Your Questions About Foreclosures | foreclosureorder.com

Your Questions About Foreclosures

Your Questions About Foreclosures

Richard asks…

How many of the home foreclosures would have been avoided if we had passed health care reform earlier?

Obviously, when people are forced into bankruptcy because of health care bills they could never afford to pay, one effect of that is that they lose their homes to foreclosure. If America had passed health care reform say ten years ago, what percentage of current foreclosures could have been avoided? 5%? 10%? 20%?

Your Questions About Foreclosures

The Expert answers:

Many. 62% of all bankruptcies in the US were caused by the costs of healthcare.

Your Questions About Foreclosures

Jenny asks…

What is causing so many foreclosures in todays real estate industry?

My mom is a realtor in the Bay area and she hasn’t been selling houses lately and now it is causing us to move to a smaller house. We used to be very rich and had a 4,500 sq foot home but now we live in a really small home because of nobody buying any houses…What is causing all these foreclosures and why isn’t anybody buying homes lately?
does the war and president bush have anything to do with this?
and when are things going to get better? next year?

Your Questions About Foreclosures

The Expert answers:

People buying things that they can ill afford. Tb

Your Questions About Foreclosures

Maria asks…

Where do I find out about foreclosures or foreclosed properties in my area?

I’m living in Los Angeles, and would like to own my own place someday in the next 10 years. I’ve been told a good source for someone who is patient is to look into foreclosures. Any advice?

Your Questions About Foreclosures

The Expert answers:

Check with the County Treasurer. The website may list properties in default for taxes.

Your Questions About Foreclosures

Paul asks…

Can someone please explain to me how foreclosures work?

Okay, so basically if you buy a foreclosure, you buy it for what the previous owner owed on it? How does it work? Also, why is it so difficult to get foreclosure listings? Do you HAVE to pay for a list or can I just can a realtor just email me some. Is it true that foreclosures are not a good idea? I just need the down-low on this. Help please?

Your Questions About Foreclosures

The Expert answers:

These are different in each state. Also people often refer to properties that have been foreclosed and are now owned by the bank as a foreclosure.

If my home is posted for foreclosure in Texas they take it to the county courthouse steps and a trustee stands somewhere on the steps and holds an auction- but he often speaks in a very low voice and only people standing near him hear what he says. The bank is willing to bid up to the mortgage amount and usually no one else is willing to bid that high- so the bank almost always buys the house at the courthouse steps. This is the legal process used to transfer the property into the lenders ownership.
Then the bank spends money and time legally making the title clear and clean so it can be resold. SO when you buy a house owned by the bank they are able to insure you a clear title- but if you buy it at the courthouse steps it may not be.

All the bank owned homes are put in the Realtors MLS so your buyer agent can get you a list for free.

Foreclosures may or may not be the best home for your money. I think it would be foolish to only look at foreclosures. Look instead at all the houses that meet your needs and pick the one that gives you the most for your money. Pay a lot of attention to location- it is the most important thing in long term value.

Your Questions About Foreclosures

Linda asks…

What is the cuurent situation with banks and foreclosures?

I need to do a project on the current problems going on with banks and foreclosures, in general.

If you can also provide specific examples of this problem too.

Your Questions About Foreclosures

The Expert answers:

Your question is a little vague but heres what i think your asking about..

People bought houses when the interest rates were wayyy low. Most on adjustable rate mortgages.. Some 3 yrs some 5 yrs. Once those years were up, that rate of 2.75 or 3.75 that some people were getting.. Doubled!!
Banks were giving loans based on peoples ability to pay for a overinflated house mortgage ( markets were doing good so house prices were up) with a low rate.
(Because of the low rates, people were buying bigger more expensive houses..) So a person that could only afford 100000 on a 6% rate could now afford a 200,000! ( for 3 or 5 years)with a 3 % loan rate. Banks were giving these loans out knowing people wouldnt be able to afford the new rates later!
When the 3 or 5 years were up, they could no longer afford their now doubled mortgage payments.
A 600 dollar loan is now 1200! 1200 now 2400!!

Banks were giving no document loans to people. My banker told me to tell her what number i was comfortable with and she would make the loan happen. I was picking my price! They didnt care what i could pay as long as i said i could pay it.

No money down! This got banks into trouble and caused a drop in the markets when people lost their houses because the markets fell and houses where worth way less than what people still owed on them. This caused the banks to have financial problems because the money wasnt comming in from the people theyd given loans to so some banks needed bailed out.

This caused the markets to plumet more which helped lead to the economy issues at hand. This resulted in job losses, pay losses etc.
When people lost their jobs they could pay their mortgages. Someone people made deals with the banks to keep them in their houses while they looked for jobs therfore delaying foreclosures.

All this lead to where the markets are now.
The banks were forced to get rid of no doc loans and 100% financing.
Because of the foreclosure rates most people nees at least 3-5% down to buy and investors need at least 20% down. They are also red flagged and have more criteria in order to get a loan to buy a property for investment.

Foreclosures are all over the place now because of the above reasons.

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Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures

Your Questions About Foreclosures

Your Questions About Foreclosures