property quickly, eating into any profit that might be envisaged. There is an increase in carrying or holding costs. There might also be land use problems and one way of avoiding buying a problem property at a Sheriff’s sale is to note if the lender is bidding for the same property. If the lender does not bid, it is a pretty good rule of thumb that the investor should also not bid.

The failure to conduct good research concerning a property may lead the investor to over bid for it. Often properties are bought at the Sheriff’s sale for far more than they are worth, but there are also instances when the investor might land a true bargain. These instances generally occur when the investor has research the property fully and knows exactly what they are doing. “Auction fever” has lead to the downfall of even the most successful of investors. This is the impulse to bid and over bid in the excitement of the moment. The auction environment is very competitive and an investor must keep their head in order not to get carried away and avoid losses.

One of the most important concerns of the investor who wants to purchase Tennessee foreclosures for sale at the Sheriff’s sale, would be liens or judgments over the property. Anything that clouds the title of the property becomes the problem of the new owner. This is not necessarily the case for the lender who purchases the property on auction, he is the major lien holder and therefore his debt eradicates all others. But for the investor, it could mean major problems. Junior lien holders would have to buy out senior liens and bid higher in order to gain possession of the property.

Foreclosures in Tennessee Top Counties

Oklahoma Foreclosures for Sale

Kevin Simpson — Thu, 20 Nov 2008 16:09:47 +0000

One of the ways in which an investor can make really good profits when buying real estate for investment purposes, is to approach a homeowner who is in default with his mortgage. The pre-foreclosure sale has its inherent risks, but also has the potential to reap large profits.

The homeowner has to be approached in this phase of the process, as once the property has gone to auction and been sold there is a whole new kettle of fish to deal with. Oklahoma foreclosures for sale by banks and lenders, are generally sold at market value and there is less chance of the investor being able to make a decent profit.

By showing an understanding of the plight of the homeowner, the investor may just be able to catch his interest. The best way to do this is write a letter. Make it clear in the letter that you might be in a position to stop the foreclosure from happening and thereby offer the homeowner another chance. This will save his credit rating and in many instances provide him with the cash to relocate.

The letter should be profession and kindly, ask the homeowner to contact you. If he has still not contacted you in a certain amount of time, write another letter. Perhaps you might word the second letter a little more urgently, but always remain courteous. As the auction date comes closer, it might be necessary to send more regular correspondence.

If you do eventually manage to get in touch with the homeowner and he responds to your invitation. Don’t speak about the matter over the phone, just make an appointment to meet him at the property. Don’t be pushy and allow the homeowner to understand that you want to help him resolve this problem. Request that he have all documents pertaining to the property available at the meeting for you to check through them.

In order to make an offer on the property it is necessary for you to have access to all loan, lien and debt information. The condition of the property needs to be assessed and together with the market and default value, the investor will be able to make an educated formulation regarding making an offer.

If the investor visits the property in person, he might find that he has an angry homeowner on his hands. Never snoop around and leave if asked to do so, trespassing is unlawful.

If by any chance a meeting is arranged with the homeowner, be polite, sympathetic and use common sense. Purchasing an Oklahoma foreclosure for sale in the pre-foreclosure phase is about finding out what the homeowner needs, in order for the investor to make the purchase. Inspect the property together with the homeowner and never make and comments on his lifestyle. The only thing the investor needs to discuss regarding the property is its physical condition, nothing more.

Foreclosures in Oklahoma Top Counties

New Hampshire Foreclosures for Sale

Kevin Simpson — Wed, 19 Nov 2008 18:03:22 +0000

There are many means at the disposal of the investor to find New Hampshire foreclosures for sale. Since the advent of the internet, virtually anything that is for sale can be found online. These can also be found in free real estate magazines, newspapers and some investors even go to the extent of visiting the New Hampshire county courthouse to seek foreclosures for sale.

