Honest Realestate Agent

Posts Tagged ‘foreclosure prevention’

You’d have to be dead not to be moved by the foreclosure stories in the press, on television and maybe even in your own neighborhood.  Americans in particular find their identity through their homes.Although a house does not make a home, any kind of foreclosure can drive a person crazy.  This is now the best and worst times for real estate foreclosure investing.

Sticks And Stones

It is recommended that you keep your enthusiasm for real estate foreclosure investing to an absolute minimum.  Although there is nothing illegal in real estate foreclosure investing, the current American recession has made the general public very easily angered.  The general public looks at the turmoil, weeping and destruction around a simple HUD foreclosure home and then assumes that you are a heartless Scrooge for being into real estate foreclosure investing.

The best thing you can do in this situation is not to argue back.You quietly do the best you can with the foreclosure property that's fallen into your lap and turn it onto a home for someone.If you believe in a God of some sort, than you can pray for the people who were kicked out of the home you now own.  By giving generously to homeless shelters and Habitat for Humanity, you also prove that you are putting your money back into the community and not just in your pocket.

Trust In Allah, But Tie Up Your Camel

It also is a sad fact that some people are trying to take revenge in any way they can on anyone who takes possession of their former home.  On the morning of this writing (July 24, 2008) a Massachusetts woman committed suicide in a foreclosed home that was going under auction.

It has been suggested by housing experts that as the America housing crisis grows, so will the revenge patterns.  Homemade bombs are being found, tons of pets locked in a home to die of starvation and someone leaving a ten foot alligator with attitude has also occurred.In this day and age, you need to keep your identity a secret and get a good security system for your home. 

You need to keep your guard up about strangers coming around your house, calling your or offering business proposals.  You need to educate everyone in your family not to talk to strangers, or let a strange person in the home.  Even though you might trust that no one will so crazy as to try to hurt you over real estate foreclosure investing, you never know.  As the old saying goes, “Trust in Allah, but tie up your camel.”

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If you are an impulse shopper, then it is not recommended that you attend a real estate foreclosure auction in order to get a deal on a house (whether to live in it or to invest in it).  Auctions give off a sense of urgency worse than your bladder does after guzzling a two liter bottle of cola.   If you are serious about getting property in a particular area, then you will be better off with watching HUD foreclosure listings like a hawk.

Get That Mouse Clicking

In order to find HUD foreclosure listings in your desired area, you first need to get to the Housing and Urban Development’s home page at hud.gov.  This will take you a series of links all about how to bid on a HUD foreclosure home and about what is (and isn’t) included in a HUD house.  Most importantly, there is a listing of states for the HUD foreclosure listing in those states. 

Fore example, let’s say you want to see all of the HUD foreclosure listings in Lancaster, Pennsylvania.  You click onto Pennsylvania link and you will most likely get a warning that you are leaving HUD’s home page to another web site.  This is nothing to be alarmed about.  Click on to “Go on to web site requested”.

This will take you to the Pennsylvania HUD approved broker, Hooks Van Holm.  Yo see that there is a long list of Pennsylvania towns and cities, but certainly not a comprehensive list of all the towns and cities in the state. These happen to be the only ones with a HUD foreclosure property in them. You scroll down to find Lancaster and click the link.You might also heave a sigh of relief to see that your home town is not on the list (if you happen to reside in Pennsylvania).

Bidding Process

You make the bids for the homes on a HUD foreclosure listing in much the same way you would bid for an item on eBay.  You have a long time to make up your mind and aren’t pressured.You do need to inspect the property yourself and to get a home inspector to go over it.  Never bid on a HUD property sight unseen.

The first ten days that a HUD property goes up for “auction” is reserved for bids from the previous owners (should some miracle occur in their financial lives) or for people who want to actually live in the home.  On day eleven onwards, the bids are opened up to real estate investors or “flippers”. 

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Those in the market for a new home may want to consider looking at homes that are near to foreclosure. While some of the pre foreclosure homes on the market may not be such a good deal, there are going to be some that can be purchased at considerably less than their market value. Additionally, buying a pre foreclosure home before they get to the auction block may also benefit the current home buyer in getting them off the hook for the mortgage and the cost of going through the foreclosure process.

One of the difficulties in buying a pre foreclosure home is getting information about when they are going to go into foreclosure. Many lenders are reluctant to advertise the properties that are close to going into foreclosure and most homeowners are embarrassed by the upcoming proceedings. In most instances, the earliest indication of a pre foreclosure home becoming available will be when the process has started and a notice in placed in the newspaper as required by law.

