How You Are Affected By The Foreclosure Next Door

June 11, 2008

Your neighbor is facing a foreclosure. Not your problem, right. Think again. If you have a foreclosure in your neighborhood even if you are not struggling to pay the mortgage in your own home, it can spell trouble for your property. If you think the foreclosure crisis spells bad news for a number of individuals, but will have no impact on you, you are wrong. There are a number of reasons you should help your neighbor avoid foreclosure is you can.

Millions of Americans are losing their homes, but the impact is that these neighborhoods are drastically changing. If you live in a neighborhood that has seen a number of foreclosures, your property values could be at a standstill or worse dropped significantly. In addition, neighborhoods with heavy foreclosure statistics have been proven to see more vagrants, drug dealers and prostitutes as these people take advantage of the empty buildings. As more and more homes are seen to be empty, their friends pass along the word and the neighborhood will go downhill. This is just another reason for you to help your neighbor stop foreclosure.

When your neighbor has a foreclosure and the house is vacant, it is a welcome mat for vandals. Thieves love to frequent foreclosed homes, stripping copper wires, plumbing, carpet and more valuable items from the home, leaving it even more of an eyesore. All neighbors can do is watch helplessly as their neighborhood becomes less desirable to live in. In addition, broken windows and overgrown lawns send a clear signal that the neighborhood has fallen on bad times and that message will include your home. Inner city problems like graffiti and drugs will enter the empty buildings and have a stronger influence than the rest of the well meaning neighbors.

As foreclosures spike, gang activity and crime accompanies the problem hand in hand. Studies have shown that for every 1 percent increase in foreclosures, there is an associated and accompanied 2.23 percent increase in violent crime and problems. There have been numerous examples of the impact of foreclosures on such cities as the hard hit Cleveland, whose Slavic Village had troubles with foreclosures over a decade ago. Las Vegas, Jacksonville Florida, Miami Florida, Orlando Florida, Stockton California and many other area will feel the same changes.

The foreclosures from high cost loans transformed the middle class neighborhood to a series of empty eyesores, encouraging crime, vagrants and drugs. As the quality of life disappears, so do the prices on the homes, trapping existing neighbors into a lower value home in a decreasing neighborhood. More and more homeowners feel the impact of the foreclosure tidal wave.

Roughly 3 percent of all homeowners are thought to go into foreclosures by the end of 2009. However, from this small 3 percent, 43.5 percent of all homeowners will feel the impact of foreclosure crisis. This means that nearly 40 million homeowners will see their home values plummet in the next two years due to foreclosures. For each home, that is an estimated loss of 8,771 dollars. This is a significant loss and provides a definite tangible effect on the economy as many homeowners have the majority of their portfolio in the equity of their home. If the neighborhood is in a state that is more likely to experience a foreclosure, the financial depression can be even worse, making the average loss drastically higher, no matter what the other homes are doing.

So what can you do to help stop the foreclosure crisis affecting your neighborhood. The first thing you can do it talk with your neighbor openly about the issue. Let them know that you are a helping friend and are willing to help with their financial crisis. I do not mean by paying their mortgage but by finding a home buyer for their property. After all if you find a buyer the home will not go vacant and your home value will not go down.

Help your neighbor or friend who is facing foreclosure and thinking how can I sell my house, by getting them in contact with a professional real estate investor who buys houses to stop foreclosure. The fastest way to contact them is by typing the words Local Home Buyer into Google and completing some online forms. You will be connect with a local home buyer in your neighborhood that will give you a free offer on your house at no cost or obligation, so you have nothing to loose.


Where the Real Estate Market is Currently Growing

May 15, 2008

Read an article on the real estate market lately and you will find little more than tales of gloom and doom. Recession impact, the falling dollar, real estate bubbles bursting the hot markets – the combination of all these factors are the culmination of real estate gurus warning of an inflated real estate market for years now. These fears and vocal warnings have impaired the real estate market, stifling housing sales and highlighting foreclosure problems for banks in communities nationwide.

