How To Recover From Hurricane Sandy With HUD Homes

In the wake of the devastation wrought by Hurricane Sandy, the federal government is offering stated that were affected to declare a moratorium of 90 days on foreclosures, however, the state of Connecticut has declined this assistance.

Commissioner of the state’s Department of Banking assures the feds that they do not need this moratorium because the major banks are doing their part in the area of disaster relief by working with residents affected by this enormously disturbing event. Owners of HUD homes that were damaged or destroyed should be relieved to hear this good news.

With many of the HUD foreclosures also damaged by the storm, HUD homes for sale are likely to be available at extremely low prices over the coming months.

HUD has also reported that they are going to offer forbearance on Federal Housing Administration-insured mortgages that have been in foreclosure, as well as making available FHA mortgage insurance available to those who wish to rebuild or purchase new homes after losing theirs during Sandy.

It is also recommended that those individuals who need assistance after losing their homes or incurring devastating damages should contact their mortgage lender to determine the options they have.

It is very likely that HUD will have increased numbers of homes to sell in the aftermath of this storm. HUD homes for sale offer the opportunity for home buyers to take advantage of some pretty hefty discounts as this area of the nation recovers from Sandy. As a matter of fact, HUD already had an inventory of vacant homes and foreclosures on its books prior to this incident.

To learn more about HUD homes, visit RealtyStore to get more information on HUD homes for sale. The Guide To Buy HUD Homes found there will help you learn how to buy your own HUD home.

HUD and FHA Lower Barriers To The Purchase of Mortgages For Distressed Hud Homes

HUD Homes are a Good Buy

Even as the US housing market starts to pick up steam, many real estate investors and prospective home buyers are noticing that now is one of the best times in many years to purchase real estate, whether as a residence or as an investment property. The federal department of Housing and Urban Development (HUD) has recently announced competitive auctions at which mortgage loans for single family HUD homes in default will be sold.

These mortgages will be sold in pools as part of the Distressed Asset Stabilization Program (DASP), an expanded version of a previous Federal Housing Administration (FHA) program in sealed bid auctions to be held in September of 2012; qualified buyers and investors will be allowed to bid for ownership interest in these distressed properties. Buyers who win these auctions will then have the opportunity to either earn an income through becoming the servicer of these defaulted mortgages.

The goal of the program is to help along the recovery of the housing market in the United States, especially in metropolitan areas which have been hit especially hard by the housing slump and foreclosure crisis. HUD has said that they see benefits for both buyers as well as the purchasers of distressed HUD homes. Purchasers who choose to service the mortgage will be able to earn an income from the homeowner’s mortgage payments, while at the same time providing a service to the surrounding neighborhood and the community at large by keeping these properties out of foreclosure listings.

The sale of these assets will also benefit the housing market as a while by reducing the Federal Housing Administrations costs and essentially, freeing up assets for this government agency to put to use helping other Americans become homeowners and fueling the housing sector’s recovery. Similarly, homeowners who are in default on the mortgages which are being sold at auction by Housing and Urban Development may have the opportunity to stay in their homes by working out a loan modification with the purchaser of their mortgage. Many other homeowners may be able to negotiate a lease arrangement and stay in their home in this manner.

Who Qualifies To Participate In The Auctions For Defaulted Mortgages On HUD Homes?

The FHA has announced the eligibility criteria for participation in the auction program. According to the FHA and HUD, qualified bidders who will be approved to submit sealed bids for distressed HUD mortgages must have a net worth of $5 million or more (with this figure to be calculated in compliance with Generally Accepted Accounting Principles). Unfortunately for the average would-be homeowner, it seems that most bidders will need to be corporate entities of some sort, including limited liability companies, partnership, business trusts, investment companies, banks and the like.

However, there are plenty of options available to buy homes at very low prices even for those who do not qualify to bid for these federally administered auctions. There are a large number of foreclosed properties currently on the market and for prospective HUD homes buyers who know where to look, there are foreclosure listings available which include residential and commercial properties located in every part of the country.

Websites like RealtyStore.com offer listings of HUD homes and extensive nationwide foreclosure listings, as well as rent to own properties, properties for sale by owner and other homes and commercial properties which are available at costs far lower than they would be available through traditional real estate transactions. Unfortunately, not many people will qualify to take part in the HUD/FHA auctions for the distressed mortgages on HUD homes, but with so many foreclosures and other non-traditional home purchase options available at present, it’s still a perfect time to buy a home, no matter who you are.

