House Foreclosure:

In recent years people have used lots of "interest only" mortgages and ARM (Adjustable Rate Mortgages) to get into houses they couldn't afford otherwise. The current foreclosure rate nationwide is .43% which is higher than last year and expected to rise again this year as the ARM's become due. Unfortunately, it's usually the less capable people in terms of finances that get involved in the interest only mortgages and ARM's since they are desperate to buy a home in such overvalued areas like California and Florida. San Diego county has seen almost a 200% increase in foreclosures from 2005-2006 and they are just one of many regions that was considered a "bubble" in California. As the inventory of homes gains momentum, the interest only mortgage holders with suddenly higher payments have no where to go. They can't sell the homes easily in a buyers market and they can't make the higher payments tha are required when the mortgage changes interest rates. Essentially, these homeowners are forced into foreclosure as the only option unless they are willing to take 25% off the selling price of their homes just to compete. We will see how the foreclosure market turns out in the next few years as real estate prices have skyrocketed in many parts of the United States and the infamous "bubble" may at least leak some air in once "hot" markets like Florida, California, and the Northeast.

---

Say you want to buy a foreclosed home, do you know how the process works? Actually there is a way to get involved in a pre-foreclosure, but for this article, we want to focus on purchasing a house that is already in default of their mortgage. Experts in the foreclosure markets say that with the recent "real estate boom", foreclosures tend to sell for about 5-10% off market value (not the 35-50% mentioned by scam artists selling "how to make millions on foreclosures"). If you are a novice investor, buying from a lender is the safest route. Bank-owned properties are the best bet for inexperienced foreclosure buyers - there's very little risk, no taxes, no tenants to evict and no liens. You may even get a better interest rate (less than what is currently offered on the market) by the lender since they want to unload the foreclosure ASAP. Keep in mind that foreclosures are sold "as is" and there are no guarantees on anything working. Many need $1000's in repair - you can only imagine since the homeowner couldn't pay his mortgage what else did he let go (probably home repairs). So even if you save 10% off the market value of a $400,000 home, you may need to dump in $30,000+ just to get the house in selling condition which makes it a wash in terms of profit/loss. Flipping foreclosures is probably not the easiest thing to do in the current real estate market, but within a year or so as prices flatten or even decline, the foreclosure market could be the next hot spot to enter into. As a general rule of thumb, unless you are an experienced handyman or have contractor contacts to get jobs done in a timely manner, don't get involved with foreclosures since they can be a money losing proposition and waste countless hours of your time.

Foreclosure Listings:

Ok, so you've made the commitment to buy a foreclosed home. Now what? There are lots of foreclosure listing sites on the Internet that give you up to date information on what is available in your area and nationwide. Government and HUD homes in foreclosure can be found online at Hudhomesnow.com. There is a $1 signup for a 7-day trial which is what we recommend. Within a week you should be able to locate dozens of properties in your area that are in foreclosure. Another good site is at Foreclosurelistings.com with cheap house auctions, pre-foreclosures, HUD homes, bank foreclosures, and government homes. Choose from single family homes, multi family, foreclosed land, foreclosure condos, commercial property and "handyman specials". The site is updated daily with fresh listings. They too offer a 7 day trial for $3.95 and then it's $39.95/month which gets billed automatically unless cancelled by you. Foreclosures.com is the oldest foreclosure site on the Net and they do allow a free 7 day trial period on the site. They claim to have over 1 million listings in 1000+ counties nationwide. There are some great resources on their site where you can learn about Foreclosure law, take courses on foreclosures, or just get their monthly newsletter with all the latest foreclosure news.

Government Foreclosure:

The U.S. Department of Housing and Urban Development (HUD) offers many types of homes for sale. There are 1000's of homes for sale through their website at http://www.hud.gov/homes/homesforsale.cfm. Not all are foreclosures, but many can be bought and considered a bargain. They list homes from HUD, Department of Veterans Affairs, FDIC, IRS, SBA, Customs, U.S. Marshals Service, and the GSA (General Services Administration). What I really like about the site is the hands on design with lots of frequently asked questions of first time home buyers with complete write ups on "buying a home", "fair housing laws", "how much can I afford", "homeowners insurance", and a whole glossary of mortgage terms that should help clarify any issues you may have.

How to Stop a Foreclosure from Happening:

Do you want to avoid having your home foreclosed? There are ways to stop a foreclosure from happening. Even if you miss a mortgage payment you can still save your house from being repossessed by the bank or lending institution. Firstly, don't ignore the letters from your lender. Call or write them to tell them you are having financial problems and explain your situation. At all costs, stay in your home so that you can qualify for assistance. Contact a HUD approved housing counseling agency at 800-569-4287. You will get information on Government agencies or private organizations that may be able to help you out. You can also ask your lender for a "special forbearance" where you arrange for a repayment plan or get a temporary suspension of your payment or at least a reduction. A mortgage modification can also help - this is where you refinance the debt or extend the terms of the mortgage loan to make it more affordable. There are also things like a "Partial Claim" where you obtain a 1 time payment from the FHA Insurance fund. A "deed in lieu of foreclosure" should be the last action taken if nothing else works. Essentially you give back the property to the lender and hopefully don't damage your credit rating. Watch out for scammers who prey upon people in financial ruin. There are countless bogus agencies out there just waiting for a phone call or Internet form to be filled out that will allow them to take more than you need to give up if a foreclosure is pending. Start with recognized agencies that are out for your own good (many of which are free).

Do you have a quality site or product that belongs in this guide? We are always happy to evaluate or review new products and websites. Feel free to contact us at the email address below and let us know about you. If you have a demo product you'd like us to look at, please contact us before sending anything. Thank you.

Review and Internet Guide Index: Cell Phones: - Nokia N91 phone (4GB MP3) - palmOne Treo 650 cell phone/organizer - Cell Phone Free Ringtones Computers and Internet: Discount Computer Memory Upgrades, Best Color Laser Printers, HP Photosmart and Deskjet Printer Reviews - Notebook and Laptop Buying Guide - Domain Name Registration Software: Download Adobe Acrobat PDF files - Adaware Anti Spyware Remover - Pop-up Blocking, Removing and Stopping pop up ads - Adobe Photoshop Tips and Tutorials - Microsoft Small Business Accounting

Audio/Video Electronics: Sony Portable Playstation PSP Buying Advice - What is Tivo and how does it work? - DirecTV - Sony Wega LCD TVs Digital Cameras and Photos: - Canon EOS 350D Digital Rebel XT DSLR - Nikon D50 Digital SLR - Buying a Digital SLR Camera Sharing Digital Photos - Digital Camcorder Formats MP3 Music, Players, Speakers: - Best Headphones and Popular Earphones Rankings - Cambridge Soundworks PlayDock MP3 Speakers - Free MP3 Music Downloads New iPod nano

Internet Guides: Health - Obesity - Diabetes - Plastic Surgery - Treatment for Depression Finance - Car Insurance Quotes - Mortgage Payment Calculator - Debt Consolidation Best Pet Supplies, Jewelry, Most Popular Travel and Hotels, Vacation Guides, New York Sight Seeing, Hybrid Cars, Handbags and Purses Cars and Automobiles Sports and Outdoors Household/DIY/Tools