Learning Center » Foreclosures For Sale

Banks and Companies are Restarting the Foreclosure Sales

Kevin Simpson — Thu, 02 Dec 2010 18:00:06 +0000

Fannie Mae and Freddie Mac are now trying to resume sales of cheap homes in Charleston in an effort to restart the economy. There are so many paperwork reviews and court cases going on right now that foreclosed home sales are at a virtual standstill. They are trying to get the ball rolling on some of these cases because this situation is having a negative impact on the housing market as it continues.

Some of the negative impacts that a foreclosure freeze can have on a neighborhood include that mortgage companies are facing higher costs, so they are passing them right along to consumers. The buyers also are either walking away from buying the property or they are lowering their bids and the amount they are willing to pay for a property.

A lot of the problems started because the documents in the mortgage process were not properly reviewed. They were simply passed over to be approved without really being given much attention. Some of the loan companies simply refiled the consumer’s paperwork in order to get them approved quicker. This was not the result however thanks to this scandal. They ended up having longer delays due to confusion over the duplicate paperwork.

Fannie Mae and Freddie Mac have spent a lot of time trying to convince everyone that this was simply a technical glitch. The courts who are involved are saying that this was not the case. There are about 30,000 houses that were foreclosed on that will end up being delayed in the United States. Overall, 27% of the inventory was affected by the foreclosure shutdowns. Up to 41% of the number of foreclosed houses in the US are tied up in court cases at the present time. An average foreclosure processing time has gone up to over 400 days right now.

The robo-signing problem occurred involved when the titles were transferred electronically and notaries were not properly checking them for signatures of the actual people. The Justice Department has launched an investigation into the different mortgage companies to take a look at their paperwork. Attorney Generals of all 50 states are working on their own investigations as well.

Banks are canceling their foreclosure hearings and reviewing stacks of paperwork so this is creating chaos for the court systems. They are not sure how to proceed until some of the hoopla over all this mess settles down some. Wells Fargo has admitted that there are discrepancies in much of its home loan paperwork affecting some 53,000 homes in about 23 states nationwide.

There is a backlash of furor against the banks and mortgage companies by state and local officials. Many refuse to honor foreclosure notices until the situation is resolved. There has been a fear that bank stocks would be dragged down to lower prices because of the crisis. It would appear there is not an easy solution in sight. Hopefully, the crisis will soon be resolved so that those trying to get credit for a home loan will have an easier time of it.

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Home Sales are Up in September: Is the Housing Market in Recovery?

Kevin Simpson — Fri, 29 Oct 2010 13:35:23 +0000

New and existing home sales are up in September, 2010. This reflects a second month of rising rates. Some economists believe that the housing market is in a slow state of recovery. Sales of previously owned homes rose in September to 4.53 million units, up 10%. In August, existing home sales had increased to 4.12 million units.

Economists had forecasted that the housing market would rise only to 4.25 million units in September but there were a substantial number of homes sold due to lower mortgage rates, the burgeoning upswing in the economy and decreased inventory. This trend will probably continue into October 2010 and beyond. According to some economists, though, one problem that could hinder the further increase in home sales is the robo-signing scandal.

The report for September has offered a glimmer of hope to the housing and economical markets. Unfortunately, home sales are still substantially lower than April, 2010. Home sales are currently 22% below April’s numbers and 19% below from the year earlier. This 22% drop-off is due, in large part, to the now-defunct $8,000 new home buyer tax credit. The August and September rise in home sales is because the housing market is finally beginning to show signs of stabilizing.

New home inventory is down by 1.9% in September, to approximately 4.04 million units. The construction industry is currently fighting an almost losing battle with the number of distressed and foreclosed homes on the market. Therefore, economists say that the dip in inventory is because less new homes are being built. When demand increases for new homes, construction will ramp up again.

According to the Commerce Department, new home sales are up 6.6% to an annual sales pace of 307,000. This increase is nothing compared to the fact that new home sales over the last 5 months have comparatively been the worst since 1963. New home sales has risen 9% from sales’ all-time low in May. Even though this is the case, new home sales are still 78% below the number of homes sold since July of 2005, approximately 1.4 million units. The current rise in sales figures are spurred on by the fact that the surge in new home sales are up about 3% in the Northeast and the South, up by about 61% in the Midwest and down by 10% in the West.