Why Own to Rent is Not the Best Choice for You!

Bank of America is trying a new approach to help people get through the recent economic troubles, but where rent to own housing was such a success, the new own to rent housing is looking like it’s not as popular – and certainly not the kind of thing that a wise investor would consider!

The housing market has been a bit tight recently, and the truth is that millions of people around the country have felt the crunch as the economic situation slowly wobbles its way to recovery after the Great Recession of 2008. Though many believe that the situation has been left far behind, a closer look at the financial markets shows that things have only begun to improve in the last few months. While the housing market has taken a turn for the better, things haven’t quite yet stabilized.

Bank foreclosures have been higher than normal in the last few years, and the rent to own houses arrangement has proven to be a boon for all. Many people were able to live in homes that they currently were renting, but they were able to tack on a rent premium that went towards the closing costs of their new home once their rent agreement expired. This was a huge help for people who were recovering economically, but who were unable to purchase their dream home at the moment. They could rent the home, and thus put aside towards buying it in the future. Most of these rent to own leasers ended up with a bit more equity on their home than they expected.

However, the new Bank of America initiative is actually the opposite, and the new "own-to-rent" option is taking a lot of flak from real estate professionals around the country.

Where rent to own housing enabled people to rent houses in order to buy them from their owners, own to rent housing is exactly the opposite. The owner of a house at risk of bank foreclosures is actually able to sell the deed to the bank, but they will be able to continue living in their home. They will basically rent the home from the bank that was about to foreclose on them, and they will no longer be the owner of their house.

No doubt you can see why this is such an issue for so many. While the rent to own option encouraged people to move into the house that they would buy within the next few years, the own to rent option is basically the bank saying, “Sure, we own this house, but we’ll have pity on you and let you continue living in it.” The house that once belonged to the occupants is now owned by the bank, and they are living in a home that they now have to pay rent for.

The bank is claiming that this option will allow those that are suffering from economic hardship to be able to continue in their current homes, ensuring that they aren’t evicted just because they are unable to pay the mortgage on their homes. The option offered by Bank of America is available to those that are more than 60 days behind on their mortgage payment, as well as for those that owe more on the mortgage of their home than they have in home equity.

This option has received mixed response from the public, though the majority of experts agree that this own to rent option is not the best choice for most. While it does give those with economic hardships the ability to continue living in their homes, it often means that they will continue to live beyond their means in a home that they were unable to afford in the first place. The bank has bailed them out, but they will continue to dig themselves deeper into financial holes.

On this topic, Jack Philson of RealtyStore.com commented, “While this allows both lender and borrower to avoid foreclosure proceedings, it's sad to see people deprived from their home ownership dreams. We'd encourage banks to consider more of a lease option approach, where the now-tenant would have an option to buy his/her home back in two or three years through a balloon payment, essentially a second down payment."

Jackie and David Siegel, the former King and Queen of Versailles

Riches to rags, not rags to riches is the theme of the Queen of Versailles, the story of David and Jackie Siegel, told through the eyes of a photographer who gets to see them first hand. Though they aren't the most wealthy family in the world, or even close, they are in fact billionaires in their own right. That, however is changing as bank foreclosures loom on a house that isn't quite built yet, but which was slated to be the very largest home in the United States. At 90 thousand square feet, the amazing house which is now subject to bank foreclosures and short sales like the rest of the world is nothing short of spectacular.

Bank foreclosures were the least of their worries when it came to the Siegel's much vaunted lifestly until very recently. Now their home is for sale for a cool 75 million dollars. David, arrogant to the end, on camera told how he handed the state of Florida to candidate George Bush in ways that could have been illegal according to him, making many question if that same methodology was used the last time around.

The Siegels are a study in the problems that can take place when anyone relies too heavily on the housing market goes. Nothing if not arrogant, Siegel touts himself on camera as the person who handed the state of Florida to George Bush in ways that frankly, may have been less than legal. Getting that kind of press and being a billionaire is a lot to look up to. Siegel is possessed of a vast amount of hubris, while Jackie Siegel appears to be nothing if not naive and unaware of what constitutes the real world.

The joke of the year has been that Jackie Siegel, in an effort to save money --economized by using the stretch limo to go to McDonalds to get their meal. Somehow that doesn't seem much like tightening their belt to the rest of the world. Faced with foreclosure and the loss of the lifestyle they are accustomed too, it doesn't seem that learning how to live on less is something they are going to embrace any time soon... even if short sales claim the largest house in the United States.

