Your Questions About Foreclosures | foreclosureorder.com

Your Questions About Foreclosures

Your Questions About Foreclosures

Thomas asks…

How do I find REO and foreclosures in my area?

I want to buy a house, but with my credit and the amount I want to pay a month, I need lower prices. I also can’t buy a condo due to the FHA we are approved for. I want to be able to make a profit by buying it cheap as a foreclosure and then resell when and if the market goes sky rocketing in California again. Please help me find good and accurate websites with HUD foreclosures and REO properties so I may buy a house.

Your Questions About Foreclosures

The Expert answers:

Just because they are HUD foreclosures and REO properties does not mean they are going to be a good deal.

You have to remember that many people had their houses financed to 100% or more when the market was high. They did not pay on them and the banks an HUD took them back at those high prices. Sometimes you can get a short sale but you can figure the short sale price is going to be what the house is worth on todays market. It not going to be a low priced deal.

It is normally best to find a good agent that deals with people that are behind on their payments before foreclosure starts. Many of them are willing to make a deal to keep from losing the home to the bank and screwing up their credit.

Your Questions About Foreclosures

Donna asks…

What does my PMI cover, and why has this not covered the losses of recent foreclosures?

I thought any mortgage with less than 20% down will automatically be paying for PMI (primary mortgage insurance). Why has this not minimized the bank losses with recent foreclosures? Why am I paying it?

Your Questions About Foreclosures

The Expert answers:

PMI protects up to 90% of the loan amount with proceeds payable to the lender. PMI does nothing for the homeowner, except afford the lender additional security for their risk in lending to you. Indirectly, it allows banks to loan money when prudence might dictate otherwise.

PMI companies ARE paying out billions of dollars to lenders, but again, the lenders must foreclose first, and then file a claim to collect 90% of their losses. This is still not enough to stem the tide.

Keep in mind that a lender might only make 2-4% of the loan amount as profit, after selling the loan. If the loan goes bad, the lender has to buy it back, while making your missed payments. Then, the lender has to go through all of the expense of foreclosing or otherwise settling your case before trying to collect from the PMI firm.

If this was on a loan-by-loan basis, it might not be so bad, but that is not how it works. A lender will package $100 million worth of loans in a single offering. They might sell that bundle for $103-104 million. If the default rate goes over a certain amount, say 3-5%, then the lender has to give back the $103-$104 million all at once.

As you can imagine, it only takes a couple of bad bundles to break a lender. If a lender has a 5% default rate, they are out of business, because they had to pay all of their profits out to buy back those bundles. That’s without even taking into account any of the lender’s expenses of marketing, salaries, and operations.

Defaults are quite high right now, so that is the reason for the collapse.

You are paying it, because you didn’t have 20% to put down on your home. If you did, you would not be walking away, unless your house dropped in value by that much with no chance of recovery.

Good luck!

Your Questions About Foreclosures

James asks…

Is Congress or the Supreme Court deciding to take foreclosures off credit reports?

I’m contemplating letting my house go into foreclosure after my bank would only agree to a short sale if I pay a $17,500 promissory note. My wife thinks we should pay the ridiculous amount to avoid having a foreclosure on our credit report. I think otherwise. I’ve heard that congress or the Supreme Court is looking at legislation that would remove foreclosures from credit reports because so many people have them and it’s killing their credit scores. Is there any truth to this? Are they going to hit the “reset” button” on this?

Your Questions About Foreclosures

The Expert answers:

Absolutely not. I am not sure where you heard this from. If someone is trying to push this idea to you, I suspect this could be another scam. Someone is trying to fool you and make profit out of it. I dont know yet how.

Your Questions About Foreclosures

David asks…

How Many Home Foreclosures Has President Obama Prevented?

Thanks to President Obama, home foreclosures are at an all time low and falling by the minute. President Obama has saved and created millions, upon millions of jobs, created great wealth and the strongest dollar we’ve seen since Woodrow Wilson created the Fed and IRS. Skyrocketing food and fuel is a thing of the past and the United States is now admired and respected by the entire world.

Since my Christian conservative mind is far too feeble to understand accounting methodology used to count jobs saved and created, can liberals tell me the actual number of people losing their homes to foreclosure that would have happened, had President Obama not pulled us from the brink?

Your Questions About Foreclosures

The Expert answers:

Haha you are awesome! And don’t forget inflation is at its lowest ever!!!!!!!!!!!!!!

Your Questions About Foreclosures

Ruth asks…

Why do people keep blaming minorities when they represent less then 10 percent of foreclosures?

I am so tired of people blaming minorities for the huge economic mess… Hello 10 percent of foreclosures are minorities.. 60 percent of all foreclosures are houses that are Jumbo over 400,000, whites dominate this area of foreclosures

Dont you think its racist to blame blacks and Latinos for this mess when they only represent 10 percent of foreclosures?

Your Questions About Foreclosures

The Expert answers:

I notice that too. I agree with you. It was greed or for the love of money. I am sure by both parties played a part but Republican was in charge for six years. I mostly blame Bush. He took from the poor and gave to the rich. Under Bush and McCain want to continue his police, big corporation and the wealthiest benefit not the middle and lower class. }{

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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