Foreclosures Blog - Foreclosure Listings Nationwide

Sitting at the heart of the national housing crisis, the Central Valley in California faces new foreclosure challenges as the prices of basic commodities rise and household incomes contract. This situation is leading experts to believe that the next foreclosure wave is just around the corner.

During the first wave of foreclosure, subprime borrowers and lenders were the ones who got hit the hardest. These lenders were the ones who engaged in unscrupulous lending practices and borrowers who fell victims to these unfair activities.

But the after effects of the initial foreclosure wave will likely reach more borrowers. This time, it targets those homeowners who are struggling with their mortgage payments due to insufficient income.

This is not at all surprising since the state’s high foreclosure rate has primarily resulted to home prices plunging. Millions of homeowners found themselves with reduced equity and for some, their mortgage debts have surpassed the equity they have on their homes. Add the slowing economy and increased cost of living; you will certainly have a recipe for disaster.

Millions of homeowners have no means of getting out of this unfortunate situation. With their tight budget and unaffordable mortgage payments, many have accepted the possibility of losing their houses to foreclosure.

Across the nation, troubled borrowers are seeking assistance from their lenders in refinancing to fixed rate mortgages, which will allow them to enjoy more manageable mortgage payment terms.

There are even non-profit organizations that are lending their expertise to these distressed borrowers in order for them to make informed decisions. After all, foreclosure is a tough process and homeowners should be aware of their rights and what will happen to them after.

As always, foreclosure experts are urging distressed homeowners to work out their mortgage woes with their lenders in order to avoid foreclosure.

To date, California is among the states with the highest foreclosures rate. Compared to July 2007, there was a 119.3 percent increase in pre-foreclosure filings.

Last month, President Bush signed a housing rescue bill, which will provide assistance to at least 500,000 distressed homeowners. The $300 billion legislation is set to be implemented starting October 1.

Among the many provisions of the legislation is the mortgage relief program that will allow troubled borrowers a chance to refinance their existing mortgages into fixed-rate, FHA-backed and more affordable mortgages.

If you are among the many homeowners who are looking forward to stopping foreclosure by availing of this program, you should probably know that there are certain requirements that you will have to meet to qualify. These are:

• You must be presently residing in the distressed home.
• Your mortgage loan should have been taken out between the period of January 2005 and June 2007.
• You should be spending a minimum of 31 percent of your total monthly income to pay for your mortgage dues.
• You must be able to prove that you can no longer meet your mortgage obligations.
• You should have no other existing loans or debts attached to your home such as a home equity loan.
• You will not be allowed to take out another loan that uses your home’s equity for at least a period of five years.
• You can only take out a loan amount that will not exceed 95 percent of the property’s current appraised value.
• Your lender will have to approve your application. This is because your lender will have to take down the original mortgage debt to 90 percent of your home’s present market value, resulting to considerable losses on their part.

If you think that you will be able to meet these requirements, then you should immediately contact your mortgage servicer or any FHA-certified lender and ask for their assistance. Check out the website of the US Department of Housing and Urban Development for more details.

Following up on potential buyers, contrary to what many people believe, should not only be done when a potential buyer says “Goodbye” after checking out the foreclosure property you are selling. You should know that the follow up process actually starts as soon as potential buyers walk thru the front door.

If you are serious about selling your foreclosed property, you must understand the importance of following up on your potential buyers especially with the tough market. You should consider participating in the entire sale process and not merely act as a sales person.

In order to accomplish this kind of following up, you should first make sure that you have connected with the buyer and trust between you is established. You can do this by probing what the buyer needs, prefers and likes. Understanding these things will give you a better idea of what is important for the buyer and give you some maneuvering room.

Potential buyers will certainly remember you when it comes to decision making time especially if the visit was a pleasant one. You should try very hard to be straightforward and honest with your answers and elaborate as much as you can, without being long-winded and repetitive. If you want, you can prepare for these visits beforehand so you will not aimlessly ramble on about the property.

After the initial meeting, you will be surprised with how these potential buyers will treat you when you do the “regular” follow up. On the other hand, if you fail to establish a bond between you and the buyers, you should not be surprised if your letters, emails and calls are ignored.

As a seller, you must try to understand that buyers have the upper hand right now and the only way one can close a sale is by being involved.

Starting October 1, rules on the purchase of repossessed homes will be tightened in accordance to a new legislation that has been passed in order to curb the rising incidence of foreclosure fraud.

It seems that the effects of the enduring foreclosure crisis have reached the Web. A recent survey showed that many internet users are searching for sites that contain information regarding foreclosure. For the month of June, there were approximately 1.82 billion internet users who searched for ‘foreclosure’. Compared to last year, there was apparently an increase of about 177 percent.

Market conditions dictate who will have the upper hand. Right now, buyers have all the advantage. With the large inventory of homes for sale, declining home prices and sluggish home sales, you can expect buyers to have the leverage.

If you have managed to escape the subprime mortgage mess, it should not mean that you will let down your defenses. One of the ways you can easily avoid losing your home to foreclosure is by organizing your finances early on.

Last year, the number of foreclosure petitions filed in the Nantucket Superior Court and Massachusetts Land Court was over 23. After one year, the foreclosure petitions have risen to 92, a 421 percent increase.

Less than two hours before her home was scheduled to be auctioned, a Massachusetts woman decided to commit suicide by shooting herself. This unfortunate news shocked Americans and forced many to think if it is a sign that the housing crisis is really taking a toll on the nation.

With the market brimming with foreclosure homes for sale, many consumers can not help but be interested in taking advantage of the opportunities offered by these distressed properties. Unfortunately, buying a foreclosed home is not as simple as most people think.