Elizabeth Warren, a Massachusetts Democrat and longtime consumer advocate who is quickly developing a reputation as perhaps the Senate’s most effective cross-examiner. Following a series of probing questions that would not have been out of place in a court room, Warren excoriated the regulators for not immediately turning over case records of borrowers who may be considering private legal action against their bank.
“You have made a decision to protect the banks but not to help the families who were illegally foreclosed on,” Warren said. “Families get pennies on the dollar for being the victims of illegal activities.” Read more
In North Carolina, though the mortgage crisis is forcing more and more homes to go into foreclosure, the entire situation on the North Carolina bank foreclosures is not as bad as it is with many major cities in the United States. There were only 4,303 North Carolina foreclosures filed by the end of July 2008, and mostly centering in cities like Charlotte and Raleigh. This translates to one household in 936 that faces foreclosure proceedings. That is not so bad when compared to the ratio of foreclosures in Nevada, the state hardest hit by the mortgage crisis, which is pegged at 1 for every 106 households.
Nonetheless, North Carolina bank foreclosures, including Raleigh bank foreclosures, are still being targeted by real estate investors. The real estate market in North Carolina is still healthy enough, with market values not that depressed, to turn in a good profit. It is highly possible to score a good deal in buying Raleigh bank foreclosures – buy at discount, make some improvements on the property and then sell at market value. The challenge is that real estate investors need to be vigilant in searching for these Raleigh bank foreclosures.
To be able to break into the market of North Carolina bank foreclosures, an investor must constantly be on the lookout for properties nearing default. Depending on the foreclosure type that the investor prefers to work with, being able to spot a good property going through the Raleigh bank foreclosures process early on would give the investor an edge over his competitors as well as enough time to do the research required for the property. Research naturally includes title searches to check if the property is clean or has outstanding liens against it. Because outstanding liens on the land can take away a good chunk of an investor’s expected profits, investors are always advised to stay away from Raleigh bank foreclosures that have considerable senior liens.
Another advantage given by being able to find a good property going through the foreclosure process is that the investor would have enough time to do the math and to secure the financing for buying the property. Doing the math ahead of time will allow the investor to compute how much he would need to make as a maximum offer for the property. It will also let him assess costs for doing improvements and repair work, which is often necessary when it comes to investing on foreclosures. The time allowance will also give him enough room to secure the financing required for buying the foreclosed home.
As much as a lot of preparation is required when investing on North Carolina bank foreclosures, what is perhaps most important is for the investor to know the local state laws governing North Carolina bank foreclosures. Knowing these will help guide him as to the proper progression of the foreclosure process in North Carolina, thus not wasting valuable time and money. There are many consultants that investors can work with in these area, such as real estate attorneys.
San Diego foreclosures are at an all time high, following suit with the current trends for the country as a whole overall. For homeowners who are suffering from financial hardships, the word foreclosure can tie knots in their throats and create ulcers in their stomachs. Fear of financial ruin is what foreclosure can mean for them. On the other hand, for people who see San Diego foreclosures as a good economic opportunity, foreclosure is a word that can raise their eyebrows and turn up their grins.
Either way, no matter which perspective is applicable in a situation, San Diego foreclosures can be confusing, stressful, and are possibly the most misunderstood aspects of real estate markets in San Diego or anywhere else.
Foreclosures processes start when the bank or lender files a Notice of Default, or NOD, with the county.
The borrower is a number of days, weeks, or months behind on payments, and the amount of time that can pass without payment varies according to lenders and should always be included in contracts that are presented to the borrower at or before the time of initial sale. The foreclosure process ends in one of four ways:
1. The borrower, within the grace period determined by state law, pays the amount of money he is behind, the default amount, which will reinstate the loan. This grace period before San Diego foreclosures is called pre foreclosure.
2. During the pre foreclosure time period, the borrowers property can be sold, allowing the borrower to pay off the loan. If the amount of money that a borrower receives from selling his property is an amount that is less than what he owes, sometimes the lender will agree to a payoff amount that is less. This is called a short pay, or a short sale.
