After the foreclosure sale there is a 10 day upset bid period before the sale becomes final. After that time has passed and there have been no upset bids the sale then becomes final. At that point the third party buyer, the lender, or the foreclosure trustee who purchases the property or represents the purchaser of the property at the foreclosure sale will then send you a letter, probably via certified mail, stating that you have 10 days to voluntarily vacate the home. Once the ten days period in the letter has expired the third party buyer or lender will apply to the Clerk of Superior Court for an Order for Possession. If the Clerk allows the Order for Possession that order will direct the sheriff to remove all occupants and their personal property from the premises within 7 days of receipt.

So, in general you really don’t have much time, this eviction process is much shorter than your typical landlord-tenant eviction. If you need a week or two to transition to another home or apartment contact the trustee or the buyer (contact the party that sends the ten day notice letter) and explain your situation. Most often they will give you a limited time to move you and your possessions from the residence. If you do not make the effort to contact them, they will more than likely move the application for an Order for Possession along as swiftly as possible.

Taking advantage of the desert terrain, approximately 350 new golf courses have been built since that time.

Most golfers are looking to play a different kind of golf course when they plan their trip to Scottsdale, enough already of the traditional courses that they play every weekend back home…and desert courses fill the bill. The game is the same, whether it’s on a tree-lined fairway or meandering along a desert fairway. The maximum allowance for turf is 90 acres, so there’ll be a lot of desert around you…plus arroyos (dry washes – hopefully), critter warnings (maybe rattlesnakes, possible roadrunners), the jumping chollas (they will reach out and grab you, just brush against one and you’ll have enough cactus spines on you to last the day) and of course the giant Saguaros that will gobble up your ball if it goes that way. Didn’t we tell you it would be an adventure?

Scottsdale and its desert courses are a “must-play” for a great golf vacation. We-Ko-Pa, built by Native Americans over in Fountain Hills is probably the most scenic course you can play anywhere. Four Peaks Mountain (their sacred mountain) is visible from most areas of the course, and the greens are set in box canyons, this course is beautiful and a public golf course to boot. The Boulders of course is set among 1,000,000 year old rocks to give you pause.

The Raven Golf Club at Verrado uses natural desert terrain and plays in and around the washes. The White Tank Mountains make a powerful backdrop.

Washington

The state of Washington uses both in-court and out of court foreclosure proceedings.  Judicial or in-court foreclosure is used when the language in the mortgage or deed of trust does not contain a power of sale clause.  Should this be the case, the bank must get the court’s permission to foreclose or in otherwords the need to get a court order to move forward with the sale of the property.  After this has been obtained, the lender will proceed with the foreclosure process, and auction of the home.  To use judicial foreclosure the bank’s attorney must file a law suit against the home owner who is having difficulty making his house payments.  This is done to get the court’s permission to sell the house to try to collect on what is owed on the loan.  This is a much longer and more expensive process than non judicial foreclosure and so it is not used very often.

Non judicial foreclosure is the most popular method of foreclosure.  This is the case becaue it saves the lender both time and money.  Since it is in the bank’s best interest to spend as little time and money on this process as possible and it is their choice as to which process to use, non judicial foreclosure will almost always be the method used to sell the home.

A power of sale clause is the language in a mortgage or deed of trust that allows a lender to foreclose on a defaulted loan without going through the court system to do so.  When a power of sale clause does exist in the mortgage or deed of trust, then non-judicial or out of court foreclosure is followed.  This is almost always the case.

To proceed with an out of court foreclosure in Washington, the lender must start by sending a notice of sale letter to the home owner by both regular mail and by certified mail, return receipt requested.  This notice of sale must be sent to the home owners last known address.

If the home owner has an attorney of record, it must be sent to that person as well.  The time frame required for this notice of sale to be sent is a minimum of thirty days prior to the sale.

Other requirements to move ahead with an out of court foreclosure in Washington include that the sheriff must publish or advertise the notice of sale once a week for four weeks leading up to the sale date.  This advertisement can be placed in any newspaper that has circulation in the county where the property is located.  Also the sheriff must post this notice of sale on the court house door in the county where the property is located.

