Record Foreclosures Lead to Record Bankruptcies in 2008

2008 saw the greatest increase in personal bankruptcy since the bankruptcy laws were reformed in 2005 (33% according to MSN Money). Given the increase in the number of foreclosures, it was to be expected in that a bankruptcy is often a homeowners only option when faced with overwhelming debts, a mortgage shortage, or job loss. A confirmation of the connection of record foreclosures to record bankruptcies is the fact that 3 of the top 4 states for increased bankruptcies are also in the top 4 states affected by foreclosures; California, Florida, and Nevada.

Bankruptcy is not the end of the world. In fact, for many filing bankruptcy can be a relief. It means an end to outstanding debts, no more collection calls, reduced stress, and a chance to start over. I am not encouraging you to go our and file for bankruptcy to get rid of your problems. It is a huge decision and requires serious thought because it is certainly a mark that will stick with you forever even though it will eventually come off of your credit report.

Many ask the question "if they will ever be able to buy a home again?" and the answer is absolutely. It won't be the next day or even the next month or the next few years before a bank will underwrite their loan, but there are several options for those that have filed for bankruptcy to get into a home. A great resource for bankruptcy recovery is The Bankruptcy Mortgage Book, which is an A to Z guide to getting a mortgage after bankruptcy.

If you have not filed for bankruptcy yet, I strongly encourage you to do research some bankruptcy information resources online before you do.

These are challenging times indeed, but I have full confidence that as a nation we will weather this storm as we have in times past. My only hope is that we all learn from this and become better at saving and not living on credit or beyond our means.

What Lenders Could Have Done to Avert the Foreclosure Crisis

I was chatting with a friend yesterday about her upcoming balloon payment on her mortgage. Like many, she owes more than what the house is worth and we talked about options such as contacting the lender to modify the loan, or paying down enough principal over the next few years to get back to an equity position.

She asked why the banks don't want to work with customers to avoid the losses of foreclosure and that is a very good question. In fact, as I chatted with her, I told her that the lenders really could have avoided their own fate in some ways. I think that extending the fixed periods on ARM's would have been a far better solution that taking back homes, then going out of business - but I guess they didn't. Looking even further back, I guess they could have not made so many "dead man" loans (i.e. loans to anyone with a pulse). As with every other debacle of the banking industry, the government is stepping in to try and right their wrongs with the Foreclosure Prevention Act of 2008.

Where to find great foreclosure deals

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

Foreclosures up over 100%, what this means to you

According to RealtyTrac, foreclosures are up 100.1% over the period of July to September of last year. So what does this mean to you? You may find yourself in one of several positions:

1. You own your home, have a great mortgage, with no desire to move. You are safe - Congratulations!

2. You may be one of the many people who are struggling to keep their home. You may owe more than your home is worth, due to the decline in the market, and if so, you still have options, but you may not like them. Some people are being forced to move in the most extreme situations, but there are also companies that will help you get back on track by making you loans against your equity, or helping you negotiate a workout with your current lender. If this is you, time is critical and you need to act now. Don't ignore the problem it wont go away on it's own. If you want to speak with a foreclosure consultant, visit this page and fill out the form: http://www.atozlender.com/stop-foreclosure.cfm.

3. Maybe you are looking to buy a home. This may be a good time to pick up a deal. My advice is don't pay full price, as the market certainly isn't headed up anytime soon. If you need to find a qualified real estate agent to help you, visit our real estate center. You can also check out our foreclosure real estate division to find out how to purchase deeply discounted bank owned properties.

4. Perhaps you are a real estate investor. If you are a veteran investor, then you are enjoying the market. If you want to connect with us to help our clients seeking buyouts, then contact us.

5. Perhaps you are a real estate agent struggling to keep your business afloat. We have several people contacting us DAILY for assistance with buying and selling homes. Contact us to join our real estate agent network, so we can help you learn how to make the best of this market.

6. Maybe you can't find financing due to the demise of so many mortgage lenders. With over a decade of experience, we have lots of connections and offer a wide range of mortgage lending products. If you are struggling with your credit scores being low, this book may be of assistance to you. The Bankruptcy Mortgage Book was written to help people that have had a bankruptcy or other credit challenge. Whether you have had a bankruptcy or not, you can benefit from the advice in this book and use it to improve your credit scores and increase your changes of getting your loan approved.

I know that was long, but I am sure you found yourself in one of those categories. If I missed someone, please contact me and let me know how I can help you.

Until next time...

Anthony

Foreclosures on the rise creating new opportunities

If you follow the news, its no secret that foreclosures are on the rise. I get asked very often how people can find these "steals and deals". As I did when I wrote my book on bankruptcy mortgage financing, I have put what I know into print to save time and help more people access it faster.

I have launched www.BankOwnedAssets.com where you can get a growing list of real estate foreclosures. It is a list of how to access government and bank foreclosures and covers all 50 states.

Right now, I am offering a unique "name your price" promotion. We will see how this goes and whether or not people are grateful or try to take advantage of this (I am hoping for the former).

Visit the site today and "name your price" by making a donation of any size and you will receive the list and be placed on the notification list for all future updates. You will also get several "extras" such as my pre-construction real estate alerts (big opportunity to save money or make a profit), as well as a growing database of real estate agents and mortgage lenders (on your local area) that specialize in helping people purchase foreclosures.

Visit www.BankOwnedAssets.com TODAY and "name your price" while the promotion lasts.

Wishing you the best,

Anthony