After announcing last week, that they would put a halt on all foreclosures, Bank of America is back to foreclosures in the 23 states where judges preceded. After reviewing their foreclosure procedures, they decided they had done no wrong other than paperwork errors. That being said, this is still not over. All 50 State Attorney Generals are still investigating banks’ foreclosure processes.
The mortgage mess keeps spreading across the nation like composted manure in a fertilizer spreader. Now officials in 49 states are supporting a probe into the foreclosure proceedings of many of the nation’s largest banks and requesting a foreclosure moratorium. Most of the problem is in relation to bank employees processing thousands of foreclosure documents without reading them, forging signatures, and falsifying social security numbers. Some pundits in Washington don’t agree that we need a foreclosure moratorium. Part of the challenge is foreclosures are handled at the state level, and are different in every state.
Some economists are saying the housing market is recovering…even though it is at a snail’s pace. They were predicting by third quarter 2011, the market would be more in line. Now the same economists are saying a stop in foreclosures could hurt the overall recovery.
This writer tends to believe that a foreclosure moratorium will stabilize prices for the short term, because there will be less inventory. CNBC commentary is reporting at this moment that figuring this mess out could take months and months. Going forward, and once banks start to release this shadow inventory, it will depress prices again. However, if the recession is truly over, jobs should begin to pick up since they are a lagging indicator. If that’s the case, then hopefully, there will be more buyers with jobs who can purchase the increase in inventory. Nevertheless, it looks like it may be another year or two before we get back to some sense of normalcy. Referring back to the initial simile, let’s hope the this “manure” has the same effect that it does over a crop planted field: an increase in results!
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Foreclosures Can Be A Great Deal for "Instant Equity"
The AP has reported that Bank of America will halt foreclosure sales in all 50 states due to bank employees signing foreclosure documents without verifying information. Last week they announced they would stop foreclosure REO sales in 23 states, but apparently the problem was worse than expected. B of A claims they will review their foreclosure process during the next month before removing the halt. Several other banks, including JP Morgan Chase, GMAC Mortgage, and PNC have received criticism for errors in their foreclosure paperwork recently. PNC also announced today that they will halt foreclosures and evictions in 23 states to review their documents.
Bank of America Stops Foreclosures in All 50 States
In the Triad area, there are currently 833 bank owned foreclosures listed for sale on the MLS (214 listings in Forsyth Co.). In the last 30 days 214 foreclosures have sold ranging from $7525 to $849,900. The median price of all foreclosure sold during this period was $65,000. 44 of those sold were in Forsyth Co. The range of prices in Forsyth Co. were from $14,900 to $464,900.
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Winston Salem Forsyth County Foreclosure HOT List!
UNCG’s Bryan School of Business and Economics and accounting firm Dixon Hughes reports in their Triad Business Index that foreclosures are up 5.7% from last year. In July, 2010 there were 880 reported foreclosures. The current overall inventory of homes is a 10 month supply.
Dixon Huges Triad Business Index
If you are facing foreclosure and you are a “do it yourselfer”, here are some good articles to help you. If you feel overwhelmed by the whole process, and you would like our personal help, please call us at 336.462.9544.
Foreclosure counselors can make the difference between losing your home and keeping it. Here’s how they work and how to choose one. Read
Here are some legitimate resources to help you fight the foreclosure crisis. Read
Know which experts provide foreclosure help—often at no cost to you—and how to find them. Read
If you’re facing foreclosure, don’t panic: Take steps right now to save your home or at least lessen the blow of its loss. Read
With foreclosure rescue scams widespread as more homeowners fall behind on mortgage payments, be smart if you seek help. Read
Visit houselogic.com for more articles like this.
Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®
The past three years have been hard on the real estate market. Foreclosures are at an all time high. Not since the Great Depression have so many people lost their home. This has created one of the most incredible buying opportunities in real estate in many, many years. Foreclosures are a great opportunity for home owners to obtain “INSTANT EQUITY”. Though most foreclosures are distressed, they do offer a chance to “BUY LOW & SELL HIGH”. As a Realtor specializing in foreclosure properties, I help investors, first time home buyers or folks just wanting to move up to a bigger & better home find GREAT DEALS in foreclosures. Search Winston-Salem Bank Owned REO Foreclosure Homes for Sale NOW!
Foreclosures Can Be A Great Deal for "Instant Equity"
I will briefly describe how the process works. Once a home owner goes into default on his mortgage, the property is sold at the local courthouse. If the high bid is not acceptable, the property reverts back to the bank and becomes an REO (Real Estate Owned by the bank). Once the bank has reclaimed the home, they usually hire a real estate agent to help them market & sell the property.
Most foreclosures are sold BELOW MARKET VALUE, because they are sold “AS IS”. They can go for LESS than list price and often do, but the LONGER the property has been on the market, the BETTER chance you have of getting a GREAT DEAL. Because most REO properties are distressed, the buyer, in most cases, must have a vision of what the home can potentially become. The worse condition, the better opportunity for “BUY LOW & SELL HIGH”
Here are a 5 steps you should take to find awesome foreclosure deals.
1. YOU MUST BE PRE-QUALIFIED FOR A LOAN OR HAVE PROOF OF FUNDS if you plan to make a CASH offer. To get your PRE-QUAL letter you will need a few things
* W-2 forms full 1040 tax forms if self employed).
* Paystub’s to cover a full one-month period.
* Your most current bank statements for 2 consecutive months.
* Signed application forms and credit report authorization.
From my experience, banks are more likely to accept a CASH offer, even if it is SLIGHTLY LOWER than a FINANCED OFFER.
2. FIND A GOOD LENDER . As I mentioned earlier, most foreclosures are distressed, so if you are financing your purchase, your lender must know you are buying a foreclosure ESPECIALLY IF THE HOME IS DISTRESSED. BANKS, MORTGAGE BROKERS, PRIVATE FUNDS or even HARD MONEY LENDERS can be sources of capital.
3. FIND A REALTOR WHO SPECIALIZES IN FORECLOSURE LISTINGS. Buying a foreclosure can be a little tricky. If you get in a multiple bid situation and your Realtor is NOT familiar with the process, you could miss out on a great deal. A Realtor in the know, can provide invaluable tips to help you GET THE PROPERTY YOU WANT AT THE PRICE YOU WANT. He or she should have FORECLOSURE LISTS, which they can provide by EMAIL. This will SAVE YOU GREAT DEALS OF TIME instead of doing manual searches. He/She should know the local market and be able to provide recently SOLD COMPS or RENTAL ESTIMATES.
4. BE ABLE TO CLOSE FAST! Banks like for you to get things done quick (though they don’t always return the favor!). If you can close in 15 days instead of 30, you stand a better chance of getting your GREAT DEAL. Once your offer is ACCEPTED, there is a minimum EARNEST MONEY DEPOSIT (EMD) of $500. You must have a copy of your EMD check to make the offer, and once it is accepted you have 3 banking days to deposit with whoever plans to hold it. Most of the time the CLOSING ATTORNEY or LIST AGENT will hold the EMD.
5. DEVELOP A LIST OF CONTRACTORS WHO CAN PROVIDE INSPECTIONS/REPAIR ESTIMATES. Most contractors will provide a FREE REPAIR ESTIMATE, which can help you determine your OFFER PRICE. If you don’t know honest, respectable contractors, you can find most of what you need at ANGIE’S LIST www.angieslist.com). This site provides reviews from people who have actually used the contractor, so you can have peace of mind knowing the person/company is good to deal with or not. A good Realtor® should be able to provide a list of contractors to you as well.
Once your offer has been accepted, the bank will have an addendum to the “Offer to Purchase” contract. I would suggest a real estate attorney look this over and explain any “gotchas”. If you agree to “close” with the attorney, most will do this for no additional charge.
After both parties have signed the “Offer to Purchase” and Addendum, it becomes a binding contract. In most cases, you will now have a 10-15 day INSPECTION PERIOD, which is basically a “FREE LOOK”. During this time you can have an INSPECTION done on the property to see if you really want to purchase it. ALWAYS have a LICENSED HOME INSPECTOR complete an inspection during this time to find out if there are any serious issues with the home. As I said earlier, most foreclosures are “AS IS”, so the bank does not do any repairs. However, if you find something that is wrong during the inspection, you can make a repair request. If the bank does not agree to do the repair, you can terminate the contract, and get your EARNEST MONEY DEPOSIT back.
There can be other issues to buying a foreclosure, but this will give you a foundation on how the process works.
Click Here for Our FREE Foreclosure by email HOT List! or Search Winston-Salem Bank Owned REO Foreclosure Homes for Sale NOW!
8 Tips for Getting Your REO Bank Owned Foreclosure Offer Accepted
ABOUT THE AUTHOR: Tony Green is an experienced Realtor® specializing in Bank Foreclosures. Visit www.TriadNCHomesForSale.com and request to be added to his FREE email list of local REO properties in the Piedmont Triad of NC. He can also be reached at (336) 462-9544.
The New York Times has recently published an article saying the rich are in default on their mortgages at a higher percentage than the average home owner. The recession has obviously affected the middle class, and now it’s starting to reach the wealthy. According to a real estate analytics firm, more 1 in 7 homeowners with loans over $1 million are in default. In contrast, homeowners with lower priced homes are delinquent on 1 out of 12 mortgages. For investment or second homes over $1million, the delinquency rate is 23%.
The Rich Are Dumping Their Mortgages
Realty Trac reports that North Carolina Foreclosure Filings were up over 26% from April, 2009. The report also states that the number of filings was up over 9% from March 2010. The Winston-Salem area (Davie, Forsyth, Stokes and Yadkin Counties) had 319 filings in April, which was up 9.6% from last year, but down 22.8% in March. You can read the entire article from JournalNow.com at the link below.
North Carolina Foreclosure Filings Up in April, 2010
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See More Pictures of this Buena Vista Foreclosure
*Listing agent Re/Max Realty – Property Info provided by Triad MLS
The housing market is not out of the woods yet. Analysts expect the housing market to recover soon, however, the inability of homeowners to make their mortgage on time is holding down home prices across the nation. 
About 8 percent of all homeowners in America are currently behind on their mortgage and endanger of foreclosure. You can read the full article below.
If you are trying to stop foreclosure on your home, we can help. We have helped many home owners in the Triad who are facing financial distress. Contact us today if you need help. We can help sell your home fast in Winston Salem and other surrounding areas of the Piedmont Triad.
