Fannie Mae and Freddie Mac Help HUD Homes Owners Impacted By Hurricane Sandy

Hurricane Sandy cut a large swath out of the East Coast as it hit the nation on October 29, 2012, and it left a lot of people scrambling to either find new homes or making repairs to those that made it through the storm.

The federal government is doing everything it can to help people through this tough time. Part of that assistance comes from Fannie Mae and Freddie Mac. These two government backed lenders have put a moratorium on foreclosures and in some cases allowed borrowers to reduce or forego their mortgage payments for as long as 90 days.

Families that were forced to leave their homes due to the threatening storm are relieved to hear this news as they set about rebuilding. Whether that relief comes in the form of temporarily relaxed mortgage terms, or it is about helping them buy HUD homes for sale, the government is taking charge of encouraging lenders to help them out.

RealtyStore.com has a Guide to HUD Homes that will help potential home buyers in the process of purchasing HUD homes. Of course, there is always the opportunity to locate the perfect HUD home by visiting this site because HUD already has an inventory of homes that are vacant and those that have been returned to them through foreclosure.

Whether you are looking for a HUD home to buy, or trying to hold onto the one you already have, working with the folks at Housing and Urban Development can help you realize your dreams.

HUD Homes Are Becoming A Good Bargain For Homebuyers And Investors

Have you considered HUD homes?

The department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA) are currently working to avoid deepening the still ongoing nationwide foreclosure crisis and to assist the recovery of the US housing sector. The two federal agencies have begun a new initiative as part of a government program known as DASP (Distressed Asset Stabilization Program), which is intended to make it easier for investors to purchase pools of mortgages which are currently in default and are headed into the foreclosure process as well as individual properties which are at risk of foreclosure.

The program is targeted towards stabilizing neighborhoods in areas which have been hit especially hard by the foreclosure crisis by offering HUD homes for sale at accessible prices before they even reach publically available foreclosure listings. Prospective homebuyers and real estate investors alike who are interested in purchasing homes in the Chicago, IL, Newark, NJ, Tampa, FL and Phoenix, AZ areas will find literally thousands of distressed mortgage loans for sale – but for those interested in buying a home as a new residence, there are other places to search as well.

Websites like RealtyStore.com offer homebuyers as well as investors a convenient online source for finding HUD homes and an extensive database of foreclosure listings nationwide. While major real estate markets like the Chicago, New York City (including Newark), Phoenix and Tampa metropolitan areas will be convenient for many prospective homebuyers, Realty Store’s foreclosure listings and selection of HUD homes provide many other options in every part of the country.

Whether you’re interested in purchasing distressed assets like mortgage loans in default or buying a new home to move into yourself, there are many opportunities which have been created by the slump in the housing market. Investors may want to look at the possibility of generating a recurring income by becoming the servicer of distressed mortgages while at the same time helping to stabilize neighborhoods and communities battered by the foreclosure crisis. Homebuyers, of course, can purchase a home at near-record low prices, even as the housing market begins to pick up steam. In short, there have been few better times in recent memory to purchase a home, whether as a residence or as an investment and the best way to begin your search is to look at foreclosure listings and HUD homes covered by the federal Distressed Asset Stabilization Program.

Why Rent To Own Is So Popular in Housing Today

Many people have a dream of owning their own home. For those with less than perfect credit, trying to see that dream through to fruition may be more like a nightmare. One way in which they are able to realize the dream are lease options or rent-to-own homes. To the long term renter, the lease option is much like going through the process of closing. Personal financial problems such as poor or no credit, a history of a foreclosure, the loss or displacement from a job can make it very difficult to get their home loan approved.

Bloomberg reports from recent months show that more than sixty percent of the current housing market in the United States is owned by major banks or mortgage subsidiaries. Add to that the loss of home values which is currently estimated to be about 30 percent plus, and it will explain the vast array of lease applications that companies are receiving. According to John Hogue, who is a consultant for Rest Easy Home Solutions, “The housing market is going through a sharp decline and the data that we have witnessed in news reports backs up the theory of more people turning to renting instead of buying." The problem is that many of them are not in a position to pay a down payment or to achieve financing currently.

When the rent-to-own option or the lease option enters the picture there are far better chances that these people will be able to attain a home to buy since part of their payment goes toward future ownership of the home. With part of each monthly payment set aside toward the down payment on the home, even those with income problems or a history of credit issues have the chance to achieve the home ownership dream.

How to Avoid a Rent to Own Scam

Beware of a rent to own scam. Such scams are growing in popularity and they are designed to steal your money.

The concept of rent to own is a great idea, especially if you're trying to be a homeowner again after foreclosure. You would move into a home for an agreed upon monthly rental amount for a specific lease period. At the end of the lease, you have the option of buying the home with the monthly rent being considered a down payment. While many rent to own ventures are legitimate, there are some that can be deemed outright scams. In order to avoid being taken over by such a rent to own scam, it is well advised to be on the lookout for these scams.

The way a rent to own scam works is that the “landlord” will research listings for foreclosed homes that have been vacated for many months or even years. Since the home has not sold for a long time, they assume (often rightly) that it won’t be sold be many more months. Such homes become neglected and nearly forgotten. The rent to own scam players will literally break into the home, change the locks, and then place an advertisement online for renting to own the property. Anyone that takes advantage of the “offer” moves into a home and pays rent to someone that does not own it. In time, the renter is discovered and evicted. Obviously, the rent to own agreement is not honored.