The sheriff must post this notice on at least one other public place as well.  These public postings can be placed anywhere considered a public place, like the county office building or the library etc.  The placing of the public postings is completely up to the discression of the county sheriff. These public postings must also take place four weeks before the sale date.

This notice of sale must include the time and place of the auction, the names on the deed, the date of the deed, recording info, a description of the property and the terms of the sale.

In Washington the home owner can stop the foreclosure proceedings by paying the past due payments, plus other expenses the lender has incurred in the process.   Those costs will include, but are not restricted to the lawyer’s fees involved.  The home owner can halt the process this way as late as eleven days before the sale date.

In Washington the auction of the property is always held between 9:00 am and 4 pm on Friday at the courthouse door.

If the Friday that is closest to the date chosen by the lender happens to fall on a legal holiday, the sale will be held on the next business day.  In this state, the auction cannot be held any sooner than the 190 days following the date the notice of default was issued by the lender.

The obtaining of the property by the highest bidder, in Washington, is confirmed by the receipt of a certificate of sale. 

In Washington, the sheriff can postpone the sale for a maximum of 1 week.  If the sheriff chooses to do so, then the notices must be posted as they were prior to the original sale date.

Home owners have an eight month right of redemption in this state.  This means that should the person who lost the home at auction be able to come up with the amount of money of the winning bid at auction, plus interest, then they can again enjoy ownership of the property.

This doesn’t happen often, but it does mean that the new owner or the person who placed the winning bid must worry for eight months about whether or not the home is really theirs.  If it were me, I would certainly refrain from putting anymore money into the house.  I would also consider not moving into the house until the 8 months following the sale have expired.

If the lender chooses to pursue an out of court foreclosure in Washington, it foregoes any chance it might have had to pursue the borrower for a deficiency judgment.  That means they can’t seek any additional money not generated by the sale of the home. 

If the lender chooses to follow an in court foreclosure, they can follow that decision or out come up with and additional pursuit of the borrower for any funds they feel they are due above what is gained through the sale.  The only exception to this rule is that if the property is proven to have been abandoned for six months before the decree of foreclosure was issued, by the court.  In this situation, further pursuit of the borrower for money is prohibited.

Because most forclosures in his state are out of court processes.  This means that lenders rarely have the right to seek a deficiency judgent. This is of course good news to the person who looses their home at the foreclosure sale.

Integrity 1st Consulting is your Foreclosure  ebook specialist- Kathy Swift

Kathy Swift
http://www.articlesbase.com/real-estate-articles/foreclosure-process-in-washington-467486.html

With just a click of the mouse, you are entitled to free foreclosure listings of properties. Foreclosure happens when a homeowner defaults on a mortgage loan. Free foreclosure listings are free lists of property items which provide complete information to guide potential buyers in buying a foreclosure property. Acquiring foreclosure properties is no doubt becoming a very popular way to get incredible good bargains as many foreclosure properties are sold below the market value.

7-day Free Trial

Free foreclosure listings are not available entirely free of charge. Although a handful of websites may offer wholly free foreclosure listings, the quality of it is indeed in question. Free listings do not provide enough information and might not even be updated on a scheduled basis, whereas paid foreclosure listings will give more detailed and updated information to potential buyers to help them proceed to the purchase of the property.

Besides that, fee-based services also provide more factual and updated listings in just seconds compared to the totally free listings. However the beneficial news is that these days, foreclosure listings vendors do give free 7 days trial of service. After that, purchasers can opt to continue the service by paying the subscription charge. On average, the listings can be as low as $20 and as high as $100. It is crucial for buyers during this period of trial service as buyers can view clearly how the entire process of buying a foreclosure takes place.

Data in Free Foreclosure Listings

To help buyers wisely choose their future homes, free foreclosure listings provides detailed description on major aspects namely the property details, foreclosure information, locality information, sales history, tax information and also the contact information. All this data can be as itemized as number of bedrooms, lot size, loan balance of the house etc. Free foreclosure listings in addition comprise photos of each property.

Why Pay?

