Learning Center » HUD

New Home Sales on the Rise

Kevin Simpson — Wed, 12 Aug 2009 18:10:21 +0000

Latest statements have shown that there is an increase of 11% in the every construction of family houses in the month of June. During the month of May, the housing industrial market analyst predicted yearly sales getting beyond the range of 35,000.

Accordingly to this unforeseen and far-reaching increase, industrial analysts have aligned their forecasting process with 384,000 latest homes by the end of a calendar year.

With the recent significant progress of housing explosion, the United States Housing Department and the HUD (Urban Development) stated that the rate of sales of every new house countrywide was above 1.3 million!

However the latest home sales are roughly 21% lesser compared to the previous year sale, whereby the house builders proceeded to develop with hopeful and positive thoughts with respect to the housing market on the every calendar month.

Does the increase in the sales of the latest homes is an indicator to the housing industrial market being impinged prior in hand?

Well, the economists conceive that, deliberating the down slope with respect to the value of those subsisting homes, together with those foreclosure activities countrywide, the remarkable step-up in the latest home sales is an encouraging indicator in the industrial activity.

Whereas on the other hand, several other buyers consider that 8,000 USD tax credit for those 1st time house buyers is a portion of Making Home Affordable plan and this program is now in the propelling demand.

Doing so, it raise up with some question over the acceptance: What would happen in the coming November 30th, while the Tax Credit breaks away? Also in addition, traditionally the lowest mortgage rates will obviously make impressive attractions when it comes to housing purchase.

While in case the federal government resolves the tax credit as the promising piece in the industry, then it might be ascended till the end of 2010.

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Foreclosures Open the Door to Affordable Ownership Houses

Julie Parker — Mon, 11 May 2009 20:04:46 +0000

Foreclosures have opened the door to ownership of affordable houses. There is activity everywhere. Jame Villardi is busy with repair work estimated at $70,000 on a three bed roomed house on Searing Street. This is one of the four tidy boarded up foreclosed units in Hempstead, New York.

Vilardi of Bedford Constructon Group hopes to get more such houses from Fannie Mae. His venture is a new one partnering with Nassau County with Long Island Housing Construction.

These six units are the first bulk acquisitions by the state using federal funds from Neighborhood Stabilization Program. The plan is to purchase, renovate and then sell or rent out the properties which otherwise would have been an eerie curse on the locality. By doing so many are getting the chance to purchase affordable homes. The price varies from $195,500 to $311,750.

The houses that are keeping Vilardi busy require anything from $10,000 to $65,000 for renovations and repairs. These are located at Elmont, Valley Stream, Westbury, Massapequa and Glen Cove. Vilardi has jumped into the fray with his team of electricians, plumbers and carpenters apart from sundry others. He is optimistic to have all the six units ready with two to three months time. The price asked for these will be about $190,000. Preference will be give to first time nest builders. Certain guidelines for purchase have been laid down by the feds.

Vilardi thinks that unless housing is made affordable the young will move away from this area.

Vilardi will not be making much profit out of his efforts. He will get a fee of 7% of the total development expenses for each unit. His gains will be minimal compared to what he would have got from the private sector. But he has a mission in life and is passionate about affordable homes. This is his way of getting his passion fulfilled.

Last autumn HUD sanctioned $3.92 billion for the stabilization plan in those areas that have been especially badly hit by the surging tide of foreclosures The funds included $7.8 million for Nassau County, $5.6 million for Suffolk County, $2.17 and $3.72 million for the towns of Babylon and Islip respectively. Nassau and Suffolk would be getting some additional funds from the state.

Nassau County executive Thomas R. Suozzi is hoping more developers like Vilardi will come forward to change the economic health of these neighbourhoods.

Foreclosures: What the Government is Trying to do to Help

Kevin Simpson — Fri, 09 Jan 2009 11:53:18 +0000

Barack Obama proposes to place 3 months moratoria on foreclosures for home owners, so that in that time, the banks will not be able to exercise any foreclosure action against home owners. One of the government’s concerns is to permit tenants in rental properties to remain in their homes which bring market pressure to bear on owners and directly or indirectly encourage loan modifications and restructurings. Tenants affected by their landlords’ situation will also have more time to make arrangements to relocate, if necessary. Additionally the U.S. Treasury Department would buy many of those bad mortgage loans from banks at the actual value of the property, not at the original (and inflated) value of those loans. This means that investors who buy foreclosed properties have more choices and at lower prices than ever before.

The United States Department of Housing and Urban Development is assisting homeowners in foreclosure troubles by offering the services of the HUD-approved housing counseling agency who are offering advice and information regarding programs from government agencies and private entities that can provide relief for many homeowners.

