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.

Interest Rates are Dropping, Home Buyers are Leaping

Remarkable things have occurred in the real estate market in 2012. Due to an influx of foreclosures hitting all over the country, massive layoffs leaving millions out of works, and the general decline in American wages, interest rates started getting chopped to percentages never before seen. At the end of May, 2012, there were fifteen year loans being offered for less than 3%. Many renters jumped on the opportunity to purchase homes at those unbeatably-low rates.

Long term, or thirty-year, interest rates dropped under 4% in December of 2011, but no one expected that they would continue to drop through 2011. At the end of May, 2012, rates for these long term loans were at 3.75, which was a decrease over rates just the week prior.

This fast dropping of interest rates has stimulated some improvement in the real estate market. While foreign investors have been busy scooping up the lowest priced foreclosure homes, the drop in interest rates has opened the door for more average Americans to make their dreams of homeownership come true.

Since lower interest rates means lower monthly payments, more renters in particular are now able to afford their own home. This is especially true when they shop for foreclosure home and very cheap homes offered on websites like RealtyStore.com. The combination of lower sale prices due to massive foreclosures sitting in the hands of overwhelmed banks and record lows in the interest rate department has created an irresistible opportunity for those who have been dreaming of owning their own homes.

While this looks like great news for homeowners waiting for prices to build back up so they can get a fair deal on the sale of their homes, there are some things still holding some would-be homebuyers back. Some have bad credit after losing jobs in the years past, so they are going with rent-to-own opportunities rather than bank loans. Others realize that they still have to pay the fees, or points, that must be used to get those incredibly low interest rates. The cost of those points is not decreasing like the lowered interest rates.

Even with those obstacles, this is clearly a great time for anyone able to get a loan to become a homebuyer. With so many cheap homes on the market, many are purchasing second homes, vacation homes, or rental homes. With so many bank foreclosures pulling the market down, this is a great time for future homeowners to get great deals on beautiful homes.

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.

Obama Smooths the Way for More Foreclosures

Shocking isn’t it? According to some news outlets the hope and change president has precipitated change that no one wants and taken the hope of many American homeowners! Are these allegations true? If you look at the current rate of foreclosures across the country and the settlement between the states and big banks (orchestrated by the Obama administration), it definitely looks plausible.

This brings up the real question of the day, what are homeowners and potential homeowners to do? Foreclosures are up in New Jersey by 118%, Florida is at 83% and Pennsylvania suffered a 97% increase. These are just a few states seeing record number foreclosures; overall, 17 states have seen dramatic increases.

With this kind of depressing news, floating around buyers may be tempted to take cover and wait out the storm. Which is exactly the wrong thing! In truth, the time has never been better to seek out real estate deals. Foreclosure listings are filling up but that does not mean a buyer cannot find a great deal. Prices are down and credit is hard to come by, but rent to own, HUD homes and short sales provide huge opportunities for the person brave enough to seek them out.

If that sounds like taking advantage, it is not, homeowners facing bank foreclosures are many times desperate to get out from under mortgage payments and are highly motivated to make a deal! Take the time today to examine the foreclosure listings across the country and perhaps find your dream home.

Jack Philson, an analyst at RealtyStore.com, has posted an article discussing both Romney and Obama and their statements on the bank foreclosures crisis.

High Bank Foreclosures in Rhode Island: Despite Millions in Aid Available

Unemployment, horrible housing market and economic hardship is no longer breaking news, even in hard hit areas such as Rhode Island. What may shock you however is the fact that there are millions of dollars in financial aid for homeowners at risk for foreclosures that is not being spent! Rhode Island foreclosures are the highest in New England and one of the highest in the United States as well.

Rhode Island has access to $79 million dollars in aid for struggling homeowners, of which only $25 million has been allocated. The state and several other “hardest hit” areas have received federal aid but Rhode Island seems to be slower than most at dispensing the funds.

With high bank foreclosures in Rhode Island coupled with a nearly 11% unemployment rate, you may be wondering why more people are not receiving this much needed aid. There are several factors at play apparently, including the reticence of some to accept government help. Apparently, the main hold up is a slow roll out of the program and very little information in the general public.

There is also the reluctance of national lenders to work within the guidelines of the program in Rhode Island, citing issues with operational details throughout the 19 different jurisdictions.

Rhode Island has struggled to put the hardest hit funds to good use, as have several other recipient states. Each state had to build programs from scratch that would utilize the money appropriately. Thankfully, the tide appears to be turning and more homeowners will be able to save their homes in the coming years. Requests for assistance are up approximately 40% and the funds will be available through 2017.

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.

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.

Will Foreclosures or Short Sales Drive the Market in 2012?

Bank foreclosures are not a pretty thing to say the least, definitely not from the viewpoint of someone who has taken out a home loan. In essence, they occur when a person who has taken out a home loan fails to be able to keep up with the repayments of his or her mortgage obligations. In bank foreclosures, it is the bank that has taken out a security interest in the person’s home. Therefore, if said person fails to be able to pay back his or her mortgage obligations, the lender (the bank) has the right, thanks to the security interest, to go ahead with a foreclosure on the property. A foreclosure is particularly painful because it will harshly retard the ability of an individual to purchase any form of real estate in the future.

On the other hand, short sale homes options are an alternative to bank foreclosures, yet they are not as widely understood as the foreclosures. A short sale on a home is basically a compromise of sorts between the lender, the person who has taken out the loan and the seller of the property. A short sale is defined as the time when a lender assents to accept a mortgage payoff quantity that is less than what’s owed. This is done for the strategic purpose of making sure that a sale of a property by a financially compromised owner becomes a reality. In essence, what the lender (the bank) does in a short sale is basically forgive the remaining balance of a loan.

With regard to how the rest of 2012 will shape up concerning bank foreclosures or short sales, it seems that short sales will be dominant. Sure, some sources that deal in the financial world have implied that it will be bank foreclosures of cheap homes that will continue to dominate in the 2nd half of 2012. According to CNBC, under President Obama, from December 2011 to January 2012, bank foreclosures skyrocketed by an alarming 28 percent in just one month! That is based on information from Lender Processing Services. Greater than 230,000 bank foreclosures of cheap homes started in January alone!

However, the Calculated Risk Blog implies the opposite, citing that short sales have gone up in lots of places across the U.S., which stands in contrast to foreclosures, which have eased up. Furthermore, according to a March 2012 article in the Chicago Tribune, more and more big banks are utilizing cash incentives to tempt people to pursue short sales instead of foreclosures. This seems to suggest that short sales will be the dominant route in the remaining part of 2012. A March piece in the Examiner.com predicts that short sales will increase in 2012 due to the so-called “robo-signing” settlement reached with the federal government.

All in all, it appears that there are more sources that are pointing to the dominance of the short sale in real estate for the 2nd half of 2012. Hence, it is a good bet to predict that short sales will edge out foreclosures in the 2nd half of 2012.