The major question is why pay for the free foreclosure listings when the properties are actually public information. The reply will be none other than ease of use. The transfer of real property is filed in county courthouses where the property is situated. Wanting to look around in a foreclosure home will only land buyers in unwanted, troublesome and time constraining procedures such as requesting the listings from the lending institution for clearer information. Imagine also, going through each property!

More Online Places that List Foreclosures are:

Email in your own inbox

Most people receive a lot of junk email every day. Those that have to do with foreclosures could contain a wealth of information. There are numerous websites having to do with below market price properties. These will sometimes provide a listing of homes in your geographical area or sell materials to help you learn how to buy a discounted home.

Realtor’s Listings of Foreclosed Homes

Realtor’s websites generally will provide free listings of foreclosed homes. They may merely show a bank as being the owner. Since more people have access to these sites, the properties generally move faster and may require immediate action before someone else has purchased the property.

Gail Metcalf
http://www.articlesbase.com/non-fiction-articles/take-advantage-of-foreclosure-lists-online-49054.html

When you take out a loan from a bank or any other financial institution, you have to do everything in your power to meet the terms of the agreement. This generally means not falling behind on payments. Any default on payment will most likely have a negative impact on your credit record, but the situation can get a lot worse than that. If you have taken out a mortgage on your home and if for whatever reason, you find yourself behind on payments, you risk losing your home, which can be a very traumatic experience. If you are in foreclosure, you need to take immediate action so that you donâ??t find yourself in a position where very little can be done.

If your financial situation is critical, you should think twice before choosing any of the refinance options that are available for you. In other words, if you anticipate that you still wonâ??t be able to make payments on time after you refinance your home, maybe you should consider selling the property and opting for a rent situation, which may be less of a burden to your budget than a monthly payment for your loan. On the other hand, if you want to keep your home, you should look closely at your refinance options, and choose the best for your specific situation.

Loan modification represents a very common alternative to home foreclosure. You can protect your credit and keep your home by agreeing with your lender on a loan modification. Your current financial position may make it difficult for you to meet the conditions of a repayment plan, as this involves higher payments. Furthermore, you may not have the option to refinance your home for a reduced payment, as you may not qualify for another loan. Under these circumstances, loan modification may be the best solution for you.

You can work out a loan modification plan based on your current financial situation. The terms of the loan can be altered so that you benefit from more manageable payments. The loan modification program used to be a very common way to reverse foreclosure. However, nowadays not all banks and financial institutions are willing to offer their borrowers this second chance. But if you are in foreclosure and no other solution is available, you should consult with specialists and find out whether you can opt for loan modification as a method of foreclosure resolution.

In spite of the fact that your lender often appears to be your worst enemy, you may be surprised to learn that the financial institution wishes to find a less drastic solution to the situation as much as you do. Therefore, you are presented with a lot of options to stop foreclosure and refinance your home. Some of these solutions may be more appropriate to your specific needs than others, and given the fact that you are already in debt, you should look for the most convenient solution to foreclosure resolution. Exploring all your options may be a bit confusing, especially if you havenâ??t dealt with anything of the kind before. This is why you should try consulting with foreclosure specialists. Each and every one of the options that you have to reverse foreclosure has its good points and bad points. The final decision is yours, but at a time like this, when you risk losing your home, it will make a huge difference to get the honest opinion of a specialist whose job is to find the best solution for you and get you out of trouble. Keeping in touch with your lender and informing them of your situation is advisable. However, if you are already in the pre-foreclosure period, you should seek the help of specialists who know exactly what to do and how to negotiate on your behalf. With foreclosure being such a common occurrence in the United States, mortgage companies canâ??t be anything but happy that such foreclosure specialists exist to make their job easier.

For more resources about Refinance or even about loan modification please review this webpage http://www.larazinc.com

Groshan Fabiola
http://www.articlesbase.com/home-and-family-articles/reverse-foreclosure-with-loan-modification-315580.html

According to RealtyTrac’s website there have been over 2 million foreclosures in 2007. The top three foreclosure states are California, Texas and Florida. According to the Mortgage Bankers Association, 1 out of every 200 homes will be foreclosed.