3. When the pre foreclosure period ends, a trustee can sell the San Diego foreclosure at a public auction to a third party to recover funds for the lending institution to recover some of its losses.
4. San Diego foreclosures can end when the lending institution takes or regains ownership of the property through an agreement that has been made with the borrower during the pre foreclosure period. The lending institution can also buy the property at a trustee sale. When a lending institution or bank have become the owners of a property, the bank owned property is then referred to as real estate owned or REO.
San Diego foreclosures appear as positive opportunities for buyers in the market because oftentimes a REO property is offered on the market at substantial savings with other incentives that may be included. REOs are less expensive than non REOs, and that buyer can turn around and sell the San Diego foreclosure for a profit for himself.
Whether you are a buyer or a seller, make sure you understand all stipulations about policies on San Diego foreclosures before you seriously enter any business proceedings to prevent more stress than you ought to have should you ever be involved in one.
When our industry was flooded with easy money such as exotic mortgages i.e. 1% mortgage rates and the lure of lower payments and more house associated with adjustable rate mortgages has caused the ripple effects of an unseen record number of foreclosures in today’s markets.
The most common causes of foreclosures are life events, such as:
– Death in the family – where there is no life or mortgage insurance in place, so not only does the family loose one income, but they also now have the expense of funeral arrangement, which can be costly.
– Unexpected Medical Expenses – examples include but not limited to diabetes, cancer, pneumonia etc, where the homeowner or member of the family does not have health insurance when these medical expenses occur.
– Divorce – one of the spouses become emotionally attached to the house and has to figure out how to make ends meet with one income and are willing to make the sacrifice even if it means living pay check to pay check, instead of selling and starting over.
– Job Loss – caused by downsizing, lay offs or being terminated, has the greatest impact on 1 income families that have limited savings and or insurance.
Foreclosure in itself has numerous negative impacts not only financially but emotionally which can lead to depression, divorce and tear families apart. The number 1 cause of divorce stems from financial issues, which include foreclosure. Its not uncommon for someone that went through foreclosure to also go through a divorce, have damaged credit because of the foreclosure, and to make matters worse they cant even rent an apartments as they are being denied because of the foreclosure, which makes it real hard to start over.
Here are some tips to prevent Foreclosure……
Make your mortgage payments within the 1st 30 days of each month – if you make your loan or mortgage during the first 30 days, the bank will have no reason to start foreclosure proceedings. Even though after the 15th of the month it’s considered a late payment, this will not report late on your credit if it is made by the 30th of the month. Foreclosure Proceeds usually start after the 3rd or 4th consecutive month of being late. Pay your Mortgage first – When it comes to prioritizing pay for the roof over your head first, instead a lot of home owners make the mistake of paying for their credit cards or utilities first. Protect your credit – In our credit driven society it is important to understand that when it comes to big purchases like buying a home, your credit rating is the most valuable thing you own. Try to minimize borrowing and make prompt payments on all your bills. Avoid debt – before becoming a home owner try and eliminate as much debt as possible and try and save a 10-20% down payment. Try to live within your means and only use credit if you are sure that you can meet the repayments. Communicate with your lender – Open communication is paramount with your lender. Make payments on time and reply promptly to letters and phone calls. Lenders are more likely to be flexible with people who demonstrate a mature and responsible attitude to loans. Remember lenders are not in the business of Foreclosing, they are in the loan business, and they rather collect interest payment than repossess a house. Start an emergency fund – set aside some money every week for an emergency fund each case is different but a $2000-$5000 fund is recommended and only dip into it if there is a real emergency. Emergencies include but not limited to job loss, car repairs etc. Establish a home equity line of credit – when you purchase your home, arrange a home equity line of credit for use in an emergency. Consider job-loss or mortgage life insurance – for an additional monthly premium, you can obtain cover that guarantees your mortgage payments if you lose your job or pass away unexpectedly. Know your rights – read up on the rules and regulations governing credit and foreclosure. If you know your rights, you stand a much better chance of keeping your home if you do go into arrears. Beware of scams – If you are foreclosure you will become prey to investors or want-to-be investors out there waiting to make money from foreclosures and not all are legitimate. Be wary of buyers who offer to buy out your mortgage or private counseling firms who charge for things that you can do for free yourself. Brush up on bankruptcy law – Majority of homeowners who find themselves in foreclosure file bankruptcy to save their homes, although bankruptcy is a good option for some, it is not for all, just like foreclosure, bankruptcy should be avoided at all cost.