HUD’s Online App to Help Potential Home Buyers

One of the most important things that home buyers looking to buy cheap homes have to consider while making their purchases is the location where they wish to move to. Till now, people used to just choose their preferred locations for buying HUD homes on a vague reputation amongst their social circles. However, all this is set to change as potential home buyers can now choose the location where they want to purchase HUD homes. This can be done by analyzing various locations through an online app released by the Housing and Urban Development Department.

The new online app is designed to contain and display a lot of information for almost all locations in the country with regard to various aspects ranging in the hundreds. In other words, the app that has been termed CPD Maps will allow different segments of the population such as government professionals, real estate investors and even individual buyers to access neighborhood statistics as well as census information.

This will allow potential investors and buyers of HUD homes to analyze locations where they may be considering buying cheap homes. The CPD Maps will also allow people to see where all the federal grants are being spent and what it takes to get grants sanctioned for neighborhood projects from the federal government.

Government Needs to Help Buyers of HUD Homes More: Housing Chief

The Secretary of Housing and Urban Development has recognized the plight of buyers of HUD homes by recently stating that they need to be given more support by the government. The statement came from Shaun Donovan in a round table discussion with people from Consolidated Credit Counseling Services and Alcee Hastings from D – Miramar that was held in Fort Lauderdale.

Shaun Donovan also stated that the United States government can provide this greater help by simply passing the “To – Do List” put forth by the President of the country, Barack Obama. The list from Obama focuses on a series of wide ranging reforms designed to help the mortgage refinancing industry of the country. According to officials, the reforms have the potential to help many homeowners in the country recapture equity in their homes.

While the sale of cheap homes in the country is rising along with the offloading of HUD homes, certain quarters of the industry watchers state that this improvement can be low-key in nature as the number of foreclosures are still expected to be high. The problem with existing instruments, as per many HUD homes buyers and cheap homes sellers, is that lenders are uncooperative and government backed programs are too restrictive.

Using Online Sites to Search for Foreclosures

Everywhere you turn people are talking about bank foreclosures and what a great way to buy a cheap home online. The only problem is that many banks and lending institutions do not put a big sign in the front yard announcing bank-owned homes. Years ago, watching the newspaper for auctions or waiting on realtors to list bank foreclosures was the only way you knew when these were available. Today, online sites have taken the lead in presenting the latest in all types of homes for sale.

Finding a good site that offers more than general information on the price and approximate location can take days of sifting through the thousands of bank foreclosures available today. However, there is one sight that will walk you through the entire process of finding homes, various sorting options, advice for obtaining mortgages and major points to look for in making the absolute best investment.

RealtyStore.com Foreclosure Listings site

RealtyStore.com main page, Members' Area

RealtyStore.com is a unique website that shows homes all across the country that meet certain criteria.
Here are some of the sale types you'll find on RealtyStore:

•     Pre-foreclosures
•     Foreclosures
•     Resale (MLS)
•     Owner Financing/FSOB
•     Rent to Own/Lease Option
•     Auctions/Tax Sales

In addition, RealtyStore.com is a user-friendly site that provides as little or as much information as you need. No researching or looking up maps on the Internet is ever needed and helpful neighborhood demographic statistics are shown for each individual property.

Try a few examples and see how you can be on your way to finding the best deals possible from the comfort of your home or office.

The first thing to do is sign up for membership at RealtyStore.com. Once this is completed, follow to the listings page. Here is where you can select any desirable area and begin your search. Notice that the six options listed above are offered. We are selecting only Columbus, Ohio foreclosures. The results narrow down the cheap homes for sale down to 1,363 foreclosures in this area.

Search results for Columbus foreclosures on RealtyStore.com

On the left-hand side of the screen, you will see a list of Sale Type, Hot Deals, Property Type, Home Features and Price. You can also select to view only those with pictures available. In selecting bank foreclosures under Sale Type, single family home under Property Type, $25,000 to $100,000 Price the search produces 505 results. When we also specify "only those with photos" the search returns 159 properties.

By selecting "only those with photos" the results narow down to 159 foreclosures.

Immediately above the listings there are four green boxes that provide Listings, Map View, Neighborhood and Stats & Trends. These maps and additional information are helpful in learning the areas that are most attractive. Immediately below this section you are given the option of several new sorting options.