If you are facing foreclosure, put away those credit cards and stop charging. Put yourself on a spending plan immediately. Contact your lender’s litigation or foreclosure department to inform them you are having a financial hardship. Monitor your finances until your other debts are paid off so you don’t get into the same situation in the future. Confirm the agreement with your lender in writing. Be sure to consult a tax advisor to determine rules regarding foreclosure. Don’t be discouraged, there are several ways you can save your home. Here are 6 tips to assist you when facing foreclosure:

1. Short Sale. You can sell your house for less than what you currently owe on your loan. Your home does not have to go into foreclosure, you don’t have to file bankruptcy and the filing process is much faster. The lender saves money without having to file foreclosure proceedings, but does lose money by not getting the full price of the home during the sale. The buyer gets the house at a reduced price.

2. Partial Claim. Your lender may be able to work with you to obtain an interest-free loan from the Housing and Urban Development agency to bring your mortgage current if you qualify. Visit the HUD website or call 800-CALL-FHA for more information.

3. Special Forbearance. A lender can arrange a repayment plan based on your current financial situation or may provide a temporary reduction or suspension of your mortgage payments. You may qualify for this if you’ve recently experienced a reduction in income or an increase in living expenses. You may have to provide proof of your current financial situation.

4. Deed-in-lieu of foreclosure. You may be able to voluntarily “give” your home back to your lender. This may help your chances of getting another mortgage loan in the future.

5. Mortgage Modification. You may be able to refinance the amount owed and extend the term of your mortgage loan for the missed payments. You may qualify if you’ve recovered from a financial hardship and your net income is less than it was before you defaulted on the loan.

6. Pre-Foreclosure Sale. You can sell your property and pay off your mortgage loan to avoid foreclosure and damage to your credit rating. If you know you cannot afford to afford to make the payments you may sell the house yourself before the foreclosure sale date and save some of your equity. Contact a Realtor and tax advisor for rules regarding pre-foreclosure sales.

Ask the lender if the option chosen will be reported on your credit report, if so ask that the option not be reported. When facing foreclosure or any financial crisis the key is to contact your lender immediately to setup a payment plan or discuss other options. Don’t wait for the worst to happen – tackle the issue right away. Lenders are more willing to work with you if you are honest about your situation. Whatever option you choose stick to the terms of your agreement and adjust your spending habits so you don’t get into the same situation in the future.

(Originally published at Ezine Articles).

Harrine E. Freeman
http://www.articlesbase.com/finance-articles/6-ways-to-deal-with-foreclosure-296454.html

Everyone is looking for a foreclosure “deal” these days – and there’s lots to choose from these days, but be careful… just because a property is in foreclosure, doesn’t necessarily mean it’s a “deal”. In fact, nowadays, it takes more time to sift through the leads to find the really good opportunities within the foreclosure market.

The more potential foreclosure properties you have to sift through, the higher your chances are for finding a deal.

The top 5 ways to finding foreclosures are:

1. Bandit Signs
Bandit signs are plain white or yellow corrugated signs with metal stands that stick into the ground. You can find preprinted signs or you can buy plain signs and handwrite your message on the signs. Place them on corners of busy intersections or in neighborhoods in which you want to purchase a foreclosure home.

2. Foreclosure Listing Services
There is no shortage of foreclosure listing services available on the Internet. Make sure to do some homework before subscribing, however as the quality of each service can vary greatly. Find out where they get their information, how frequently the data is added, and when/if they clean out or update existing data so that you’re not wasting time or money on old leads or false information.

3. Realtors
Realtors often have access to foreclosure deals well before the homeowner has even started the formal foreclosure process with the bank. When selecting an agent to work with, make sure that he/she knows the foreclosure process, how to negotiate with the banks, and how to handle often stressful situations that arise when a homeowner is faced with foreclosure.

4. Courthouse
If you’re feeling ambitious, consider going down to the courthouse and looking up the foreclosure records. You will be able to access all of the lien information, assessed value, etc. The attorney handling the case on behalf of the bank will be listed as well. You will be looking for “Notices of Default” or the “Lis Pendens” records. If it’s your first time going to the courthouse, ask the clerks or the employees that are working there to point you in the right direction and use their knowledge to learn more about the foreclosure process.

