Hurricane Sandy and HUD Homes

Hurricane Sandy has been rough on everyone, and not just during the actual event. The aftermath is perhaps the most difficult part of any hurricane. There can be so much damage, so many things to replace.

In extreme examples, you may even have to replace your home. While this is of course a horrible tragedy, it’s created opportunities to those in the area who have been affected, as well any anyone else looking to buy homes.

Help with HUD Homes


The U.S. Department of Housing & Urban Development (HUD) has recently said that they will offer aid to the area
. Additionally, there’s an inventory of vacant and HUD homes now available for purchase.

It’s important to jump on such opportunities as quickly as possible, since they may very well be time-sensitive if only due to the large number of other people who will also be taking advantage of the aid.

Many of these HUD homes will sell at a discount during the hurricane recovery process. This means that those who jump on HUD homes discounts could save a lot of money in the process. You certainly don’t want to be left behind in the process of buying these HUD homes.

HUD houses are cheap homesThis means that if you have any interest in HUD homes for sale at all, or even if you might have interest in them in the future, now is the time to act. You never know when opportunities like these will come around again. And as a bonus, the measure will help victims in distress at the same time. It’s always difficult to have to deal with a hurricane on top of all of life’s other troubles.

There are many resources online for information on HUD homes. An example is the site RealtyStore.

That’s why it can help immensely to learn how to buy HUD homes.

History Has Led To A Flood of HUD Homes For Sale

HUD homes for sale were largely the result of George Romney's efforts to improve home ownership for blacks and other minoritiesTo understand why there are so many HUD homes for sale, it helps to look back to the days when Housing and Urban Development got its start. There were some challenging times during back then, and some of the challenges involved rioting. However, there were some heroes at the time that did their best to resolve some of the discrepancies in the system.

George Romney, the father of current presidential candidate Mitt Romney, felt the root cause of rioting in inner cities during the 1960s was the blighted black ghettos. It was his intention to use his power as secretary of Housing and Urban Development to change this to give blacks the same advantages as their white counterparts and end the tensions between the races.

During his tenure as part of the Nixon Cabinet, Romney ordered the rejection of applications for sewer, water, and projects for highway development for those cities and states that fostered segregated housing in their local areas. His “Open Communities” initiative was not cleared with White House officials, and when Nixon supporters got word of grants being denied under these regulations, they complained to the president directly.

Nixon took the position that legal segregation was entirely wrong, but he also felt that forcing integration into the arenas of education and housing was equally as wrong. So, rather than supporting Romney’s actions, he ordered his domestic policy chief, John Ehrlichman to put a stop to it.

The president understood that the consequences of his own actions would assure the continuation of segregation in areas of American society that held the most promise for change. However, he stood firm in his resolve to the point that he forced the former governor of Michigan out of his administration by shutting down the program and refusing to meet with him.

The current administration under the guidance of President Obama has been inundated by private lawsuits which have prodded them to a bit more action than other administrations by withholding funds from counties like Westchester, N.Y. and cities such as Joliet, Ill because they have not met civil rights obligations.

However, they have not gone far enough to create a climate where discrimination in housing is totally wiped out. They have failed to issue regulations that correctly define what “affirmatively further” means. Even though billions of taxpayer dollars have been thrown at trying to fix the housing inequities, there have been no discernible changes as to date.

Black Americans earning high wages are still predominantly living in poor neighborhoods while their white counterparts making far less live in neighborhoods that are more affluent. While $400 million have been channeled into Milwaukee through HUD block grants, this city is tied with Detroit as America’s most segregated metropolitan area when it comes to African Americans.

New York City which boasts of having the largest black population in the United States has gathered in $4 billion worth of block grants from 1993 to present day, but this money has only eased racial segregation to the tune of 3 percent. To reach true integration levels today, it would mean that 80 percent of blacks living in New York would have to move.

A professor at University of Minnesota Law School, Myron Orfield, stated that if Romney’s efforts had been adhered to, rather than the federal government kicking him out, the reshaping of American life would have taken place and the nation would have looked very different today.

The riots that took place during 1067 in Detroit profoundly affected Romney, and that was only partly due to the 2,000 buildings that were destroyed and the 43 lives that succumbed to the violence. He also felt that brute force was not the answer to taming the inequities that existed. He felt the answer was to eliminate the problems that led to the violence in the first place.

In today’s political climate there still remains much contention in the area of race relations. Those contentions often are over equal housing for everyone. It was in 1992 that then President Bill Clinton assigned Henry Cisneros with the job of HUD secretary. Cisneros sincerely wished to change the situation, but still today there exist inequities in the system.

Officials within the Obama administration assert that they will finish work on defining rules that explain exactly what “affirmatively further fair housing” really means.