There are billions of dollars of private funds available to purchase distressed properties, but much of these funds have not been activated yet because potential sellers are unwilling to take the losses resulting from the lower prices that potential purchasers are seeking for these properties in foreclosure. To maximize the return to taxpayers and the need to minimize losses to selling institutions there is significant pressure to balance the demand.

The eligibility requirements for the Foreclosure Prevention Act (FPA) of 2008 include more than just the homeowners’ monthly income and expense. But, it is usually the debt-to-income (DTI) ratio (the same DTI ratio that was relaxed by encouragement from some in government, like Senate Banking Committee Chairman senator Chris Dodd, and Chairman of the House Finance Committee congressman Barney Frank, who pressured Fannie Mae and Freddie Mac to relax their restrictions to help more people become homeowners) that precludes many of those who would otherwise qualify from obtaining government assistance within such programs. With the FPA the legislation actually prevents homeowners who truly need help from qualifying for it. Many argue that the loans to those that do not meet the requirements of DTI ratios should never have been loaned the money in the first place, and that it is the lenders’ fault for relaxing the requirements for the original loans made to so many homeowners now in default.

For subprime loans (many mortgages having been originated with a second mortgage to begin with, known as 80/20 loans), borrowers required a DTI ratio above 31%, meaning that the amount they were spending on their debt (for housing, autos, and otherwise) must have been at least 31% of their gross income (income before taxes). For homeowners who obtained subprime loans, this will be an easy requirement to meet, but for those families who made conservative housing choices with affordable payments and then ran into a financial setback like a job loss or unexpected expenses like an accident or costly injury for example, this requirement could prevent them from obtaining assistance, as they did too well of a job of managing their finances; a slap in the face to those that met conventional loan approval and were innocent of the subprime debacle.

To receive assistance from the government, homeowners must prove that they can no longer make the payments on the loan as it is currently structured. They may be current now or in default of the mortgage, but they must prove to the regulators that they are not applying for federal assistance just to receive a lower monthly payment. Obviously, anyone applying for help is seeking lower monthly payments to prevent foreclosure, and it will be up to the government to determine if they are able to make the restructured loan payment.

Also, any second mortgage or home equity line of credit on the house would have to be paid off or removed somehow before refinancing the foreclosed property. The owners would not be able to obtain a new second mortgage except for purposes of necessary upkeep for five years. Since many of the subprime mortgages were originated with a second mortgage to begin with, this requirement will effectively prevent thousands of families from receiving federal assistance.

Foreclosures are increasing as more people are unable to service the debt on their homes. The government cannot move fast enough to help many of these individuals, further driving down the values of homes. Together with the massive job losses of 2008, the future of foreclosures will increase, at least in the short term.

Immunizing Foreclosures

Julie Parker — Fri, 09 May 2008 11:53:05 +0000

The virus is raging across the country. Foreclosures respect nothing – socio-economic barriers, regions, or celebrity status. Like fire it has an insatiable appetite and is truly communistic in its approach – levels high and low into one big gulp. It is a challenge – one of the many mankind has always been facing. Man, being man must rise to it and go about immunizing foreclosures – taking steps to neutralize it.

Foreclosures jumped by 57% from March 2007 to March 2008. It increased by 5% from February to March this year. The blame is being put on predatory lending practices. When interest rates began to increase foreclosures began to take over the scene. One by one the houses began to tumble and fell vacant. The borrowers lost their property as well credit ratings. The lenders found themselves overwhelmed with unsold units while the neighbourhoods became dotted with eerie desolate houses. Crime and disease began to play havoc. A massive credit crunch hit the economy while tax kitties began to dry up. Foreclosures also resulted from the usual personal causes – illness, death, job loss and or divorce.

Considering the atmosphere even if one is not in foreclosure it is better to be forewarned so as to be forearmed. It is like being vaccinated to avoid ahead the attack from the virus.

The latest buzzword is ‘save’! Observe thrift and save for a rainy day. Put something in the piggy bank everyday if not every month. If there is a temporary loss of income one can tide over the mortgage commitments by dipping into this fund. The best thing is to target putting an amount that will cover a lapse of three months.

Saving will become effective by reducing expenses. Cutting down on unnecessary expenses like dining out or disconnecting premium cable channels will go a long way in reducing spending.

If the house is already inside the foreclosure risk zone and the borrower has tripped on one payment there is still hope to remedy matters. The house that is the home can still be saved. The banks do not want any more foreclosures. Consequently they are amenable to talks since the process is costly for the lender also. To foreclose a house the average cost is $40,000. Free advice and often help is available from HUD authorized counseling agencies. The avenues of help open are forbearance, reinstatement, modification, short sale, deed in lieu of foreclosure and assumption.

