Your Questions About Foreclosures | foreclosureorder.com

Your Questions About Foreclosures

Your Questions About Foreclosures

Joseph asks…

DO real estate appraisals compare single owner homes to foreclosures when looking at price?

My house just went under contract to sell. A lot of houses that have sold in my neighborhood in the last 6 months have been foreclosures, with very low prices. Are these the comps my appraiser will be looking at, or do they have to exclude foreclosures? Most of the non-foreclosures that have sold have been priced higher than me, but are bigger. I am worried, I want out!

Your Questions About Foreclosures

The Expert answers:

All sales are included. The foreclosure price is not, the price the bank paid themselves. But if the home had a buyer other then the bank the price is included as a sale.

Your Questions About Foreclosures

John asks…

With all the bailout money, why is nothing being done to delay actual foreclosures ?

and keep people in their homes?

I mean..money has been given to banks to bail them out from their bad financial decisions….but from what I hear foreclosures are increasing at an even further rate. They say soon 8 out of 100 morgaged homes in USA might be in foreclosure by middle of next year.

Your Questions About Foreclosures

The Expert answers:

Bailing individuals out won’t solve the underlying problem and you’d just be delaying foreclosures that are going to happen because of economics.

Your Questions About Foreclosures

Thomas asks…

Hillary Clinton supports freezing foreclosures, what effect would that have on the economy?

What effect would freezing foreclosures have on the economy short and long term? is it a good idea?

Your Questions About Foreclosures

The Expert answers:

In every economy, there have to be tops and bottoms. The real estate business had a top that went way beyond a normal business cycle top. Therefore, the bottom is going to be painful until we shake out all the excesses of the over-exuberance of the past.

Forcing a stop to all foreclosures puts a temporary halt on the shake out that is necessary for the real estate and banking markets to self-correct. It won’t correct the problem caused by the banks who made stupid loans. In the long run, stopping foreclosures will prolong the time it would take to recover from this bottom.

Your Questions About Foreclosures

Richard asks…

Are two foreclosures just as bad for your credit as one?

My husband and I are facing a foreclosure on our rental property and we’re considering walking away from our primary residence, a condo, also. Would two foreclosures be just as bad as one?
My husband and I are facing a foreclosure on our rental property and we’re considering walking away from our primary residence, a condo, also. Would two foreclosures be just as bad as one?

As an added bit of info- we already pursued a short sale with the lender for our rental and they let 6 months pass and 5 buyers walk.

Our primary residence, the condo, has been up for sale for 6 months and we’ve had 2 offers that were too low for us to afford (we would have been owing money). We can’t rent the condo and break even on our mortgage and there are 10 others just
like it for sale with the owners having lots of equity to negotiate with (we used ours to buy the rental).

While we understand that the foreclosure means that we will be renting for a very long time, we’re wondering if we should just move before the condo’s interest rate goes up and we are paying WAY too much for a one bedroom condo just for the sake of avoiding another foreclosure.

Your Questions About Foreclosures

The Expert answers:

One foreclosure is bad enough, but two, yes, it will lower your FICO score among other credit indicators. If they are occuring at the same time, you are in luck because they are disappearing at the same time (7-10 years after the incident). I’ve seen credit scores dive up to 200 points after one foreclosure, I can only imagine what another foreclosure will do.

Good luck and if you want to learn more about foreclosures and how the process works (and how to invest in them in the future), read this book: Complete Guide to Real Estate Tax Liens and Foreclosure Deeds: Learn in 7 Days [ISBN 0978834682] by Don Sausa

Your Questions About Foreclosures

Robert asks…

Foreclosures: How many people do you know?

I am curious with all of the stories in the news about real estate foreclosures, how many people are actually being foreclosed on. Do you know of anyone who is suffering foreclosure? How many people? If not foreclosure, what are the other mechanisms they are using to avoid it?

Your Questions About Foreclosures

The Expert answers:

Well, well! You’ve asked the right question on the right day. I live in Ohio and we’re flip-flopping with Michigan and Florida on any given day for who’s #1 in foreclosure rates.
I used to work at a non-profit that speciallized in promoting homeownership. There was a great need to begin counseling those who were in danger of losing their homes, so we started doing that. I do know of many cases (but I don’t know them personally).
Any-who. At our busiest, I’d say we counseled about 50 new people in a 1 month period. The flow was not always THAT high, but it was steady…and we were not the only foreclosure counselors in the city, so many were being serviced at other places.
My organization was able to give gap loans to qualifying clients. We could loan up to 3K to bridge the delinquency gap. Those loans were tacked on to the end of their mortgages. Unfortunately, there were many cases that were beyond saving. The clients did not communicate with their lenders immediately (like they were supposed to) and instead spiraled out of control by living off credit cards and letting those bills and others go….
Some cases were just really ugly. So basically, we just did the gap loans. The clients were beyond forbearance and payment arrangements.
For those who were able to avoid it, everyone in the household who was old enough to work went to work. If they already had a job, they got another. (Talk about bootstraps!) Some clients traded in their vehicles for less expensive ones and sold “extras” like motorcycles and boats. Some others were able to refinance their mortgage with a different company. The interest rate was an incentive-rate type deal at first (hence, the foreclosure issues), but their payments were reduced and that helped.
Unfortunately, I’ve seen a bit of everything.

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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