Foreclosures Help Information

Archive for June, 2008

Durham Foreclosed Homes

The subprime market crash has affected minority neighborhoods all over the U.S. Why? The reason is because they were heavily targeted for risky high cost loans. With millions of Americans who are suffering from inflating mortgage payments due to adjustable rates, balloon payments and other unscrupulous sub-prime programs, many people are now in panic mode, having recently lost their homes or living in constant fear that their homes will be lost.

Boston-based United for a Fair Economy, which is an economic policy group for minorities released a study about subprime mortgage crisis. In a report called "State of the Dream 2008: Foreclosed" report, an evaluation of subprime lending during the past eight years, and a direct loss from defaulted subprime loans ranging between $365 billion and $605 billion is what is projected.

55 percent of the bad subprime loans are held by whites, while minorities hold the other 45 percent. Borrowers who are projected to lose between $71 billion and $122 billion are African-Americans, who account for about 20 percent of the total losses that are projected. Latinos are projected to lose $76 billion to $129 billion for the same period. This would total about 21 percent of the burden from the subprime defaults.

Rocco Basile, a product manager with Basile Builder's Group said, "It is bad here in New York, and especially in places like Brooklyn with a higher number of minorities.". "Our goal is to help answer questions and provide the community here with guidance and advice via seminars."

According to a January 26, 2008 Bloomberg subprime article, the communities of Bedford-Stuyvesant and Crown Heights in New York had a foreclosure rate of almost four times the national subprime figure of 6.89 percent in October of 2007. One ion four owners who had subprime mortgages in the 11233 zip code areas lost their homes. This was the highest number since March of 2003 according to the Mortgage Bankers Association in Washington. Bedford Stuyvesant and Crown Heights is mostly black, there were 194 foreclosures out of 770 subprime borrowers, according to Federal data.

It appears that many of these minority families had credit scores that led them to predatory loans with extremely high interest. According to a 2006 study of 50,000 mortgages by the Center for Responsible Lending in Durham, North Carolina, blacks and Latinos are 30 percent more likely to be charged a higher rate for a home loan than whites with credit histories that are similar. What's more, subprime loans were available to those borrowers with incomplete or bad credit and these loans carry higher interest rates than loans to people with good credit histories.

Sharp increases in subprime mortgage loan delinquencies and also the number of homes entering foreclosure raise important economic and social questions.

About the Author:

Kristin Gabriel is an author and social media marketing professional with clients including Rocco Basile of the the Basile Builders Group based in New York. Basile is involved in charities including Children of the City and the Joe DiMaggio Committee for Xaverian High School. Visit his website at www.roccobasile.org.

Article Source: ArticlesBase.com - Subprime Loan Problems Hit Minorities Hard

The ANNIS Team - Oshawa Real Estate - Durham Region Homes For Sale

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Auctions Foreclosed Homes

Question: buying a government/foreclosed home at auction, seems sketchy, unsure?

have you done it, did it turn out good or bad?
It seems so sketchy, but the homes are so cheap and my husband and I are looking to buy, but were told that a "title search" is our responsibility, and sometimes you can't even see the inside of the home.

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Answer: i know of some ppl that would buy houses at auctions or foreclosures...they would fix them up and sell\rent them out...of course you can also live it in yourself...alot of times the houses are "gutted" but it's kinda nice because you can redo the way you want.

Sold! Foreclosed Homes Auctioned Off

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Savannah Ga Foreclosed Homes

Home foreclosure is the financial world's "neutron bomb": Hopes and dreams are shattered, families torn apart, and yet the house remains standing.  And then there's the agonizing aftermath.  Banks treat you like a leper.  The media vilifies you as either an unwitting dupe or a scheming prodigal.  Sometimes it's hard to envision an upside to all the suffering.

As landlords, my colleagues and I are witness to the record numbers of former homeowners, casualties of the housing meltdown, now applying for rental homes.  Their credit reports tell the sad story of financial catastrophe, culminating in repossession, bankruptcy, and foreclosure.

