Foreclosures Help Information

Posts Tagged ‘Buying Homes’

Buying Foreclosed Homes In Oregon

Buying a house you couldn't afford, accepting a subprime mortgage from a lender, losing your job, or experiencing health problems are just a few of the reasons that people can end up in foreclosure. Regardless of the reason for their money troubles, thousands of people are losing their homes, damaging their credit, and facing the possibility of homelessness. While foreclosure can clearly have a huge impact on economic health, they can also threaten a person's mental well-being. Depression, anxiety disorders, divorce, and violence are just some of the more insidious aftershocks that can be felt in communities all around the country.

As homeowners struggle to cover their mortgage payments, utility bills, childcare costs and food bills, the accompanying tension and anxiety can wear down a person's ability to cope. Prolonged periods of stress and hardship can quickly turn into an anxiety disorder or to full-blown depression.

Depression is often characterized by physical and mental fatigue, lack of ambition, sadness, and worst of all—hopelessness. This lack of hope can make it extremely difficult to look at one's situation with a clear head. Feelings of shame and failure can overwhelm a person and convince her that the situation will never get better. Negative thoughts can ambush her psyche, dispensing blame and criticism at every turn. She may think "I failed. Here's proof that I can't take care of myself. I'm a disappointment and a loser."

Depression can also cause inaction. If a person has lost her job or has other personal problems mounting on top of the foreclosure, she may simply stop trying to pick up the pieces, and let the dark cloud wash over her. Her destructive thoughts will inhibit her ability to deal with her problems head-on. If she needs to find a better paying job or look for a place to live, the task may seem monumental. This paralysis inevitably leads to worse financial problems, leading to lower self esteem. Her reduced self esteem only makes it that much harder to move onward and upward, and so the cycle continues.

There's also embarrassment and the feeling that no one will want to help her. Believing that she doesn't deserve to be helped, she doesn't contact the bank for assistance. She then misses the window of opportunity to save her home.

Along with depression, struggling homeowners may find themselves turning to food, alcohol or drugs to deal with the stress. Others will turn to gambling with the hopes that they will win enough money to get the house back. These self-destructive behaviors of course only exacerbate the problem, and can have a huge impact on families.

Anxious children, marital spats, separation, and divorce are all common side effects of the foreclosure problem. Unfortunately, things can escalate quite quickly from partners simply blowing off steam, to full-on domestic violence.

As the number of foreclosures continues to rise, the number of abuse cases quickly follow suit. One national survey has cited "financial issues" as a major contributing factor to the increase in violence in homes across America, and Brian Narney from the National Network to End Domestic Violence said that the financial stress in an economic crisis is "not a cause of domestic violence, but it can intensify it."

While some people turn their frustration outward, others turn on themselves. With no hope on the horizon, some homeowners choose to end their own lives rather than endure any more pain.

There have already been a few cases of suicide attempts among homeowners facing foreclosure, including a 91 year old woman from Ohio who shot herself before facing eviction. There was also an Oregon couple who were days away from losing their home when they killed themselves and their three dogs via carbon monoxide poisoning.

A study conducted in Australia has determined that "economic trends are closely associated with suicide risk, with men showing a heightened risk of suicide in the face of economic adversity." A California psychologist also noted that "one's house is very much a projection of one's self. To have a home taken away is tantamount to having part of yourself taken away."

The picture is indeed bleak, but it doesn't have to be. There are options available for homeowners who are struggling to make their mortgage payments, such as refinancing or getting an extension on their loan. If you're facing possible foreclosure, it's critical that you contact your lender right away. As for taking care of your mental health, there are resources available to help. See the continuation of the article, titled "Dealing with the Emotional Aftermath of Foreclosure" for more information.

About the Author:

For information on Burnt Pine real estate, contact Michael Taylor, your Destin FL real estate expert, at DestinRealEstateSales.com

Article Source: ArticlesBase.com - The Fallout of the Foreclosure Crisis

Banks Can Now Take Your House 2009

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Buying Foreclosures Homes

Question: What is the process of buying a foreclosure home?

