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The foreclosure rate in WY has reached new highs according to reports from the month of May. The rates of default on home mortgages have been so high that it has registered an increase of 53 percent since April. Economists are wondering what the cause is behind the rapid rise in foreclosures as the unemployment rate appears to be decreasing.

As of May, reports by Realty Trac show that the state of Wyoming has been experiencing a record amount of foreclosure filings, default notices, auctions and repossessions. Over 107 Wyoming properties were included in these reports. The report shows that one out of every 2,331 homes were in some stage of bank repossession.

Wyoming Counties most affected

The Wyoming counties that have been most affected were Lincoln County, Natrona County and Laramie County. Lincoln County appears to have the top foreclosure rate with one out of every 856 houses entering into the foreclosure process. Natrona was not far behind with one out of every 1,007 households receiving notice of intent to file foreclosure from their lending institutions. Coming in at third was Laramie County which saw one in every 1,063 houses receiving a foreclosure filing, 2.2 times the overall national average. Laramie County had the most amounts of foreclosures for the month of May with a report of 36 homes entering into the process.

Relative to the nation

In relation to the rest of the nation, the state of Wyoming appears to have higher rates of foreclosures than other states throughout the country. The foreclosures reported throughout the state made up for less than 1% of those nationwide. For the entire United States, one in every 605 households received a filing of foreclosure for the month of May. The total amount of foreclosures for the nation had gone down by almost 2% in April and by almost 33% in May.

Although the foreclosures in Wyoming have increased, those throughout the nation have decreased while the inventory of bank repossessed homes continues to remain high. At the present time, supply exceeds demand for housing throughout the nation. James J. Saccacio, the chief executive officer of Realty Trac stated “The weak demand from buyers {makes} it tough for lenders to unload their REO inventory. Even at a significantly lower level than a year ago, the new supply of REOs exceeds the amount being sold each month.”

Despite the rise in bank home repossessions in Wyoming, the unemployment rate has gone down. The rate decreased from 7.2 percent down to 6 percent since April a positive sign for the state. Experts hope that the increase in jobs will translate to lower foreclosure rates overtime.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice

The real estate market in Portland Oregon continues to struggle. The state has not been immune to the difficulties in the real estate market that have afflicted the rest of the nation. The end of the housing incentive offered by the federal government has resulted in a decline in new purchases and a decrease in home values.

Oregon’s Real Estate market in a downward spiral

The real estate market in Oregon has not shown any significant signs of improvement in 2011. In fact plummeting prices in houses have deflated the market and created difficulty in an already struggling sector. Foreclosures have continued to increase at record rates as homeowners steadily default on their home mortgages. The real estate market is similar to that of many other states which experienced a housing boom and a subsequent dramatic decrease. The real estate market in Oregon is reflective of its economic state as a whole. As job opportunities dwindle, homeowner’s ability to make timely payments on their mortgages decreases as well.

A recent study by Brookings Institution reported that Portland, Oregon is one of the worst impacted states in economic hardship. The state ranked 15^th in foreclosures overall as one of the hardest hit states. The studies’ reports were based on yearly employment and income growth. In Eugene, Oregon the forecast remains the same. Job losses in the technological sector, the lumber industry as well as the financial sector have been on the rise.  This decrease in employment has caused the housing market to continue to decline as the two are inextricably intertwined. Home sales in Eugene have been projected to remain low at a rate of 8.7% for the year.

In Bend, Oregon a hub for vacation homes and ski resorts, housing values have also taken a turn for the worse. As second homes are vacated at record rates, the real estate market in this former vacation capital has been negatively affected with projections for the end of 2011 reporting a decline of 10.5%.

Hope for the Future

Residents of Oregon hold out hope for the future improvement of their economy. The coming winter season may bode well for the ski destinations popular in Oregon. The tourism industry may be able to provide the state with some much needed revenue and employment opportunities to help stimulate the state’s economic growth. Only time will tell whether the real estate market will show signs of improvement; however for now, projections remain dim.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice

The recent economic downturn has seen a record high in the rate of foreclosures across the nation. Among the highest in such foreclosures has been in the state of Florida. Towards the end of 2010, more than 24% of home loans in the Florida area were in some stage of foreclosure. This has added to the decline of the economy in the state of Florida however new statistics may shed a ray of hope for Floridians in the near future.

According to RealtyTrac, a foreclosure database, one in every 409 FL homes filed for bankruptcy in the year 2010. This has led to Florida having one of the highest foreclosure ratings in the nation.  Florida has been affected severely by the economic downturn and has seen all areas of its economy suffer. Their unemployment rate has been reported at 12% which is three percentage points higher than the national average. In addition overbuilding has caused the real estate market to decline further.