Finding San Diego foreclosures is fairly easy in the depressed market today. You can also find San Diego foreclosures in strong markets, and the only difference between the two markets is that you will find more San Diego foreclosures in falling markets.
Many homes that end up as foreclosure properties eventually become deeded to the bank. There are many people who dont want to buy short sales homes and San Diego foreclosures for many reasons. Some of those reasons why purchasers may refuse to buy a short sale home could be any of the following: the seller perhaps could not qualify for a short sale, the listing may be overpriced for the amount that was mortgaged, and the bank might refuse to accept less than the present mortgage balance. Also, sellers may have taken all of the foreclosed homes assets or damaged the property, and buyers may have passed up the short sale option in favor of having a hassle free purchase instead.
Not all San Diego foreclosures are great deals or great bargains, and there are those that have the potential to turn into real nightmares. There are, however, San Diego foreclosures that are perfect gems just waiting for someone to take a chance on them.
First time San Diego foreclosures buyers might want to hire a real estate agent for guidance and assistance.
There are agents that specialize in San Diego foreclosures, and can search the MLS for you and be able to bring up all of the foreclosures. Buyers and non agents dont have the same access to the MLS like agents do. You can ask your agent to search for San Diego foreclosures, and when you recognize a listing agents name over and over, pull up that agents profile and look at their listings. There are probably a ton of foreclosures with that agent.
Driving through neighborhoods is another good way to find San Diego foreclosures. The houses will have signs up that will post the homes as Foreclosures, Bank owned, and Bank repossessed. Call the agent whose name is on the sign and ask about other foreclosure listings that may be coming on the market. Agents who specialize in foreclosures sometimes wait weeks while bank management approves the list price, so you can get a jump on other buyers by asking about new foreclosures not yet listed.
Many banks maintain online lists of foreclosed properties. Some of the banks that maintain a list of San Diego foreclosures are Countrywide, Bank of America, Chase Mortgage, and U.S. Bank. Some lenders hire asset management companies to handle foreclosures, like Wels Fargo and Keystone Asset Management. There are also government agencies that can help, like HUD, Fannie Mae, Department of the Treasury, and the SBA (Small Business Association).
Many people also go to auction houses to bid on San Diego foreclosures as well.
If you are an active investor, you probably already know the many exciting avenues open to earn revenue and profit that real estate offers. However, unless you have been considering the field of foreclosure properties as well, you are probably not getting the most returns for your investment. Everyone has heard the word foreclosure recently and it is very much part of the estate news these days. Still, you may not know exactly what it is.
A foreclosure property is real estate that has been repossessed, mainly because the owner was unable to meet mortgage payment commitments. Once the bank or the lender has legally repossessed the property, through the legal process of foreclosure, the lender or the mortgage company then sells the property to investors and property buyers. There are several sellers you can approach for a foreclosure.
First of all, look at the government sources. When a home owner has run into default on a government insured home, the government pays the lender a sum equal to the money lost through the loan and the lender hands over the home to the government agency in return. The government then sells this property in order to recoup the money paid to the lender. The foreclosure properties that you can buy from the government include classifications like HUD foreclosure, VA foreclosure and Fannie Mae foreclosure.
Banks and other lenders are also a source of foreclosure properties. When a home loan is not the government insured kind, the lender is fully responsible for recouping any losses from a bad loan. So, when the owner defaults on mortgage payments, the lender repossesses and tries to sell the property, either personally or through some third party.
