Your Questions About Foreclosures | foreclosureorder.com

Your Questions About Foreclosures

Your Questions About Foreclosures

Michael asks…

What public Website can I go to to view all federal foreclosures without registering to a non federal site.?

I don’t wanna go to these third party sites. I just donno which the right one is.

Your Questions About Foreclosures

The Expert answers:

I haven’t been able to find any single website that offers this but if government siezed assets are up your ally you might try bid4assets.com

Your Questions About Foreclosures

Laura asks…

What caused the increase in foreclosures ?

I don’t understand why people are complaining about this and why our government have to bail these people out. Most of my family are middle class people and they did not experience this because they were responsible. I am thinking it is the these peoples fault who failed to plan properly not the tax payers
The banks are there to make money. Loans are not free, people know but they always seem to have a false sense of security. It is the mostly the burrowers fault not the lender. No one can force you to get something you dont want or cant pay.That is why we have to sign contracts.

Your Questions About Foreclosures

The Expert answers:

Is it people’s and the banks fault that shaky loans were handed out and expectations did not come to pass? Yes.

Unluckily, the ramifications of the foreclosures do not stop at the doors of the people being foreclosed on nor the banks. Absent any action from te government, foreclosures are expected to hit 2 million in the next year, on top of the foreclosures that have already occurred. This level of foreclosures hurts you and your family, even though you have been responsible, by lowering the value of your house (simple supply and demand – all the foreclosures place too much supply on the market).

Next, all the foreclosures impact the banks bottom line, meaning higher write-offs which will require higher interest rates to offset the higher losses. These rates will eventually filter down to credit cards, etc., eventually again impacting anyone who holds credit cards or wants to take out a loan in the future.

In addition, lack of liquidity will cause further tightening in the availability of loans, thus making it harder for everyone to get a loan.

Eventually (in the more near-term), banks will go out of business (Wachovia, WaMu), putting people on the street. These unemployed folks will impact the surrounding area as demand for day-to-day goods declines, hurting the Mom-and-Pop stores, supermarkets, etc. So, expect that layoffs in the baning industry will spur more foreclosures, layoffs elsewhere, etc., causing a ripple effect.

Now, if this effects were localized, other things besides a bailout could be done (entice other businesses or banks to come in and hire folks, tax breaks locally to get others to build plants and offices). Unluckily, this is not localized and the impacts will be felt by all.

Add to this the turmoil in the financial markets which has erased equity people have built up in stocks and bonds. If you have invested, you have seen what the banking crisis has done to your holdings. Multiply this through the middle class and then magnify if there is no bailout. Innocent people get hurt badly.

Though we might not like the bailout, nor having to pay for it (and we should pay less than originally thought under the revised bailout bill), sometimes the cure has to be tolerated for the long-term good.

Your Questions About Foreclosures

Paul asks…

Are foreclosures a bad idea or a good way or saving money?

My finance guy tells me that I should be looking at getting a foreclosure, but my real estate agent keeps saying that there are too many horror stories and he rather I not buy one.

What do you think?

Your Questions About Foreclosures

The Expert answers:

It depends. Foreclosures are generally risky, and are best left to those with deep pockets. Sometimes it works out great and sometimes you get burned. Are you rich enough to take the financial hit if the one property you get is a bad one? Ask your finance guy if he would recommend that you put all of your money into one stock, because it could be a good deal… Things could end badly.

And I don’t just mean that it’s in bad condition. Depending on how you buy the property (auction, bank, market) you could wind up paying tens of thousands more than you expected just to close on the property.

I’m a Realtor. I buy foreclosures. Sometimes I flip them for below market prices. Sometimes I rehab them completely. I make money in this way because I absorb some of the risk of speculating on condition of the house, and because I’m familiar with the process. It’s less risk to the buyer, and they still get a good deal. You may try to find one of these. There will be some in your Realtors database, though they may not be marked as being foreclosures.

Sometimes I see newbies at the auctions. They want to “invest” in foreclosures. It’s funny, because they always overpay for properties – bye bye bank account – and I know they won’t be back.

Just be careful.

Your Questions About Foreclosures

Richard asks…

How can you locate pre-foreclosures and potential short sales?

I am interested in buying a first home on the South Shore of Long Island. How do you get information on properties that are underwater where your buying may really help the seller already in trouble and at the same time pick up a decent livable property?

Your Questions About Foreclosures

The Expert answers:

The only way I know of is to beat the streets. Find a desirable neighborhood and then talk to the neighbors. Neighbors can offer a wealth of information about such situations that are getting tense for homeowners in trouble. I believe your strategy is smart, but to get the deal of the century you are going to need to get your ducks in a row even before you go out investigating to secure a loan that can close quick because the property you eventually find will be had because the sale can happen right away. Good Luck.

You could also speak to a few more established Realtors and mortgage brokers in your area that have had lots of clients and would know if any of their past clients are in trouble.

Your Questions About Foreclosures

William asks…

Lower car prices due to all the repossessions due to home foreclosures?

Did anyone see this report that there is a glut of used cars due to all the repossessions because no one can make car payments with their homes foreclosing?

Does this mean you can negotiate lower prices with dealers or they don’t care?

Your Questions About Foreclosures

The Expert answers:

Dealers only care about what they paid for the vehicle and what they can sell for at their establishment. With this information about repossessions, if its possible for dealers to buy vehicles cheaper at auctions, then this can lower the retail selling price due to the supply & demand of the vehicle.

The economy is ever changing, and if cars become cheaper in general due to all the repo’d cars, then this discount would also apply for their cost. This happened after Sept 11th because the new cars sold for 0%, which significantly dropped the value of the used cars and had a domino effect for each model year. I hope this helps and it’s only an opinion.

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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