Many homeowners in Florida facing eviction have received small reprieve. Foreclosures are usually a quick process with proceedings taking place as soon as payments are delinquent. However with Florida being a judicial state, a judge must sign off on a petition to evict before the eviction can take place. This allows foreclosed homeowners to remain in their homes longer and either figure out their relocation options or catch up on their payments.

Although Florida has been leading the nation in dismal foreclosure rates, they are not alone. Other states that have been faced with a large foreclosure rate include Nevada which has at least 10% of homes in some stage of foreclosure. Following Nevada is New Jersey which has a rate of 7.3%, Illinois at 6.5% and Arizona at 4.5%.

Despite these bleak findings, there does seem to be hope for the future of the real estate market and the economy in Florida. According to a recent survey released by the Mortgage Bankers’ Association, foreclosure rates and mortgage payment delinquencies have been on the decline in Florida as well as 38 other states nationwide. These findings show that loans which are at least three payments delinquent have been down by 28%.  In addition, according to the findings of the survey, the percentage of homes facing foreclosure was down in the third quarter by at least seven basis points.

For many Florida residents, these findings may shed some much needed new hope on an otherwise sad economic situation. The decline in foreclosures may signal a potential increase in property values for many Floridians. The market may take some time before shifting to a seller’s market. However those seeking Florida real estate may be wise to do so while they can. The changes may be slow in coming but for Florida residents who have been leading the nation in the highest foreclosure numbers since the housing crisis, any change for the better is a positive sign.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice

There are typically two types of second mortgages available to homeowners. One is a home equity loan and the other is referred to as a piggyback mortgage. Understanding the different types of second mortgages and the accompanying terms can assist you in understanding whether either of these options may be suitable for you.

A piggyback mortgage is also referred to as an 80/20 mortgage or an 80/10/10. These extend the financing on the original loan and often make it possible for the borrower to put no money down on their mortgage loan during the closing process. In the case of the 80/10/10 formula, the buyer puts 10% down on the home and carries two separate mortgages, one for 80% and the other for 10%. Piggy back mortgages lower the loan to value ratio of the home and often eliminate the need for private mortgage insurance. Some of the disadvantages of a piggyback mortgage are the higher interest rates that are typically involved. These can cause monthly payments to be higher and can increase the cost of the home over time. If the buyer is trying to avoid paying for private mortgage insurance for the entire period of the loan, it may be cheaper to pay a partial PMI than to pay the long term costs associated with a piggyback mortgage.

The other type of second mortgage is called a home equity line of credit. This type of second mortgage is not limited to closing but can instead occur well after the first mortgage has closed. Home owners traditionally take out a line of credit on their home for major purchases such as much needed home repairs or to supplement education costs. A home equity line of credit can only occur when there is enough equity in the home to substantiate it. It places a second lien on the home which is lifted once repayment occurs.

The payment terms on the second mortgage are usually quite affordable since the principal amount is much lower than that of the first mortgage. Different options exist for structuring repayment plans including interest only payments as well as fixed and variable interest rates.  Consult with your lender to find the repayment plan that is best for you. Keep in mind that the interest rates on second mortgages tend to be extremely high. Therefore if you have the additional collateral to pay the loan off faster, you will benefit greatly by doing so.

Second mortgages are not very complex and each type usually applies to individual circumstances. Home equity lines of credit are usually used for loan purposes while piggyback mortgages assist the home owner in avoiding private mortgage insurance costs and in some cases avoiding a down payment altogether. Understanding the differences between the two can greatly assist the homeowner in becoming aware of what options are available to them.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice

Closing on your first home is a very exciting albeit confusing process. There are various documents involved in the closing as well as various associated fees. Understanding real estate fees and the details involved is an integral part of understanding the closing process and preparing for a smooth transaction. Before going to closing both the buyer and the seller should be aware of who is responsible for which payments to avoid any confusion.

The real estate agent’s fees are one of the costs associated with buying a home. The fees are usually a percentage of the sale price of the home and usually range from five to six percent. Any fees charged by the agent must be arranged before the closing of the home and the final fees usually aren’t known until a sale price has been agreed upon between the buyer and the seller. The specifics of who pays the real estate agent’s fees are dependent on different factors. The fee comes from the actual cost of the home and is not added on to the sales price itself. Therefore if the seller owns the house outright, the fee is coming from the equity in the home, however if there is not enough equity to cover the fee, it is being taken from the cost of the home on the buyer’s end. Often times, both the buyer and the seller will split payment evenly between them.

