Posts Tagged ‘Recession’

Wednesday, June 9th, 2010

foreclosure
Mack Winthrop asked:


With the economy in a deep recession, more people are unable to meet their financial obligations and a major symptom is foreclosure. When people cannot pay their mortgage and their lending institutions reclaim their house, it is with the intent of recovering the balance owed on the property and getting it off their books as soon as possible. Many banks do not want to advertise all their foreclosures since it puts their financial troubles in the spotlight. One way to find current upcoming auctions is through foreclosure lists.

Foreclosure lists are generated from many types of lenders. For example, there are traditional banks, FHA, HUD, IRS, FDIC, Treasury, VA, Federal, State, and County seizures, and more. Even real estate companies have foreclosure lists, but in this particular case, subscribing to that kind of list is more about generating leads for the real estate agent.

With the advent of computer technology and the Internet, foreclosure lists are readily available online. There are free listings, however, the information is usually more limited. In order to get detailed information, a small membership price is required following a trial period. If you are serious about investing in foreclosures, having access to this information is indispensable. Just make sure that the list in question is frequently updated.

There are other ways to find foreclosures in your local area if you are willing to do a little work. Most newspaper-classified sections have a public notice for foreclosures. The local sheriff’s office or banks may also carry a foreclosure list. You simply contact them and tell them you are a person interested in bidding on foreclosure properties. It is also a good idea to attend a foreclosure auction and ask the person running the auction for a source of foreclosure lists in your area.

If you have the time, you can compile your own foreclosure lists by searching the public records at the county clerk’s office. Local attorneys may also have lists of bank REOs.

Often times, pre-foreclosures present a more profitable opportunity than foreclosures. Many people will sell their homes before the banks foreclose in order to save their credit and retrieve any equity they can in the process.

The biggest advantage of having access to foreclosure lists online is the time it saves. You can sort listings and pick the ones that are right for you. Some sites have government auction listings that include over 100,000 foreclosure and pre-foreclosures, as well as auction times and locations. Often you can access more than real estate, including cars, trucks, boats, RV’s, and more.

Having a foreclosure list is a great resource, but remember it is only one tool available in the real estate investing business. There are many other factors to consider including your own experience and knowledge level. You must do your own due diligence and research to give you the best chance at success. Start today with your research, you never know when the right deal is around the corner.



Monday, November 30th, 2009

foreclosed home
Tony Marino asked:


Though many sources are claiming that the end of the recession is at hand, we are all painfully aware that the incidence of foreclosures hasn’t dwindled and may not for some time to come yet. The tragedy of foreclosures apparently isn’t ending just with unfortunate mortgage holders losing their homes however, more and more vacant homes are falling victim to vandalism and occupation by people who don’t own them.

The number one source of foreclosed home vandalism seems to be from the homeowners themselves as they vacate homes. Because foreclosure is such an emotional event, many of these people feel that they need to exact revenge on the banks that gave them the means to buy their homes in the first place. Not only are some of these owners stripping out all of the appliances out of these homes, but also cabinets, copper pipes and wiring, tiles, bathtubs, toilets, sinks, and air conditioners. It seems that some homeowners are removing any item out of their home that they anticipate might get them a dollar or two when they leave in an attempt to get a few dollars out of the house before they leave.

Another form of vandalism perpetrated by homeowners is one that is more destructive than just looting for sale able items; some homeowners, in their rage and disgust at losing their homes, seem to be committing as much rampant destruction to their properties as they can in some kind of misguided attempt to destroy as much of the home that they can. Homes have had their drywall smashed in, walls spray painted, food and garbage left to rot, and the taps all left on and the homes flooded, as well as many other destructive things.

Some vandalism along these same lines is perpetrated by strangers as well, but no vandalism seems to be committed with as much vigor and venom as that committed by disgruntled homeowners.

Some of the foreclosed homes have also become party sites for a variety of party-goers. Teen parties in these abandoned homes has become a serious problem in some areas; the party-goers often vandalize the homes by breaking windows and spray painting the interior of the residence as well as creating a disturbance in the neighborhood.

It has recently come to light that teenagers aren’t the only ones trespassing and partying in vacant foreclosed homes though; Cheronda Guyton, a Wells Fargo senior vice president in foreclosed properties, has recently been exposed for living with her family in a foreclosed Malibu mansion and throwing lavish parties. While this family has been squatting in this luxury accommodation, Wells Fargo has apparently been refusing to show the property to prospective buyers when approached by realtors in the area. The bank is apparently investigating this situation.

It is looking that there will be no end to the incidence of vandalism and trespassing on foreclosed properties until either neighborhoods band together to keep close watch on the homes around them, or until the foreclosure rate reverses and the prevalence of vacant homes becomes more manageable for banks and law enforcement across the country to keep an eye on.