Foreclosures numbers are breaking records all over the nation. Too many borrowers that stretched out their financial abilities when they took their loans, now having major troubles making their payment on time, or at all. They may have difficulties because of other reasons, as sudden unemployment, sickness, etc.
It is a national problem, accross the country foreclosures were up by 24% from July to September 2006, and up more than 50% year over year.
If you have problems paying your mortgage, your best way of getting help, is to call your lender!! Communicate with him, don't 'hide' it. Beleive it or not, lenders are not in a real estate business, their business is just to lend money and to make money, nothing else.
Therefor, lenders will do the best (naturally, each one of them in a different way), to help the borrower, not to go down and into foreclosure. Do not delay the decision to talk with your lender, the sooner the better, and very likely they will work out a solution together with you. You want to ask, and they may agree to restructure the loan, or to refinance it, sometimes even to suspend mortgage payments until you recover and back on your feet. Or they might have another solution that you may accept.
If your lender, from any reason, is not going to help you out, you still need to find a way not to foreclose. Not only it will leave you & the family without a roof, it will hurt your credit badly,for the next few years.
Your option now is to sell your home, hopefully you have enough equity in your property, so it will leave you with some cash after repaying the mortgage, so you can start all over again, but at least you avoid a foreclosure, you don't have it on your records, your credit report is clean and you are looking foreward for a new successful beginning.
If you or a customer you know is in a financial difficulty, email me with the scenario, I may be able to help out and avoid the foreclosure process.
Isn't it always the same pattern?! every problem anywhere is bad for someone, and at the same time, it is someone else opportunity for profit...War time, for example, nations in war are badly damaged, others profits from increasing weapons sales. Home foreclosures are not different...
Nationwide, 318,355 properties entered some stage of foreclosure during the third quarter of 2006, a 43% increase from a year ago and a foreclosure rate of one new foreclosure filing for every 363 households, according to RealtyTrac, an online marketplace for foreclosure properties.
Many cities documented foreclosure rates well above the national average. Leading the foreclosure rate charge were Detroit, Fort Lauderdale, Denver, Miami, Dallas, Indianapolis, Fort Worth, Atlanta, Las Vegas and Memphis.
The sharp increase in foreclosures is due to to higher interest rates, a flat real estate market and the upward adjustment of a large portion of adjustable-rate mortgages taken out in the last few years by many borrowers. In the next 15 months, more than $1 trillion in loans are due to adjust upward, and with such a large volume of these loans set to increase, it is a trend that definitely bears watching.
A slow housing market with a glut of foreclosures presents more opportunities for buyers and investors to find bargains and profit from those bargains - if they have the patience to buy and hold, or if they are able to flip and sell it to residents from other countries with stronger currency than the US dollar, such as UK or Ireland.
For a detailed chart of foreclosures ratio in all states go to: www.AbsoluteFloridaMortgage.com/RealEstateAuctions
What is the BEST way to profit from foreclosure auctions?
First, you will need to know exactly what is a foreclosure.
A foreclosure takes place when the owner is unable to pay his lender the monthly mortgage payments.
the lender will notify the borrower and let him know to find the money within a specified amount of time, otherwise the lender will be forced to repossess the home and begin the foreclosure procedure.
A foreclosure auction is held so that the lender can try to sell the home at a public location (such as a sheriff department office) to the highest bidder for a price lower than the actual market value of the house simply because the lender wants his money back.
Secondly, you must understand how and when to bid for a foreclosure sale auction.
FACT: The property is publicly auctioned off to the highest bidder and the procedure moves fast. You'll have to compete against the lender and other investors.
Fortunate bidders often obtain unbelievable bargains far below the actual market value of the property.
Bidders can achieve up to 35% savings off market values and earn a fantabulous Return On Investment (ROI).
Sometimes bidders pay too much and later discover the property is in bad condition. The problem is that there are some people knowing they are going to forclose and are destroying the property.
Another major disadvantage of buying property at a foreclosure auction is the fact that CASH is required, your credit card is useless in this situation.
However, here's a major advantage of buying property at the foreclosure auctions: junior loans and encumbrances are cancelled out.
Here are 5 major STEPS you should take if you want BIG PROFITS NOW from foreclosure auctions:
1. Research properties prior to the sale date; find out everything you can about the properties that interest you.
2. Hunt for real opportunities; seek those properties that really interest you and you think will bring you the results you want to achieve.
3. Do the math; estimate the rates and possible profits if you consider to bid at an auction for a certain property.
Be persistent and work smart, not hard!
4. Check each bid price and determine how to earn a higher return on investment (ROI). Don't panic, take your time!
5. Go to the auction and participate. Bid on the properties that interest you and that you have done your research on.
REMEMBER - do your homework first, take the 5 STEPS above and the sooner (rather than later) you'll succeed in foreclosure auctions.
Buying at the auction is your opportunity to GREAT property discounts, so INVEST your money and time wisely.