5. Loss Mitigation Specialists
You may or may not have hear of a loss mitigation specialist. A loss mitigation specialist’s goal is to help the homeowner stay in the home and work out their situation with the bank. Many times, they are able to work with the bank on behalf of the homeowner. However, there are also many instances where the seller’s situation doesn’t allow him/her to work anything out with the bank (i.e. divorce, job loss, illness, etc.). Often, these same sellers find themselves facing foreclosure several months later or are simply unable to work something out with the lender, thus need someone to come in and buy the home outright or negotiate a short sale with the bank.

These are the 5 easiest ways that you can find foreclosure deals. If you are truly looking to get your hands on a great deal for yourself, or if you are an investor looking to make a business out of foreclosures and short sales, it’s important to use as many of these techniques – and more – to find motivated foreclosure sellers.

Heather Seitz
http://www.articlesbase.com/non-fiction-articles/foreclosure-listings-5-tips-to-finding-them-before-your-competition-does-138232.html

Many people want to buy a house, but not all can afford one. They usually resort to borrowing money from government agencies. Since they can borrow higher amounts of money, the interest rates are comparatively lower than banks.

However, if there is some calamity in business and for some reason the borrower cannot repay the money within the given duration, the government confiscates it and forecloses the property. The basic is to ensure that all outgoings are taken care of in time and a proper level of communication is maintained with the authorities at all times.

These properties are usually sold at real estate auctions and the foreclosed-property goes to the highest bidder. These properties can be traded again with homeowners or government agencies. Government foreclosure homes have been available for many years and the popularity and value, as a property is much higher now. It has always been an excellent way to invest in property. Many foreclosed properties are sold at lower market values. However, the important thing is to look for or get great deals without compensating on the quality of the property.

U.S. Department of Housing and Urban Development

HUD or the U.S. Department of Housing and urban Development is the property owner on FHA homes, which have gone into foreclosures. Basically, anyone can buy a government foreclosure home and there are good deals out there.

Do You Qualify?

You can buy government foreclosure HUD Homes if you have the cash and qualify for a loan, Initially, HUD Homes are given to people who want to buy the home for residing. After a certain time period, unsold real estate properties are given to all buyers. This includes many government foreclosure investors. Following a certain period of time for owner occupants, unsold properties are then offered to all buyers, including many government foreclosure investors.

Where Do You Buy Government Foreclosure Properties?

Many government foreclosure homes are available over the net and then purchased with the help of real-estate offices. There are many real estate agents basically deal with only foreclosure homes. One can check the local yellow pages and check with the different real estate offices.

Make Sure Of What You Are Purchasing

In the case of government foreclosure properties, you may want to ensure that the home is worth your investment. This applies to government-foreclosed houses. To determine the value, you can check with a realtor. Check homes, which have been sold in similar areas and with very similar features.

Get A Good Realtor

If it is a government foreclosure you are dealing with, you may want to look for a good real estate agent. You can check out online sites to know more about government foreclosure homes and then check the yellow pages or visit the same. It may not be a waste, if you sit down and discuss with realtors before you decide to work with them or on a house. If you are on the lookout for great homes or even want to invest in them, government foreclosure homes are the right way to go.

Kris Koonar
http://www.articlesbase.com/non-fiction-articles/finding-good-bargains-in-government-foreclosure-homes-135230.html

Home mortgage foreclosure listings are becoming novel-length nationwide.

Minneapolis is not exempt from this housing market dilemna. Many, many

neighborhoods are touched with a property in preforeclosure or

foreclosure. Minnesota is putting into effect a call 3-1-1 hotline for those

homewoners who are faced with impending foreclosure.

Minnesota officials are also meeting with homeowners groups and citizen

rights activist groups in an attempt to offer solutions and possible answers

to those individuals facing foreclosure. The state of Minnesota is

determined to thwart predatory lenders from illegal and unsavory lending

practices. Concurrently, they officials are meeting with area home

developers to try to work with them to revitalize the areas currently

suffering from high foreclosure rates.

As much as the state of Minnesota can do, unfortunately, it will not be

enough to help everyone. And some people may not apply or want help at

all. These properties can be found on Minnesota foreclosure listings.

