Free Foreclosure Articles And Foreclosure Information

The October 2008 figures released by the Grand Rapids Association of Realtors in Michigan showed that 63 percent of properties on the market were short-sale or foreclosed.

With the closing of the home-buying market for the season, data on foreclosure sales and short shares showed the same percentage of homes available on the market were under banks’ control.

Homeowners who were behind their payments have asked banks to shoulder the losses once their properties have been sold. On the other hand, short-sale homes were not taken over by banks.

The Grand Rapids Association of Realtors also disclosed that besides the 63 percent, short sales increased by 80 percent since 2005.

Realtor Sue Prins points out great opportunities for buyers in the current housing market. She explains that foreclosed or short sale properties in the current market are well-maintained, unlike those sold in the past.

She claims that some individuals have misconceptions about foreclosed or short-sale properties. She adds that her experience with homeowners whose properties have been foreclosed has been stressful and left her feeling disappointed.

Prins cautions potential buyers to inspect thoroughly homes that banks have taken control. She explains that banks have never occupied the property, made no claims on the properties for sale and so buyers will have to take it as-is.

Meanwhile, home buyers Josh and Courntey VerVoort are relying on their better judgement in making home choices. Josh explains that they are on a better situation because they are getting good deals in the current market situation.

However, the VerVoorts know that people are selling their homes because of a market situation beyond their control and they feel bad about it. Josh says that they are taking careful steps to ensure that they buy a foreclosed property that they can afford for a long term.

Acquiring a distressed property has three ways, depending where it is in the foreclosure process. This process involves three stages namely: pre-foreclosure, foreclosure, and post-foreclosure.

* Pre-Foreclosure Stage
In this stage, both the investors and the troubled homeowners are benefited. Pre-foreclosure prevents further debt of the homeowner and allows a more favorable price that is agreed upon by both parties. The best people to contact in locating a property are any of the following: real estate agents, lawyers, accountants, business partners, and friends.

* Foreclosure Stage
In locating a foreclosed property on this stage, it is best to go to the office of the County Clerk. It is where default notices and pending foreclosure sales are. There is also an option of subscribing to a list for advance notices. Moreover, title insurance companies can give assistance by providing some information in exchange for the expected future business.
The foreclosure process varies in every state. States either use judicial or non-judicial foreclosure forms. Judicial foreclosures concern mortgages, plus completion takes longer. Non-judicial foreclosures pertain to trust deeds wherein a third party or a trustee takes charge of the whole process within two to four months, just after a homeowner has stopped paying or has already defaulted.
After the property has undergone a judicial or non-judicial process, it is ready for auction.

* Post-Foreclosure
This is the stage when the property has already been fully taken control of by the lender. The property is then a lender’s REO, or is owned by the investor or the new owner who won the auction.
More REOs means higher overhead costs so lenders are more open to negotiations. If it is a private investor who has got the property, negotiating offers either alone or with the assistance of an agent may do.
The key to success in the foreclosed home buying and selling business is choosing the right stage to step in the foreclosure process.

Since the nation is in the midst of a foreclosure crisis, average citizens have been wondering what really happened in the housing industry. Although analysts and experts have been pointing their fingers to predatory lending practices and buyer speculation, it would seem that there are other reasons for the high foreclosure rate.

If you consider the fact that troubled borrowers can actually avoid foreclosures if only their lenders agreed to change their mortgage terms, allowing them to enjoy more affordable mortgage payments, it may be a bit confusing as to why the industry ended up in such a mess.

Critics believe that the foreclosure problem is actually the result of self-preservation. Individuals working for these lenders have decided that the easiest and safest route for them is to proceed with the foreclosure filing. This way, the interest of the company is protected as well as their jobs.

It does not matter if families will become homeless and the industry will suffer from large supply of foreclosure homes, sluggish home sales and declining home prices. The important thing for these employees is to make sure that the money owed to the corporation remains in the books.

What is more saddening is that the government has chosen to help these huge financial investment firms rather than the millions of troubled borrowers. Never did it occur to the government that forcing these lenders to agree to a loan modification is better than throwing taxpayer money away to various programs which have not yielded any concrete and long-term results.

It is indeed frustrating to know that there was actually something that could have been done to prevent the worsening of the foreclosure crisis. But then again, it is human nature to think of protecting himself first rather than lend a helping hand to another human being in trouble.