Foreclosure Help Stories
By · CommentsBecause of the subprime mortgage crisis, many homeowners are finding themselves in a situation where they can no longer afford their mortgages. Subprime mortgages are loans that are given to borrowers that do not qualify for a prime rate mortgage.
Because of the increased credit risk, these mortgages come with a higher interest rate. However, many of these mortgages also come with a very low “teaser” rate that is only available for the first few years of the loan. When the teaser period is over, the interest rate will usually double, or sometimes triple.
When this happens, many families are faced with a mortgage payment that is not possible. Foreclosure becomes a very real problem. A source of hope for these families are the many foreclosure help stories that are told on various news outlets.
Many home owners have been able to find help in avoiding foreclosure. Once source of these foreclosure help stories is the US Department of Housing and Urban Development web [...] Continue Reading…
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Bank Foreclosure Houses: The Flip
By · CommentsOne of the reasons many real estate investors are looking into bank foreclosure houses for their investments is because of the allure of the flip. A flip is the process of buying a piece of real estate, making upgrades and repairs to this well priced home.
Then, the home is sold on the market for a higher price. Most flips need to happen quickly to keep costs down and for many investors the balance of profit and costs pressures them. Can bank foreclosure houses still work well for the real estate investor even as the housing market falters?
Bank foreclosure houses are designed to be profit makers in many ways.
For example, many banks will sell these homes for far below their property value because they need to get the cash back to reinvest. They are willing to take the losses more so than the typical home seller is. Nevertheless, banks are not willing to hand over these properties.
They too have to make as much money on the process, [...] Continue Reading…
