Posted: July 16th, 2009 | Author: Joe | Filed under: Investing, Real Estate | Tags: foreclosure | No Comments »
To say that this is a buyer’s market is an understatement to be sure, but that doesn’t mean it’s a no brainer. While there are an unprecedented number of homeowners walking away from their mortgage, creating a record number of foreclosures, it’s still easy to make costly mistakes. Here are some tips to ease the process.
1. Know where to look.
Start without even leaving your home. Check out websites like RealtyTrac.com or ForeclosurePoint.com. These sites allow you to find listings of houses in foreclosure.
2. Know who to buy from.
In short, a bank. Buying a foreclosed home at auction requires you to pay cash, and you don’t even get the luxury of inspecting the property first. Contrast this with a bank owned foreclosure, where any liens have been cleared and you do get to inspect the property first, and you’ll see which is the better option.
3. Hire a contractor.
Foreclosed homes were either owned by people who didn’t care about tending to the property, or people who did not leave on their own terms. This often leads to vandalization and disrepair. Bringing a contractor to inspect the property before you buy, eliminates the possibility that you will underestimate the cost of repairs.
4. Aim low.
There’s a glut of foreclosed homes on the market the likes of which are rarely seen. This means banks are more likely to accept a lower price, just to be rid of the house. Start 20% below the market value, and be prepared to haggle.
5. Be patient.
While the glut of foreclosures means you can score a big discount on the price, it also means the bank has a lot of homes to process. This means it will likely take some time to finish the deal. Be ready to wait.
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Posted: March 12th, 2009 | Author: Joe | Filed under: Scam | Tags: foreclosure, scams | 3 Comments »
Do you know how to spot a foreclosure scam?
When a public notice of impending foreclosure of your house is released, this can generate unwanted solicitations from unscrupulous agencies that promise to help you avoid foreclosure.
Sometimes these scam artists can take the guise of a mortgage restructuring firm, and often times promise their “clients” they have received a high success rate of stopping foreclosures.
If some one contacts you offering foreclosure assistance, chances are they do not have your best interest at heart. This is especially true if any of the following apply:
- They require an up front fee.
- They tell you to stop communicating with your bank or mortgage company.
- They press you to transfer the title to your home to them.
The problem is that most of these scammers are either looking to bilk you with extra fees, or take your house out from under you!
As a general rule of thumb, don’t trust anyone contacting you. A better solution if you find yourself in such dire straights is to contact a housing counseling agency certified by HUD (Department of Housing and Urban Development) There you should find free or low-cost foreclosure assistance.
Photo by respres
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Posted: July 29th, 2008 | Author: Joe | Filed under: Debt, Real Estate | Tags: Extreme Makeover, Financial Literacy, foreclosure, Harper Family, Harper Family Extreme Makeover, money, Money Mistakes, news, Real Estate | 3 Comments »
Three short years ago ABC’s “Extreme Makeover” reality TV show demolished the Harper Family’s old home to make way for a new, 4 bedroom Mc Mansion. Flash forward to today, and the Harper’s are one of the latest families to face foreclosure.
My first thought when I read this story was, “How can this be possible? Don’t the families receive their homes mortgage free?” That got me thinking about what kind of money mistakes the Harper family made.
Apparently they used the home as collateral when taking out a $450,000 loan. Yikes!
As if that wasn’t bad enough, they then used the proceeds of that loan to start up a construction business that has since failed.
To me, this just proves the necessity of financial literacy and learning good money management skills. Giving this family an asset like this at a time when the housing bubble was just taking off is like giving a fully loaded howitzer with a hair trigger to someone who’s never even seen a handgun before.
The article states:
“ABC said in a statement that it advises each family to consult a financial planner after they get their new home. “Ultimately, financial matters are personal, and we work to respect the privacy of the families,” the network said.”
Which is indeed the saddest part of this, to have to sit idly by and watch someone not take heed of the advice they are given and knowing the eventual outcome won’t be pretty.
“”It’s aggravating. It just makes you mad. You do that much work, and they just squander it,” Lake City Mayor Willie Oswalt, who helped vault a massive beam into place in the Harper’s living room, told The Atlanta Journal-Constitution. “
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Posted: June 9th, 2008 | Author: Joe | Filed under: Debt | Tags: celebrity, foreclosure, news | 2 Comments »
OK all you real estate investors out there, get your check books ready! World boxing champion Evander Holyfield is the latest celebrity to succumb to foreclosure.
“The home worth an estimated $10 million is set to be auctioned by a bank on July 1.”
Maybe I’m too cynical, but this doesn’t surprise me. I have nothing against Mr. Holyfield. It’s just that celebrities going bankrupt prove a strongly held conviction of mine that money alone is not the answer. Of course, 9 children and child support doesn’t help. 
Many people say, “If only I had more money my problems would be solved.” But this rarely true in reality because without the knowledge of how to manage that money, it only makes things worse. Money is like a magnifying glass and only serves to amplify the underlying behavior toward money. If you have good money management skills, then more money will likely make you wealthier. If, on the other hand, you have poor or no money management skills then more money will only get you deeper in trouble (debt). Just look at the majority of lottery winners who end up penniless within 10 years of hitting the jackpot.
In another recent story, Ed McMahon talks about possible home foreclosure, Ed McMahon’s wife, Pamela explains:
“Asked why a millionaire couldn’t make house payments, Pamela McMahon said the couple had less money than people may think and suggested they could have done a better job managing their finances.
“We didn’t keep our eye on the ball. We made mistakes,” she said. “It’s embarrassing to say the least, and it’s sad, because you know, Ed’s worked his whole entire life.”"
The game, it would seem, is the same for the rich and middle class alike – keep your eye on the financial ball, and educate your self!
Of course, celebrities can do a funny Nationwide commercial to help get back on their feet again. The average Joe doesn’t have that kind of opportunity.
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