Foreclosures are on the rise all over the country. As people are losing jobs and as wealth vanishes, even mortgages that are not subprime are going into default. Yet, as more people abandon their homes because they cannot pay their monthly mortgage costs, hungry investors with cash are scrambling to purchase those homes at bargain rates.
According to the Boston Globe, recent foreclosure proceedings from lenders “approached historic highs.” Lenders started over 2800 foreclosure proceedings in July, as opposed to the 500 or so that were filed in June of 2009 and a year ago in July of 2008.
In Florida, where I sell real estate, the Miami Herald reports that 23 per cent, or almost 807,000 loans, were either past due or in foreclosure by June of this year. Unfortunately for Florida, we lead the nation in foreclosures in this category: 12% for us versus just over 4% for everyone else. complete story
Source: Hulig News
Friday, August 21, 2009
Saturday, August 1, 2009
One of the Possible Foreclosures in Orlando? All is Not Lost!
Thanks to President Obama’s ambitious plan to improve the housing market, being on the list of foreclosures in Orlando doesn’t necessarily mean that foreclosure is inevitable. You have options, and the President’s loan modification program makes keeping your home even more possible.
Overview of the Plan
The President’s plan to reduce foreclosures in Orlando is based on the thought that struggling homeowners wouldn’t sell their houses if they could only make the monthly payments. Due to this belief, participating lenders are required to reduce monthly payments for homeowners who qualify until they’re no more than 38% of the homeowner’s monthly gross income. After that, the government lends a helping hand. Between the lender and the government, the mortgage payments would be dropped to no more than 31% through various means (extension of the loan, reduced interest rate, etc).
Even with the 31% threshold, many are afraid that’s not enough incentive for homeowners to keep up payments on a depreciating home. They speculate that homeowners may default on the loan anyway. To cover this possibility, the administration is offering cash incentives to lenders and struggling homeowners.
Each lender that participates will receive $1,000 per loan modification. Those lenders will also get an annual $1,000 for up to three years as long as the homeowner keeps their payments up. For homeowners facing foreclosures in Orlando, the good news is that borrowers can get their principal lowered by $1,000 per year for up to five years. Again, however, it depends on whether they keep their payments up.
You May Qualify
This is fantastic news for many. If you’re facing foreclosure due to financial hardship, you may qualify for loan modification under the administration’s plan. If you live in the home, the principal balance still owed is less than $729,750 and you received the loan before January 1, 2009, you’re eligible. Be aware, however, that you have to prove that you live there, that it’s your primary residence and that you’re having a financial hardship.
If you’re behind on your mortgage or facing foreclosure, We can help you figure out your options. Time is of the essence, so give us a call now at 407-876-5771.
Overview of the Plan
The President’s plan to reduce foreclosures in Orlando is based on the thought that struggling homeowners wouldn’t sell their houses if they could only make the monthly payments. Due to this belief, participating lenders are required to reduce monthly payments for homeowners who qualify until they’re no more than 38% of the homeowner’s monthly gross income. After that, the government lends a helping hand. Between the lender and the government, the mortgage payments would be dropped to no more than 31% through various means (extension of the loan, reduced interest rate, etc).
Even with the 31% threshold, many are afraid that’s not enough incentive for homeowners to keep up payments on a depreciating home. They speculate that homeowners may default on the loan anyway. To cover this possibility, the administration is offering cash incentives to lenders and struggling homeowners.
Each lender that participates will receive $1,000 per loan modification. Those lenders will also get an annual $1,000 for up to three years as long as the homeowner keeps their payments up. For homeowners facing foreclosures in Orlando, the good news is that borrowers can get their principal lowered by $1,000 per year for up to five years. Again, however, it depends on whether they keep their payments up.
You May Qualify
This is fantastic news for many. If you’re facing foreclosure due to financial hardship, you may qualify for loan modification under the administration’s plan. If you live in the home, the principal balance still owed is less than $729,750 and you received the loan before January 1, 2009, you’re eligible. Be aware, however, that you have to prove that you live there, that it’s your primary residence and that you’re having a financial hardship.
If you’re behind on your mortgage or facing foreclosure, We can help you figure out your options. Time is of the essence, so give us a call now at 407-876-5771.
3 Major Things to Look at When Buying Orlando Foreclosures
If you’re looking to get a good deal by buying one of the Orlando foreclosures, keep in mind that many of the homeowners not only didn’t have money for the mortgage, they probably didn’t have money for the upkeep of the house either. If you’ve found a home you’re interested in, here’s a short checklist to follow even before you decide to contact a home inspector.
Structure
For some Orlando foreclosures, structure is a definite issue. Pay close attention to the following, as they may indicate more severe problems:
Structure
For some Orlando foreclosures, structure is a definite issue. Pay close attention to the following, as they may indicate more severe problems:
- Are the interior walls in good condition? Any cracks and stains?
- Are the floors in good condition? What are they made of? Some floors are made of substandard materials, unsafe for more than casual use.
- Is the roof in good repair or are there missing/curled up shingles?
- Are the gutters, downspouts and flashing in good condition?
Do the doors and windows stick or glide freely? When closed, do they block out weather or is there a draft?
Water - Is there mold and mildew on the basement walls or a dark, scaly surface? This can indicate too much moisture, and can mean a leak in the foundation.
- Is the ceiling bubbling, have brown spots, patches or new paint? New paint might be a sign of covering up stains from water leaks.
- Are there drainpipes around the foundation? Do they lead away from the foundation? Are there cracks or a lot of weeds around the area?
Inside Hazards
Many older houses haven’t been updated or may not be up to code. Here are some of the more common issues: - Is there asbestos around exposed pipes for the furnace, heating system or water heater?
- Can you see any signs of vermin or insects? Mice, termites, cockroaches and bats all leave signs of habitation behind.
If everything else is good, have the house tested for radon, carbon monoxide and lead-based paint.
Although there are many other things to consider when looking to purchase Orlando foreclosures, these three are essential to a healthy living environment. Most importantly, make sure you’re an informed buyer.
If you’re looking to buy a foreclosed home, we can help. Call us today at 407-876-5771.
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