Here in Atlanta, we know about rising from the ashes of defeat.  During the Civil War, General Sherman left our beloved city in smoking ruins as he marched his Union troops toward Savannah.  But look at us now!  Metro Atlanta is one of the fastest-growing areas in the country and the unofficial capital of the South.

To those families struggling to make their way back to home ownership, our message is one of hope.  Here are 7 reasons why we landlords actually prefer working with folks who have experienced foreclosure (and learned from it):

1. You understand the true benefits of home ownership – No one has to tell you why owning beats renting.  Deductible mortgage interest and property taxes are two obvious financial plusses.  There's also the comfort of knowing that a fixed-rate loan means principal and interest payments will remain the same for the next 30 years.

Moreover, former homeowners generally take more pride in their residence, even if they are only leasing.  You also tend to be more active in your community and more concerned about keeping the neighborhood safe and well-maintained.

2. You know maintaining a home takes work – Every house, no matter how new or well-built, requires upkeep and routine care.  First-time homeowners face a steep learning curve of household maintenance chores.  As tenants they didn't need to know that changing a $2 furnace filter could avoid a $1,000 HVAC repair bill.

Former homeowners also know the difference between a minor repair they can handle themselves and major problems that require a landlord's involvement.  You are capable of tackling the inevitable dripping faucets and running toilets yourself with a trip to Home Depot. Believe me, landlords love that.

3. Your expectations are more realistic – Back when mortgages were easy, we watched as homebuyers pushed the limits of their credit far beyond their budget.  The humble 3-bedroom starter home was cast aside for the 4BR / 2.5BA super deluxe model with all the upgrades and extras.  Only too late did buyers discover the higher costs to heat all that extra square footage in the winter, cool it down in the summer, and keep it clean year-round.  Today, former owners focus on finding modest, affordable homes with the living space that they actually need.

4. You're not afraid of the loan process – You probably have a vague recollection of your home closing as a confusing blur of long, unread legal documents and hastily notarized signatures.  Now you understand, perhaps with a twinge of regret, how vitally important it is to read and comprehend every legal document before you sign.  At your next home closing, we bet you won't be so intimidated and so distracted by the significance of the occasion.

5. You've eliminated the frills from your finances – When your financial ship is sinking, you quickly learn the difference between need and want.  Suddenly, that premium cable TV package seems a lot less important than paying your gas bill.  And, perhaps you can learn to live without the latest designer labels, if that means keeping your car note current.  Life is a series of choices, and we landlords like knowing that we're working with families that have their priorities firmly in line with their ultimate goals.

6. You've already paid more per month, so less should be easy – The downfall of many former homeowners was the dreaded adjustable-rate mortgage.  Monthly payments that started out affordable suddenly skyrocketed as "teaser rates" expired, driving many buyers directly into financial ruin.  Most of those exotic loan programs are long gone, as are many of the lenders that touted them.  These days homeowners are flocking to safe, stodgy FHA-backed programs that offer fixed-rate, 30-year loans.  With home prices leveling off and interest rates still low, your next loan will likely be more affordable than the one that caused you so much grief.

7. You've got the benefit of life experience – "Once bitten, twice shy."  The wisdom of the ages is full of proverbs on the topic of failure and redemption.  Surely, no one who has survived financial ruin needs to be reminded not to repeat the offense.  But, perhaps a taste of the "agony of defeat" is an essential part of personal growth.  We landlords feel that anyone can earn the right to a "do-over" so that they can try again with the benefit of experience and hindsight.

We know the road to recovery is rocky, but it can get easier.  With time, hard work, and the right financing programs, you too can rise from the ashes of disaster and recapture the dream of home ownership.

About the Author:

About the author
For nearly a decade, Josh Spenser has been a property manager at Home Pride Properties, Inc., in Smyrna, Georgia. See our resource library at http://www.Home-Pride.com for more tips on landlording, owner financing and home buying. Reach Josh at [email protected].

Article Source: ArticlesBase.com - 7 Reasons to Love Foreclosed Homeowners: Plucking Diamonds from the Ashes

Fuller Center Bike Adventure

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