Unless you've been sleeping under a rock, you know that foreclosures are at their all time high since the turn of the century. If you live in one of the top 10 foreclosure states (as I do), there is a chance you might be able to find a great deal on a house to live in or an investment property. According to an Associate Press article today, here are the top 10 states for foreclosures:
1. Nevada
2. California
3. Florida
4. Arizona (my home state)
5. Colorado
6. Massachusetts
7. Georgia
8. Connecticut
9. Ohio
10. Michigan
Here are two takeaways from this list:
1. If you are looking to buy or invest and live in once of these states - now is a good time to make your move. The market will definitely come back, and those who are able to take advantage now will do well.
2. If you are looking to move, you may want to consider one of these places if you want to start over a pick up a good deal on a home, which will likely be your largest investment.
A great resource for finding foreclosures is http://www.freeforeclosurelistingsonline.com/.
Stay tuned for my next posting on the mechanics of how to buy foreclosures. You can subscribe to the blog by using the form in the upper right column and entering your email address. You will receive my next blog post in your email.
Until next time,
Anthony
Tuesday, February 26, 2008
Tuesday, February 19, 2008
Thursday, February 14, 2008
What should be done about mortgage fraud
The other day, I spoke with a retired gentleman who was inquiring about a home mortgage. As I went through his scenario, it came to my attention that he had just refinanced a few months prior at 11.25% on a loan of over $700,000 (not a typo). Incidentally, he said his loan officer hadn't called him back but had assured him that after the refinance he could get a new appraisal and get the rate lowered. Here is where the bigger problem came in. I asked him how he qualified for the loan (fully documented, stated or other). His comment was "I'm not sure... we don't even make $6,800 per month" referring to his new mortgage payment that he was dipping into his retirement funds for every month to make his payment. To make matters worse, there was still no equity in the property.
So who is really at fault here? Is it the loan officer for trying to make a quick buck and being the alleged professional who very poorly advised this customer? Or is it the customer for signing loan documentation knowing that he could not make a $6,800 payment?
I fault the lender for even putting someone in a position to have to make the decision of whether or not to sign the papers. Granted, no one should ever sign loan paperwork that shows an income that they don't actually have, or a payment they can't actually make. In the end, it's the homeowner that has to live with their foolish decision, but what recourse do these customers have against the lenders?
I referred him to the attorney general in his state as there was nothing I could do for him.
Tell us what you think?
So who is really at fault here? Is it the loan officer for trying to make a quick buck and being the alleged professional who very poorly advised this customer? Or is it the customer for signing loan documentation knowing that he could not make a $6,800 payment?
I fault the lender for even putting someone in a position to have to make the decision of whether or not to sign the papers. Granted, no one should ever sign loan paperwork that shows an income that they don't actually have, or a payment they can't actually make. In the end, it's the homeowner that has to live with their foolish decision, but what recourse do these customers have against the lenders?
I referred him to the attorney general in his state as there was nothing I could do for him.
Tell us what you think?
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