If there are two real estate agents involved in the closing, the fee will usually be divided between them although it is possible for either the buyer or the seller’s agent to receive more than the other. The lawyers overseeing the closing are usually responsible for distributing the commission appropriately between the real estate agents. The fee is paid directly to the brokers and then the brokers take a percentage and distribute the remainder to the real estate agents.

Some agents do not charge a percentage of the sales price of the home but instead work for a flat fee. These are usually listing agents who will advertise the property through their own listings. A listing agent usually does much less than a commissioned agent would to assist with the selling of the home. A commissioned agent not only lists the house but also aids in holding open houses as well as paying advertising costs for the selling of the home. In addition a real estate agent working on commission has more of a vested interest in the sale of the home as they are paid after the closing has been completed.

Understanding the basics of real estate agent’s fees can help both the buyer and the seller have clarity and understanding throughout the closing process. It is important to read the fine print carefully to fully understand just how much the real estate agent’s fees will be before agreeing to hire them. Although some contend that a real estate agent’s fees are unwarranted compared to the labor involved, the fee comes from the cost of the home instead of out of pocket and this can make the expense much more bearable. In the end, it is worthwhile to have the services of a professional to assist with one of the biggest purchases a potential homeowner may ever make.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice

The decision to buy a home is a major one and not a choice to be made lightly. Before buying your first home, it is important to have a frank look at your financial situation and to ensure that you can carry all the costs involved in the purchase and maintenance of a home. Housing prices as well as interest rates are at record lows and there are many attractive deals available on the market which make mortgage payments appear often times much lower than rent. In fact many experts counsel that now is the best time to buy a home as interest rates are the lowest they have been in over fifty years. However before jumping in to making such a major decision, there are certain steps to take to ensure adequate home buying preparedness.

Saving for a home is the first step in preparing for the purchase of a new house. It is best to save at least 10% and up to 20% of the purchase price of the home to put towards the down payment. Although there are many low down payment programs available such as the one offered through HUD, it is still valuable to have a large amount to put towards the purchase price of the house. A down payment of 20% can save up to 100 dollars or more on the monthly mortgage of the home making cost of owning the home much more affordable.  To assist with saving for a home, it can be helpful to set up a long term budget with a specific amount automatically deducted monthly.

Another important factor when preparing to purchase a home is to make sure that the total income can support the mortgage payment on the home. Financial experts recommend a 43% debt to income ratio. When calculating the affordability of a mortgage, you can multiply the monthly income by 0.43 to determine the maximum mortgage payment your income can bear. However it is also important to factor in other debt repayment amounts into the equation such as car payments and student loans. These debts in addition to the mortgage should not total more than 43% of the entire monthly income.

Once an affordable home payment has been determined, a great tactic for preparing to buy a new house is to save the additional amount that would be spent towards the mortgage payment. So if your rent is $900 and you have determined that you can afford a $1200 mortgage, simply place the additional $300 into a separate account and do not spend from it. At the end of the allotted time you have set for practicing you will have determined whether it is actually affordable for you as well as having a significant amount saved up towards the purchase of your new home.

Preparing to buy a new home is more than simply researching homes online. It is necessary to look at all the costs involved in buying a home to determine if this is the right time to make a purchase. Saving a large down payment and calculating the amount of mortgage payments you are able to make beforehand are all part of ensuring adequate home buying preparedness that will keep you in your home for years to come.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice

During the housing market boom, it was very easy for property investors to grant loan to invest in properties. However during the present slowdown, it has become very difficult for home owner’s to meet the monthly mortgage payments on time. The reason might be your monthly payments are higher than what you earn? Or you owe more than what your property is worth? Or the monthly payments have gone up recently due to rise in adjustable mortgage rates?

If you are facing any of such situations and looking to modify loan in an effort to save your investment properties, then here is come helpful information that may be helpful when you approach your lender for loan modification.

The fact is that the economic condition continue to deteriorate, government has been coming up with many subsidy programs that are targeted to help primary residence homeowners and some programs for investors too. Therefore almost all banks are coming forward to modify more and more loans on all types of properties because the banks let the renters to vacant in the investment properties, it will hurt already slaughtered housing market and cost billions of dollars to banks if they don’t let the homeowners pay according to their budget.

Therefore, the lender modifies the terms of investment property loan also if they feels it make, sense to them to keep loan performing. The reason why banks take initiative to modify the investment property loans when the borrower approaches because they think that it will cost banks less in long run compared to foreclose if defaulting the home loans.

How will the banks determine which is the benefit for them? First, see if the approximate market value of the property is less than the loan balance if they try to sell the property, then you have some leverage. Secondly, if the rents do not cover the loan expenses that incur from the loan and have negative cash flow then prove this to lender as this will help you in getting the loan modified from the lender.