Foreclosure Alternative Options

Julie Parker — Tue, 22 Apr 2008 14:16:51 +0000

Although tackling the problem of foreclosures is difficult it is not impossible. There are many foreclosure options – provided one hunts for these. Peter Goodman is an attorney. Since 1992 he has been dabbling in real estate and is keen to help the novice buyer. He has been asked to speak on various on what options and help are available for foreclosure victims. Together with Rafael Jose, Peter Goodman has set up Good Home Help a Loss Mitigation company. They are attending to individual distress calls. Borrowers are being helped to continue to stay in the houses that are their homes until finances can be worked out to bring down the mortgage to affordable levels. In cases where even this much the house owners cannot afford, then alternative arrangements are made for selling the unit.

A short sale benefits both sides. The lender does not have to go through the time, money and energy consuming process of foreclosure while the borrower is spared the ignominy of foreclosure that leads to loss of credit rating. In a short sale the value of the house is less than the loan amount. Part of the debt is thus forgiven. The other alternative is deed in lieu of foreclosures. The house is handed back to the lender to do what it will do while the borrower escapes the dragnet of foreclosure. It is now the responsibility of the lender to sell the house and realize whatever can be salvaged. More often than not the lenders usually agree to a short sale because then the latter does not suffer the hassle of selling the unit. Most of the units can be bought for a price that is less than the 15% or even 20% of the current rates.

Taking advantage of the naïve borrowers boiling in the foreclosure cauldron, many unscrupulous scammers are taking advantage. In the name of help they are picking the bones of the half dead foreclosure victims. They are taking advantage of the short sale possibilities. Another mode of operation is fabricating a HUD related settlement while flipping the unit for a quick profit. These operations help neither the borrower nor the neighbourhood. It only lines the pockets of the scammers who soon vanish from sight.

The approach of Good Home Help is new. They are trying to pair house owners with potential buyers. Many organizations – government and non-government groups are sanctioning loans to those qualified to buy foreclosed houses. Good Home Help provides the link.

Local Help For Foreclosure Victims

Julie Parker — Mon, 18 Feb 2008 13:30:51 +0000

In September 2007 50,000 or more residents of Maryland were lagging behind in mortgage payments. Experts opine that this year the numbers will increase with adjustable mortgage rates ready to reset to higher levels. However there is no point in negative worry. Help is available.
The first thing is to contact the lender. Today lenders are more amenable to a rapprochement than before considering how badly they are themselves affected by the rising tide of foreclosures. Adverse criticism too has played its role in making the lenders softer in their approach. Foreclosures are affecting collection of revenue and taxes. Law and order problems are antagonizing communities facing health problems and criminal activities stemming from abandoned houses. Thus the lenders might freeze for the time being the interest rate or forgive payments for a certain period. So borrowers are advised to contact immediately the loss-mitigation department of the lenders. The best option would be contact a housing counselor belonging to any non-profit organization. They will broker the agreement between the lender and the borrower. In Maryland there are many HUD approved help agencies having their own websites and hot line numbers. HOPE is another port of call. The borrower could suggest short sale. If the loan amount and house value are at par the lender will readily agree to it as both the parties gain by avoiding foreclosures. While going about the work the borrower should be on the alert for foreclosure scam artists who come forward with unsolicited help. They will cause further damage. The basic point is that borrowers must not sit idle simply fretting and worrying. By it nothing will be done. If immediate action is taken there is hope of help.

The government, mortgage giants and the local help agencies are working together to save the country from recession. As yet no positive results can be seen. The number of foreclosures continues to rise. The intensity varies from one locality to another. Many analyze that the modest income groups and the minorities are the worst sufferers. Another view is that places like Florida and California are the worst affected because these places were happy hunting grounds for construction activity during the zooming period of house building. Here speculators made hay. Now they have just walked off. Another view is that the sluggish economy combining with rising medical bills and divorces are responsible for the foreclosure scenario being witnessed today.