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Answer: Talk to Real Estate Agent that specializes in REO.
Real Estate Owned properties.
The problem with foreclosures is that you have no way
of determining the value of the property before the sale.
The house could be literally destroyed and you paid
what the bank asked for it...

REO's are foreclosures that weren't sold at the court house
and now belong to the Bank again. These are usually listed
with a Real Estate Agent and you can inspect them before
you make a decision. And on top of that they are usually
a lot less than the foreclosure where the bank is still trying
to get the money that is owed on the mortgage.

Again... be patient... most of them will be in bad shape and
it will take a lot of "touring houses" before you find one that
is acceptable and where you won't have to spend too much
money to fix up the house.

How To Buy Foreclosed Homes

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Buying Foreclosed Homes For Dummies

If you are considering purchasing a home through the HUD (Housing and Urban Development) program you will need to understand that it is a very different procedure than buying a home on the open market. There are a myriad of issues concerning the application and approval process. If you are willing to work with HUD however, you can find homes that suite your taste and budget. Understanding what HUD is and what your role is before and during the process is paramount.

The FHA (Federal Housing Administration) was created in 1934 to spurn economic growth, and to provide reliable housing for people in the US, and later in the mid 1960s it became a part of the HUD program. In conjunction with HUD the FHA provides mortgage insurance to pre – approved lenders, and guarantee by payment of a claim that lenders will receive monies owed if an individual defaults on a loan. In effect a HUD home becomes a HUD property because someone somewhere defaulted on a loan through the FHA and its lenders. There are drawbacks in applying for a home loan through HUD, and you should be aware of the facts.

Not only can individuals bid on a home, but investors that are interested in turning a profit can too.

Homes are sold on an “as is bases”. There are no warranties given on the condition of the home, and inspections for code compliance and federal mandated health requirements are squarely on the shoulders of any potential home buyer. This includes the federal requirement by the EPA (Environmental Protection Agency) that all homes built prior to 1978 must be inspected for any lead paint based products inside or outside the house. Information must be disclosed too about asbestos use in the home.

Negotiations on home price are usually not available because HUD is looking to recoup any defaulted amounts to the FHA pre – approved lenders. Fair market value is offered first, and if the home does not sell after an extended time on the market, only then will a reduction in price be considered for the home.

A fixed dollar amount for repairs, usually over $5,000.00 is needed before anyone that purchases a HUD home can borrow at a reduced rate through them. If repairs don’t equal the approved HUD amount, all repairs are carried by the home owner.

Options for repair exist under a fund of escrow held by HUD for a home based on HUD’s analysis of under $5,000.00. This means that repairs must be initiated by the owner, and a complete inspection approved by the lender. Only then will a home owner be reimbursed for the minimum property standards that must be met for a HUD home.

Another consideration when purchasing a HUD home is the extended length of time for a property to be put onto the market for purchase. If you’re interested in a home with HUD you need to be aware that foreclosure can take a few months to occur, and HUD will have to evaluate the foreclosed property, which can take several more months. A total processing of time can be anywhere from one to two years. So if you’re interested in a property with HUD expected to wait for it.

There are some benefits to buying a home through HUD. For example, your mortgage insurance is part of your monthly home payment, and down payments are graduated. Any one may apply for loan once they meet certain requirements, and guarantees are given that you may not be discriminated against based on race, color, creed or religion. There are veteran loans for those that served in any branch of the military that are available at a reduced rate.

Buying a home through HUD is not a procedure that can be qualified as one that is for dummies. You can eliminate a lot of stress if you decide to purchase a HUD home by talking with others that have bought a home through them, and more importantly ask a realtor to help guide you through the process. Inside knowledge combined with the valued experience by a real estate profession working with other qualified lenders can direct you to the best resources and options on financing

About the Author:

Broker Owner of HomeChoice.com

Article Source: ArticlesBase.com - Hud: Things That you Need to Know

Making Millions with Commercial Real Estate - How to Buy Your First Apartment Building

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