Keep in mind that your lender will try to collect debt in any circumstances and therefore anything you tell them about the property can be used either in favor of you or against. The big mistake many borrowers make while approaching lenders to modify loans is contacting lenders to apply for an investment property loan modification without learning how to do.

Here are the important steps that one must take before you approach lender for loan modification.

Prepare budget, your income and expenditure statement, financial statements and rental income and schedule before you speak with your lender. Doing so, you can have necessary information and have time to fine tune to make any changes to meet the guidelines for approval of loan modification.

Therefore, never contact lender before you have an idea bout what you are about to talk. Therefore investing a couple of hour’s time in preparing could mean the difference between getting your application approved or denied.

Articles on this site have been acquired from a variety of sources. No content on this site should be considered financial or legal advice.

The Dollar Stretcher Blog
by Gary Foreman

Dear Dollar Stretcher,
I read as article about “Biweekly Mortgage Payment Programs” and I have a question. I have read that I can do the same thing myself by just paying an extra payment every year for the same affect so why should I pay someone else to do this?

The thing that I don’t understand, is how is it beneficial for me to buy the service when I didn’t have to? I owe $276k and can do the biweekly for set up fee of $375 and $3 a month. I will shave 6 yrs and 4 months off of my mortgage. I have 27 years left. So over the course of this loan, I pay them about $1k to do this. In the meantime, I save $87k in mortgage payments and 6 yrs. But aren’t I really paying them $1k for something I could do myself?

If I didn’t go with them, I would end up paying an extra payment a year split up monthly, that would amount to about 2k a year. So if I did this, I would end up saving $87k in interest and 6 yr, but I would have paid $40k in extra payments. Am I wrong in seeing it as $40k versus $1k?
Eric

It has been said that the key to most magic is to distract your attention from what is really happening. While you’re looking one way, the real action is happening somewhere else. The same is true for many financial offerings. The salesman is so busy pulling rabbits out of a hat that it’s hard to pay attention to what’s important.

And, when you look at something like a bi-weekly mortgage plan, there does seem to be a lot of rabbits hopping around. So let’s see if we can’t trap a couple of bunnies and determine what’s really happening with a bi-weekly mortgage plan.

Rabbit #1. The length of your mortgage. Any prepayment of principal will reduce the life of your mortgage. Larger prepayments will have a greater effect than smaller prepayments. And, prepayments made in the early years of a mortgage have a bigger effect than the same prepayment made later in the life of the loan. That’s true whether you make the payments yourself or have someone do it for you.

Rabbit #2. 12 months = 52 weeks. You knew that one. Eric points it out, too. Making half of your monthly mortgage payment every two weeks is the same as adding one extra monthly payment per year. Or adding 1/12th of a monthly payment to each regular monthly payment. You don’t need anyone to do that for you.

Rabbit #3. Bi-weekly mortgage payments don’t create free money. If your monthly mortgage payment is $2k, by going to a bi-weekly program you’ll need to find an extra $2k in your budget each year to add to your mortgage payments.

Rabbit #4. Service fees. Any money paid to the company setting up the bi-weekly program doesn’t go to pay your mortgage.

Rabbit #5. Making two payments a month. Paying half of your monthly mortgage payment two weeks early will reduce the length of your mortgage. But not by a significant amount.

OK, so let’s see if we can’t help Eric to focus on what’s really happening with a bi-weekly mortgage. He’s exactly right in that by going bi-weekly it has the same affect as making an extra payment each year.

In this case about one extra $2k payment for about 20 years. And, that will be true whether Eric goes bi-weekly or just adds 1/12th ($166) to each monthly payment himself. So if he reduced the legnth of his mortgage to 20 years he’ll be putting in about $40k in total prepayments.

If he works with the bi-weekly mortgage company he’ll also end up paying them about $1k.

In either case he says that he should reduce about $87k in interest that he won’t have to pay the mortgage company.

So the real difference is whether he wants to pay $1k to have someone to perform the service for him. In fairness, companies offering bi-weekly mortgage plans do provide some services to earn their pay. The biggest one is that they make sure that the mortgage company applies the proper amount to reducing principal each month.

But you can do that yourself. Just a matter of checking your principal balance after your payment is applied and make sure that it was reduced by the amount of any prepayment plus the portion of your regular payment that goes to principal.

So to answer Eric’s question – it would cost him about $1k for something that he could do himself. Being frugal, we’d just add the extra amount to each monthly payment and skip the bi-weekly business. But, if Eric needs the extra discipline, then spending $1k to save $87 isn’t a bad deal.