When searching foreclosure listings, you will be surprised to find them in all

areas. This provides a plethura of opportunity. You can be a first time

homebuyer, a seasoned real estate investor or just seeking a new or

different location, foreclosure listings provide many addresses for you to

choose from.

Foreclosure listings are not different from MLS, except that the prices are

generally lower than those found in the MLS. Foreclosure properties are

anywhere from 10% – 50% below market value. To get the best deal on

foreclosure properties, you need to have your own finances in order and

you need to act fast. Comprehensive, up-to-the minute foreclosure listings

found on the internet usually will give you a heads up to what properties

are available and what stage of foreclosure they are in. The stage of the

foreclosure also dictates the dollar amount the property is expected to

produce. The longer the home has been sitting vacant and empty, the

better the deal may be. Lenders who have inadvertently become the

owner of foreclosure real estate truly want to sell them as soon as possible

as the lender is losing money each day the home is not producing funds.

Minnesota foreclosure listings can be found on the internet, in newspapers,

from lenders and brokers. Do not overlook the properties found on these

listings, they may be exactly what you are seeking in a bargain basement

real estate investment.

Bob Smith
http://www.articlesbase.com/real-estate-articles/minnesota-responds-to-the-rising-foreclosure-rates-by-issing-311-hotline-183085.html

On a typically sunny day in Southern California, I drove down a tree lined street in what was once a bustling middle class suburb. I passed the park on the corner which was my signal to turn right. The park was unusually quiet which lent an eerie feel to the neighborhood. I slowed the car to make the turn and immediately noticed the difference. “For Sale” signs and Foreclosure notices seemed to stand in salute against the backdrop of manicured lawns and colonial homes. The signs seemed to scream what headlines had already declared – there is a crisis in the American real estate market.

Across the country, the rate of foreclosures has dramatically increased. Analysts and industry professionals have all weighed in with their expert opinion often attributing the crisis to the natural law of “market corrections” and uncertain economic times. However, the one admission that no one seems willing to make is that we are in this mess because of greed and ignorance.

Professionals in the industry share one common goal and that is to make money. It was not enough to sell homes to consumers who could qualify for a mortgage and were financially prepared to own a home. Those sales had already been made. So the industry “relaxed” its lending standards to expand home ownership to a broader market. The plan, on the surface, worked beautifully for many years. The industry appeared to be helping the less fortunate fulfill their starry eyed dreams of home ownership. In return for their good will, risky borrowers fueled the growth of the sub-prime mortgage industry from $150 billion in 2000 to $650 billion in 2005.

Caught up in this modern day gold rush were the “everyman” workers seeking a better future with a real estate license. Folks who had waited tables, flipped burgers and washed cars for a living last year were now selling homes worth more than their previous annual salary. Many of these people that were selling “the dream” did not own a home themselves and were unequipped to educate buyers on making the smartest purchase. Sadly this is also true of many loan offices. Buying a home is the single largest investment most will ever make yet many took that journey with “professionals” who did not have a clue what it was about.

Ah, but consumers are not completely off the hook for their role in this crisis. Greed not only drove the industry to find more borrowers but it also drove consumers to accept loan terms and mortgage notes which were unreasonable. Greed and need intersected turning the American dream into the American nightmare. Even Barbie has a dream house and every American wants their 40 acres and a mule. No one talked about the responsibility of having that plot of land. Buyers did not read the fine print on their loan packages nor did they fully take in that the grass in suburbia also needs to be watered to stay green. Greed and ignorance are never a good combination and that is clearly evident in today’s market.

The fervent sales pitches did not include an education on the ups and downs of home ownership. Rewards were presented and risks were barely mentioned. Deals were quickly closing with handshakes and smiles as though life would always be this good. The good feelings spilled over into the traditional market as well. Homeowners traded up from “starter” homes into more expensive mortgages often taking advantage of the many creative financing terms, such as the adjustable rate mortgage, or interest only loan.

The industry and consumers could have benefited from a bit of pessimism. We could have used a Paul Revere shouting in our ears that good times don’t always roll. As we now know, the bad times seemed to roll in with an unhinged fury – the dot com bubble burst, the 9/11 terrorist attacks brought the economy to a standstill, interests rate rose, we went to War, interests rates rose again, we were pounded by devastating hurricanes in the Gulf region, the economy worsened, unemployment increased and on and on it goes. Not to mention the normal ups and downs of life such as being laid off, a plumbing problem or a roof that needs to be repaired.

