Posts Tagged ‘bank’

In the first five months of this year countless house owners felt the sting of foreclosures. But expert McGee, president of foreclosures.com opines that numbers are confusing. It does not necessarily mean that the national economy is floundering.

The Mortgage Bankers Association is echoing these sentiments. Except for few states the overall foreclosure numbers have dropped during the first quarter of 2007. In fact soon figures will be released showing that compared to the last ten years the foreclosure numbers would have been well below the average if it had not been for big increases in few states – California, Florida, Nevada and Arizona. Amongst them Nevada tops the list at all stages of foreclosure.

The first stage is that of pre-foreclosure filing. A notice is issued stating that the property is now in foreclosure for the loan is unpaid. In the second stage the notice of auction is given fixing the date. In some states like Arizona the two stages are taken as one. The third stage is REO or real-estate/bank owned is the final one when after the auction the property is handed over either to the new owner or returned to the original borrower if the latter has been able to meet his dues.

McGee stresses that the real villain of the piece is the first move when people buy houses, which they cannot really afford. The hope was that the prices of real estate would rise but when this did not happen the reality was harsh. Interest rose and there was no other alternative but to go for foreclosure. Statistics can be confusing because the same property can account for multiply filings at each stage of the process. That is why the per capita analysis of McGee is much more precise.

The rising numbers of foreclosures is indeed sad but it should not lead to mass hysteria about national collapse. In the long term this will not happen just as it did not do so during the last crisis in the 1990’s. The numbers must take into account millions of those who meet their mortgage dues regularly. 69% of USA citizens live in their own houses, as per census numbers. The truth is that foreclosures are only small portions of total US mortgage debts and not everyone, even in the sub-prime zone, defaults. Federal Chairman Bernake agrees with this view.

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Foreclosed Home Listing is all about foreclosed homes and their lists.

It is quite evident now to know about foreclosure. A foreclosure happens when a homeowner couldn’t continue paying heir mortgage. But, the lender still needs to recover the debt. In order to do so the lender files for foreclosure. It is a public notice and is called a Notice of Default.

Usually the foreclosures are sold in the open market, by public auction. But, at times the bank, which has taken the repossession, also sells it privately.

There are varieties of foreclosed homes. We have foreclosed homes from the banks, mortgage companies, HUD (Housing and Urban Development), Fannie Mae, Freddie Mac and the Government.

But, going ahead to buy the property, you need go through the following routine:

a) Finding the home
b) Have your offer accepted
c) Finance the purchase amount and lastly,
d) Close the deal

Just a word of caution!! Before buying the property get the property inspected by a professional. And also calculate the cost of repairs and renovations required for the property, since they are usually not in their best shapes.

Now the question arises where to find such homes. This is where the lists come to help. As mentioned earlier we have different foreclosed homes from banks, mortgage companies, HUD etc. Such lists are available with the property agents. Advertisement in papers also has lists of such homes. Even, the local lender can provide you with a list of a few foreclosed homes. Bu, apart from these traditional ways, you do have the Internet at your service. Here you can view houses sold online, even can take a virtual tour. This service comes handy especially if you are relocating to another city.

There are a number of local and nationwide home listings sites along with sites from the brokerage houses. A few of them are here for your reference:

1. www.realtor.com: The website for The National Association of Realtors has more than 2 million listings
2. www.ired.com: The International Real Estate Directory
3. www.homegain.com: Use this website to search by the state and the area.

Among all these information the good news is that the cost of foreclosed homes are at least 20-50% less than similar houses. Hence, it is a great opportunity to buy large properties at reasonable costs and enjoy the benefits of a owned house.

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