However, despite the bad tales of the real estate market that abound in the news, there are plenty of areas that are growing, improving and seeing positive changes in their housing sector. Although much of the nation will be either stagnant or continuing to show a decline, these regions are growing, boosted by local economic factors that are shielding the community from a housing bubble catastrophe and giving local investors in these areas something to smile about.

Take McAllen, Texas for example. With a 12 month forecast of 4 percent increase, this area of the country is sitting on strong real estate possibilities. The five year price change for McAllen has been a steady 23.3 percent, giving this region a slow but steady outlook on their housing market. This Texas region might see the strongest positive return for their housing market, but there are other states that will have multiple cities with positive growth predicted in the next 12 months.

Rochester, New York is already a popular place for families, but with real estate prices seeing a strong 2.7 percent increase in the next year, Rochester is looking even more financially fantastic. With a 20.1 percent rate of increase over the last five years and an admirable 5 percent change in the foreclosure rate, Rochesters real estate market is looking ideal to many investors and families alike. New York in general seems to be avoiding the real estate crunch as cities like Buffalo and Syracuse are also predicted to see steady 2.4 percent and 2.6 percent increases respectfully in the area.

New Orleans has been predicted to make a strong step forward this year with a 2.2 percent increase in the real estate market. With a 49 percent rate of foreclosure change, it seems this personable city has found its feet after hardship and will start its inevitable climb to being an enviable place to own a home again. Nearby Baton Rouge has also enjoyed a 1.9 percent housing increase predicted. Combined with their lower 14 percent rate of foreclosure change, Baton Rouge and New Orleans combine to make Louisiana a preferred housing market.

With 75 of the top 100 U.S. cities expected to see falling real estate prices in the next year, these housing areas are anomalies. With record foreclosure numbers and plummeting prices, the fastest growing real estate markets are nothing to sneeze at. Many real estate experts are predicting the full impact of the real estate bubble burst will not be finished until 2010. Areas like California and Nevada are clinging to their homes, but if you happen to live in McAllen, Texas and other hot markets, rejoice. Your homes are steady throughout the real estate crisis.

© ExpertHomeOffers.com 2008


Sell and Rent Back My House

April 28, 2008

Lets face it, the real estate market has changes and many of you got caught with high mortgage payments and now have a house that you can not sell, or can you? When the real estate market slows, the demand for houses goes down and appreciation stops. The majority of home buyers wait on the side lines for the real estate market to come back around.

If you own a home that you can not afford then you need to sell now, not a few years from now when the home buyers decide to buy. Well know that you still do have options. One great option to sell your house now, is to sell it to a real estate investor and then rent it back. Yes some real estate professionals do buy houses and then allow the home owner to rent it back.

The sell and rent back process is fairly simple actually. If your home qualifies then you sell your house to a professional home buyer, keep living in the house, pay rent, and if you decide you want to purchase the house in the future you have the option to.

The rent back option is great for home owners who are over extended and can not afford their mortgage payment. Possibly they purchased a home and now their mortgage is adjusting and they can not afford the new payment. Just contact your local home buyer, ask them to buy your house and let you rent it back. If your home selling situation works for the real estate investor then you will have no problems.

Another great thing about the sell and rent back home selling option is that you can find out if your selling situation qualifies quickly and painlessly. All offers by professional real estate home buyers are no obligation offers which means you have nothing to loose.

Who knows, you could sell your house this month, get your finances in order and buy back your how in a few months. Like I said the process is simple and can be done quickly. Besides, when the offer is a no obligation offer, you have nothing to loose.


Foreclosure Rates are Climbing, When Will The Real Estate Market Hit Bottom

April 7, 2008

January 2008 saw another large jump in foreclosure filings. Nationwide, filings for foreclosures jumped 57 percent, causing 45,327 homeowners to lose their homes to bank repossessions. This is yet another indication that our national real estate markets fears are far from over.

