Foreclosure Information

Most people believe buying a foreclosed bank owned home is the ticket to automatic savings on their home purchase. Although there can be substantial savings on a foreclosures, it will vary by the home, neighborhood, city and even subdivision. The greater determining factor will be the condition of the property.

Savings does not always equal value!

While there are many bank owned homes in good condition, some have been stripped of major components, like the furnace, copper, air conditioning units, hot water heaters and some have been purposely damaged by the previous owners.

I’ve definitely seen homes at opposite ends of the spectrum when showing buyers...

Foreclosure, HUD and bank owned homes can be a great value for Indianapolis homebuyers. There can also be additional costs associated with bank owned properties many people do not assume.

Buying a bank owned home is not the same as buying a home directly from a homeowner or builder.

Banks have their own set of addendum's required with the purchase of one of their homes. Generally, there are requirements within the contract and addendum’s that cost a homebuyer more money, both in upfront costs and settlement costs.

When it comes to buying any home, we always recommend a home inspection. This is always a buyer cost, but with a bank owned home, you may have additional fees in relation to the inspection of the home.

...

As I was writing a guest post about short sales for a friend of mine, Gena Riede in Sacramento, I took a moment to look at the current stats of active homes in Indianapolis.

These stats cover all the Metro area, gathered from current Indianapolis MLS listings. When we start talking about the best deals available, we generally include short sales or bank owned homes.

So how many short sales and bank owned homes are there are on the market right now?  

• Current Active Homes: 18,665
• Current Bank Owned: 1165
• Current Short Sales: 1514

Of the current available homes for sale in Indianapolis, only...

According to foreclosure-tracking firm RealtyTrac, foreclosure filings topped 300,000 for the 12th straight month last month as 1 in every 418 U.S. homes received a foreclosure filing.

It's a small improvement from January and a just 6 percent increase over February 2009.

On a per-capita basis, foreclosure density varied by state:

• Nevada : 1 foreclosure filing per 102 homes
• Florida : 1 foreclosure filing per 163 homes
• Arizona : 1 foreclosure filing per 163 homes
• California : 1 foreclosure filing per 195 homes

Also, as in January 2010, foreclosures across the country were concentrated. 10 states beat the national Foreclosure Per Capita average; 40 states fell below. Like everything else is real estate, it seems, foreclosures are local.

...

Foreclosures stories dominate the national housing news. It seems at least one foreclosure-related story makes its way to the front page or the nightly news every week. But for as much as the foreclosure filing statistics can be astounding -- over 300,000 homes were served last month alone -- the prevalence of foreclosures depends on where you live. As reported by RealtyTrac, just 4 states accounted for more than half of the country's foreclosure-related activity last month.

• California : 22.7 percent of all activity
• Florida : 14.9 percent of all activity
• Arizona : 6.7 percent of all activity
• Illinois : 5.7 percent of all activity

The other...

Like real estate, it appears that foreclosure activity is a local phenomenon, too. As reported by RealtyTrac.com, more than half of all foreclosure-related activity in 2009 came from just 4 states:

1. California
2. Florida
3. Arizona
4. Illinois

More than 1.4 million filings made in 2009 are attributed to the above states. Furthermore, each ranks in the Top 10 for 2009 Foreclosures Per Capita. The other states are Nevada, Utah, Georgia, Idaho, Michigan and Colorado. Versus 2008, foreclosures are up 21 percent nationwide and that's a big number, but a deeper look at RealtyTrac's annual reports reveals a more positive undertone on the housing market.

1. 40 states fell below the national Foreclosures Per Capita average in 2009
2. Foreclosure activity fell on an annual basis in 10 states as compared...

This is from the STUPID FILE of things banks do on bank owned properties. There are certainly enough stories to complete a library and yet, just when you thought you read the one to beat all stories, another comes along that makes you scratch your head in wonder.

My clients want to buy a modest home on a few acres, priced at $64,900. They offer $45,000. since it’s been on the market for about 5.5 months. Offer rejected! They look at a few more homes and decide they would like to offer $60,000 on the first home. Okay, sounds like a deal which should be solid. Cash offer, close quickly, close to asking price.

Offer countered at $77,900! The bank has new information which confirms the new price is more in line with the value. I talk to my clients and all I can figure is the bank wants full price. My clients reconsider their options and counter at $64,900, which was the original asking...

The Hope for Homeowners (H4H) plan went into affect on October 1^st. While, I do believe it is a benefit for some, I don’t think it will help or benefit as many as it should. Many of the homeowners I speak to have to weigh the financial impact of their decision to try and stay in their home. Some can not be helped by this plan. Let’s look at the details. To qualify:

• The home must be your primary residence 
• You can not have ownership in any other residenial property.
• Your current mortgage was originated before January 1,2008
• You must have made at least six payments
• Your lender must agree to accept 90% of the current market value

The costs:

• 3% upfront mortgage insurance premium
• Closing costs for the new loan
• Your equity, in the form of equity share
• You can not refinance for five years

If your home is worth $200,000...

The recent bailout of wall street and banks has many trying to figure out exactly what it means for homeowners who may be facing foreclosure. While I don’t know the specifics about what the bailout means for individual homeowners, there are a few banks who have published their plans for assisting homeowners who are behind in their mortgage payments.

In the Indianapolis area, there have been 387 bank owned homes listed on our local listing service since October 1^st. That’s a lot of families displaced due to foreclosure. My first bit of advice for homeowners who are behind is to keep in touch with their lender. Now, there are a couple of lenders who are reaching out to homeowners with programs designed to keep them in their homes.