With the current crisis caused by Hurricane Sandy, there is an even greater need for help with housing. Will HUD step up and be the light at the end of the proverbial tunnel it was intended to be. Who knows? Government agencies have long held the distinction of failing to do what is right for the people.

If you are considering HUD homes for sale as an option, this free Guide for buying HUD homes can help you determine if this is the way you would like to go to buy the home of your choice.

Regardless of the problems that government regulations have caused with housing in the past, there is no reason anyone should not take full advantage of the assistance being offered today.

Are Foreclosures Good For The Housing Market?

The underlying belief in the country, whether one considers a social worker, a professional or the common man, is that foreclosures and short sales are not good for homeowners or the real estate market in general. In fact, it is this premise on which many states have put in place stringent anti foreclosures laws. However, now that some time has passed and the results of these measures are coming to the fore, experts are stating that these anti foreclosures laws are turning out to be counterproductive for the real estate market in general.

According to a recent study conducted by the United States Federal Reserve, states that require judicial reviews for bank foreclosures are more likely to suffer from a slow turnaround of the real estate market than others.

The prime example of the aforementioned fact is that the Nevada real estate market is one of the few markets in the country that is not showing any improvements or even signs of improvement. This is surprising for many because the state, after the 2008 real estate crash, actually put in place borrower protection laws that are considered to be one of the most stringent in the country.

One of the main reasons for this phenomenon, as per many experts of the industry, is that with fewer bank  foreclosures in the market the inventory suffers, resulting in a false price bubble. Similarly, as homeowners with poor credit get to stay in homes that they know they will be leaving in the future, the result is that they fail to maintain it, which reduces its prices further.

Investors and home buyers eager to buy bank foreclosures

The demand for bank foreclosures is basically tripling among all home buyers in the U.S., according to recently released information. Realtor.com recently released a poll that confirmed this information. The bottom line of this new information is highly interesting, as it essentially verifies that the once-dominant shame of purchasing bank foreclosures as residences has strongly dissipated.

Based upon information from Realtor.com, we realize for a fact that the interest among homebuyers for foreclosures actually skyrocketed a whopping 159 percent since just October of 2009. If you look at it in the right context, it is almost surprising just how many of today’s homebuyers are really serious about purchasing bank foreclosures. Greater than 66 percent of the homebuyers of today have asserted, according to the Realtor.com poll, that they would be more than happy to purchase a foreclosure. This is extremely significant when you compare the attitudes of homebuyers of today to the attitudes of the homebuyers from just two-and-a-half years ago, back when only a little bit more than a quarter of all the homebuyers said they would be open to purchasing foreclosures!

It turns out that there are quite a few varied reasons for this surprising and growing interest in the purchase of bank foreclosures (which should obviously help grow the foreclosure listings, too). First, there is just a lessening of the supply. Second, there is the expectation that the prices of homes are going to increase in the near future. Finally, there is also the change in the attitude toward bank foreclosures. This change in attitude is especially prevalent among the owner/occupant set.

It is also interesting to note a recent blog post that has appeared on the authoritative RealtyStore.com website. In this post, it is explained that a possible increase in foreclosures is actually a good thing for the real estate market, as these increased foreclosures are actually required medicine to help the market recover in the long term!

People who are searching for bank foreclosures - and there are more and more who are searching for them - should consult RealtyStore. As it stands, it is the premier website that helps folks search for and find the foreclosure of their dreams, as well as any bargain homes that will also pop up on the site. The advantage with searching for homes on the RealtyStore.com website is that one can easily find all sorts of bank foreclosures all across the nation.

Buy your college kid a condo

Over four years, college students (or their parents) can expect to end up paying in excess of $10,000 for room and board alone. A much better option is to purchase a small property near campus.

It’s often possible to find affordable housing near campus that can be purchased and used instead of campus housing. Here are some of the advantages to purchasing rather than paying for campus living or renting an apartment:

Potential return on investment

With the real estate market beginning to rebound, purchasing a home or condo in the area can prove to be a great investment. You’ll often find mortgages cheaper than average room and board, which will help you save money. Home ownership also offers great tax advantages that can help you save money too. And since properties near campus are easy to rent out, you can easily turn this into an income property once your kid graduates.

More stability for the student

Think about the lessened anxiety for the student. No longer having to run around looking for places to rent, no longer being tied to the institution for housing needs. There’s also the added bonus in the maturity, accountability and investment savvy that your kid will acquire, especially if you make him/her a partner in the upkeep and finances related to the property.

Where to find cheap homes near campus

Your local paper, school directories, craigslist, the classifieds, realtor.com are all good sources of info on cheap homes near campus. But we recommend you subscribe to RealtyStore.com using their special offer for students and military personnel – for just $5 per month, you’ll be able to search for bargain homes (foreclosures, pre-foreclosures, lease-options, fsbo’s, tax sales, and more) across the whole state of your choice.

