Living After Foreclosure

Probably not too many people.  Though California, Arizona, Nevada, and Florida are still the poster children for the housing carnage, Idaho, Illinois, and Oregon are up-and-comers.  Foreclosures for February 2009 are up 30% from February 2008 levels.  Seven hundred thousand properties owned by banks haven’t been put on the market yet.

What may make the foreclosure situation worse is that some communities and homeowners’ associations are clamping down on owners’ rights to rent their properties.  Without the option to rent out, owners are forced to carry the full weight of their mortgage payments until they can sell — or until they’re foreclosed on.  It’s simply HOAs looking after their interests, but it’s at the expense of strapped homeowners.

The 700,000 REO properties is huge.  That will take a while to burn off, and home prices will go down when they hit market.

No one’s immune.  If you’re not being foreclosed on, someone near you probably is, and that affects the value of your house and your neighborhood.

• Recognizing the signs of a family facing foreclosure Free Money Finance recently had an acquaintance of his go into foreclosure, and the signs of trouble were clear in retrospect. People don't advertise that they're facing foreclosure, at least not outwardly.  Even if money is getting really tight, people can compartmentalize the worry when they're interacting with others.  One......
• Will your lender work with you? This article from the Chicago Tribune made a point about lenders that's an unfortunate reality: The more equity you have in your home, the less eager your lender may be to work with you. It's an ironic fallout of the foreclosure crisis that those who have been the most diligent......
• Steps to take if you're facing foreclosure, Part 1 Liz Pulliam Weston wrote recently on steps to take if you're facing foreclosure.  There are smart ways to go about it, and not-so-smart ways.  Here are her first three suggestions with some of my comments: Make a budget.  If there are places that can be cut in your budget that......
• Strategic default? Banks are on to you Few states have been hit harder by the foreclosure mess than Florida.  Properties in some areas are worth half of what they were at their peak.  A sizable number of underwater borrowers -- those owing more than their homes are currently worth -- have simply stopped making payments on their......

• Are 50% Discounts Becoming Common In Florida? Looks like the housing market is bad in more than just Miami. I just got this email from a real estate agent based in Florida regarding a Short Sale. We have several sellers ready to walk away from their property without a penny. We have begun negotiations with the sellers......
• Living off dividends [or how to invest in Real Estate for cashflow] While surfing onlne, I came across this blog post: Real Estate as an asset class. Basically this guy wants to be able to live off his dividends at some point and his blog is devoted to that. He's wondering how real estate fits in. He invests in REITS but isn't......
• Whaddaya mean no rentals allowed? Say you live in a subdivision.  You bought your brand-spanking-new house only a couple of years ago.  Today, you cannot afford to carry the house for whatever reason (job loss, move, can't refinance, etc.) "No problem," you think to yourself.  "I'll just find a renter for it until the market......
• Sarasota Realtor Sees Troubling "Trend" Among Struggling Homeowners Facing Foreclosure! Sarasota homes for sale will increase as struggling homeowners rely on "band-aid" to provide time before they walk away from underwater houses! [/caption] Are mortgage debt owners doing "enough" to reduce foreclosures and protect THEIR own interests? Citigroup claims it's reducing payments to an average of $500 for three months......