Lender owned properties can be sold in exactly the same way as any other property, there are no special requirements for the sale of these. Local brokerages are often retained to sell New Hampshire foreclosures for sale in much the same way as they would sell any other property. They participate in the transaction in the same way as they would with any other property sale.

With government owned properties there have been frequent changes in the regulations governing the sale, particularly over the past few years. So the broker or agent should keep up-to-date with the latest changes. This is easily done by searching in the internet.

Most real estate investors find that purchasing New Hampshire foreclosures for sale is more easily accomplished by directly approaching the bank. This avoids complications and minimizes the risks. However if a broker or real estate agent is representing the lender foreclosure listing, then they need to work through the agent.

Serious investors will go to the extent of researching foreclosures for sale at the county courthouse. In this way they are able to find property that meets with their investing criteria and there is no agents’ fee to consider. This is a time consuming method, but it has its merits in that good profits can be made through discounted properties.

There are also listing services available, but the investor should ensure that they make use of a reliable listing source. Many New Hampshire foreclosures for sale are listed with these services who have made it their business to keep records of the most up-to-date foreclosures. While others might sell the investor a dud list, a list that is out of date, is of no value to the real estate investor.

Most foreclosed properties are sold at market value, this is generally due to the fact that the lender, who has now become the owner of the property has authorized repairs. Often this is more than just a lick of paint, and the property is generally in good repair. In instances such as this it is not easy for the investor to negotiate discounts with the lender, and in turn not easy to realize a profit.

Many real estate investors know that purchasing on auction or in the pre-foreclosure phase of the procedure, realizes bigger and better profits, even though the risks they take are greater. Pre-foreclosure property can be found in much the same way as property that has already been foreclosed upon. The county courthouse has to issue a notice that the property is going to be foreclosed, and in this way the investor is able to find suitable investment opportunities.

Foreclosures in New Hampshire Top Counties

Maine Foreclosures For Sale

Kevin Simpson — Fri, 14 Nov 2008 14:46:13 +0000

Although pre-foreclosure purchases are possible it is sometimes thought best to actually purchase Maine foreclosures for sale directly from the bank as this is less troublesome and generally speaking there is less risk involved for the investor. Maine foreclosures for sale purchased directly from the bank of the broker used by the bank are ready to go, with all judgments, liens and taxes already having been paid, which means the title is clear.

Many more experienced investors, feel that risk comes with rewards, they actually choose to close a sale with a homeowner in the pre-foreclosure phase, and although the risk is greater, so too are the profits if they succeed. Basically this means that the investor really need to know what they are doing, have boned up on all the disclosure laws, have approached, and managed to meet with the homeowner, and is still interested in owning the property, all risks aside.

Once all these details have been taken care of, to prevent the property becoming just another of many Maine foreclosures for sale, the investor has to make and offer to purchase. If the homeowner accepts the offer to purchase, both he and the investor will have to sign a purchase agreement. This is generally referred to as an “Equity Purchase” or “Real Estate Purchase and Sale Agreement”. This has to be signed by all parties in the existing mortgage contract.

It is vital for any investor to first check with an attorney who is versed in estate equity purchases. Experts in this kind of investment field advise that all terms of the agreement must be clearly stated in the purchase agreement, nothing should be left to verbal understanding, everything must be in writing. This is the investors’ best defense in case of any problems arising in the future. All of the following is required to be included in the purchase agreement:

A clause which reads “subject to” if something originally agreed upon is reneged upon, this allows the investor to bow out.
A clause allowing you to show the property
A clause indicating that the property has to be appraised at a particular value
A clause regarding tenants and vacancy of the property
Agreement between seller and buyer that current loans = “x” amount.
A clause to indicate the sale is “subject to” encumbrances against the title
State the buyer will meet all closing costs
A clause to state that the seller will “deed” the property to the buyer, and all other matters that go together with the “deeding” of properties in Maine
The seller is aware that the buyer may resell the property
Vacate the premises at the appropriate specified date
A clause that the seller is aware the price might be below the property market value
A clause to state that the buyer will pay all net proceeds to the seller on closing.