Taking the “Distress” out of Saving Your Home

The Federal Housing Administration (FHA) has homes that it financially “backs up” called HUD homes. These special homes are foreclosed homes listed on foreclosure listings and are one step away from being taken away from one family and put up on the market. This sounds simple, but it is also very heartbreaking. A family works very hard and in the end, they lose their home anyway. That can be devastating, especially if that family has had that home for perhaps generations. How would anyone feel if they work one or two jobs and still cannot meet that big mortgage payment, and the place they call their home gets taken out from under them? This very sad situation is exactly what the Distressed Asset Stabilization Program is all about, giving hard working people a way to keep their homes without the badgering and horrific treatment from a mortgage company.

The Distressed Asset Stabilization Program was developed to make it possible for home owners to keep their homes. The economy is tough all over and mortgage companies are taking houses away at an alarming rate. With the Distressed Asset Stabilization Program someone other than a mortgage company will be able to buy the delinquent loan and together with the actual owner of the home, find a way to work together so that the home is saved. So, between this private company and the home owner, a delinquent loan will become current and in the end a home stays with the family that has put so much work into it.

RealtyStore.com Offers FSBO Tools that Work

A for sale by owner home is often a good way to barter for an acceptable price without a realtor. Not as visual as bank owned homes or houses advertised by realty companies, it often takes a bit of work to locate an fsbo. RealtyStore.com, the most frequently visited foreclosure website on the Internet, has now made it possible to view those hard to find for sale by owner homes.

Equally tough is the cost and advertising for home owners that wish to present their home to the public through a for-sale-by-owner (fsbo) sale. For $19.95 per month, RealtyStore.com takes the worry out of getting an fsbo house in front of the public. This is great news to homeowners that cringe at the thought of newspaper listings or paying a realtor 3 to 6% in commissions.

With a regular audience of over 3 million, RealyStore.com specializes in non-traditional home sales with 40% being foreclosures. Other types of real estate includes MLS listings and rent-to-own properties. Many visitors to the site are ready to buy and make offers quickly. An advanced search technology lets shoppers find desired real estate in minutes, saving the hassle of wasted time and effort.

This new feature is a welcome opportunity for fsbo clients in realizing the ease to bring potential buyers right to their doorstep. Available now to homeowners looking for somewhere to list, RealtyStore.com has just the option for immediate potential plus many educational options for those new to the industry.

Single-Family New Home Sales Up by 7.6 Percent

Those hoping to take advantage of the extremely low interest rates of the last few years will be heartened to know that single-family new home sales increased in May by 7.6 percent. According to the Department of Housing and Urban Development (HUD), these sales are 19.8 percent higher than those same statistics from May of 2011. This increase shows that banks are feeling more secure in lending money to homebuyers. The increase in new home sales should bolster the construction industry and benefit the economy in general.

If banks feel on more sure financial footing it stands to reason that not only will they be inclined to loan money for new home purchases but for foreclosed homes, HUD homes, and short sales as well. Additionally, for those banks that have been dragging their feet, foreclosures may begin moving more rapidly. The results will be more foreclosed properties for sale.

For this reason, the near future may be the best time to make that new home purchase and join the ranks of those who can say, “I own it, this house is mine.” Short sales could soon decrease and these low interest rates cannot last forever. The time to buy is now while the supply and interest rates are at optimum levels for potential buyers.

Short Sale and Foreclosure Listings

Due to the increase in short sales in the US, many were able to purchase property at below market value. This occurred because of a 25 percent increase in pre-foreclosure sales, the highest it has been since early 2009. The banks taking on the possibility of more foreclosed properties allowed transactions where the sale price was lower than the mortgage balance. It was good news to property buyers, but bad for banks. Now the trend of selling pre-foreclosed properties is on the rise; rather than waiting for the bank to buy the property back and as a way of easing through the troubled loans.

Short sales help to slow the mortgage losses and help both the mortgage holders and the homeowners from the rigors of the legality of full foreclosures. Mortgage companies now accept lower priced short sales, which keeps the property out of foreclosure processes. The number of repossessed homes is dropping due to hefty settlement fees induced on the five largest US mortgage companies over having wrongfully repossessed homes. There will be fewer properties in the foreclosure listings due to this.

The trend of selling off pre-foreclosed homes is highest in California, followed by Florida, Arizona, Georgia, and Nevada, proving the short sale is the wave of the near future for home sellers and buyers.

How to approach homeowners going through preforeclosure

An option a person has when they want to buy a home is something called a pre-foreclosure.  When a home owner misses even one payment it is possible for them to be considered delinquent.  At this point, the mortgage company can place the house on a foreclosures list and do a short sale, and someone can buy cheap homes for a lot less than what the home is valued at on the open real estate market.

But owners going through preforeclosure can be skittish, and it’s important to approach them tactfully and carefully – it can make all the difference.