Foreclosures Help Information

Archive for June, 2009

Foreclosed Ocean Front Property

Active duty military personnel who are having financial problems with their mortgage payments have some avenue of help under the Soldiers and Sailors Relief Act which can be very beneficial to them and to their families.

Who is eligible for this program?

The provisions of the SSRA apply to active duty military personnel who had a mortgage obligation prior to enlistment or prior to being ordered to active duty (for Reservists). This includes members of the Army, Navy, Marine Corps, Air Force, Coast Guard, as well as commissioned officers belonging to the Public Health Service and those in the National Oceanic and Atmospheric Administration (NOAA) who are engaged in active service. Military reservists ordered to report for military service and those persons ordered to report for induction under the Military Selective Service Act as well as guardsmen called to active service for more than 30 consecutive days are also covered under the act.

In the area of home mortgage protections, the act limits the amount of mortgage interest that may be charged on home loans incurred by a service member (including debts incurred jointly with a spouse) before he or she entered into active military service.

Once requested by the home owner, mortgage lenders must reduce the interest rate to no more than six percent per year during the period of active military service. They must also recalculate future payments to reflect the lower rate. This provision applies to both conventional and government-insured mortgages.

It is important for those covered by the act to understand that this is not an automatic system. In order to request temporary interest rate reduction, you must send in a written request to the lender. This submission must include a copy of your military orders. The request may be submitted as soon as the orders are issued but must be provided to the lender no later than 180 days after discharge from active duty military service.

Some of those who are covered by the act may find that they cannot make the payments even at the lower rate. If this happens, the lender may let the member stop paying on the principal while the member is on active duty. They are not mandated to do this, but many of them will. The amount that is adjusted will still have to be paid but at a later time, once active duty service is completed or financial status of the member improves.

It is also important to know that many home mortgage lenders have other programs available to help those in need. If you or your spouse should fall into this category, contact your lender immediately and ask about loss mitigation options.

For those with FHA insured loans who are finding it difficult or impossible to make the required payments, FHA has special forbearance and other loss mitigation options that you may be eligible for.

Lastly, those covered under the act should know that mortgage lenders may not foreclose, or seize property for failure to pay, while a service member is on active duty. They may not do foreclose, as well, within 90 days after discharge without court approval. In order to get court approval, the lender would need to prove that the service member's ability to repay the debt was not affected by his or her military service.

You can learn more the Soldiers and Sailors Relief Act online or at your military base.

About the Author:

Peter Kenny is a writer for The Thrifty Scot, please visit us at Mortgages and Refinance
Visit Scrooge Banks Delay SVR Rate Cut

Source - How To Use A Military Mortgage

Pre-Foreclosure Oceanfront Condo Jacksonville Beach

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Foreclosed Mansions In Atlanta

With 1 in every 483 households in the U.S. facing foreclosure, it only stands to reason that us common folk aren't the only ones affected by the housing crisis. It's just as easy to create a mountain of debt by borrowing against a multi-million dollar estate, as it is for a moderately priced home. Here are some of the celebrities added to the country's growing list of foreclosures.

Sadly Ed McMahon, former Tonight Show announcer, is facing foreclosure for $4.8 million dollars of mortgage loans on his Beverly Hills estate. Plagued with bad press, this luxury home overlooking Coldwater Canyon and Mulholland Drive has been up for sale for $6.25 million for the last two years. Initially McMahon faced problems due to mold infestation which he claimed killed his dog and affected the health of both him and his wife. Then he fell and broke his neck and was out of work for 18 months. How would any of us deal with a back mortgage and loans totaling $4.8 million after being unemployed that long? Ed, take this as a sign, maybe it's time to down size and retire.

Evander Holyfield, former heavyweight boxing champion is facing foreclosure on his Atlanta, Georgia estate. This 104-room, 54,000 square-foot home worth approximately $10 million, goes up for auction on July 1.

Jose Canseco, former major league baseball player recently lost his 7,300 square foot home in Encino to foreclosure. As he stated, "It didn't make financial sense for me to keep paying a mortgage on a home that was basically owned by someone else." He didn't mention how much the home was actually worth, but he owed the bank $2.5 million on the house.

Michael Jackson - In 2007 after borrowing against it, to the tune of $23 million, the ranch valued at only $6 million faced foreclosure. Recently, however, a private equity group bought the loan on Neverland Ranch and is discussing the option of a Las Vegas casino gig as repayment.

In May of 2008, the $600,000 home of NBA star Latrell Sprewell went into foreclosure. This came only months after his 70-foot yacht, "Milwaukee's Best" was also repossessed. Sorry Latrell, maybe you shouldn't have turned down the $21 million contract extension Minnesota offered you.

Grammy Award-winning Aretha Franklin received a notice of foreclosure against her Detroit mansion after failing to pay a $162.14 tax bill dating back to 2005. Last we heard, the bill was cleared up.

Veronica Hearst, step mother of SLA hostage Patty Hearst, faced foreclosure on her 28,000 square foot, 52-room villa in Palm Beach. Her defaulted mortgage payments totaled about $33,000,000. It's hard to believe the deficit was allowed to get that high before the bank stepped in.

Nicole Murphy was unable to make payments on the 11,158 square foot mansion she was awarded in her 2006 divorce settlement from Eddie Murphy. Last October the house was put on the market for the bargain price of $6,500,000.

About the Author:

Learn more about For Sale By Owner Spokane homes at HomesByLender.com, a website with regularly updated For Sale By Owner listings in every state in the nation - buyers and sellers interested in FSBO can use this site as their primary resource.

Source - High-end Foreclosures

53 3302009 Stn Mtn Mansion for shack price 130k BACK ON MARKET

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Michigan Tax Foreclosure Auction

In the third quarter of 2006, Detroit real estate suffered more foreclosures than other states; in fact, bank foreclosed on four times as many homes there as compared with the national average.

RealtyTrac is an online foreclosure resource, which documented that Detroit’s mortgage failures were up 43% since 2005.  Some contributing factors have been the steadily rising home prices, as well as the resetting of variable mortgage rates.

Two other cities suffering similar rates of foreclosures were Fort Lauderdale, FL and Denver, Colorado.

During the same time period, among metropolitan cities, Bethesda, Maryland, boasted the lowest foreclosure rate – about one in 5,500 homes, or roughly 1/68th of what was reported for Detroit.

Among cities with high foreclosure rates, only Indianapolis achieved any recovery during that same quarter, slowing just fewer than 3%.

Local dynamics of Detroit economics

The Detroit real estate landscape has been exacerbated by specific regional challenges, such as the local employment market.  Detroit foreclosures followed auto industry layoffs, which continue to be prevalent. 

In early 2007, Michigan’s unemployment rate was 7 percent, the highest in the country, as documented by the Bureau of Labor Statistics.  That rate of joblessness was began around 2003, when Ford made considerable cost cuts and eliminated jobs in its efforts to meet Japanese competition.

Loans carried by “solid” borrowers

Ironically, a higher percentage of Detroit area mortgages are prime loans, made to the most credit-worthy borrowers.  Nearly 80 percent of the loans originated in 2006 were “A paper,” a few points higher than the national average.

Even those homeowners in Detroit who are making timely mortgage payments are feeling the impact of the high foreclosure rate.  As neighbors’ loans default and Detroit REOs rise, prices quickly dropped 10 to 20 percent.  This kind of decline in value can leave homeowners upside down, owing more than the property is worth.

There is a type of “guilt by association.” A whole neighborhood is stigmatized when auction signs and bank foreclosures appear.  The good neighbor, who meets his payments and maintains his property, is nonetheless negatively impacted.

Even on Wildemere Street, an upscale Northwest Detroit neighborhood, there is some adversity.  The two-car garage, Tudor homes sell for twice the city’s median price, yet one fourth of the houses are vacant.  Many of the unoccupied properties display auction or foreclosure signs.

Taking profitable advantage of Detroit foreclosures

While the statistics regarding Detroit real estate seem a bit depressing, from an investor’s point of view, there may be ample opportunity.  The 30th Street area, a couple of miles from City Center, is nearly gutted, with the majority of row houses empty and dilapidated.  To some savvy investors, this bottomed out market phase can be the raw material for rebirth and even capital growth.

In Delray Beach, Florida, for example, builder Frank McKinney bought an entire block of similarly derelict homes on what is now called “Bankers Row.”  Many of the small bungalow style homes were vacant and unsecured.  McKinney applied his skills to renovate and beautify the block with municipal cooperation.  Buying the properties for back taxes, he created a new look to the block, which was then dual-zoned.  Today, Bankers Row is fully occupied by a mix of residential and commercial occupants.  Colorful paint schemes suggest Caribbean charm, and pretty awnings make the little structures seem just a bit larger, with a hint of whimsy.  Similar neighborhood uplifts followed the Bankers Row success story in Delray Beach, converting what were considered dangerous neighborhoods to communities.  Delray does not have an auto industry.  The major source of jobs is hospitality, mainly restaurant and bar services.  But in the case of that Florida city, perhaps the homes brought the people and the jobs.

Can Detroit be the next such revival?  With the severely discounted foreclosures and ample profitable opportunity, the answer may indeed be a resounding yes.

About the Author:

Urban Detroit Wholesalers is dedicated to upgrading the value of your Detroit real estate portfolio. Read our market analysis, current news, and pertinent case evaluations of Detroit investment properties.

Source - Foreclosure Homes for Sale in Detroit

Beginning Investor Seminar (Detroit, MI) - Tax Consequences of Foreclosures

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