The now defunct, IndyMac, has their program in place and Bank...

There’s something about having homes available in the $10,000–40,000 price range, which brings out the investor in everyone. Naturally, there are some great investments in the mix of bank owned homes in Indianapolis; however, there are many, which are not.

I was out this week with a client who is looking for investment opportunities here in Indy and we looked at 22 homes. Our day took us into many neighborhoods north and east of downtown and included only duplex homes. A disturbing statistic was the number of homes which were recently bought where someone had started the repairs, then the home was foreclosed on. These homes are not for the faint of heart nor those without resources to finish the job. 

My client is a contractor who knows what he is looking for, can do the work himself, therefore, eliminating the expense of hired help. Except...

Everyone in Indianapolis knows, when it rains it pours. This week has been “one of those”, where both computers have been in for repair. For an entire 15 hours, I had no computer access at home. Amazing how dependant we are on these little machines. That’s my explanation for why the foreclosure report is a few days late  

Originally, this was supposed to be posted here three days ago, so the stats are a few days old.

There are currently 22,679 homes available for sale in the entire Indianpolis area served by our BLC. Of these listings, 2615 are in the process of foreclosure or have been foreclosed on. These include:

• Bank owned
• HUD Owned
• Foreclosure
• Possible Short Sale

Of the homes included in these catgories, the breakdown for price is:

• 930 homes are priced at $50,000. or less
• 856 homes are priced between $50,000–100,000.
• 496 homes are priced between $101,000–150,000.
...

According to RealtyTrac, the rate of foreclosures across the U.S. is slowing.  Versus May, June foreclosures fell at a 3 percent clip. 25 states showed improvement month-over-month, led by many of the same areas that had fueled foreclosure activity in 2007.  A sampling of RealtyTrac's data includes:

• California : Foreclosures down 4.54 percent
• Georgia : Foreclosures down 14.91 percent
• Arizona : Foreclosures down 0.07 percent
• Michigan : Foreclosures down 6.00 percent
• Illinois : Foreclosures down 15.65 percent

However, the improving nature of the data is not what is making news this morning.  Instead, the press is reporting that foreclosures are up by half since last year and that bank seizures have tripled. And while the annual data may be accurate, that doesn't mean that it's necessarily relevant to home buyers and home sellers across the country.

This is because people buying and selling homes don't...

RealtyTrac released its most recent foreclosure statistics and if you only read the headlines, you think the entire country was on the verge of losing its homes. The underlying data tells a different story, however. More than half of the country's foreclosure activity in May 2008 was tied to just 4 states in the union:

1. California (28 percent)
2. Florida (14 percent)
3. Arizona (5 percent)
4. Michigan (5 percent)

In other words, the majority of mortgage defaults are coming from a small minority of states. See, between 2002 and 2006, California, Florida and Arizona were very popular with real estate speculators, many of whom over-extended themselves on real estate; and Michigan's economy has been decimated by job losses in the auto and manufacturing industries. In addition, these 4 states are among the nation's most populous. 

It makes sense that they are distorting the national statistics. On a local level, the news is not...

You don’t have to search too long to find bank owned homes in the Indianapolis Metropolitan area. There are plenty around town and more than likely some are really good deals. Banked Owned Homes or REO (Real Estate Owned) properties are homes which the owner defaulted on. The home has been foreclosed on, went to the Sherrif’s sale, and no one bought.

Now, the bank has it in it’s portfolio. I have heard banks don’t like owning real estate in this manner. I’m sure they like owning real estate, just not the real estate on their books as non-performing assets. I have also read banks are willing to assist those who have fallen behind on their payments. I’m not sure either of these statements are true. The banks and lenders I have worked with seem to stall every chance they get.

My team and I have represented several homeowners in the ...

Smart Money recently published an article about new consumer scams for the New Year. Two of the scams mentioned are about foreclosure rescue companies and foreclosure rental scams. I have posted warnings and information about avoiding these snakes who target people who are facing foreclosure.

Foreclosure Rescue scams offer to deal with your lender for you and charge a substantial up front fee for no service. This is generally something you can do for yourself. There is absolutely no reason to pay someone to do this task for you. If you need help there are companies you can contact who can assist you for free.

Foreclosure rental scams seem a little more above board, but are actually more costly to the homeowner facing foreclosure. They offer to catch you up on your mortgage...

Forclosure rates in the State of Indiana have been the subject of many opinions and news stories. National ranking has the state placing in the top ten most months. While it is better than the first place rank we held, the moniker is one which we would like to place elsewhere.

We have all heard the stories where greed and corruption within the industry has left entire neighborhoods facing foreclosure in Indianapolis with vacancies and lower property values. Mortgage Fraud and fraudulent loan broker practices have contributed to many of these transactions which have resulted in foreclosure.

The State of Indiana has enacted new laws and regulations regarding loan brokers.

Major provisions of House Bill 1717 include:

• Requirement for the creation of a principal manager who will oversee the loan brokers at each firm. The principal manager,...

Are you facing foreclosure on your Indianapolis home? Do you feel like you're losing the race against time in your effort to keep your home? Who Ya Gonna Call? The first person you should call and be in contact with is your mortgage company. 

Here's some advice on who not to call.  If you are a few months behind in your mortgage payments, you have probably received numerous letters, postcards and phone calls regarding your home and your options. The messages are all the same. We pay cash for homes! We can help you stop foreclosure! We can get you refinanced! Who do you believe? Can one of these companies help you?

There are many 'Foreclosure Rescue Companies' and I say that facetiously. The one thing...