Denver CO Foreclosure Filings

Kevin Simpson — Thu, 27 Dec 2007 15:39:18 +0000

Interested in buying a home for you or making an investment? The ideal location is Denver, Colorado, where you are offered amicable apartments for both purposes. Denver, CO is seen as the best place for living by social and economical reasons by experts. The demand for housing is increasing in Denver, CO and for owner occupation the Department of Housing and Urban Development (HUD) is attaching importance rather than investors. Denver, CO has a number of properties foreclosed and repossessed by HUD as also properties fixed for public auction in thousands. The whirl-wind of housing properties being foreclosed in the recent past in the entire U.S. nation is sweeping Denver, CO also like other cities. The national figure has already crossed an alarming 223,538 of which the contribution made by the State of Colorado is 3 per cent to the tune of 6,290, ranking 9th overall in the national foreclosure. While the rate of foreclosure filings shows a national average of one foreclosure per every 557 U.S. households, Colorado turns out 1.7 times more in this statistics by filing one foreclosure for every 326 households. Denver, CO as the second County in the State has made filing of 1,002 foreclosures in the month of September alone. Overall the State’s foreclosure figure swelled 40% when compared to that of the same period that is September 2006.

So what these figures and statistics about Denver CO foreclosure filings go to show? These figures indicate that the real estate market in Denver, CO is pressed hard by the increased number of foreclosures every month. The home owners in Denver, CO are unable to cope up with the adjustable rate of mortgage lending, which was appearing very small at the time of their going in for home loans, and made a striking increase in the outgo of money every month in their repayment installments rather unexpectedly. Denver, CO home owners invited foreclosure process by their default in monthly repayments and the mortgage lenders of Denver, CO have initiated the foreclosure process. The state of Colorado permits non-judicial foreclosure process and hence Denver, CO is experiencing quick and speedy foreclosure proceedings unlike the other States of U.S. nation. On sending a default notice, after recording it at the County’s Recorder office, the Denver, CO mortgage lenders can embark on the next step of foreclosing the property and selling it through the Trustee sale by the Denver, CO authorities. The time lapse, as in the case of other States in foreclosing is not there in Denver, CO foreclosures. The result is the chances for a home buyer in Denver, CO are slim for negotiating with the distressed home owner directly during the pre-foreclosure periods. The second stage of public auctions in Denver, CO County Sheriff’s office which provides scope for bidding on the properties comes as the next best option. The best option in Denver, CO comes only for purchasing repossessed properties in the post-foreclosure stage. In Denver, CO these repossessed properties lying with Banks and other lenders are the ideal choice of the home shoppers, as they are clean-titled and can save a minimum of 10 to 20% of real money in the closing prices of properties. Denver, CO has 5,927 properties waiting for public auction and 5065 properties repossessed by Banks apart from 275 properties owned by Government agencies. To know more about Denver, CO foreclosure listing properties you can very well visit – foreclosurelistings.com

Michigan Foreclosed Homes

Kevin Simpson — Thu, 27 Sep 2007 12:21:22 +0000

In the Michigan real estate business the top option by many home buyers is to go in for Michigan foreclosed homes. This is based on sound reasoning that the Michigan foreclosure process is caused by many eventualities, namely bankruptcy, financial strain, death of house owner or shifting of residence to another place and the like, thereby the property owners defaults in repayment of the mortgage. The mortgage lenders are initiating the process of foreclosure for retrieval of their loan. Here the point to be noted is that the lender would have already got back a portion of the loan through paid installments and the remaining portion should only be recovered. So the mortgage lenders, private and public sector institutions like HUD, Banks and Insurance Companies, are ready to dispose of the property through foreclosure and are keen on getting back only the amount due to them. Michigan foreclosed homes also have this unique advantage.

Selecting the best location for purchase of a property is of paramount importance. The State of Michigan gets the merit of location ideal for investment as explained below:

The mid-western State of Michigan of the U.S.A. located in the east north central portion of the country, bounded by four great lakes, is blessed with the longest shoreline of freshwater in the world and second best in U.S., next only to Alaska. This is the only bi-peninsular state divided into Upper Peninsula and Lower Peninsula.

The State capital is Lansing and the largest city is the famous Detroit, a world-renowned automobile manufacturing venue. Michigan ranks 8th in the U.S. population-wise and has nearly 10 million people available for the realty market business.

Michigan has a humid continental climate throughout the state, irrespective of the two peninsular divisions, the Upper Peninsula being densely surrounded by green forests. More than 80% of the population is white Americans descended from Europe and the realty business is designed to suit their tastes in housing properties.

Economy wise Michigan State houses for high-tech employment in information technology, life sciences, engineering and heavy manufacturing inclusive of automotives. Apart from automobiles the State holds a pivotal position in manufacturing technology equipments like computers, hardware and software, bio-technology, Research and Development of technologies, aero-space equipments, which are mostly white-color jobs. The state provides ample scope for tourism development with its natural resources of forests in abundance and the related opportunities of employment. The personal per-capita income is assessed to be of 20th rank in the country. The important information for realty business is that Property taxes are assessed on the local level and not State level.