Real estate companies sometimes know about a pre foreclosure home before the legal process is in action when homeowners put their property on the market,, hoping to sell before the lender begins the process of booting them out of their home. It is also possible, especially if the amount owed on the mortgage is less than the value of the property, to buy a pre foreclosure home, affect some repairs and then turn a quick profit by selling the home to a qualified buyer.

Staying Informed About The Foreclosure Market

Persons interested in buying foreclosure home will want to be educated not only about the value of the property in which they are interested, but also in the value of other nearby properties. Many times, if there are a number of vacant homes in a neighborhood, the home values tend to drop, making it more difficult to recoup the cost of the home. When looking at pre foreclosure home sales, potential buyers should look at overall value of the neighborhood in which the property is situated.

Home sales are one of the few areas in which the value of the product is contingent on the value of adjacent properties, since it cannot be picked up and moved to a better area. Research will also be needed when buying a pre foreclosure home to insure there are not other financial obligations tied to the value of the property. It is possible the current owner took out other obligations using the property as collateral and a pre foreclosure home may end up costing more than the property is worth.

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If you’ve heard about getting a house at a bargain basement price with real estate foreclosure auctions, you heard right.  However, you do have to know what you’re getting yourself in for.Never buy a home from a real estate foreclosure auction that you haven't inspected yourself AND had a hired home inspector go through.  The main thing to keep in mind with any kind of real estate auction is that once that gavel hits, the home is yours – for better or for worse.

You Marry The House

You should treat a real estate foreclosure auction more seriously than you would in selecting a marriage partner.  Getting divorced is a heck of a lot easier than trying to unload a house you don’t like – especially in today’s tight economic climate. That property becomes more involved with your life than a spouse ever would.  It might even wind up taking over your life – in ways both good and bad.

Just like in marrying a person, when you “marry” a house, you also take on not just the house, but any issues that come with the house.Part of your inspection into a house on a real estate tax foreclosure auction should include how much back tax or any other fees are owed on it.  You will then be responsible to pay all of those off – even though they were run up by the previous owner.

Check Details

Be sure you check with the laws about real estate foreclosure auctions before bidding.  Some states will require that the house must be paid for in cash at the auction.And then some counties within your state will have differing rules.  Some will also have specific real estate tax foreclosure property laws, whether you are buying a home to live in it or as an investment.

Other than the huge amount of money involved, the actual auction is very much like a livestock auction.  Everyone’s in place and raises their hands or signs to make a bid.  Be sure you know in advance how much a bid is.  For some auctions, it’s $1000, for others it’s $5000.  The bank that owns the home usually makes the first bid, even though they don’t want to keep the home.

Other fees you need to find out about before the real estate foreclosure auction includes the cost of title transfer fees, document stamps and the auction fee.  And also, you have to keep in mind that a mortgage does not come with the house.

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In June of 2008, foreclosure filings were up an average of 50% in most American states.  You can take this news in many ways.  But for the real estate investor, this is great news.  There are now more choices than ever to not only make a profit, but to help become your own boss and be in charge of your financial future.  However, don’t be tempted by the vast array of HUD foreclosure homes that are on the market.You still need to look at each HUD foreclosure home with a cool head before deciding on making a bid.

Do Your Research

Remember, HUD foreclosure homes are sold as-is, even if there are corpses and craters inside of it. Never contemplate bidding on a HUD foreclosure home sight unseen.You must inspect it yourself.  You also need to keep in mind that if people are going to be living in the property right up until the sheriff kicks them off, they will leave damage in their anger that you will be responsible to fix.

Although HUD foreclosure homes often come with commission fees paid by Housing and Urban Development, they don’t often pay the back taxes or any other fees that the previous owner couldn’t pay for.  You need to get the HUD broker to check up on the physical and financial condition of the house.

Finding The Property

A HUD foreclosure listing is a matter of public knowledge, much in the same way marriages and divorces are.  You need to check out your state’s HUD’s web site in order to keep tabs on which foreclosed houses they are planning on buying.  Don’t expect them ever to get a property in a hard-to-get-into neighborhood, or a home that’s worth more than $400,000.

You then need to contact the broker or company that is working with HUD to sell the property.This is the person or business that you will be getting to know very well in your pursuit of the HUD foreclosure home.  If a HUD employee offers to work with you as a real estate broker to help you buy the home, bolt.This is illegal. 

What Am I Bid?

