Your Questions About Foreclosures | foreclosureorder.com

Your Questions About Foreclosures

Your Questions About Foreclosures

Ruth asks…

How do banks make money off of lending and then foreclosures?

and which do they make the most from and how?

please explain.

btw, what is your opinion on the acts past by governments that give “aid” somehow..how has this benefited banks or people who are in trouble of foreclosures?

has this always been the case?

also, please explain.

btw, which area of world are you and how is situation there now regarding this issue? and how do you think it will improve or not? why and how so?

thanks for your answers!

Your Questions About Foreclosures

The Expert answers:

Banks make money lending by borrowing at rates lower than they lend. A most profitable example would be credit cards, they borrow at 4% and charge you 15%. Assuming they can keep their cost down, they profit every time you rollover your balance.

Banks do not generally make money in foreclosure. In the past it has, in general, been a break even game. At the moment the volume is so heavily that they are loosing money hand over fist. For example, if the bank loans you $150,000 to buy a house and you default, they have to sell the house for an amount that is greater than the loan balance and the realtors commission plus all the fees associated with the foreclosure process to break even…lets call it $160,000. (because they have to pay all the costs out of pocket before they can get their money back) In today’s market, that is impossible. They are being force to liquidate the house for $125,000, $100,000…or worse…taking losses of more than 50% of the loans value.

I have a marginally negative view of the governments “aid.” For one, they are a significant part of the cause of the crisis. For another, so far, it does not appear that anyone is getting direct government aid for mortgages…it looks like the free market is mostly working out the details while the government talks and talks and talks…

Your Questions About Foreclosures

Betty asks…

Why is my realtor stalling on showing me foreclosures and / or shortsales?

Tell me, do realtors make a smaller commission on foreclosures? I have excellent credit, a downpayment, and I have never owned a home before. Also, I am pre-approved. Why does he keep trying to sway me away from short sales and foreclosures? Obviously, there is something that is not in his best interest to sell me either of the two?
I know absolutely nothing about this business.
Please advise.

Your Questions About Foreclosures

The Expert answers:

They’re just hard to deal with. If you really want a realtor that will have no problem showing you shortsales and foreclosures, do yourself a favor and look for one with a “SFR DESIGNATION.” If you find a realtor with that designation they will be much more inclined to deal with shortsales/foreclosures. They are specialized in them. Depending on what state you are in, they may have different names. I am a realtor in Southern California and that’s what the designation is called here. You can look up more information at NAR.org i believe. I wish you the best of luck!

Your Questions About Foreclosures

James asks…

Does anyone know how to find foreclosures without paying these websites?

I’m looking for foreclosures in the Yakima, wa area. It seems the only way I can find them is to pay a web site for access to the info on them. My self I thought this was public info and I should be able to see them without paying a private company for the info. Does anyone know how I can access this info with paying for it?

Your Questions About Foreclosures

The Expert answers:

Don’t pay for those websites, the information is notoriously inaccurate.

Available foreclosures will be listed in the MLS, 99% of lenders use Realtors to liquidate their REOs.

Your Questions About Foreclosures

Mary asks…

What section of the news paper do I find legal notices such as foreclosures and NOD’s?

I’m looking to find local foreclosures in my area when they are announced to the public. Where in the News paper would I find all the legal notices.

Your Questions About Foreclosures

The Expert answers:

In the Classified Advertisements, there is a section dealing with legal notices from governmental agencies, including those responsible for liquidating foreclosures. The advertisements appear in larger, regional dailies.

Your Questions About Foreclosures

Joseph asks…

Where can i get a free list of property foreclosures?

Every time i try to acquire a list of foreclosures, they want money.

Your Questions About Foreclosures

The Expert answers:

Dont bother. You will be out bid by other companys. And businesses.

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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