Mortgage Specialties

Where Are the Foreclosures?

"The key is to know where to look to find them."

Foreclosures are a big problem throughout the United States. Cities where jobs are gone and where the housing market's bubble a few years ago exploded are now left with countless properties that no one lives in and banks own. These are taxing communities. Yet, foreclosures can be one of the best investment opportunities for real estate investors or even home buyers. The key is to know where to look to find them.

Top Cities for Foreclosures

Again, you will find foreclosures in nearly every city in the US. In addition, they occur in urban areas as well as luxury neighborhoods, and everything in between. The following are some of the top cities facing the highest number of foreclosures, according to Bankrate.com.

· The Milwaukee, Waukesha and West Allis areas of Wisconsin come in at the most with an average discount of home values on these properties of 57.9 percent. The average foreclosure here costs $77,592.

· In the Philadelphia, Camden and Wilmington, PA and New Jersey area, the average discount is 52.51 percent and costs $109,878 on average.

· Next on the list is the Boston, Cambridge and Quincy areas of Massachusetts and New Hampshire. Here, the average discount on the home's value is 50.92 percent and the average sell price is just over $181,000.

· Chicago, Naperville and Joliet areas of Illinois comes in number four on the list with an average discount of 49.71 and a sale price of $118,278.

· The Atlanta, Sandy Springs and Marietta areas of Georgia rank number five with an average discount of 48.12 percent and home prices reduced to $95,321.

Buying foreclosures here could mean significant savings.

Mortgage Rates Up – Are They a Good Deal Still?

After months of low mortgage rates, this week saw a slight increase in the current mortgage interest rates some lenders are offering. In fact, these rates have been in place for the last three weeks at an all time low. Is it still a good deal to buy a home right now, though?

New Mortgage News

Freddie Mac reported this week that the average interest rate on a mortgage for 30 years was 3.95 percent. This is up by a significant .8 increase. The average 15-year fixed rate mortgage rate increased as well to 3.16 to 3.19 percent. Does this mean that consumers should stop buying homes now? That is not the case at all.

In fact, experts say that rates are still very affordable. The current rate is still significantly lower overall than rates have been. While they may not be at the lowest level they have been at, many would argue that waiting to buy a home does not make sense. For those considering refinancing, fixed rate 30 year and 15-year loans are some of the best options available today. Consider the options from various mortgage lenders. You should comparison shop to find the most affordable loan out there.

The housing market's low prices are contributing to the drive in buying. However, low mortgage interest rates may not stay that low long term. As the housing market begins to improve, chances are rates will continue to rise. This makes right now the best time to invest if you plan to do so in the coming year or two.

Mortgage Settlement to Help Millions - Right

A recent announcement in the mortgage industry reveals that the country's largest mortgage lenders have agreed to a settlement to award homeowners and those who lost their home in foreclosure for improper actions taken during the early portion of the housing crisis. The settlement confirms that Wells Fargo, JPMorgan Chase, Bank of America and Ally Financial have agreed to pay into a fund to repay homeowners for money lost. But, what does this really mean for today's homeowner?

Each have agreed to pay a total of $5 billion to help remedy the dubious mortgage practices and abuses of foreclosures the industry took place in. In addition to paying out funds to some, the agency promised to help homeowners underwater on their mortgages. Those who owe more than their home is currently worth could see a reduction in the principal mounted owed on their loans. In this type of adjustment, the lenders agreed to settle at $17 billion in total.

For those that qualify, refinancing of loans will occur. This will allow homeowners to take advantage of the historically low interest rates currently available. For those who lost their home due to an improperly filed foreclosure, the actions are less likely to be profitable. Those will probably earn less than $2000 a person for these actions.

There are many that state that this action is necessary and it is a good one, but that more needs to be done. There's no news on how these programs will roll out, but indications are that lenders will be encouraged to be proactive over the next 12 months.

Job Loss? Consider Mortgages in Forbearance

Fannie Mae and Freddie Mac, the county's largest mortgage loan lenders and securers have announced a new way to help those who are out of a job and unable to make mortgage payments. The option is to put the loan into forbearance. This would allow the individual with reduce or stop making payments on his or her mortgage while they were out of work.

The Reversal

Forbearance is not something that has always been available from these agencies. In fact, just a few weeks ago, this was not a possibility. Now, both agencies will allow up to six months of time in which a reduction or suspension of payments is possible. The loan servicer (who is the company that actually works with the individuals holding the loan) has the ultimate decision in whether or not it will allow the forbearance, though.

What does this mean to an individual who just loses his job? It means that the individual will have the opportunity to stop making payments or reduce the amount of their monthly payment for six months. The loan servicer does not have to get permission from Freddie Mac or Fannie Mae for doing so. More so, after the six months, the servicer can extend the forbearance further if it deems it necessary. It does have to ask the agencies at this point though. During any forbearance period, the borrower is not under the risk of foreclosure on the home. Even if the borrower falls behind on the loan prior to obtaining the forbearance, he or she cannot lose their home.

Fannie Mae will put this policy into effect starting March 1. Freddie Mac's policy will go into play on February 1st. Talk to your lender about your options.

Mortgage Rates at Record Low - What Does It Mean to You?

Those purchasing a home right now will find that mortgage rates are still at remarkably low levels. Interest rates follow a pattern of movement dependent on numerous factors, including the major indexes, the Federal Reserve's key lending rate and other factors, such as demand. As a buyer, now is the time to buy. Hands down, doing so now will be far more affordable than buying anytime in the near future.

Rates Continue to Fall

According to a recent article by the San Francisco Chronicle, mortgage rates remain at the lowest level or near the lowest level they have been at in decades. The average lender is offering 30 year mortgages at 3.75 percent. 15 year mortgages, at a fixed rate, came in at even lower numbers on average at just 3 percent APR.

Consider what this means. If you purchase a home worth $200,000 with a 30 year fixed rate loan at 3.75 percent, your monthly payment would be $1157. If you purchased a home just a few years ago when interest rates were closer to 7 percent, the same loan would cost you $1663 per month. The differences are even further interesting if you calculate the actual debt paid over the lifetime of the loan.

The bottom line is that if you have the ability and the deserve to purchase a home right now, mortgage interest rates are incredibly low. Take full advantage of these loans before the Fed begins to raise rates and lenders follow suit. You will quickly find that this can be an outstanding way to invest in real estate.