Hence, arising out of the factual advantages of location described above, Michigan also right on timing for realty business, particularly in Michigan foreclosed homes. The fact that increased availability of foreclosed homes due to downward trend in economy and mortgage lending interest rates, as prevalent elsewhere in the country is catching up Michigan also.

There are totally 143,918 foreclosed homes available for sale, listed in the MLS of Michigan at an average price of $169,900 and the Michigan foreclosed homes available are 39,169 Nos. at an average price of $96,999. With the above basic information, you are invited to get all the help, guidance and assistance in locating the exact Michigan foreclosed home of your choice as well as finalizing the deal amicably by visiting www.foreclosurelistings.com

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Warning And Help For Tulare County

Julie Parker — Sat, 23 Jun 2007 12:08:20 +0000

Foreclosure tornados are blowing off roofs above the heads of many in Tulare County. The rate is up 105.7%. Scam artists parading as consultants are using strong-arm tactics to make owners sell off at low rates.

To forestall predators and protect victims a public education programme has been launched. The idea is to bring matters to the notice of the District Attorneys Fraud Unit. Launched in January 2006 it has already investigated 25 reports related to real estate fraud. This month one Yrays Cruz was taken into custody and charged with forgery, grand theft and wrongful use of personal identification information.

The unit not only investigates and prosecutes but also warns people when they are at risk and what they can do to avoid becoming a victim. Among those in financial distress the worst affected are the poor, elderly and unsophisticated – especially those not fully conversant with English.

Residents are warned about the pitfalls in sub-prime lending practices. The original purpose of the latter was to help those with bad credit to become house owners. But by hurting those it aimed to help, has defeated the very purpose. For sometime the monthly repayments were reasonable but soon interest rates began to fluctuate and went beyond the capacity of the borrowers. It led to one foreclosure after another.

Those facing foreclosure should be made aware of certain cardinal points. First be sure that the agent has a validated license. Never transfer ownership without reading and understanding the contract. The contract must be in writing and explained in a language understandable to the owner and include the name, telephone number and address of the provider (of sales or service) the exact amount to be received or paid, the services to be provided and all the chargeable fees.

Each agreement must show clearly that the owner has a right to cancel and also delineate the procedure of cancellation. During the cancellation period, (date to be clearly stated) the unit cannot be sold or transferred and must be free from legal and financial obligations. The contract must be signed before agreeing to sign any documents of transfer. Insist on a copy of the contract. For more detailed information the affected may contact the relevant authorities.

Fraud unit of District Attorney – (559) 7333-660 ext. 213/www.datulareco.org/The California Department of Real Estate – www.dre.ca.gov./US department of housing and urban development – www.hud.gov./US department of veteran affairs – www.homeloans.va.gov.

Government foreclosed houses

Isabel Rodrigues — Mon, 16 Apr 2007 04:18:42 +0000

Government foreclosure market is subjugated by VA foreclosures and HUD foreclosures. When any insurance company provide insurance to any lending or financial institutions and banks so that borrowing homebuyer could purchase the property at low interest rates and at low down payment. Now if borrower could not be able to pay the loan amount within the time his property will be declared foreclosed. Financial institutions will meet the insurance company and ask for the loss suffered by them, if they had insurance with that particular company. Such homes will become the property of the government.

Government organization has the designation. You will buy the property from the government held auction after participating and getting accepted. For selling of the government foreclosure property HUD hires licensed real estate agents for commission basis. They receive up to 6 percent commission and this will add up to the price you bid.

You can easily acquire free information from the local real estate office and inspect title records of the homes in your region. You can obtain all the required information from government institutions, Department of HUD to request information under the Freedom of Information Act (FOIA). Such real estate agents can provide needed information faster and reliable.

Some of the government foreclosure home buying tips are as follows; Collect the information through real estate agents regarding comparable prices by contacting neighborhood prior to bidding. Make an evaluation of possible repairs. HUD makes such estimation for such repairs. Try to gain some experience by attending several auctions and don’t try to make bidding on your first auction. This will really prove to be the great educating experience.

Don’t purchase the government foreclosed property is you do not receive at least 10 percent profit after subtracting expenses of repairs. Before bidding try to set a limit and play a safe game. Do not try to exceed the limit just for sake of acquiring at low price. After the getting the possession and ownership change the locks and obtain the insurance.

Make your government foreclosure property business as your hobby. Watch out the houses sold at the courthouse staircase, this will be fun and knowledgeable too. See that how many people are coming with full fledge preparation and some without preparation. This will give good guidelines and help you in future foreclosed market dealings.