Sometimes, the homeowners themselves can be a source of the property. When an owner sees that a bank foreclosure is imminent, they have the last option of selling the property directly, as a pre foreclosure and then paying off the lender from the proceeds. This can save their credit rating from being destroyed and even give them some extra cash.
Buying a pre foreclosure property can be risky, but it can give an investor a great deal and a quick profit in real estate. Whichever way you choose to buy a foreclosure, you can expect benefits. As a general rule, a foreclosure property sells below its market value, so that you can buy it inexpensively. Since a foreclosure may have been on the sellers hands for a while and the seller may want to get rid of it fast, you can save 5% to 50% when you buy a foreclosure. This means that you create instant equity, which you can use right away. The low price also enables you to offer a good deal to your buyers and renters. Also, the low price and instant equity translates to affordable financing, so you save money in more ways than one, boosting your bottom line.
Most foreclosure properties are unadvertised, so where do you start looking? The best way is to subscribe to quality foreclosure listings. Good listings offer frequent updates on their lists of currently available foreclosures. Online listings make it quite easy to find a foreclosure, wherever you may live. Some sites also allow you to search their database for free and even send you email alerts and newsletters.
Colorado is a state famous for firsts: it was the home of the world’s first rodeo; its voters were the he first state to elect women to the state legislature; it was the first to offer a delicacy known as Rocky Mountain Oysters; and it is currently the US leader for the number of its homes in foreclosure. In 2006, in fact, the foreclosure rate in Colorado was estimated to be triple that of the US’ national rate.
Greeley, Colorado, a community about an hour north of Denver, had a 2006 foreclosure rate of more than one-half of one percent, or double that of the rest of the state. While the high Colorado foreclosure rate has taken its sad toll on those families forced into foreclosure, it has opened the doorway to profit for those who have been able to take advantage of those Colorado foreclosures.
Colorado Foreclosures: A Seller’s Market
As matters stand, the Colorado foreclosures market favors the sellers; there are more people wanting to buy Colorado foreclosures than there are foreclosures for sale. And the Colorado foreclosures market is not regulated by the legal system, so neither party involved in a foreclosure transaction is required to make a court appearance. For more info see http://www.foreclosureshomeguide.com/Real_Estate_Foreclosures/ on Real Estate Foreclosures
Because home values Colorado are rising steadily, Colorado foreclosures present home buyers with an opportunity to get real estate bargains from banks which have many homes in foreclosure and are not interested in maintaining them. Colorado banks are more interested in acting as lenders to home buyers than in being real estate owners themselves.
Do not get involved in purchasing a Colorado foreclosure without having first researched the available property. Find out as much as you can about physical condition of the home, the desirability both of its neighborhood and its school district, and the chances of its value appreciating during your ownership.
When you’re satisfied that you’ve found a property with which you’ll be happy, go to the bank which holds the note and apply to pre-qualify for a loan. You’ll need to have proof both of your creditworthiness and of your ability to make the monthly payments.
Or, if the property is in pre-foreclosure, you may risk approaching the owner to set up direct negotiations. If the property is to be auctioned off, again make sure you have done your homework ahead of time so that there are no surprises, should your bid be accepted.
With the high rate of Colorado foreclosures, you should not find yourself in rented accommodations for very long!
An actual foreclosure occurs when a buyer defaults on their mortgage and forces the lender to reclaim and sell the property for the remaining balance or the current fair market value. A pre foreclosure, on the other hand, is a process that homeowners often use in order to avoid having their property fall into foreclosure. Many homeowners choose to consider a pre foreclosure sale in order to protect their credit rating, which would suffer greatly if a lender reported a foreclosure.
Under a pre foreclosure sale, the current owner will typically be able to accept less than the actual balance remaining on the property. For this reason, seasoned real estate investors often prefer to negotiate directly with the owner under a pre foreclosure offer. The process is understandably difficult for some sellers, who are forced to relinquish their home due to bad circumstances. Individuals are faced with foreclosures for a number of reasons, including illness, job loss, divorce, excessive debt or other situations that may prevent them from making future mortgage payments.