To avoid falling into such a trap, it is best to look for a few common red flags identifying a rent to own scam.

Many of these advertisements are merely cut and pastes of other ads. Run a search of the advertising copy online to see if duplicate content turns up. If it does then you may have a scam on your hands.

Very cheap rental rates are not always a good deal. Frequently, they are signs of a possible rent to own scam. Be wary of rental prices that just seem unrealistically low.

Does the ad list a landline number? Commonly, the phone number listed in the ad is a cell phone. Worse yet, the cell phone might be a “pay as you go phone” that was is being operated under an assumed name. Unless you can confirm a landline number, you have to take the ad somewhat suspiciously. In some instances, communications is solely through email which is among the reddest of rent to own scam red flags imaginable.

If you are shown the home and it looks as if the locks on the doors have been tampered with or the condition of the home looks if it has not been lived in or abandoned, it may be a foreclosure and not a home that someone is currently living in. Once again, a rent to own scam often involves foreclosed property.

There are even advance payment rent to own scam ventures that are launched. Such scams revolve around asking for a down payment to be wired as a deposit on first month’s rent. Such wire requests are made by people that are out of the country and have never even set foot in the home. Worse yet, the would be renter has never seen the home. He or she is only going on photos provided to them via the internet. Really, paying anyone in this manner and under such dubious circumstances truly is asking for being scammed.

Performing a little due diligence is highly advised as well. If you are given the name of the rental service, you should look it up on the Better Business Bureau’s website. This way, you can determine if any complaints have been registered about the company in the past. Checking with the National Association of Realtors is a wise strategy since it is an excellent resource to determine background info on reputable companies while also being able to avoid a rent to own scam.

If you really want to avoid a rent to own scam, you should search for rent to own homes on RealtyStore.com. This site is one of the top rent to own directories and its listings are legitimate. Anyone even remotely considering renting to own should visit the site prior to making any decisions on a lease option agreement.

How Short Sales Can Be Risky

The number of houses available as a short sale has increased in the last few years in the United States of America. As is obvious, this means that there are a lot of potential homebuyers who are choosing to go for homes available on short sale as well. The big question then is if all the people who are choosing to go for short sales are making a good choice.

From certain viewpoints short sales are actually risky for the potential home buyer.

1. Short sale deals can take a considerable amount of time to finalize because banks need to approve offers. The time that a lender can take to close a short sale deal can be anything between three months to seven months. This delay can result in the potential home buyer losing out on other options.

2. With short sale deals, many lenders require the potential buyers to pay for appraisals and invest in repairs before the deal is finalized. This can result in this money being lost.

While the above mentioned and many other flaws of short sale deals exist, the fact is that the amount of money that an individual can save by choosing short sale offers or even bank foreclosures compared to regular MLS homes is well worth these minor inconveniences.

HUD Secretary at Versailles court (in Florida)

“Risk? What’s Risk?” This response from David Siegel after receiving the strategy board game Risk, could be applied to a wider area of his life. Mr. Siegel is owner of Westgate Resorts, a vacation timeshare company. His company made him very rich and he wanted to display that opulence in a new home in Orlando, Florida.

It was to be modeled after the palace of King Louis XIV-Versailles. It was to be 90,000 square feet, cost $100 million, and become the largest home in America. Obviously, no one would term this affordable housing.

Prior to the 2007-8 housing crisis and recession Siegel and his company were flying high; selling timeshares to a wide variety of people, often getting them to overextend themselves to pay for it.

Expecting his good fortune to continue, Siegel overleveraged himself in the construction of Orlando Versailles. Now he joins the ranks of so many Americans, trying to save his dream from foreclosure.

Add into this ironic mix Shaun Donovan, Secretary of HUD. He and several of his HUD homes staffers attended the premiere of “Queen of Versailles” a documentary of the travails of building the edifice. Mr. Donovan then spoke to the audience, reminding them that it was a representation of what has been happening across the country, the only difference was scale. Affordable housing and home ownership continue to be the American dream, and HUD homes continues to work to provide it.

Data Interpretation Makes the Difference

Surveys can be deceiving. How the reader interprets the survey makes all the difference in the world. Recently the Sun Sentinel ranked 20 real estate markets as the 10 best and 10 worst places to purchase. This brings up the question of whether a survey should dictate the decision to purchase. Ten cities received the worst ranking from real estate agents in the 2012 ActiveRain Survey.

The survey may be deceiving if you’re living in one of the cities ranked worst and this survey may just aid those new homebuyers looking for a bargain. The survey doesn't account for foreclosure listings that provide cheap homes for shoppers. Nor does it account for improvement in the market and the potential for a turn around.

Two of the qualifications for making the worst list include high unemployment and difficulty getting financing. For those looking for a home in the area who have a secure job and good credit, the low ranking could spell a bonus allowing these purchasers to secure a home at an even lower price.

When purchasers could easily access mortgage money, the price of homes skyrocketed. That’s because everyone could qualify as a homebuyer. Now, particularly in the worst ranked cities, mortgage money is hard to acquire. Every prospective homeowner with good credit and stable income should now yell “Halleluiah.” In addition, the cities are ripe with foreclosure listings, also lowering the price of homes. These cities and others across America, now hold great potential easy access to a home at bargain basement prices and cheap homes is what everyone wants.