No one can with any degree of certainty predict the future. Real estate professionals must help potential homeowners do a comprehensive assessment which includes how they would handle their mortgage if their financial situation changed. Professionals can no longer sell adjustable rates mortgages (ARMs) with abandon on the basis of interest rates remaining low. Many borrowers are now in foreclosure as a result of ARMs. Agents must educate themselves so that they can educate borrowers. This is not happening today. On the flip side, borrowers must READ first and ask questions before they sign on the dotted line. It really does take two to tango and finger pointing is not going to solve the problem.

The mortgage industry must also realize that everyone is not your target market. Successful businesses thrive by targeting an “ideal client” in a niche. Attempting to make mortgages work for the world could only result in disaster. The industry must define a clear target market and develop products for that market.

The industry must also help some borrowers delay buying a home until they are ready. We can’t stress financial education enough. New Cadillac Escalades, Mercedes, and Range Rovers aren’t mandatory for the new garage. What about a savings plan so that you’re prepared for home repairs and other emergencies? New homeowners should first get acquainted with their new investment and take it for a spin before they invest in spinning rims on a hunk of metal that they cannot call home.

In fact, home ownership is not for everyone. Owning a home is a privilege not a right. Not everyone is prepared to handle the financial and emotional responsibilities that come with owning a home and some folk should just be turned away. If there was a test required for home ownership, many would have failed miserably. Oh my bad, there is a test and it’s the “qualifying for a mortgage” test. Yet lenders bent the rules so the slow students could pass.

In the short term, fewer houses may sell and fewer loans may be written but in the long term buyers and sellers of the dream will both benefit. Real estate professionals who accept accountability will find that they will have not only good business but more of it. After all the foundation of sales and marketing is meeting the buyers needs rather than pitching your features and benefits. Real estate professionals who accept their role as educator are likely to receive a greater response from consumers. Professionals must be willing to partner with their clients even if that means selling them a smaller mortgage or encouraging them to delay their buying decision until their financial house is in order.

The industry must also demand more from its professionals. Not everyone who can pass a test is qualified to work in the industry. If you sell a customer a suit that doesn’t fit they can return it, but selling a customer a bad mortgage is not something they can return. We should not take so lightly that a home is not simply a sale, but the place where folks lay their head at night. A bad deal can literally put someone on the street.

In turn, consumers must demand more of the real estate industry. Borrowers do not have to become lending experts but should be prepared to ask the right questions. A borrower should know their credit score and understand where that places them in the traditional market. All loan options should be thoroughly investigated including the fine print. If offered a teaser rate or other adjustable product, you should fully understand when that rate ends and how that will impact your monthly payment. Do not accept an adjustable mortgage on the basis that you can refinance later, as this may not always be possible. Many borrowers bought into this assumption only to find that when home prices fell and interest rates rose they were unable to qualify for a mortgage large enough to cover the old balance or could not afford the prepayment penalties frequently associated with sub-prime mortgages.

We will never eliminate foreclosures or missed mortgage payments but when consumers and the industry work together we can certainly help many avoid a fate that has become all too common.

Stay tuned, the foreclosure issue is heating up and will be one to look out for in the future. Stay informed and don’t forget to listen to Butch Grimes, on KTYM 1460am at 6:00pm every Monday night. He can also be reached at 323-750-3690 ext 236 or e-mailed at info@wetalkrealestate.com.

Copyright © 2005 Butch Grimes, We Talk Real Estate” , All Rights Reserved

WE TALK REAL ESTATE WITH BUTCH GRIMES® is a registered service mark of “We Talk Real Estate”. The articles, logos and Designs are trademarks or service marks of “We Talk Real Estate” and may not be copied, used or displayed without the prior written consent of Butch Grimes.

Butch Grimes
http://www.articlesbase.com/real-estate-articles/oops-our-bad-you-had-a-role-in-this-too-finger-pointing-as-the-foreclosure-pressure-heightens-137290.html