Your Questions About Foreclosures |

Your Questions About Foreclosures

Your Questions About Foreclosures

David asks…

is this a good solution to stop house foreclosures?

say if tyrone lost his job at popeyes or pablo lost his job at chi-chis or tony lost his job at olive garden or hezekiah lost his job at a bank and can’t make house payments on their 300,000 home, can we solve the housing foreclosure mess if a wrecking ball came around and destroyed the house and the land was vacant again, it would create a lot of jobs with demolition to stimulate the economy and the people who foolishly accepted the terms of their snake mortgage would be out of bondage with such a bad loan

Your Questions About Foreclosures

The Expert answers:

LOL that you be messed up but it’s technically not their home when the house is in foreclosure it belongs to the bank. The new owners(the bank) can do anything to the house.

Your Questions About Foreclosures

Paul asks…

I would like to find out more about house foreclosures in Ontario?

Your Questions About Foreclosures

The Expert answers:

Have you tried Googling or Wikipedia?

Your Questions About Foreclosures

Sandra asks…

what are the extra $ at closing when buying a house? How do foreclosures work? Located in chicago west suburbs

I want to buy a house, but i dont know the process very well, as far as how much extra there is at closing cost. What is escroe

Your Questions About Foreclosures

The Expert answers:

Here is the process to buy a house:
0) Get pre-approved for a mortgage with any Major bank;
1) Make an offer and attach your pre-approval from step 0;
Put in a firm closing date;
Put in the following contingencies:
Financing – no more than x%, whatever terms you want, etc;
House Inspection;
Termite inspection;
Survey and environmental — usualy needed for
commercial props only, or when you are buying land
Contingeny clauses allow you to walk away if you can not
get financing, or the house fell apart and the ants ate it
right after your offer was accepted;
Attach a downpayment with your offer. This gets placed
into ‘ESCROW’ by the sellers broker, attorney or title
company. ESCROW is a special account that is set up
in order to assure that the funds do not go to the seller and
dissappear. ESCROW will disburse at closing, when the
seller receives your downpayment funds. If there was no
closing due to various reasons and especially issues with
step 7, below, you will not lose money.

2) If offer is acceepted, go to the bank from step 0 and apply for a loan. You will need to supply a bunch of info, proof of funds etc. Make sure you ask them what their fees and rates are, and if they are not reasonable, go to another bank!

3) Order a home inspection, order a termite inspection, order survey and environmentals (if required);

4) Make sure that step 3 stuff was fine, else re-negotiate or walk away;

5) The bank will appraise the property to make sure that it is worth what you are paying. Bear in mind, a signed contract
is a pretty good indicator of value, so unless you are blatantly
overpaying the appraisal will be fine. BTW, you will likely
get a yes/no answer from the bank. They may not even give you the number the appraiser came up with.

6) Prove to the bank that you are the safes thing to lend money to on this Earth and then get approved for the mortgage;

7) Get on your knees and pray that you will have a successfull
closing and that the bank will not screw you.

8) Call a title company and order title search. This will
prove house ownership, let you know all the liens on the
property, all outstanding debts on the property, etc.
It takes 5-7 days to get title search done;
VERY IMPORTANT — Title clerk will tell you if the seller
can sell you the house, and how clean the title is. Title
clerk will also issue a list of things that the seller needs to
bring to closing in order for the closing to take place.
They will also issue you title insurance which guarantees
that your house is free and clear of all liens and debt, and
is truly yours!

Order a closing protection letter from the title clerk for the
mortgage bank after the title comes back;

9) Repeat step 7;

10) Make sure whatever issues came out from step 3 are

11) Repeat step 7;

12) Order a home owners insurance for your house. Set it up
so that you pay for the policy at closing. So, if no closing,
you do not pay.

13) Repeat step 7;

14) Closing is tomorrow — go to the house, and make sure
that it is still there, etc.

15) Repeat step 7;

16) You are now at closing. You have been there for 3 hours,
and the bank has not yet really, truly approved your
mortgage. You are stressed to the max, your BP is going
through the roof!
If you like, you can scream at the realtor, at the seller, at
the title clerk. It won’t help, but it may make you feel better.
But if you repeated step 7 often, and the providence
smiles, you may just walk away with a house
:-) - Your Questions About Foreclosures

Here are your closing costs:
Bank fees such as application fees, appraisal, origination, etc.

Title insurance. This depends on the value of your house.
Ballpark it for 1% of the price;

Property insurance. (Remenber, you are paying this at closing) .6-.8% of purchase price;

Deed prep – fee title co charges for typing up the deed;

Deed recording. Fee to record the deed. Not expensive.

Mortgage tax. This is only charged in some areas.

Transfer tax — tax county charges at the purchase or sale
of the property. In PA this is 4% split between seller and buyer;

Pro-rated property taxes – you pay only from settlement
till the end of the year;

Attorney fee–you may be in the area that requires this. Like NY. If so, and you read the above material carefully, prepare to spend several grand for no good reason. Been there,
done that, had no choice. It stinks!

Notary fees & some oter small misc fees.

Good Luck!

Your Questions About Foreclosures

Robert asks…

What do you know about house foreclosures in New Jersey?

Your Questions About Foreclosures

The Expert answers:

House foreclosures and Short Sales seem to be through the roof… Beyond that not much

Your Questions About Foreclosures

Ruth asks…

Will House Foreclosures in the UK reach American levels ?

Lenders launched foreclosure actions against more than one in every 200 U.S. mortgage borrowers in the fourth quarter of 2006, the biggest share of homes at the start of the repossession process on record.

Your Questions About Foreclosures

The Expert answers:

Without doubt.
Gordon Blair, sorry I mean Gordon Brown’s inept economic management was going to catch up eventually wasn’t it?
Those in the know understand that Gordon’s fiddled figures do not reflect the truth about the economy.
The current credit bubble and levels of consumer/household debt are completely unsustainable.
There should have been some governmental intervention to prevent the banks from acting in a manner which is contrary to the national good- with their peddling of credit to marginally credit-worthy consumers.
We shall see a very unfortunate sizeable portion of our society in severe debt, leading to widespread bankruptcies.

The economy is severely ill and desperately requires someone with functional numeric literacy to run the economy, rather than a smug ideologue.
Inflation is rising very quickly and we can all see that is is obvious the housing market is artificially being stoked, hotter and hotter.

And as the clever chap above mentioned, the speculators, the real estate agents and the banks, property price rise or fall, are all making out like bandits. The entire property market and the banks require stricter governance and oversight for the public good and the National Interest (which of course is making sure their citizens are not debtors, bankrupters or in extreme financial hardship).

We shall see how many PC & New Labour zealots & devotees will be eating their hats when the Socialist bubble bursts.

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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