Bank of America, although proudly being the largest financial institution in the United States and serving clientele from over 150 countries, came into the news yet again. Along with other money lending institutions in the United States, it was for what has commonly become known as the “robo” signing case.

Bank of America had already attracted itself enough negative publicity with the Meryl Lynch incident and the multi fraud accusations made against the institution by public services such as hospitals and schools in 2010. Now it has found itself in the top headlines again in the fall of 2010 for the “robo” signing case.

“Robo” signing has been used by many financial institutions besides Bank of America, such as JP Morgan Chase and Allied Financial. All of these companies being involved with the recent scandal.

“Robo” signing has taken place in hundreds of thousands of foreclosure property deals, where the bank, instead of in some cases going to court to legally acquire the foreclosed or REO property, have “robo” signed numerous documents. Hence stands the question of who do some of these properties from Bank of America foreclosures actually belong to and where do potential buyers stand who already made a deposit or down payment on a property before the scandal unfolded. The answer is that there is now a great shortage of foreclosure properties for sale. Also, there are hundreds of thousands of people who may potentially lose their homes because it was not the legal property of the bank or lending organization to sell.

The complications become endless, and the “robo” signing case has left a huge dent in the real estate market of the United States as well as a lot of uncertain property owners. Although Bank of America made a pledge to stop “robo” signing in all 50 states, it would physically be impossible to re-read and re-sign all of the already “robo” signed documentation for so many foreclosure properties. For the re-signing and re- reading of all the documents to take place, Bank of America would actually have to employ a great deal of personnel on a temporary basis just to complete this task. So although a pledge to stop “robo” signing has been given by Bank of America, it still does not help the unfortunate individuals who have unknowingly been caught up with this scandal while innocently trying to purchase their dream property. Quite a bit must still be done to resolve this issue of immense proportions. This all has caused more bad publicity for Bank of America that they don’t need.

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The Mortgage Bankers Association echoes these sentiments. Except for a few states, the overall numbers of foreclosures have dropped since the first quarter of 2007. In fact, figures will soon be released showing, that compared to the last ten years, the numbers of foreclosure would have been below the average if it had not been for a large increase in foreclosures in a few states – California, Florida, Nevada, and Arizona.

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

McGee stresses that the real villains are the homebuyers that buy homes that they cannot really afford. The hope is that the prices of real estate would rise but, when this did not happen, the reality is harsh. When interest on a house rises, it leaves the homeowner no other alternative but foreclosure. Statistics can be confusing because the same property can account for multiply filings at every stage of the foreclosure 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 all across the nation about national collapse of the economy. This situation will not develop in to anything near the economic crisis that occurred in the 1990’s. These numbers must take into account the many Americans that pay their mortgage payments regularly. 69% of USA citizens live in their own homes, according to a census taken recently. 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.

Via Rismedia

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Buying right is probably the best way by which you can make a high profit in real estate. Moreover, by doing lots of research on available properties as per your requirements, needs and normal parameters like listings, distress sales, foreclosures, repossessions etc. will take a long time to achieve this goal. The following are the guiding principle to evaluate and buy repossessed properties.

As we know, the value of the repossessed properties in the market is usually considered inversely proportional to the situation of economy. Repossession occurs when the owner or borrower cannot afford to pay his mortgages, which mean that his or her finances are unhealthy. The factor of this unhealthy finance is usually caused by business downtrends, job losses, laid off etc, which are the consequences of economic downtrend. Booming these repossessed properties in the market will bring gloom in the economy even though this is not necessary.

Keep the following rules in mind when you are viewing repossessed properties in the market.

1. You can find lots of good bargain from the sale of real estate agents, Veterans Administration (VA), bank’s real estate owned (REO’s), and housing development companies.

2. No matter what, real estate agents mostly will try to discourage you from repossessing and they will persuade you to multiple listed homes.

3. Find other agent if your real estate agent try to prevent you from repossessing a property.

4. Do not listen to any negative remarks about how hard it is to search a good deal property.

5. It is still possible to find great bargains during the boom times.

6. Examine the repossessed properties at all aspects before you decide to take opinion from repairing contractors.

7. To find listing of repossessed properties, the Internet will be a very good resource.

Never ignore other sources of information if you want to squeeze out more profits from buying these repossessed properties. Bargains can be held for buying these repossessed properties through fixer houses, distress sellers, for Sale by Owners, Multiple Listings, REO’s, VA, Housing development companies, and other resources.

On the other hand, you must be prepared immediately whenever you find a good deal. Moreover, being approved with a lender who can close the deal quickly will benefits you in making a bargain and good bargain. Do keep in mind that you will need lots of good intentions especially to the seller to fulfill his needs.

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ForeclosureListings.com has a comprehensive, searchable database of foreclosures in areas like Columbus, Bronx, Derry, Missoula and in the whole country. Try to search foreclosures by state today! Repossessed Properties