Foreclosures Help Information

Posts Tagged ‘Options’

Foreclosure Help Denver

Question: New-built subdivisions with lots of foreclosures?

In Denver we have this large NE part of the city, largely around Green Valley Ranch, that is all newer housing. The area around the houses
is also new... infrastructure, businesses, etc. This is also the only area where I can afford a decent looking home. In my price range of 125K, I can buy in this area, or I can buy a dump in a more established neighborhood, which I won't even consider. Yuck!
What are the dangers of buying a house in a newer built subdivisions
at drastically lower prices than I could find any where else in the metro? How bad of a decision could it possibly be to buy one of these houses, I mean assuming it is in good shape, and not stripped, etc?
It all looks good from the outside when I drive

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Answer: If you don't mind being out there by your little lonesome... then the only thing I would check out first is whether this development was built in a flood plain and is it worth the commute to your job and your old grocery store? (just in case the infrastructure goes bankrupt too).

Here in CA we have this problem a lot. They ran out of room and somehow got the OK to build subdivision after subdivision in the flood plains.

Don't ever think that it will never happen. It does rain in California.
And when your house sits in a designated flood zone... you are just waiting to be washed away one day.

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Foreclosure Assistance Colorado

Foreclosures are at an all-time high in America. Experts predict nearly 1.4 million homeowners will face foreclosure in 2008 and residents of Florida, California and Texas will take the hardest hit.

In 2007, Arizona foreclosures rose nearly 40-percent and Colorado reported one of every 345 households either filed foreclosure or were on the brink of filing. Currently, the only states immune from escalating foreclosure rates are Vermont, Maine and the District of Columbia. However, experts predict these states will experience an explosion of filings when adjustable-rate mortgages begin escalating later this year.

How did the housing crisis in America occur and why was it allowed to happen? Americans have always strived to reach the American Dream of homeownership. When zero-down, interest-optional balloon payment loans were offered, people were attracted to them like flies to honey. Millions of unsuspecting people were suckered into sub-prime loans and invested in houses way beyond their means.

As adjustable rates increased, mortgage payments doubled or even tripled. Individuals struggling to make their $1,000 note payment were now looking at $2,000 to $3,000 monthly payments. The sad reality is they simply did not possess the financial means to pay their note. When the bubble burst, their dream quickly became a nightmare.

Foreclosures not only have a devastating effect on the homeowner, but the lending institutions and local community as well. Individuals who reside in communities with high foreclosure rates are forced to pay higher property taxes, local taxes and increased fees for utilities.

Additionally, the potential for crime increases. Vacant homes are a magnet for unscrupulous characters. Vandals destroy property, oftentimes breaking windows and doors or leaving graffiti on both interior and exterior walls. Criminals engage in illegal activities including the sale of illegal drugs or weapons.

Real estate experts claim each individual foreclosure costs lending institutions approximately $80,000, while preventing foreclosure costs less than $3500. If this is true, why are foreclosures skyrocketing?

The primary factor stems from the fact that many people facing foreclosure become paralyzed with fear. They avoid contacting their lender and instead wait for the sheriff to arrive with their eviction notice.

There are steps homeowners can take to stop the foreclosure process. First and foremost, individuals in financial distress should contact their lender. Foreclosures are usually handled by the lender's Loss Mitigation Department. Additionally, the U.S. Department of Housing and Urban Development (HUD) offers free credit counseling through approved agencies and can assist homeowners negotiate with their lender.

Analysts claim America's housing crisis will eventually make a turn for the better. However, they predict it will take three to five years to recover from the onslaught of foreclosures.

On the bright side, there has never been a better time for real estate investors. With an abundance of distressed properties being offered for pennies on the dollar, now is the time to buy. However, not every foreclosure property is a great deal and due diligence must be conducted before riding the foreclosure wave.

One of the best ways to invest in foreclosures is to seek out private real estate investors who purchase bank portfolios of real estate owned property. Investors are able to purchase properties in bulk and pass their savings along to interested parties. It's not uncommon to purchase bank foreclosures from private investors with instant equity of 20-percent or more.

Although the real estate market currently looks bleak, there is hope on the horizon. If you are currently facing foreclosure take the first step and contact your lender immediately. If they are unable or unwilling to work with you, contact HUD. While the foreclosure process can be overwhelming, it can be overcome with persistence and patience.

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Source - Foreclosures: Housing Crisis In America

Colorado Foreclosure Hotline

Mortgage Foreclosure Options

Question: Are there any options we can take to avoid foreclosure and be able keep our home?

Currently, our mortgage loan rate has increased drastically (from 6.5% to 9.5%) since it is ARM. We were trying to refinance it but the market value of our home has decreased and it’s really hard to get a bank approve the refinancing.

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Answer: Pay the bill on time

Hearing on Mortgage Foreclosures: Bernanke's Opening