What makes real estate foreclosure market so hot? You can buy foreclosure homes at staggeringly low prices and expect to earn huge revenues in less time and effort. Foreclosure homes are flooding the market because many homeowners are unable to pay their mortgage for varied reasons, including divorce, sickness, death in the family and unemployment. Mortgage lenders, either banks or the government, prefer to sell foreclosure properties in their portfolio and recover their investments. And what better way to dispose these properties immediately than by selling them at outrageously low prices.Buying Government Foreclosures:Government agencies such as the Department of Housing and Urban Development (HUD) and Department of Veterans Affairs (VA) act as insurers to allow eligible persons to buy a home. In the event that homeowners fail to pay their mortgage, lenders will inform the government agencies that in return will pay the mortgage loan balance to lenders. In return, the HUD or VA will take over the troubled properties. The agencies will then re-sell these properties immediately in an effort to recover their investments.Buying Bank Foreclosures:People who failed to pay their mortgage loans will find themselves face to face with foreclosures. Depending on the state’s rules concerning foreclosure properties, the usual is three months after the first receipt of a notice of default for foreclosure action to proceed. You can either buy foreclosure houses at auctions or real estate owned.At foreclosure auctions, you get a chance to bid on bank foreclosure homes. Properties that remained unsold after an auction are called real estate owned. This means that these houses are returned to banks that will immediately find quick ways to sell them in order to recover their investments. Also, it would not be good for the bank’s image to have a long list of foreclosure houses in their portfolio. It reflects inefficiency on the part of the banks.There are thousands of foreclosure properties on the market. So do not buy foreclosure homes as soon as you see one that took your fancy. It would not hurt to compare at least three foreclosure homes.
After the bankruptcy you might feel depressed of bad credit and filing, you might feel scared of starting new loans. Even though you have a record of bankruptcy in your credit report, there is chance to make a new beginning. The good news nowadays is even having bankruptcy on your credit report, you can buy a home. There are several different loan programs available for home owners and buyers even with past bankruptcy. There are mortgage companies who will be willing to give home loans for those people even after bankruptcy filing. Hard competition among the lending companies makes them give special home loan packages for those who filed bankruptcy in the past.The banks will check your credit history and score when you apply for home loan. Loan consultant will provide you the best rate and terms possible for your home loans. Creating good credit after bankruptcy is very much essential, so that you can get your home loans easily. Pay bills on time, use a secured credit card and check your credit report.Mortgage companies need some form of assurance that the borrower is on the safe side after the bankruptcy. Many mortgage companies while lending concentrate on three thingsa) On time bill payments for 2 years at a stretch.
b) Down payment
c) Steady income.Lenders give the loans for the people, who have filed bankruptcy not merely by taking chance, they take your home property as security for your loan where there is not much risk involved. Some lenders consider on time bill payments for 2 years at a stretch and good credit report, whereas some lenders grant home loans just one day after the discharge.Coming to down payment, you have to pay at least three to five percent of down payment to get approval. You can borrow this money from anyone and disclose this information to the lender before taking the loan, not disclosing the information will be counted as defrauding the lender. There is another alternative program called Nehemiah or neighborhood gold assistant program. This down payment assistance program will help you to get the loan even if you don’t have enough cash to pay.Once the home loan is granted from the mortgage company, you have to do monthly payments for your home loan. There is chance to reconstruct your credit history. Live a disciplined life, work hard and do not waste time and money for your lifestyle, because this is another chance to gain a home and reputation.Before approaching a lender, check out your credit reports, based on your credit score. If your credit score is less than 650 points you may not be able to get the home loan through a regular lender, indeed you have to visit the sub-prime lender. If your score is above 700 then you are in a good position and you can visit a regular lender.The way the economy is nowadays you might feel you cannot get the home loans because of your bankruptcy filing. But this is not completely true; you can succeed in getting a home loan two years after filing bankruptcy by following the steps above. There are various organizations and assistance programs which help you in financing, just make sure that you pay your credit bills on time as much as possible.
Home buying is one of the most important decisions one will make in their lifetime. Not only is a great deal of money involved with home buying, but also invested is a great deal of emotion. What a nightmare it would be if someone were to go through the long process of home buying to find that they really did not purchase the best home for their needs and wants. When beginning the process of looking for a home, it is important to try to avoid some common mistakes.First step is connecting with the right real estate agent. You will want to be assured that your real estate agent is a full-time Realtor and that they are familiar with the inventory in the area you want to live in. It is important that you establish the best way in which you and your real estate agent will be communicating during the time you will be conducting your home buying. Make sure your agent is familiar with the latest computer technology. Often times, getting an offer in as quickly as possible is imperative. You will want to be represented by someone who knows the quickest way in which to do this so that you do not miss out on the opportunity of having your offer accepted.Before spending your time and the time of your Realtor looking at home properties, you need to get yourself pre-approved for financing. Most Realtors today will not even begin the search process with you if you have not done this. After all, if you were to find a home you loved just to realize you did not qualify for the mortgage you would need to purchase it, you would be heart broken.Often times, new home buyers feel they have accomplished planning and figured out their budget in order to purchase a particular home. When preparing this budget, you cannot just figure in the monthly mortgage payments.Included in your monthly expenses, needs to be money for insurance, taxes, and utilities. To add to this, you should allocate a certain amount of money for appraisal fees, home repairs, moving costs, and in some cases, a community maintenance fee.Due to the many different costs there are during the process of home buying, some new home buyers will elect not to pay a home inspector in order to save some money. This could be a fatal error! A home inspection is imperative to be certain you area aware of the condition of the home. An inspector will be looking for signs of electrical problems, roof condition, termites, mold, and much more. If there are any issues with the condition of the home, you will be able to terminate the contract and get your deposit returned to you. The money paid to a good home inspector is money worth spent.Home buying is a complicated matter and one that should be handled with care. If buyers take the time to learn what is necessary to do and follow the advice of experts, the process should go relatively smoothly without any unexpected surprises.