For the first ten days that the HUD foreclosure home is on the market, only people wishing to live in the home are allowed to bid.  If you are a real estate investor, you will have to wait.  Odds are that your HUD foreclosure home will still be there waiting for you.  You then bid electronically with your HUD-approved broker.  You’ll know in a few days if the bid was accepted by HUD.

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Some people put way too much faith in the government and have created these false notions in their minds about exactly how much service the government will offer in any given situation.  With the growing foreclosure crisis, and the increasing news coverage regarding the government’s proposed involvement in bailing out troubled borrowers, many people are developing misconceptions about exactly what HUD foreclosure help really is.  For example, some people actually believe that HUD foreclosure help means that HUD will be paying their mortgage for them and allowing them to keep their homes.This is absolutely not true.  Remember that HUD will only directly get involved if laws are being broken.  Beyond that HUD foreclosure help is a lot of advice and enforcement of codes and laws put into place to protect the borrower.  So the notion that HUD foreclosure help includes the government paying off your mortgage is completely false.

Another popular misconception about HUD foreclosure help is that HUD will step in and negotiate with your lender for you and on your behalf.  This is also false.  HUD has no intention, nor is it their policy, to get involved directly in every mortgage on the verge of foreclosure. In this case HUD foreclosure help would consist of expert advice and guidance from a HUD representative.  Your HUD representative will tell you how to go about dealing with your lender and even point out to you the clauses in your contract that outline the assistance your own mortgage contract will give you when you are facing foreclosure.  But HUD foreclosure help does not include negotiating directly with your bank or lending institution.

The List Of Misconceptions Is Long

One of the more prominent misconceptions about HUD foreclosure help is that HUD will help you refinance your mortgage and get you a new mortgage with a lower rate.  Once again this is false as HUD will not get involved directly with lending you money.  There are HUD mortgages offered through various lenders throughout the country but HUD themselves do not process mortgages and they will not help you get a better rate.

When it comes to HUD foreclosure help a lot of the responsibility for action is on you.HUD will do what they can to offer advice and guidance but the actual action is your responsibility just like your mortgage payment each month is also your responsibility that you agreed to when you first took on your mortgage and bought your dream home and your piece of the American dream.

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One of the big stories in the news this entire year has been the number of foreclosures on people’s homes all over the country.  As a result of so many foreclosed homes we are also seeing a rise in crime as criminals are stripping out the valuable parts of the homes in the affluent neighborhoods simply because no one is living there to protect the home.  As the government slowly moves towards helping people in trouble with their mortgages there are ways you can help stop foreclosure and prevent yourself from losing your home. 

The American dream involves everyone owning their own home and with a little foreclosure help you can be improve your chances of heading off foreclosure and keeping your part of the American dream alive.  One of the big problems with foreclosure help is that people often do not seek out foreclosure help until it is too late.  You would be surprised at where you can find foreclosure help if you just admit early on in the process that you are having problems making your payments and you need help.

Believe it or not you can get foreclosure help from the bank that currently holds your mortgage.  Many people have no idea that foreclosure help exists from their mortgage holder and because they do not investigate this option they wind up finding out way too late that they could have prevented foreclosure by just working with their existing loan holder.  The bank does not want your home and the bank does not want you to go through foreclosure.  The bank will use foreclosure as a last resort and to avoid using foreclosure they will usually offer some sort of foreclosure help.  So if you find that you may be getting behind on your mortgage payments then one of the first places you should be calling is your mortgage holder for foreclosure help.You would be surprised at the programs they have available to help homeowners that cannot make their scheduled payments.

Protecting Your Back

Of course the other place you can find foreclosure help is an attorney’s office.  Many people avoid hiring an attorney because they either cannot afford it or they do not think it is necessary.In reality, if you get yourself to the point where foreclosure is a definite possibility, at that point you need the services of an attorney and it is in your best interest to hire the best attorney you can afford.  Foreclosure is an ugly process but a lawyer can help you to protect yourself from many of the legal problems that come with foreclosure.

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There are many different names for a house that’s been foreclosed upon because the owners couldn’t keep up with mortgage or other payments.  One of the names that these properties are referred to is real estate tax foreclosures.  In many states in America, the property tax costs thousands of dollars.  People can loose their homes from not being able to pay this hefty tax.  For whatever reason, a foreclosure is a foreclosure.  Here is some foreclosure help on how to buy these homes.

Who Owns The Home?

In the case of a real estate tax foreclosure, the government assumes ownership of the foreclosed house or business.The government does not want to keep their real estate tax foreclosure properties and are looking to dump them as quickly as possible for whatever price they can get.  This is your tax dollars at work, ladies and gentlemen.

