Your Questions About Foreclosures | foreclosureorder.com

Your Questions About Foreclosures

Your Questions About Foreclosures

Thomas asks…

How do you legitimately find listings of foreclosures and how do you buy them?

all the websites seem pretty sketchy so how do you really find out how and where to buy foreclosed homes?
In Maryland if that matters?????

Your Questions About Foreclosures

The Expert answers:

There’s two kinds of foreclosures and the listings for both are free. There’s bank foreclosures and govt foreclosures. A book called Complete Guide to Real Estate Tax Liens and Foreclosure Deeds: Learn in 7 Days [ISBN 0978834682] by Don Sausa has web sites and resources on where to find them. In most occassions you can look at the county listings for the govt foreclosures and bank foreclosures are found on their web sites or you call them and ask if they have a list. But if you want a quicker way, get the book.

Your Questions About Foreclosures

Richard asks…

How foreclosures affect poeple? & How does it affect the economy?

give me ideas on how foreclosures affect poeple with or without a foreclosure in their life right now. Ex: lower their credt affect future borrowing
Ex: People can’t find homes

Your Questions About Foreclosures

The Expert answers:

It affects people because it decreases their property value. If ones neighbor gets foreclosed, the bank sells the property way below market. Real estate is valued through comparable properties sale prices. So, if my house is a 2 bedroom 3 bathroom and the one next store is too our house will be worth the same. If the bank sells this house for way less than I paid for mine then the comps will show my house to be way less. If this only happens to one or two homes it is not that big of deal because it is an average price. If there are several homes in the area being sold for that little then it brings the average way done thus making the comps lower. Basically buyers will see houses coming up for sale for cheap and expect that price.

Since most people have most of their money in their homes this loss tends to really hurt. It ends up being a good portion of the persons overall wealth. People buy homes before stocks, so when stocks decline it is usually just extra savings to invest. Real estate is a percentage of income.

Most foreclosures in the current market are speculators and investors. This is one aspect that the media conveniently does not mention. Speculators foreclose rather than taking a loss. Then next largest group are people who made mistakes. For whatever reason they are no longer able to afford a home. Most were sub-prime ARM mortgages. Basically people who are not very financially savvy or responsible bought homes they could not afford.

Your Questions About Foreclosures

William asks…

What is the number one reason why foreclosures keep rising?

I’m going to go out on a limb here and say its because more people are not making their required mortgage payments.

What do you think?

Your Questions About Foreclosures

The Expert answers:

There’s really no “number two” reason. Like you already stated, when borrowers default on their mortgages, the lenders really have no choice but to foreclose the delinquent loans to prevent further losses. What other reasons could there be?

However, the reasons for the rising number of defaults are more complicated. High umployment rate, continued depreciation of real estate properties, and expected increase in interest rates in the near future are all important factors, besides many others.

Your Questions About Foreclosures

Helen asks…

What do think the Mortgage Lenders and the Government will do about the rising defaults and foreclosures?

They have to do something about this otherwise more defaults are going to happen. Do you think they are going to create some breaks on mortgage financing, such as lowering rates and offering 50 year fixed loans, so many people are able to afford the payments. Or are they just going to let more borrowers go into foreclosure? If this continues to happen, we may see a depression coming in the near future.

Your Questions About Foreclosures

The Expert answers:

The government will do little if anything.

Mortgage lenders have already started by tightening up guidelines. Just a few months ago, someone with a 580 credit score could qualify for a 100% mortgage, but now the minimum score is 620.

Interest rates will not go down as a result. Mortgage rates are determined by the secondary market, not regulation.

Woof.

Your Questions About Foreclosures

Mandy asks…

What are the Virginia laws in regards to foreclosures? Can the lender come after your other assets?

I have an investment property that I can no longer make payments on and wanted to see if the lender can come after my salary, 401k, etc. in Virginia if I walk away from the house.

Your Questions About Foreclosures

The Expert answers:

If the lender forecloses and sells the property for less than you owe (including all the foreclosure fees, interest, per diems, selling costs, etc.), it can sue you for the balance. If the lender then gets a judgment against you, your pay is subject to garnishment, your real estate can be liened and your bank accounts can be seized. Your 401k is probably exempt.

Also, be aware that judgments are valid for a very long time – 20 years in some states. They also accrue interest until paid – at much better than market rates.

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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