Foreclosures Help Information

Archive for the ‘Find Foreclosure’ Category

Find Foreclosures Online

Question: What is the best way to find foreclosure properties in my state (MD now, but also considering DE)?

Can I search online, and if so, is it free? The house would be a residence for me, I am not an investor at this time. I would not want to resell the house for a few years.

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Answer: I have found that the best place to get a free list is http://www.yourforeclosuresoftware.com/7dayfreetrial/
because they have a 7 day free trial, I just cancelled before the 7 days and they never charged me, hope this helps!

Find Foreclosures Online

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Question: In short sales and foreclosure properties, who pays for the appraisal?

In normal sales, usually the buyer pays for it and requests reimbursement from seller in escrow.
But for these short sales, when it’s really all in the bank’s hands, does buyer still pay for short sale or does the bank have their own people do it?
I dont want to pay for this appraisal, then if the house doesn’t appraise and we decide not to get it, I am stuck just wasting a couple hundred buckson that appraisal.

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Answer: No the buyer is always resposible for the appraisal. often included in your mortgage

5 Easy Ways to Find Foreclosed Homes

Where To Find Foreclosure Homes

Question: Where can I find a public listing of bank foreclosure homes in Austin, TX.?

I would prefer sites that are free and provide complete information.

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Answer: in the austin american statesman newspaper - under public notices.

Find Foreclosed Homes

Question: How do I find foreclosed homes in my city without paying for them?

I am always hearing about all of these foreclosed homes, and how you can buy one at a fraction of the price of a normal home. However, I am clueless on how to obtain a list of foreclosed homes. I am in the beginning stages of house hunting, and would like to know where to start. Thanks

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Answer: You will have to go the various government websites like HUD and FHA and search their listings. This is the source of a lot of the foreclosed homes listings that you pay for.

Alternative: find a realtor who is authorized to handle HUD/FHA foreclosure properties, and have them show you the ones in your area.

Find Foreclosures For Sale

For the last two years the real estate short sale has been a popular topic of conversation with investors as well as home buyers and sellers. Yes, but is the idea of a short sale much like kissing a frog with the hope it will turn into a handsome prince?

A short sale is when a bank or mortgage lender agrees to accept less than a homeowner still owes on a home. Lenders do that when there is not enough equity in the home to attract a buyer and pay all costs of a sale.

Ah yes, but a lender does not have to agree to a short sale and even with those that might consider cooperating it can be very difficult to make such deals work. That also makes home buying very difficult.

Banks have what’s called a loss mitigation department that handles foreclosure short sales. As the economy moves into a recession those departments have been swamped with foreclosures and are often unable to respond to a short sale request before the home is lost to the foreclosure auction.

A real estate agent experienced with short sale deals might be able to help, but less than about 5% of defaulting homeowners are able effect a short sale before the foreclosure.

Oh, but there’s more to it than that…

The big mortgage lenders package up their loans then sell them to investors all over the world. Sometimes the first buyer was Freddie Mac or Fannie Mae. They bought, packaged and sold millions of mortgage loans.

When a loan goes into default and a short sale is requested the lender needs to some how contact and negotiate with each investor who now owns a piece of the loan or loan package.

They ask Mortgage Investor #1 if he is willing to accept $X00,000?
They ask Mortgage Investor #2 if he is willing to accept $X00,000?
They ask Mortgage Investor #3 if he is willing to accept $X00,000?
They ask Mortgage Investor #4 if he is willing to accept $X00,000?

Maybe they can get in touch with everyone who owns a piece of the package and maybe not. Ah, but there’s more…

Often there is more than one mortgage loan on the home and the negotiation process starts over again with those additional investors.

See the problem? With a short sale you not only have to negotiate with the investors, you have to negotiate with multiple lenders, sometimes as many as two or three. And they also must negotiate with their investors.

For homeowners facing foreclosure the question is should you even try for a short sale? Not an easy question to answer, but consider the follow:

A home owner’s credit score will be damaged by going through foreclosure or by giving the home to the lender by means of a deed-in-lieu of foreclosure.

- Foreclosure or Deed-in-Lieu of Foreclosure

Sellers will take a credit score hit of something like 200 to 300 points. If before the foreclosure your FICO score was 680, it would drop as low as 380.

- Short Sale

Some say the hit on your credit score will be less with a short sale than a foreclosure. Others claim the damage will be identical. The short sale will appear as a “pre-foreclosure in redemption status” in your credit history. That may result in a credit score loss of 200 to 300 points. If your FICO was 720 you will see it fall to 520 to 420.

Are you doomed? If you have a foreclosure on your credit history will you ever be able to buy another home?

Sure you will IF you establish a good payment record with your other debts. After your foreclosure you might wait 24 to 72 months before a lender will offer a mortgage loan with a sensible interest rate. The more improvement you can show on your credit report the lower the rate of interest.

Most who have sold a home with the help of a short sale will be considered for new mortgage financing after two years if they show a responsible credit history. So the main advantage of a short sale is that you can be considered for a new mortgage loan within two years over the three- to five-year period required for foreclosures.

What about deficiency judgments? Are they going to squeeze you for every penny? Well, you could be subject to a deficiency judgment for the difference between the loan amount and the amount received by the lender in a short sale. Not to worry, many states have laws that no longer allow that and in the states that don’t have such laws lenders seldom go to the expense of trying to collect from someone who apparently has no money.

Have you heard that you can be taxed on unpaid foreclosure debit? Forget it, because The Mortgage Forgiveness Debt Relief Act of 2007 generally allows you to exclude income from the discharge of debt on your principal residence.

Oh yes, since Washington has decided to bail out the banks they have little incentive to take less than what you owe them on any debit. Can you say, “Good bye short sales!”

About the Author:

Mark Walters is a third generation real estate investor and founder of
CreatingWealthClub.com
. For a limited time Mark is offering his big guide to finding hard money loans for real estate investing free.
Free guide to private money loans.
 
http://www.FindPrivateMoney.info

Source – Foreclosure Short Sales and the Tooth Fairy

House Search: Find Foreclosed Houses for Sale Online – Video