A US economist with Capital Economics, Paul Dales, has predicted that, even though increased sales are encouraging, a comprehensive rebound will be unlikely to happen for a few years; possibly as late as 2012. Further, quite a few economists, including Chief Executive of Mortgage Master, Inc.’s Leif Thomson, are concerned that with the uncertain economy and unemployment rates, which seem to not be stabilizing as quickly as anticipated, consumers are not ready to jump into home ownership; hence, the instability of the housing market.

The US economy relies heavily on the housing market and, even though there seems to be a light at the end of the tunnel, be prepared for further swings in the market before it stabilizes completely.

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Foreclosure Sale Posters Popping up in Twin cities

Julie Parker — Mon, 14 Jun 2010 13:06:54 +0000

The US economy is on a recessionary mode. Unemployment is at its peak. As people lose jobs, even those with sound credit history are faltering on mortgage payments. Hence, foreclosures have become common.

In Twin Cities, for instance, besides daffodils, foreclosure sale posters are also popping up. In fact, home sales have gone up by 25 % as compared to the same period last year. Real estate developers say there are quite a few reasons for this. First the Federal government has announced tax credits for the first time home buyers. Even interest rates are low for those who are buying homes.

Some analysts say that the spurt in listings is a good thing. It shows new buoyancy in the real estate market. However, there are others who feel that not everything is very rosy. This group of people feels that if the response to the for-sale signs is poor, then people may be compelled to slash the home prices. That is definitely not an encouraging sign.

Economist Scott Anderson of Wells Fargo says, "While you’ve got that kind of surge in supply, we aren’t seeing sales increases of that magnitude. So, there’s a chance you could see further weakening in pricing as the housing market tries to clear.” Anderson also said, “It’s not a great sign for home values. It just suggests to me that we’ve got a ways to go before the housing crisis can be declared officially over."

Take for instance, the Koons, who spends his days installing for-sale signs. He has already installed 36 signs, he says. "We are about two months ahead of where we were last year in terms of installs. Last year, right around June is when the explosion (of new listings) started.

This year, it started in March." It may be noted 8,906 houses were registered for sale in the metro area of Minneapolis. There has been a change from the previous year in the sense more and more listings are from "traditional" sellers. Earlier banks were trying to “offload” foreclosed properties.

This was revealed by the president of the Minneapolis Area Association of Realtors, Brad Fisher. Fisher said, "The biggest jumps in the traditional seller new listings are found between $150,000 and $350,000, so the low- to midlevel market space. Considering the $6,500 tax credit incentive for existing homeowners, this makes a lot of sense." The median sale prices have also plunged in the region.

Search and Invest in Cheap Foreclosures for Sale

Kevin Simpson — Wed, 03 Mar 2010 15:00:40 +0000

Search Cheap Foreclosure Homes Nationwide

Looking for Cheap Homes Listings? You are in the right place. Find the most up-to-date cheap foreclosures for as low as $10,000 below:

How to Invest in Cheap Homes for Sale

A good way to find cheap homes for sale is through doing a quick search on any online search engine. The search for a lower priced home can be challenging though, if you do not understand real estate terminology. There is a big difference between homes listed as foreclosed homes and those that are advertised as being for sale by their owners. There are also cheap foreclosures available through the Housing and Urban Development Department, or HUD. A HUD home is usually the best option to consider when looking to buy a home at a reasonable price. HUD gives prospective homebuyers access to a number of properties that may be in a pre-foreclosure status, and need to be sold as soon as possible in order to save the homeowner’s equity. There are many foreclosure homes that can be found through HUD that are at affordable prices. These cheap homes may have liens placed against them in order to settle various debts, such as back taxes. However, the general asking and winning prices of these foreclosed homes are always revealed at public auctions.

These cheap homes can be found through friends who are aware of properties that are coming on the market due to a work transfer. Homeowners usually want to acquire the best possible price for their home. However, once they finalize the sales of their homes, they usually end up being persuaded to sell their homes at a price much lower than the asking price. If you do research on the property values in the neighborhood you wish to move to, than you will have a good baseline to use in making an offer on a property. Necessity can have a great impact on your ability to locate cheap homes. If the seller has an urgent need to finalize arrangements, perhaps due to the death of a loved one, than this would be a good opportunity to find a reasonably priced.

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.

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

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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.