Your Questions About Foreclosures | foreclosureorder.com

Your Questions About Foreclosures

Your Questions About Foreclosures

Jenny asks…

What is the best website to find foreclosures or cheap homes for sale in bakersfield CA?

Your Questions About Foreclosures

The Expert answers:

I had a TON of luck with www.ziprealty.com

They even assign you a realtor who can help you with any questions you might have or take you to do any walkthroughs. On the flip side, if you already have a realtor or would rather do it solo, then that is fine too!

Your Questions About Foreclosures

Donna asks…

Are foreclosed homes almost a different market than typical homes for sale?

I’m browsing real estate sales in my area and in the same neighborhood you might see widely different prices on homes sold recently.

I’m guessing that the really low prices are foreclosures and the not so low prices are typical home sales. Is this the case? If so, this gives some hope to those trying to sell their home for a more reasonable price.

If not, then I’m trying to figure out what can cause such a drastic disparity. For example, two virtually identical homes in the same neighborhood sold within days of each other: one at $125k and one at $175k.

Your Questions About Foreclosures

The Expert answers:

That is a very large price disparity if the homes were virtually identical.
Typically a foreclosed home by its nature is a victim of deferred maintenance and even willful damage by the owner.
You might speak to a Realtor who specializes in foreclosures to get some comps on these houses and to understand what causes the large price gap.
But don’t get your hopes up too high, if homes are selling for less in a neighborhood, buyers will not be willing to offer the higher price point. The comps tell the story.

Your Questions About Foreclosures

Maria asks…

What circumstances would qualify a home foreclosure over a Short sale?

What would qualify a home foreclosure to be better than a quick sale?
I have a home with little to no equity: if I short sale I would be required to pay back the difference to the bank. Would It be better for me to just let the house foreclose?

Your Questions About Foreclosures

The Expert answers:

In terms of your credit history, a short sale is better than a foreclosure. If you really cannot afford to make the payments, and the bank specifically told you – you would need to pay the difference, then maybe you should look into President Obama’s loan modification program. You may be eligible for lowered mortgage payments (check in the sources section for more information on this).

Foreclosure is detrimental to your credit score, so if you want to buy another house in a few years, you may be facing very high interest rates. This option along with bankruptcy, should really be avoided at all costs.

If your house isn’t appraising well, check out the government stimulus programs aimed at helping the housing market first. Then make sure you have the facts straight with the lender, and you should always try to save your credit score. Another option may be to refinance into a lower fixed rate mortgage. If your mortgage rate is higher from a few years ago, keep in mind that rates have dropped significantly since then, potentially saving you thousands.

Regardless of what you choose, make sure you have the right facts, as taking what seems like the easy way out can cost you a lot more in the future.

Your Questions About Foreclosures

William asks…

If I go into foreclosure. If my home goes to auction do I owe the amount of the loan remaining?

Or is it better to do a short sale..does this mean the bank will take whatever the home sales for as a settlement? I’m really confused but I got seperated and can no longer afford my home..what is the best options? Or is bankruptcy a solution? Although I heard with the new laws it’s not so easy anymore. I would still owe most of it. Is this true?

Your Questions About Foreclosures

The Expert answers:

In a foreclosure, they take the collateral you put up for the loan (house) and you’re even. The foreclosure goes on your credit record and pretty much destroys it for a long time.

You would RARELY be responsible if they can’t sell the home for what you owe.

Further borrower’s obligations:

The mortgagor is required to pay for mortgage insurance, or PMI, for as long as the principal of his primary mortgage is above 80% of the value of his property. In most situations, insurance requirements are sufficient to guarantee that the lender will get all his money back, either from foreclosure auction proceeds or from PMI.

Nevertheless, in an illiquid real estate market or following a significant drop in real estate prices, it may happen that the property being foreclosed is sold for less than the remaining balance on the primary mortgage loan, and there’s no insurance to cover the loss. In this case, the court overseeing the foreclosure process may enter a deficiency judgment against the mortgagor. Deficiency judgment is a lien that obligates the mortgagor to repay the difference. It gives lender a legal right to collect the remainder of debt out of mortgagor’s other assets (if any).

There are exceptions to this rule, however. If the mortgage is a non-recourse debt (which is often the case with residential mortgages), lender may not go after borrower’s assets to recoup his losses. Lender’s ability to pursue deficiency judgment may be restricted by state laws. In California and some other states, original mortgages (the ones taken out at the time of purchase) are typically non-recourse loans, however, refinanced loans and home equity lines of credit aren’t.

If the lender chooses not to pursue deficiency judgment—or can’t because the mortgage is non-recourse—and writes off the loss, the borrower may have to pay income taxes on the unrepaid amount.

Any other loans taken out against the property being foreclosed (second mortgages, HELOCs) are “wiped out” by foreclosure (in the sense that they are no longer attached to the property), but borrower is still obligated to pay them off if they are not paid out of foreclosure auction’s proceeds.

Http://en.wikipedia.org/wiki/Foreclosure

If you can sell the home for enough to cover your loan, the bank may allow you to do that.

A short sale is something the bank can choose to allow if the home can be sold for almost what you owe on it. They settle for that amount and you’re even without having a foreclosure on your record.

Bankruptcy would be something to discuss with a bankruptcy lawyer if you find yourself in more debt than you could ever handle when the smoke clears from all this. You’d want to know exactly where you stood and cover as many debts as possible with the bankruptcy. So… It would definitely be your last step if necessary.

Your Questions About Foreclosures

Ruth asks…

what web site can i use to find cheap homes for sale.like foreclosures Rep’s?

i want to buy a house thats pretty and cheap where is a good place to look for it any help would be greatly appreciated thanks.

Your Questions About Foreclosures

The Expert answers:

There are several links associated with these websites where I think you can find the information that you are looking for.

My best,
Hope

buy foreclosed houses

http://www.google.com/search?sourceid=navclient&aq=t&ie=UTF-8&rls=GWYA,GWYA:2005-32,GWYA:en&q=buy+foreclosed+houses

buy foreclosed homes

http://www.google.com/search?sourceid=navclient&aq=t&ie=UTF-8&rls=GWYA,GWYA:2005-32,GWYA:en&q=buy+foreclosed+homes

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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