One of the advantages of having the government own the home (however briefly) is that they list real estate tax foreclosures all over the place.  A foreclosure or property sale is a matter of public record.  Another advantage is that the government is eager to sell.  However, the government is not too interested in making any deals. 

Make A Checklist

Most real estate tax foreclosure properties are sold “as is”.  That means if the home is in crappy condition, you will be responsible for fixing it up.  This is different from traditional home sales, where the owner usually has to make repairs as part of the deal.  This means you have to hire a home inspector to give you a report on the real estate tax foreclosed home.  Don’t trust anyone else’s home inspector.

Many real estate companies in the area often work with the IRS in order to sell real estate foreclosed homes.  You need to check with them about finding out just how much property tax is owed, and what other fees are.  Other fees can include transfer of home title.  You also need to find out what the current assessment on the property is so that you know if you can afford the property tax.  Never assume you can sell within one year of purchase.

The real estate company may also be able to give you a free history of the real estate tax foreclosure property, but usually you have to pay a fee for that, too.  You need to see when major repairs were made and if the home was damaged by an natural or unnatural disaster.

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There may be some misunderstanding about the deals that can be found on property at a home foreclosure auction, with some believing it is possible to get something for almost nothing. While it is true that many bargains on homes can be found, generally speaking not all properties will be sold dirt-cheap. During most sales at a home foreclosure auction there is a company that has a vested interest in the property and selling it for less than it is worth is not in their best interest.

While many homes on a home foreclosure auction block may be in good condition and worth the total amount owed to the lender, typically the home is advertised as requiring a minimum bid of at least two-thirds of the value to be considered for sale. In most instances, there is not a minimum opening bid, but potential buyers understand that unless they meet or exceed that stated minimum, the sale will not be completed.

Unlike a mobile home foreclosure, traditional homes have, over the years, appreciated in value. In recent times however, home values have fallen due to the large number of foreclosures and the tighter controls on credit availability, making some of the homes available at a home foreclosure auction valued at less than their original sale price. A home’s value is determined by many factors and before bidding on a house at home foreclosure auction potential buyers should have fully researched the home, the property and the surrounding neighborhood to insure they get what they pay for.

Understand Rules Before Making A Bid

When heading out to the first home foreclosure auction potential buyers must be prepared to make good on their bid if they are declared the winner. In most instances, the winning bidder is required to pay a minimum of 10-percent of the winning bid at the conclusion of the auction and the balance at closing, usually within 30 days. Typically, those attending a home foreclosure auction will be ready to assume a mortgage on the property and have a lender’s authorization before making their first bid.

Potential bidders should also take the time to visit the property prior to the home foreclosure auction since most of these sales do not take place near the property. Investing in property bought at home foreclosure auction sales can provide a good investment, but if the home is not inspected before the sale can end up being more of a nightmare.

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It can really seem like dark times these days with natural disasters killing thousands and our economy falling further and further every day.  A few years ago a trend was started with mortgages referred to as subprime mortgages.Basically a subprime mortgage is a mortgage given to a borrower with less than perfect credit.  The problem with that idea is that many lending institutions stretched the rules to the point where people that had no business getting huge mortgages were getting them and now we have a huge financial disaster on our hands.  In times of financial crisis people are always looking for home foreclosure help and when you are so broke you cannot pay your mortgage then it helps if that mortgage help is in the form of free foreclosure help.  Sometimes people get confused when they hear the phrase free foreclosure help because it sounds to them like someone will step in and take over their mortgage for them.  That is not what free foreclosure help, the free foreclosure help that is commonly available is in the form of advice and possibly intervention with your bank.  In the end all free foreclosure help can do is help negotiate with your bank to try and help you keep your home but when you cannot afford an attorney then this kind of free foreclosure help can become invaluable.

So where can you find free foreclosure help like this?  You could search the internet and hope that the people that you find are reputable and are not out to steal your identity.  The internet is a great tool but in a growing industry like the free foreclosure help industry you will find con men waiting to steal your identity and what little you have left of your money and credit.  You can turn to the same people for free foreclosure help that you turn to when a hurricane comes whipping through your region and wipes out your town.That’s right, you can turn to the national charitable organizations for free foreclosure help.

Everyone If Offering To Help

Charities like the Red Cross and the United Way are offering free foreclosure help to people on the verge of losing their homes.  When they are able these organizations will also assist you in talking to your bank in the hopes of helping you keep your home.  If they cannot help you then they can recommend a reputable organization that can help.Many people only think of these organizations in times of crisis.In reality, isn’t the prospect of losing your home a huge crisis in your life?

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