Your Questions About Foreclosures | foreclosureorder.com

Your Questions About Foreclosures

Your Questions About Foreclosures

Sandy asks…

Are massive home foreclosures in America a precursor of a potential for revolution?

The French Revolution, among other historic uprisings, teach us that human beings will only take so much, and then they will act.

Your Questions About Foreclosures

The Expert answers:

Foreclosures are a small part of a big picture that could one day lead to a revolution. The people are without representation much like they were under the French monarch, our government has become very similar to such a government.

Your Questions About Foreclosures

Lizzie asks…

How do I get my hands on some foreclosures and short sells?

I have searched online, but they all want you to pay some membership fee to look at the listings. Is there anywhere you can buy them directly and make an offer without having to go through all the middle men!

Your Questions About Foreclosures

The Expert answers:

Look here. You can get free trial membership

http://www.amexrealestate.info/RealtyTrac

Your Questions About Foreclosures

Richard asks…

How will the drop in housing starts and increased foreclosures affect the cost of single family home rentals?

Specifically, will the cost of renting a single family home, say in California, increase or decrease dramatically?

Your Questions About Foreclosures

The Expert answers:

Yes it most likely will.

Your Questions About Foreclosures

Donald asks…

What is the reason for the increasing amount of foreclosures?

I can only think of gas and food prices going up which makes it harder to pay rent but that can’t be the only reason. What is the simple answer?

Your Questions About Foreclosures

The Expert answers:

The simple answer is the same answer that got banks and investment firms in trouble – poorly thought out mortgages.

Back when housing prices were rising continuously, people thought it would continue indefinitely. People also thought the economic expansion would continue. So, since buying a house is the American dream, everyone wanted a house. However, many people either couldn’t afford a house, wanted a house bigger than they could afford, or were just plain bad risks. In a conservative lending environment, these folks would never have qualified for a mortgage.

However, banks and lenders saw a golden opportunity to make more money by lending to these people. In order to make the loans affordable, the lenders created new types of loans that catered to these folks and were based on future increases in housing prices and earnings. Usually, the way it worked was – person wants to buy house, but can’t afford normal 30-year mortgage. Bank says – don’t worry, here’s a 5/25 ARM with a low interest-only payment. In 4 years, when you are making more money and your house has appreciated, just refinance into a 30-year fixed (before the ARM interest adjustment kicks in). The banks were able to sell these loans to the underwriters because of the large interest rate increases built into the loans. Underwriters don’t build in what-ifs (what-if the loan is refinanced, for example). Since the low, interest only loan was affordable, the underwriters said it was okay to make the loan.

Fast forward 4 years. The economy has stagnated, the folks aren’t getting the raises they expected and the housing market has actually gone into a slump with decreasing prices (iistead of the increase they were banking on). SO, now, all these people with the ARM coming up go to refinance before the payment hike comes into play and they can’t. Since they had interest-only or low-principle payment loans, they have paid very little of the loan’s principle. And when they get appraised, the house value comes in below the balance owed. Well, no bank will lend above the appraisal value of the home, so the folks can’t get refinanced and they have to keep the original loan. Now the new payment kicks in and they find that instead of paying $1800 a month, they are paying $2800 a month. This they really can’t afford. Since they are “upside-down” on the loan (owe more than the house is worth) they can’t sell the house to get out from under, so the last thing left is foreclsoure or bankruptcy.

Your Questions About Foreclosures

Mandy asks…

How reputable are the subscription-fee agencies that find pre-foreclosures and no-credit home buying?

Some financial companies are charging subscription fees and promising potential homebuyers with good income a 95% success rate in buying a home with access to their databases. Do these work? Is this reputable?

Your Questions About Foreclosures

The Expert answers:

I am a realtor in Florida. I would say go to a Realtor. No charge for the buyer in most cases. Seller typically pays all fees…A good Realtor knows what properties are in foreclosure, short sale, bank owned, etc.

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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