•     Price
•     Square Feet
•     Auction Date
•     Most Recent
•     Sale Type
•     Property Type
•     Smart Zip

Smart Zip Home Score and Investor Score is an amazing little tool that gives you the insider knowledge of finding the best deal. Having negotiating power is everything in getting a motivated seller to make a deal and the Smart Zip has done all the legwork for you. Let's sort by Smart Zip Home Score and see what turns up. With just the click of your mouse, you are now looking at a sorted list of the highest rated REO forcrlosure homes in Columbus, Ohio.

Select the first home and you will be taken to a complete Property summary, map of listing and a snapshot of the property area. The Price Info tab provides Key Investment Indicators such as:

•     Appreciation
•     Affordability
•     Cashflow
•     Safety
•     Schools
•     Lifestyle

With these facts in mind, you are better able to establish the investment potential and cash flow. There is also a built-in financing calculator for creating your payment schedule while still on your property page to make a determination on a fixed-rate mortgage.

Take your time and sort your area selections according to what is important to you and once you have a few properties in mind, check out the rest of the helpful information of the site.

Tricks to Instant Financing

No one said it would be easy to purchase bank foreclosures especially in the changing nature of the lending institutions. RealtyStore.com has done the work in establishing the latest rules of the funding market. By using the information available on credit management, improving your financial health and keeping a close eye on your credit score, you will find yourself in a perfect lending position.

Learn what type of mortgage loans are available in the area you have selected and be prepared with meet with a lender with confidence. Nothing is worse than being totally in the dark when dealing with loan officers. Besides the fact that you have just wasted your time and theirs, a home may have slipped through your fingers. Visit the Get Approved pages on RealtyStore.com's Members area and find out what is needed to improve your credit score, how much monthly payments will be and ways to create more purchasing power.

Never Feel Alone

All types of individuals and investment firms are seeking to increase portfolios on the recent turn of events that have caused the market to be flooded with bank-owned homes. Find the latest news on area bank foreclosures listed on the Foreclosure News page and visit the Foreclosure Blog under the Foreclosure Trends tab. Here you will stay abreast on latest developments in discounts, creative financing, inventories and trends in the bank foreclosures market. Social networking through Facebook gives you the opportunity to meet others with the same goal in mind as yours and lead you to new connections and friends.

Learning Made Easy

Bank foreclosures offer a whole new world of excitement, income potential and a career in an area once described as bleak. RealtyStore.com takes you from the beginning stages of real estate and leads you through tutorials that explain the industry like you have never seen. Timing is everything in the world of bank-owned homes and taking action now can land you right in the midst of many opportunities.

Twelve chapters covering everything from reasons for investing in real estate to how to find your niche in pre-foreclosures, auctions or tax sales are illuminated step-by-step to help you decide on your journey. Additional explanation as to what to look for in For Sale by Owner and Short Sales are also presented in easy to understand terms. Hard to find subjects like HUD Homes and Alternative Financing is also presented so all options are at your disposal. Once you are familiar with the terminolgy and workings of the industry, you'll wonder why everyone is not eager to take advantage of bank foreclosures.

Laws and Other Concerns

Understanding how the foreclosure laws operate depends on the state in which the property is located. Each state governs their own set of rules over the foreclosure procedure and possible elements leading to the action. It is imperative to become familiar with the state law of bank foreclosures in order to learn the different variables that exist. Dealing with numerous states can be difficult and it is recommended to seek further help from a local real estate lawyer to explain the differences. You can find a listing of all states and regulations by visiting Foreclosure Laws listed under the Realty Guide at RealtyStore.com.

FAQs

The jargon of the real estate industry and bank foreclosures can seem foreign and hard to remember but the FAQ section explains each term in language that you can easily understand. Questions like 'What is a FSBO?' are spelled out in clarity and before long you will be a pro at using these terms.

RealtyStore.com is only one of many online sites that offer the latest in bank-owned homes.
The difference is the facts, training and exposure that this site provides to anyone wishing to take advantage of bank foreclosures. Without the knowledge and preparation required for taking this step, you could end up with less than bargained for. Study with the experts that have made it their job to present as many facts and details that are necessary in purchasing a home to live in or making a career out of real estate investments. If there is anything missing or hard to understand, RealtyStore.com also provides assistance through email or phone.