Although this increase was only a modest increase from the month previous, the increase demonstrates that despite recent attention paid to reducing the foreclosures, the financial issues in the real estate and mortgage industries are only deepening.

While there are an increasing number of mortgage assistance programs being developed at both the state and federal level, many of these efforts are only giving borrowers the opportunity to pay back their missed payments instead of lowering the monthly payments through interest rates and helping stop foreclosure. In essence, these programs could be a short term fix and ignoring the larger problem of interest rates that are too big for the borrower to afford. Lenders are claiming that they are restructuring their mortgages to offer lower or temporary fixed interest rates to reduce balances to help people save their homes for now.

Florida, California and Nevada had the highest rate of home foreclosures, which was not surprising with their real estate and mortgage industry histories. All three states showed record price increases and saw a large number of homes sold to investors versus primary residence owners. Nevada reported one out of every 167 homes was in a stage of foreclosure in January alone.

California is suffering the largest number of foreclosures with more than 57,000 on file. Florida trailed shortly behind with 30,000 filings of its own. Unfortunately, other states are now also seeing an increase in foreclosures, including:

  • Maryland 430 percent increase in foreclosure filings
  • Virginia 634 percent increase in foreclosure filings
  • Rhode Island 279 percent increase in foreclosure filings

Of course, these three states have relatively low foreclosure filing rates to begin with, but these percentages show a startling trend towards increasing foreclosures in the area. Although Virginia has the highest rate of increase here, their numbers are still a quarter of the foreclosures that are seen in Nevada.

Lending laws and foreclosures are greatly varied from state to state, influencing the foreclosure filings significantly. However, with record filings being issued, many of the influences from non traditional mortgages are starting to show in markets nationwide. Some of these non traditional mortgages include subprime or hybrid adjustable rate mortgages that have mortgage rates that reset much higher often utterly unaffordable rates after two or three years with the lower rates. For this reason, borrowers are caught off guard and will default after just a few months after the rate reset. Interest only loans and option adjustable rate mortgages are also contributing factors to the foreclosure problems.

Although these non-traditional mortgages have all but disappeared from the market now, their effects are still being seen throughout the current real estate marketplace. They will lead to more increases in foreclosure filings in the future. Many say that the effects from these mortgages wont be straightened out until the end of 2009 at the earliest.

If you are in a home selling situation and are close to loosing your home to foreclosure you do have house selling options. Contact your local home buyer or local real estate investor see determine what option is best for you. Local home buyers existing in every major city in the nation and they purchase homes off all sizes, price range and condition.

 


How Much Is My House Worth – House Assessment

March 8, 2008

The mortgage crisis continues to rock the real estate world and affect many home owners. In fact it was announced today that almost one million home owners are loosing their house to foreclosure. This does not include the over 380,000 home owners who fell behind on payment this last quarter.

With the continuation of increased foreclosures there is no doubt that home prices will continue to decline. The real estate market has many home owners asking themselves should I sell my house now or wait. Other home owners are asking themselves, now that I need to sell my house, how much is my house worth? Also what is the best way to get a house assessment?  

Well first things first. If you are not behind on payments, not going through a divorce, not in foreclosure, or not being relocated by your job, it is assumed you do not need to sell yours house. If that is the case, and you do not need to sell your house I suggest holing onto it for another 3 to 5 years before selling. By that time the real estate marketing should have settled and you will not have to take a loss

If you are in a home selling situation where you need to sell your house then you need to act quickly, because the real estate marketing continues to decline. Your first step should be to get a house assessment or find out your homes value.

The fastest and easiest way to get a house assessment or find out your homes value is to contact a local home buyer in your area. Local real estate home buyers are very knowledgeable of your local real estate market and can let you know your best selling option.

When it comes to selling your house fast you need to evaluate all your selling options, and there are many. Sell your house fast for cash, sell your house on the open real estate market with a real estate agent, sell your house quick to a real estate investor, lease option your house, sell it online, do a rent to own or sell it as an owner carry.

Bottom line, if you need to determine how much your house is worth contact your local home buyer.