Keep on Stretching those Dollars!
Gary

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Gary Foreman is the editor of The Dollar Stretcher.com website and various enewsletters. Visit the site for more info on mortgage prepayments. Send your frugal living questions to gary@ stretcher.com.

I have been investing in foreclosures in California for last couple of years and successfully closed few deals in profit. I have been encountering questions from many forthcoming investors regarding the how to go about while bidding at foreclosure auction in California. For this reason I came up with this post about foreclosure investing guide.

Home owner faces foreclosure when he falls behind the mortgage payments to bank or lender who in turn tries to sell your property to recover his amount which you owe him usually at auction. Many look forward to take this opportunity of buying properties at foreclosure because of the substantial cost savings compared to one that is sold privately by home owner. One can manage to save with purchasing foreclosure properties as the bank or lender will only try to recoup the amount what is actually owed, which is significantly less that actual worth of the property. Hence determining the bid price at foreclosure requires much more research and knowledge of the local rates and state laws to make a good investment.

Here is the process to go through when you are looking to purchase the property through foreclosure process.

First, one should learn the foreclosure laws in your state to make yourself aware of the things involved. Almost all states require that the list of foreclosures is to be advertised well before certain time and that include the minimum amount for bidding.

Second, visit the foreclosure sales and know the process of bidding before you start to precede bidding. Generally, the foreclosures are listed at the courthouse located where the foreclosed property is present. These listings are also published in the newspapers.

To bid on the foreclosure auction, research the market value of the property which you are looking to buy. To know the market value of the property that is listed at foreclosure is by comparing the foreclosed property with other property in the neighbourhood where the foreclosed property is located. This way can help you a lot in determining the amount to bid.

Find out the minimum amount for bid if it is not provided at the time of listing. You can get this by contacting the individual listed in foreclosures. Then start researching the title of the property to find out if it is not subject to any second and third mortgages, taxes and lines against the property listed out for foreclosure or any other factors that might prevent the transfer of the property after buying the home.

Next, visit the property to examine the physical condition of the property and find out any physical or structural problems that might lead to additional expenses beyond what you actually bid at foreclosure auction. Make sure to find out all the necessary improvements and estimate all the additional expenses to repair the property and add that figure to minimum bid price. After doing so if you find that property after attaining at a total cost of the home to be feasible then go ahead and bid the foreclosure.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice.

When a Oregon home owner facing foreclosure, he might be already in financial hardship and fall behind the mortgage payments for at least six month. If such is the financial position then it may be hard to hire a lawyer to defend the foreclosure process.

If you are facing such situation then you are at the right place as in this article I am going to explain you how to defend the foreclosure when you are facing it. My intention to take this article to you is not only help the home owners but also communities. Yes, we all are going to loss in any way when our communities lose home owners.

Before you know how to defend foreclosure process, it is important to know actual foreclosure process. Here is how the Oregon foreclosure process step by step.

In Oregon, the foreclosure process starts at the moment the notice of default is recorded under ORS 86.735 and advertisement for sale is issued as provided in ORS 86.740 to 86.755. After recording the notice of default and at least 120 days before the day of sale, the notice of sale should be served to home owner or any grantor facing the foreclosure.

If the trustee fails to give notice according to rule mentioned above then he posses the right to file a case against the trustee in the circuit court where the real property is located about the notice of sale is not served to him as required by ORS 86.740 and 86.750 saying that the omitted person could have cured the default under ORS 86.753 and sustained the damages that resulted the loss of property as a result such person had loss the opportunity to cure the default.

After the auction date is set, publication of sale is to be done in such a way that published once a week for 4 weeks where the last publication is no sooner than 20 days before the sale. Before the sale the trustee must submit the affidavits of the completed service and publication to prove the publication.

With in the period of 120 days time given after the foreclosure notice is given to home owner, there are many things that can happen. For example: the foreclosure auction may be postponed to another 180 days before the process restart or the defaulter may cure the loan or brought to current with no acceleration.

If you being a home owner facing a foreclosure feel that you have been treated unfairly, fight back. You can do this by following a produce the note strategy. In any state in US, you can sue the foreclosure by produce a note strategy. There are two types of foreclosure, non-judicial and judicial. Even if you foreclosure is non judicial you can ask the entity foreclosing your property to produce the note that you owe debt to them. It works because there is only one paper regarding your mortgage on which you had signed. If you don’t do this then you simply allow the foreclosure process to process and loss the home.

You can also defend the foreclosure process if any of the steps mentioned above were not followed and not served you with required notices well before the foreclosure process begins.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice.