Your Questions About Foreclosures | foreclosureorder.com

Your Questions About Foreclosures

Your Questions About Foreclosures

Robert asks…

Will the abundance of recent foreclosures lower the credit standards?

It is my opinion that because so many people are defaulting on their mortgages, they are probably defaulting on other loans in order to try to keep their homes.

If a high percentage of Americans have bad credit, then will the financial industry have to lower the standards for credit in order to continue making loans/money????
I worked in the mortgage industry until recently and am aware that lending practices are becoming stricted because of the abundance of foreclosures. But eventually these companies are going to feel the effects of these recent changes and will have to offer subprime mortgages or lower the standards if they want to stay in business.

Your Questions About Foreclosures

The Expert answers:

In the short term, obviously not. Credit is drying up for nearly every type of borrower, not just the ones with bad credit. Loans are even harder to get for small and large businesses, with the money markets being tighter now than a year ago.

But in the long run, you may be on to something. Banks may not just hand out money to people with bad credit to buy whatever home they want, which was one reason so many deadbeats took out loans they never intended to pay back. Credit scores, though, may become less of a deciding factor in purchasing a house in the future.

Obviously, credit scores determined whether borrowers would get a lower or higher interest rate, but neither subprime nor prime borrowers are having an easy time keeping up with ARM payments. And no matter how much they make and how good their credit is, people do not like the feeling of paying more for a house than it is worth.

Since one consequence of the fallout in the housing market will be lowered credit scores for large numbers of people, lenders may begin focusing on the borrowers’ financial positions, instead of just pulling a credit score. That means down payments, stable income and job history, and some extra cash in the bank may be more important in the next few years than having a great credit score.

A lot of people won’t have great credit scores to show, and having a foreclosure/bankruptcy in the previous few years is not going to help at all. But if they’ve saved up some money and can make an investment in their next home purchase, banks may be willing to overlook the credit situation.

So we may be moving from a wide-ranging credit scoring system to group potential borrowers to a more case-by-case basis of looking carefully at financial positions instead. With so many facing foreclosure, repossession, bankruptcy, or charged-off credit cards, a more adaptable system seems to be needed.

Hope that helps. Interesting question.
ForeclosureFish

Your Questions About Foreclosures

Lizzie asks…

How can I find an inexpensive programmer for pre-foreclosures and foreclosures on real estate? Website?

Can I utilize a program and NOT utilize a website?

Your Questions About Foreclosures

The Expert answers:

You probably know which area you want to purchase in already. The best way to do this is to go to the source. Go into the banks in the neighborhood that you are interested in and ask for their foreclosure lists. The banks want these properties off their books in the worst way. It really screws up their cash flow and they will go out of their way to help you purchase one of their foreclosures. In many instances they will come up with special loan packages just to help you out. Its a Win Win situation. The bank clears its books and you get a good home at a good price. Why talk to agents and middle men when you can go right to the source and do it yourself. Good luck.

Your Questions About Foreclosures

Ruth asks…

What does Mccain think about FORECLOSURES and JOB OUTSOURCING?

All he has said so far is that he doesn’t quite understand Economics. Do you admire such honesty?:) D you think if you’d practice such honesty at your job you’d have a job?

Your Questions About Foreclosures

The Expert answers:

Same as Obama cause they are on the same team and its called the CFR!

Your Questions About Foreclosures

David asks…

Are foreclosures going to be forgiven on primary homes?

I just heard from a local attorney here in florida, that he is telling his clients to go ahead and let it go into foreclosure because they are going to be forgiven. Has anybody heard that? Is this actually true?

Your Questions About Foreclosures

The Expert answers:

It is true for a small number of people.

If it was the initial purchase loan and it was never refinanced then you will be forgiven the tax burden and a few states disallow a law suit for the default amount. The tax forgiveness is federal income tax, some states (CA is one) will still expect income tax on the full amount of money the borrower spent.

Your credit will be shot in every state.

Your Questions About Foreclosures

Mandy asks…

Would you join in organizing against foreclosures in your community?

Some sheriffs have refused to enforce eviction notices. Would you be willing to support people who refuse eviction notices?

Many people have been deceived and have been lied to by unscrupulous and greedy people.
If deceptive loans and terms were applied on a broad basis, should we follow the lead of some sheriffs who refuse to play along?

My preference is to fight the banks who have been bailed out and who now want our homes taken under false pretenses.

Read the Declaration of Independence carefully.

Your Questions About Foreclosures

The Expert answers:

I would… And I wouldn’t

I would because the loans and credit system in America is totally f*cked.
My mom almost lost her house to foreclosure and I had to drop out of college to work to help her save it and that wasn’t fun! The circumstances leading up to the foreclosure are all systemic problems of education, and economics, we’re not talking about a woman who drives a Lexus or has premium cable or actually ANY credit card debt all her debt is the house and her education and she works like a draft horse so its not that she’s lazy she owns her own business and being a small business owner with only one employee in the US is ridiculously un-profitable. Oh I could soooo go on a tirade right now. But the point is that I totally understand that the system we have is designed to stick it to the poor folk keep them poor and uneducated and make the rich folk richer.

BUT I say no I wouldn’t because personally if I want to buy a home soon, an older home that I can fix up and love, my only real options if I don’t want a new development (which I DON’T ) are foreclosed and HUD homes at least where I live currently.

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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