For investors, purchasing a foreclosed home can often be challenging, but successfully negotiating a pre foreclosure offer may be even more so. It is often recommended that investors considering making a pre foreclosure offer consult an attorney who specializes in the handling of real estate matters. Important considerations to factor in to the offer include the condition of the home, any necessary repairs and the fair market value for other comparable homes in the area. Before making an offer, most investors prefer to have a professional inspection completed in order to confirm any unknown or underlying problems that may be present with the property.
The process of finding a pre foreclosure is difficult, but not impossible. Word of mouth is one way of learning of impending foreclosures, but lenders and even realtors may also be able to shed some light on the subject.
Under the U.S. Department of Housing and Urban Development (HUD) guidelines, a homeowner may be able to qualify for a pre foreclosure sale if they are at least two months delinquent on their mortgage payments, can sell their house within three to five months and the lender obtains an appraisal that confirms the value of the home meets the current HUD program guidelines.
A pre foreclosure sale is often beneficial to the current homeowner for a number of reasons. As mentioned earlier, a homeowner who is forced into foreclosure will suffer significant damage to their credit, which may make it more difficult to obtain a loan in the future. Even if the hardship that lead to the foreclosure was temporary, future lenders may see this as a sign that the borrower is a high credit risk. As such, obtaining another mortgage may be a very tedious task that, if granted, may be accompanied by high interest rates and a larger down payment.
The information contained in this article is designed to be used for reference purposes only. It should not be used as, in place of or in conjunction with professional legal, financial and/or investment advice regarding pre foreclosure investments. For additional information, consult an attorney who specializes in real estate and/or financial matters.
Q: Who can participate in a foreclosure auction?
A: Unless otherwise specified by the seller, anyone can participate in a foreclosure auction. Some organizations, such as HUD, give priority to owner-occupant bidders before allowing investors to participate. For additional information on an upcoming foreclosure auction, check with the lender who currently owns the property or the auction house conducting the sale.
Q: When should I have an inspection completed?
A: The answer to this question will differ depending on who you ask, but the one consistent statement is that inspections are important. If you are permitted to have a professional inspection completed prior to the foreclosure auction, this will give you a good idea as to a fair bid amount when considering the cost of any necessary repairs. On the other hand, a professional inspection isn’t cheap and some investors may choose to complete the task after their offer is accepted. If in doubt, speak with a real estate attorney regarding your responsibilities when participating in a foreclosure auction.
Q: Are there any warranties offered in a foreclosure auction?
A: Most, if not all, foreclosures are sold ‘as is’ and with no warranty of any kind. This means that you, the buyer, will be responsible for any necessary repairs or improvements on the property. If possible, it’s recommended to have a professional inspection conducted.
Q: What type of financing options are available for a foreclosure auction purchase?
A: As is the case with any type of home purchase, including that of a foreclosure auction, you will be responsible for making sure that the funds are in place before you agree to purchase. Whether your ability to participate in a foreclosure auction comes from cash assets or a mortgage loan, it’s important to research your options before making an offer.
Q: What can I expect from a foreclosure auction?
A: Because some homeowners are forced out of their home due to unsettling circumstances, such as a divorce, job loss, illness or other hardship, the foreclosure process is understandably difficult. A foreclosed property may or may not be in good condition and could require extensive repairs. No two homes are alike in this respect as the condition of the home will greatly depend on its former residents.
Q: Will I be required to pay in full on the day of the foreclosure auction?
A: Policies vary from one auction foreclosure to another, but most will require that you at least place a good-faith deposit if your bid is accepted. In some cases, you may be required to pay for the property in full on the day of the foreclosure auction. If you have questions, contact the lender who currently owns the property or the auction house conducting the sale.
The information contained in this article is designed to be used for reference purposes only. It should not be used as, in place of or in conjunction with professional legal, financial and/or investment advice regarding the foreclosure auction process. For additional information, consult an attorney who specializes in real estate and/or financial matters.