Tuesday, January 29, 2008

ARMS aren't always the Cause of Foreclosure.

The media likes to blame the national foreclosure crisis on Adjustable Rate Mortgages (ARMS). The states that had the highest number of ARMS, Arizona, Nevada, California, Colorado, and Florida do lead the nation in foreclosures, but not all Foreclosures are because adjustable rate mortgages have reset and gone up. Foreclosures happen primarily because people bought houses they couldn't afford, and didn't have any savings for a rainy day. They banked on the trend that the real estate would continue to appreciate at double digit amounts every year. Well, that didn't exactly happen.

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Friday, January 25, 2008

What's a pre-foreclosure home? What's a Foreclosed Home?

With foreclosures on the rise. Many want to find ways to profit by buying foreclosure homes. If you want to get a deal, you must understand the different types of foreclosures and the likely places you can purchase a house for less than market value.Foreclosures are common place in our world today. With the mortgage crisis of 2007, and declining home prices where many people bought homes they couldn't afford based on speculation that the value would increase so much it would be a great investment. There are also loads of get rich quick foreclosure schemes. These don't work. Foreclosure homes can be purchased, and at a discount, but you likely won't get them for pennies on the dollar or even half off. To know how to get deals on foreclosure properties you need to understand the different types of foreclosure properties: Pre-foreclosures, Foreclosure Auctions, and Foreclosed Homes.

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Tuesday, January 22, 2008

Fed makes emergency rate cut

Inman news on Fed cut. This rate cut has already helped reduce fixed rate mortgages. Thirty year fixed mortgages were hovering around the 5.5% rate today. This cut will also serve as relief too borrowers with option arms and adjustable rate mortgages as the rates on those mortgages will be lower. It is a great time to refinance adjustable rate mortgages to fixed rates while these interest rates are the lowest they've been in two and a half years.

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Monday, January 14, 2008

Best Websites to Find Foreclosure Properties in Utah

According to Realty Trac, There are 7,249 foreclosure properties in Utah and Foreclosure Filings are going up. It ranked 20th nationally in foreclosures despite the best housing appreciation in the nation. Here are the best Utah websites to find Pre-foreclosure properties:

How to Spot a Foreclosure Rescue Scam

How to spot a Stop Foreclosure Scam according to the financial Guru David Bach. With increased foreclosures, there is an increased industry in trying to scam people at the moment of their greatest despair. If you are having financial distress, and have missed mortgage payments. You will be contacted by real estate investors and "foreclosure rescue" companies. Be careful, and make sure you won't be a victim of foreclosure repair scam.

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Tips To Avoid Foreclosure

Free information and resources for people who are facing foreclosure, including options and avoiding predatory foreclosure lending scams. If you are faced with foreclosure there are things you can do. You don't have to just sit back and be a victim. This blog gives some good practical advise explaining your options, and tips you can do to avoid foreclosure.

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How to find and buy Foreclosures in Idaho

There are five different stages of the foreclosure process in Idaho that offer different challenges and advantages for real estate investors to purchase foreclosure homes. These include preforeclosure, the notice of default, the trustees sale, REO properties, and HUD Homes. So how do you find these homes for sale and invest in the lucrative foreclosure market?

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Friday, January 11, 2008

Few bargains, many pitfalls at foreclosure auctions

"Buying an auctioned home to resell at a profit is a risky endeavor."

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How Do you Buy HUD Homes?

HUD homes are marketed almost the same way as any other listed property.

In each city, a designated HUD broker is in charge of all HUD home listings. When the HUD home becomes available it is listed on the MLS. There is also additional information about the HUD home on the website of the law firm in charge of the transaction. In most states this site is www.Mcbreo.com

You must purchase a HUD Home with the help of a Real Estate Agent. Any participating broker will work. When you are interested in the house you must fill out a valid real estate purchase contract, write an earnest money check with certified funds, and then make an electronic bid online. If the electronic bid is accepted, then your real estate broker turns in the required earnest money check and paperwork. One interesting thing about online HUD bids is that the real estate agent can choose their commission. HUD cares most about how much money they will net, so the more your agent charges, the more you will likely have to pay for the property.

HUD properties very often have multiple offers. It is not uncommon for HUD to be purchased for more than the listed price. HUD does not have to accept any bids, and won't accept bids if they are extremely low, even if you are the only bidder before the deadline.

What are HUD Homes and How do they differ from REO property?

FHA loans that default, and don't get purchased at the Trustee's auction become HUD Homes. Hud homes are foreclosed properties, temporarily owned by the department of Housing and Urban Development.

They are different than other REO homes in the way they are marketed and sold. HUD homes are not just looking to get rid of their properties, but first off are looking to help provide affordable housing for first time buyers. When a HUD home is first listed, it is only available to buyers looking for a primary residence. For this reason, HUD homes are hard to use as investment properties not designed for primary use.

If the HUD House doesn't sell to someone looking for a primary residence, then the bidding is open for real estate investors. At this point, the property is usually not a deal. If it were, it would have sold during the initial listing period.


The Reality of Investing in Foreclosures...

There is a lot of hype that foreclosures are on the rise. This is reality.

There is also a lot of hype suggesting that investing in foreclosures is get rich quick fix that is easy to do with no money down. There are infomercials and seminars that try and get you to come learn the "secrets" of foreclosure investing with no money down. Really, these free programs just try and get you to subscribe to their incredibly overpriced "training" and "mentoring" programs so you can learn the real details of "real estate investing." They have very little real real estate investing info and a lot of hype up showing how rich you'll be and how easy it is to do. These programs target the people who don't have any money down, because they are looking for the suckers. They are looking for desperate people who will be willing to go into further debt for the mentoring programs in hope they can fulfill their dream.

Investing in foreclosures is not easy, and it is especially hard if you don't have money to put down. The door of opportunity is much bigger if you have sufficient money where you can put cash down and purchase distressed properties in a matter of days. It's not impossible to buy foreclosures with no money down, but these methods can be very risky or on the borderline of unethical/illegal.

There is also a misconception that if a house is a foreclosure, it is a deal. In reality, many foreclosures are overpriced for the amount of work/risk required to purchase them.

To really invest in foreclosures. The first thing you must do is understand the foreclosure process. You must understand: