Foreclosure Trends

Red Buys Houses asked:


We all know it’s bad out there…With the severe credit crisis and the declining housing market, Fox, CNN, MSNBC, and even the President remind us of our struggles daily. Home foreclosures are at an all time high, even in my neighborhood in Austin Texas with many more foreclosures predicted to come. Housing resale values are at all time lows with no end in sight. Even the banks are going bankrupt as many Americans no longer qualify for credit.

Because of the recent credit crisis, many people don’t qualify for a new loan to buy a house right now, despite the incredibly low housing prices. Many home sellers can’t sell their unwanted houses because they owe more than their house is worth due to falling house prices. Many sellers can’t even rent their houses out for enough to cover their mortgage payments, taxes and insurance resulting in severe negative cash flow that bleeds then dry month after month. To make matters worse, many tenants end up trashing the house when they move out making it even more difficult and expensive to sell.

If they list their house with a real estate agent, their house will likely sit on the market for a long, long time waiting to sell since the buyers seem to have magically disappeared. Even if the house does finally sell one day at a greatly REDUCED price to get it sold, the owner has to pay a 6% real estate commission plus the majority of the closing costs. This often results in the seller writing a big, fat check at the closing table to finally get their house sold.

So what are my options to sell my house in Austin Texas fast in this depressed economy and housing market when many folks can’t get a loan? By trial and error, I discovered the following 3 alternatives to try to sell my Austin TX home quickly…

1. I tried to sell my house in Austin “For Sale by Owner” aka “FSBO”.

At first, selling my house by myself sounded easy enough, but it soon became my worst nightmare! What went wrong:

At first I didn’t know how to attract buyers that might be interested in purchasing a home in Buford Georgia…The For Sale By Owner sign in the yard wasn’t working. I ended up spending a fortune placing classifieds in the local paper which resulted in few potential buyers. Those that did respond wanted to see my house at all different hours of the day or night. I was afraid to say no in fear of losing a potential buyer. I would have to keep my house clean and all picked up, only to have them flake out and not show up! Other times I had some pretty scary people show up with their rowdy kids in tow, trampling through my home.



I never did find my ideal buyer. Even if I did, I had no idea how to get them qualified, how to handle all the purchase and sale paperwork or how to get the house closed. I said “There has to be a better way to sell my home!” and I was determined to find it.

2. I listed my house for sale with a local Austin real estate agent.

I called an agent from a local, seemingly reputable, real estate agency and made an appointment for her to come out and see the property. The agent sounded like she really knew what she was talking about and got me really excited about the prospect of selling my home quickly. She said she would list my house in the MLS, on dozens of real estate sites throughout Texas, advertise my house in the local paper and other print publications, do multiple open houses, put out signs, balloons, flyers in an information box and went on and on about how she could sell my home and still get top dollar. How could I refuse? I didn’t.

I listed my house and waited, and waited and waited. The agent put the house on the MLS, but the market was pretty tough and, despite her best efforts, six months later, I still didn’t have a buyer. Meanwhile, my house had not only decreased in value because it would not sell for the list price, which had been reduced repeatedly, but also because of all the other listed houses and foreclosures on the market in my area of Austin. At this point, I was all out of ideas and praying for a solution. About that time, someone at my church told me about RedBuysHouses.com.

3. I contacted a local, professional home buyer from Austin, Texas.

My friend from church told me that she had similar problems selling her Austin house, but that she had contacted a local professional home buyer who bought her house in under a week! What? Is this possible? Could I sell my Austin Texas house in 7 days or less, too? She said there are professional house buyers out there, also known as “real estate investors”, who buy and sell real estate for investment purposes. You’ve probably seen their “We Buy Houses” advertisements around town but never gave them much thought. These are people who buy houses professionally and are always actively looking for more houses to buy. She gave me their phone number and web address (Locally 512-945-6006, website: www.RedBuysHouses.com) and I contacted them ASAP. A local Austin home buyer from there called me and said that if my house qualified and if I was flexible on price or terms, that they may be able to buy my house in the next 7 days or less. She said depending on my situation that they may be able to pay all cash, pay some cash now and some cash later or take over my mortgage payments giving me immediate debt relief. At this point I was definitely flexible and had nothing to lose by scheduling an appointment for them to come see my home and possibly allow me to sell my Austin Texas house fast!

So I scheduled the appointment with the Austin home buyer and she came out and inspected my home. She said it was just what they were looking for and that she had several buyers looking for a similar home. I was ecstatic! She made me several offers to buy my house as promised. I chose the offer that best suited my needs and we scheduled a closing the following week with a local real estate closing attorney. It was that fast and that simple to finally sell my house in Austin! I still can’t get over it. After waiting two years trying to sell my house on my own and through a licensed agent, I was able to sell my house in less than 7 days to a local professional home buying company!

If you have an unwanted Austin Texas house you need to sell fast, call 512-945-6006 or visit www.RedBuysHouses.com and complete their online Seller Questionnaire for a FREE, no obligation consultation. You have nothing to lose by contacting them and everything to gain. I was able to sell my Austin home fast and you can too!



CHARLES

Chicago Foreclosure Defense asked:


Foreclosure is a terrible situation to have to experience. Unfortunately, the world-wide recession has foreclosures happening on a daily basis. Although you may feel that your world is falling apart, you might find comfort in the fact that you do not have to go through the process alone. There is someone you can turn to who can help you pull through such a difficult time. Taking care in picking out a good Chicago foreclosure lawyer is the first step to getting your life back onto the track of normalcy. It is very important that you choose an experienced lawyer, one who will not only offer you legal support, but emotional support as well. You will not be going through this process alone, and shouldn’t feel that you are.

With so many foreclosures happening all over the world, you should know that you aren’t the only one worrying about the possibility of a foreclosure, or facing an imminent foreclosure. There is one small comfort to be had from this experience, however.

Know that most foreclosures that have occurred recently haven’t been through any personal fault of the owners. Many people fell for a “minimum payment” scheme offered by their mortgage company, in which they could make a smaller mortgage payment for 3 – 5 years (usually this payment does not include interest, which is why it’s so cheap). Then, after the 3 – 5 years is up, the interest that wasn’t being paid for the first couple of years is suddenly tacked on and people are faced with a raised mortgage payment that they are unable to afford.

The chances are very likely that you know someone, be it a family member, friend, work colleague, or acquaintance, who has gone through the same thing. They may be able to give you some advice or recommend a good foreclosure lawyer to help you out.

First you need to gather a list of possible Chicago foreclosure defense lawyers. You can easily do this by searching on the internet and making a few phone calls. It’s best if you can manage to stop by each lawyer’s office, though, just to see how you get along together.

Make sure, as well, that the foreclosure defense attorney you ultimately choose is qualified to handle your case. Ask him or her about his or her experience, where he or she went to school, and things of that nature.



EDMUND

John Chase asked:


Stop Foreclosure

Here is a list of 10 things that might help you stop foreclosure, before you even get a foreclosure warning or a ‘late payment’ letter.  It’s not a ‘to do’ list, it’s actually a ‘NOT to do’ list…but follow this like it’s the 10 commandments, because each and every one of these offenses has the potential to send you hurtling over the edge of financial despair.

1. Do NOT fail to accrue savings for an emergency.

Many wants and needs face each of us each day. Every dollar we earn seems to have its path determined before it comes to our hand. This often results in people putting aside little or no savings for a rainy day. Yet, rainy days do happen, that fact we know. I would love to see homeowners with six months of mortgage payments in savings. As a minimum people should have one to three months of mortgage payments as a reserve to help stop a foreclosure.

2. Do NOT get caught without a Home Equity Line of Credit in place.

If something comes up forcing you to stop a foreclosure you will need money fast but the options may be gone by then. At least 90% of foreclosures could be prevented or delayed if home equity lines of credit were previously activated. Setting up an equity credit line can often be done for no cost and can lock in rates as low as 4%. In most cases you pay nothing each month if you do not access the line. No one ever expects sudden health problems, loss of a job or emergency requiring funds fast. By definition, these unforeseen events might prevent obtaining a loan once they occur. By setting up a home equity credit line before you ever miss a mortgage payment, you will have money when you really need it. No reason to fill out an application again, just write yourself a check. When things get back in order, pay back the line and then use it again the next time. Just be careful not to use the line for frivolous purposes and you will love your home equity credit line - especially if you never have to use it.

3. Do NOT miss a mortgage payment.

This may seem like a “no-brainer”, but every foreclosure traces its origin to missing one mortgage payment. Keep these things in mind here:

1. Skipping a mortgage payment ranks as a far more serious issue than missing a utility or credit card payment. Consider not spending on non-essentials, ignoring a different bill or using savings before letting a mortgage obligation pass.

2. Once you have missed a mortgage payment you have started down a slippery slope and missing a second, third or forth payment becomes easier from a psychological point of view.

3. Once you have missed a mortgage payment, your credit suffers an immediate blow, which may stop you from getting the loan you need to save your house. While some foreclosure prevention loans remain options deep into the foreclosure process, how much you can borrow decreases with each corresponding decrease in your credit score. Often the difference between what you could have taken as proceeds from a foreclosure prevention loan or refinance before you miss your first mortgage payment and the loan available after missing several payments means the difference between keeping or losing your home.

4. Do NOT fail to ask for help.

Some say, “A friend in need is a friend indeed” but when it comes to trying to stop a foreclosure, pride must take a back seat. Fear, shame and embarrassment just touch the edge of the deep emotions that affect someone losing their home to foreclosure. The last thing someone in foreclosure wants to do is admit to a parent or sibling that they have gotten into such trouble. Yet no one other than a parent, sibling or close friend would stand by your side and help you through an experience as difficult as a foreclosure. Remember these items:

1. People will learn of your situation when it hits the papers or when you have to move out of the house, wouldn’t you rather they heard the news from you first?

2. Most people whom you care about will be more understanding than you expect and will not try to make you feel like a failure.

3. You may be surprised at what kind of help will be offered and the difference it can make in saving your home from foreclosure and making you feel better about the whole situation.

5. Do NOT ignore the lender.

Somehow getting behind on a mortgage comes with a built in belief that phoning your lender constitutes a sin or that a call to a lender will result in their ripping your head off right through the chord. In truth, most lenders appreciate knowing why you are having trouble and like updates on how things are going, especially when your problems have justified reasons like health issues or the loss of a job. Treat letters from your lender as wake up call from a concerned neighbor rather than a threat from a bully. Remember – banks want to help get you back on track, they want their payments not your house. If you do not think you can talk to them yourself about a plan there are professional foreclosure negotiators who can help if you have fallen behind.

6. Do NOT deny you have a problem.

The technique most commonly employed to deal with a foreclosure or financial crisis remains the “ostrich” method of ignoring the problem. A related option involves reacting to the issues by losing hope and giving up. Following these paths will surely lead to never stopping the house foreclosure. From the time one evens thinks a payment will be late only a limited amount of time exists until the foreclosure auction and with each passing day more options become unavailable. Face the problems, deal with them, and find solutions.

7. Do NOT think you have no options, Do NOT fail to take advantage of them.

You may believe, or your lender may lead you to believe, that you must pay them in full or lose your home to foreclosure. In fact, many options exist which will allow you to keep your house and stop the foreclosure proceeding without paying all of your arrearage at once. Some choices may even reduce what you owe on your property by tens of thousands of dollars. Almost everyone has some options and the sooner you act the more options you have. As the foreclosure date gets closer, options continue to become unavailable until by the foreclosure date only payment in full or a bankruptcy filing remain. Read more about what foreclosure prevention options you have and take action as fast as you can.

8. Do NOT spend what money you have on other bills.

After missing mortgage payments for 3 or 4 months a mortgage company may “call” or “accelerate” the home loan. Once this happens they no longer take a single monthly payment, instead insisting all back payments be made at once. While other options short of paying all arrearage may be negotiated, the biggest mistake people make at this time involves allocation of what little cash they do have. It almost seems natural since the mortgage company says they do not want your money, and the second mortgage company, credit cards and others call everyday demanding money, the proper thing to do it pay the others. If there are ten people calling, making nine happy means fewer calls for you and less headaches in the short run. In the bigger picture this represents a critical mistake. At some point you will need those funds to save the house. Many methods exist to stop a foreclosure but they will all require money. Ask yourself this, “Would you rather lose your credit cards or loose your house?” If you want to keep the house and you cannot pay what they want just save what you can, you will likely need it for whatever steps you might take to save your home. For much more on this subject read “Who to pay when you can pay everyone”.

9. Do NOT stop making payments.

You’ve missed a mortgage payment. Now comes the second month and you get a bill for two payments. Part way thought the month you have the money for one payment, but the bill says you owe two so you do nothing. Think carefully before you fall into this trap. There will come a time when the bank will demand you pay all you owe them and they will take no less. Until the bank refuses to take your money consider making what payments you can. This will show the bank you intend to pay them and show them efforts are being made. More importantly if over four months you made only two payments you may be only 60 days behind, while that may not make the bank happy, it may not meet their criteria to start a foreclosure. Keeping in touch with the bank and making some payments can delay the start of foreclosure many months. Hopefully during that extra time you can solve the underlying problems and avoid ever having a foreclosure. On the other hand, if you have no hope of ever keeping the house anything you pay to stay longer should be viewed more like rent, which may or may not make sense depending on your personal circumstances.

10. Do NOT miss bankruptcy filing deadlines.

Proper filing of a Chapter 13 Bankruptcy always stops a foreclosure in its tracks. When a Chapter 13 plan to pay back creditors meets approval from the court and the debtor pays all the payments under the plan the foreclosure never starts up again. Failure to make payments gives the creditor the option of restarting the foreclosure when it left off before the Chapter 13.

1. Points to remember: You must file on time; failure to meet a filing deadline could result in losing your home.

2. You must make all payments required under the plan; otherwise creditor can start the foreclosure back up.



ABE

Jennifer Stromsteen asked:


All through the later part of 2007 and the first part of 2008 consumer confidence began falling. The good news is that currently the reports of consumer confidence falling has ceased. The bad news is the falling home prices have not ceased. Today there were two separate reports released that were rather conflicting. One reports that economists point to an encouraging stabilization in consumer attitudes and the other reported on a continued erosion of the value of homes. This poses two entirely different views and understandings of the economy today creating unpredictable effects in the housing market.

Standard & Poor’s/Case Shiller’s monthly report states that the median price of a home fell a whopping 15.8 percent in 20 of the biggest metropolitan areas in May. This is right on the heels of a nearly equally steep drop in the prior month. Also reported by the national Association of Realtors; existing home sales for June declined 2.6 percent in May and 15.5 percent since June of 2007. Despite these reports, we are led to believe that consumer confidence is stabilizing.

In all of the 20 metropolitan areas that were surveyed, home prices were down in the month of May. Not surprisingly, the falling home prices match an increase in the nations foreclosure activity adding the over abundance of housing that is not moving on the market. This is making the prices of the homes go down. This would be great for those looking to buy homes; particularly first time home buyers, if the economy were not in a state that prevents people from purchasing new homes. Fortunate for some first time homebuyer, there are programs that are being created and others that are still in place to assist them in buying first homes. The first time home buyer may be the only ones celebrating, homeowners who must sell a home before purchasing a new home are not as happy.

Ordinarily home prices going down are celebrated by people wishing to purchase a home; right now it is still spelling trouble for the economy as a whole. The decline of home value means a decline in equity. Homeowners who purchased their home recently might now find themselves “underwater”, or owing more on the home than what the house is worth.

Over the last ten years the United States experienced a real estate boom where consumers could tap into the equity in their homes to pay for home improvements, education and other large dollar items which all served to fuel the consumer economy. Today with equity falling these loans are not being taken out and the fuel to the economy has lost its spark. But, by report consumer confidence has held for this month but according to the conference Board it raised less than a point in July. Never-the-less this slight raise was the first increase since December.



RUDOLPH

Shane Barker asked:


Because family matters most, we are all willing to sacrifice even our old homes in order to save a family member’s life. The treatment for cancer patients, chemotherapy is very expensive and requires financial investing because it is not a one-hit cure but a process. If you have a family member who is suffering from cancer, then you could find yourself in a situation where you need to sell your own home and move to a smaller and more manageable unit.

Chemotherapy can cause you a lot. You will often find that the ratio of your income to medical expenditure would present a deficit. Hence, you would need an extra source of money. But could you really think of searching for a second or third career at this moment in time when all you would want to do is be there by your family member’s bedside? Apparently not. A quick way to ensure your medical bills is to sell that old home of yours and move in to another smaller unit.

It sounds easy but beware of listing your homes with just about any real estate agent. They could charge you a lot for commission and maintenance fees without the guarantee of a fast and problem-free sale. What they do is they list your property in the open market. If you are lucky, you would get to sell your property in more or less 3 months since it has been listed but more often than not, a year or two is what it takes. And because you need the income fast, you would resort to mortgage loans which could get you entangled with foreclosure problems.

To summarize how mortgage loans could lead you to foreclosures, simply put it this way: You borrow money and then for some reason, whether valid or not, you are unable to repay the bank or the lender the said amount plus the interest fees. The bank gets peeved and files a complaint or a foreclosure notice. Then you find yourself facing a legal proceeding which will determine the outcome or consequence of your inability to pay back your mortgage loans. When this happens, you may find yourself in danger of a repossession and eviction.

With family matters occupying most of your consciousness and time, you would hardly find time to digest and find solutions to foreclosure problems. Lucky for you there is a company probably just a stone throw’s away from you that is willing to provide you with foreclosure help. This company is called Cashout Options. Cashout Options is an investment company that purchases various kinds of real estate in any location and in whatever sort of condition. The company also deals with foreclosure prevention measures and is teemed with experts that will provide you with the necessary foreclosure assistance to get you out of that rut you are in. The staff is composed of well-meaning men and women who are well-versed with foreclosure information which you may find useful.

To avoid a foreclosure, selling your old home to Cashout Options is your best option. Just fill out an online request form or contact a local affiliate and within 48 hours to 7 days, Cashout Options will get back to you. You need not trouble yourself with the paperwork, especially since you are already pre-occupied with family and medical concerns as it is. Cashout Options understands its customers and is very helpful when it comes to all the paperwork and the tedious process that accompanies property sales. They are also very transparent and will provide you all the necessary information regarding the sale. Cashout Options also offers a variety of foreclosure solutions you could choose from. You may also inquire about their short sale services and negotiate with their representatives regarding your foreclosure problem.

With Cashout Options, stopping foreclosures is not impossible. By selling to Cashout Options, you could get that fast cash that would help you with your chemotherapy expenditure and save your family member’s life.



CORNELIUS

Paul Escobedo asked:


Is the housing market ready to rebound?  Depending on which statistic you want to believe, it may be, or it might not be.  Let’s look at some things.

First, on June 16th, the Commerce Department came out with a statistic that said housing starts were up 17%, a reversal of fortunes that have dogged the industry for more than four years.  They believe that lower prices and tax incentives are attracting buyers.

But are lower prices and tax incentives attracting buyers?  Home sales in both April and May were relatively flat, May even a little lower than April, while home prices were still declining across the board.  Prices have been low for at least two years now, drastically low over the last 9 months, and though the tax credit was just signed in February, there was a similar tax credit last year from the Bush Administration of $7,500 that should have sparked sales, but didn’t.

Therefore, we can conclude that it’s got more to do with other factors than housing prices or tax incentives.  Things like unemployment, the cost of energy rising, and the unstable banking situation that’s keeping people holding on to their money just a little while longer.  That, plus right now 1 in 8 homes are either in foreclosure or have owners who are behind on their payments.

That, and mortgage rates are climbing once again.  They’re now up around 5.5%, when only a few months ago they were hovering around 4%.  The federal government is looking to find ways to bring the interest rates down again, such as purchasing debt, but with other things getting ready to hit banks, including the possibility of merchants negotiating rates directly with Visa and Mastercard, which will possibly take revenue out of the pockets of banks, it’s going to be a hard sell.

Still, there are some positive numbers to look at.  For instance, housing permits rose 4% from the previous month.  Construction of single-family homes rose 7.5%, the third straight monthly gain. Work on multifamily homes, such as townhouses and apartment buildings, jumped 62%.  So those are good numbers.  Not so good is that home starts are still down 45% from the same time a year ago.

Also, investors are starting to believe in home builders again.  Shares are trading higher, and the Dow Jones U.S. Home Construction Index is up 2.21%.  Even with that, some analysts are worried that increased construction could add to already-elevated inventory levels, devaluing home prices.

The numbers are dichotomous at best, but comparing them to what was going on six months ago, they are improving; nothing wrong with that.



ADAN

Robert Barr asked:


Even the most responsible are sometimes caught up in situations beyond their control, and faced with consequences which can, almost overnight, lay waste to years of careful planning.. Millions of American homeowners who took on the responsibilities of a mortgage in the past few years now find themselves teetering on the brink of foreclosure, trapped in a collapsing housing market which will not let them get out of homes they can no longer afford.

But there are mortgage foreclosure solutions available, and you too may be able to stop foreclosure if you research the kinds of foreclosure help now available. If you can’t save your home, you can, at the very least, save your credit rating by keeping it free of a foreclosure record.

When it comes to mortgage foreclosure solutions, speed is of the essence, and as soon as you find yourself wondering where the next monthly house payment will come from, it’s time to act. Don’t feel intimidated when the foreclosure notice arrives; ignoring your plight will accomplish nothing. Contact a mortgage foreclosure prevention specialist as soon a possible, because it is the best way to stop the foreclosure machine from mowing you and your loved ones down where you stand.

You can find many specialists in mortgage foreclosure prevention with an online search, so look for local attorneys familiar with foreclosure laws. Take the time, however, to get some background on any consultants you are considering, because the current foreclosure crisis has given rise to an entire culture of foreclosure scam artists who have nothing good in mind for those in your position. They will happily relieve you not only of your home, but also of the money you put up for their services, and you will still be faced with foreclosure.

You can also begin your quest for mortgage foreclosure solutions with an area debt counseling agency, which may be able to solve your problems by negotiating a modified payment schedule with your lender. A debt counselor can also offer advice on refinancing your mortgage at a lower interest rate, or even selling your home while it is still in preforeclosure.

You may be surprised to learn that your bank is not eager to foreclose on your home, and your best chance to avoid foreclosure may actually lie in sitting down with your banker to determine your options to avoid foreclosure. No bank in the world is thrilled with the idea of having to insure and maintain an empty home, so keeping you in it even if you are only making interest payments for the time being may, from the bank’s point of view, be an attractive alternative to foreclosure.

And above all, learn about your rights concerning foreclosure. Become familiar with terms like recasting, home equity loan term modification, and special forbearance, and if none of the professionals with whom you are dealing mention them, don’t hesitate to bring them up yourself. Your home and your financial future are in no one’s hands but your own!



DENIS

Greg Watson asked:


Are you a homeowner who is facing foreclosure? If so, you may be unsure as to what your options are. Now is the time to find out. Why? Because you may be surprised how many ways there are to avoid foreclosure. When foreclosure is avoided you can either retain your home, keep your credit in good standing, or do both.

When facing foreclosure, the first step you should take is to approach your bank. It is best if you do this before the issue of foreclosure arises. Once it does, it is still not too late to schedule a meeting with the chief loan officer at your bank. If you can prove that you intend to get your mortgage back in good standing or that your financial troubles are only temporary, your lender may hold off on foreclosure.

Even if your lender is willing to work with you, keeping your home may not be in your best interest. If you are having long-term financial hardships, it may be within your best interest to sell your home before it enters into foreclosure. When making this decision, you may want to talk to your lender. They may agree to allow you to proceed with a pre-foreclosure sale. In fact, they may hold off on the process of taking your home, giving you ample time to find a new buyer. When selling your home as a pre-foreclosure, your home can be listed as for sale by owner or through a professional realtor.

Even if you do not consider a pre-foreclosure sale to be an option, you should expect to hear from hopeful buyers. When you are delinquent on your mortgage, especially to the point of foreclosure, this information becomes public knowledge. Some buyers, namely professional investors, seek out those in trouble. Although having a stranger appear at your door or call offering to buy your home may be rude, it is a decision that you may want to give serious thought to.

Another option that you, as a homeowner, has during foreclosure to hire the services of an attorney. When doing so, see those with specialties in foreclosures or real estate. A lawyer can advise you on what steps to take. They can help you understand the pros and cons of pre-foreclosure sales. In some states, attorneys can use bankruptcy as a tactic to stop the foreclosure proceeding. Although not a long-term fix, it may buy you more time to make a decision. It is important to note that bankruptcy, by itself has a whole list of pros and cons.

Most states have what are known as redemption period laws. These are designed to protect homeowners. They give you a grace period to reclaim your home. If you can make good on your mortgage payment, the foreclosure proceedings will stop. States that have these laws often enable you to reclaim your property even after it has been sold at a foreclosure auction. This is provided that you act within the allotted time frame.

If you reside in a state where you are not given a grace period or a redemption period, you always have the option of buying your home again. Anyone can place a bid at a foreclosure auction. With that in mind, placing a bid and being the winning bidder are two different things. It often takes a significant amount of cash to reclaim your home. Your financial lender will also likely attend waiting to pounce. If the bids are not high enough, they will buy your home themselves. This is done to minimize their money lost. Later, your home will be available for sale as a REO (real estate owned) home.

 



TIM

Craig Berger asked:


The nation’s housing crisis, regrettably, is only worsening as signs of a recession and sky-high food and gas prices crunch into the public’s budgets. According to a poll conducted by the Associated Press and AOL Money & Finance, over a quarter of homeowners are worried about losing home value in the next two years, while around 60 percent of people are “definitely” not buying a home in the next two years.

Why Home Buyers Staying Out Of The Housing Market

While the housing market is excellent for buyers, many cannot afford to buy a second home and wait for sellers to show up. Only 11 percent of people polled were certain or very likely to buy soon, while one in four people believe that the value of their home will continue depreciating.

Buyers are reluctant partly because they feel the current market is has not yet bottomed out. While people are interested, they want to wait until the prices continue falling. Although this means some great bargains for homebuyers, it puts more stress on the economy and homeowners who are looking to unload mortgage payments they cannot handle.

Why Homeowners Are Losing From The Housing Market

Even though 59 percent think now is a good time to buy, half of those polled think it is a tough market to break into for first-time buyers. This is probably partly due to the stricter lending requirements that banks and mortgage companies are imposing, thereby locking out first-timers who may not have the best credit record and lack experience in buying real estate.

The poll also indicated that one in seven mortgage holders are afraid they will be unable to make their monthly payments on time in the next six months. One in ten homeowners has an adjustable mortgage rate, which is making the increased interest rate a financial issue for many, with foreclosures at a record high inducing fear in buyers and owners alike.

Some Good News For Homeowners and Home Buyers

As home values drop and sales fail to increase, there is still some hope for homeowners. Homeowners who bought their house in the last few years will feel the loss, but those who purchased around 2001 should retain their home’s value. Even for others, the prediction is that the value is going down temporarily, even if it is impacting homeowners directly at the moment.

For homebuyers, the good news is that if there are savings in the bank and a good credit history, buying a new home is a very real possibility. Since sales have plummeted and many people who would be swarming the market are busy trying to sell their homes, serious buyers can bargain down or buy fixer-uppers in foreclosure auctions. Even though the U.S. housing market is shrinking, ready buyers can act now and save big on buying a home.



DARIN

Ruth Jacob asked:


House prices will take more than four years to rise above their 2007 peak, a wide ranging survey of experts has warned, thus also affecting the mortgage market. 

The gloomy message was delivered by more than, 60 per cent of 225 Society of Business Economists (SBE) members surveyed for ITV1’s Tonight programme.

House prices could fall by up to 20 per cent from the top of the market, according to 56 per cent of respondents - although 20 per cent took an even more pessimistic view, forecasting property values could slump by as much as 30 per cent.

More than half the experts from banks, building societies and industry said house prices would fall by between 6 per cent and 10 per cent this year.  The market will hit rock-bottom in 2009, according to 44 per cent of those surveyed.  The SBE’s chairman, Bronwyn Curtis, also warned recent buyers could have to wait “a long time” to get their money back.

Speaking to the programme, she said: “It doesn’t look like we’re going to see a fall, which is what we’re in the middle of, and a quick bounce back.  It does look as though it’s going to go on, and we’ll have slow growth for some time.

She added: “On top of that, house prices were overvalued, according to most economists, and so you have the situation where they remain undervalued for a long time.”

The survey is the latest addition to a steady stream of miserable news on the housing market, which saw share prices in the UK’s major house builders hammered last week.

Recent figures from the Nationwide and Halifax building societies showed hefty price falls during May, while the number of homes changing hands also slumped to a 30 year low as the credit crunch continued to put pressure on the property market.

Estate agents sold an average of just 17 properties, each during the three months to the end of May, according to the Royal Institution of Chartered Surveyors; the lowest figure since it first began collecting data in 1978.

This news, comes after it was reported that around 15,000 estate agents, will lose their jobs within this year, due to the housing slump coupled with lack of mortgages due to the credit crunch, continue to take their toll.

Another official blamed the credit crunch for estate agents’ problems, said: “The irony is that there is no shortage of people who want to move house, but without mortgages they just can’t do so.  Estate agents are having to close because there just isn’t enough movement in the housing market and that is likely to have a much wider impact because a healthy housing market is essential for the health of the high street.”



ELLIOT