Monthly Archives: January 2013

Night of the Living Zombie Foreclosure

WHAT IS A ZOMBIE FORECLOSURE?

Zombie Foreclosures happen when a bank files foreclosure, the homeowners move out, and the bank never completes the foreclosure.

Years later, the homeowners find out that they are still liable for costs such as taxes and repairs. It’s the last thing you want happen to you when you are already going through the foreclosure process!

Protect yourself from falling victim to a Zombie Foreclosure. Check and see if your name is on the title by checking online or with your county’s public records. If you are you need to get in touch with your bank and see if they are going to finish the foreclosure or not.

If you do find yourself in a Zombie Foreclosure scenario take the time to mitigate your losses by ensuring:

  • The property is secure
  • The property is maintained
  • The real estate taxes & other expenses are paid on the property so you don’t incur further liabilities.

Getting back on your feet after foreclosure isn’t an easy process, but it is possible.

Read more about Fighting the Foreclosure Nightmare that Never Ends here.

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Get to Know Federal Housing Administration-Backed Loans

House

Becoming a home owner is a significant event in most peoples’ lives. Despite this, many are unfamiliar with government programs that can help them become home owners.

The Federal Housing Administration (FHA) is a division of the U.S. Department of Housing and Urban Development that sponsors many of these programs. Before the FHA was created in 1934, there was no such thing as a 30-year, fully amortizing home loan. Now, low-income borrowers have a place to turn to help them realize the dream of home ownership.

Before the FHA, home buyers needed a 20% or higher downpayment to buy a home — a huge barrier to home ownership. Today, the FHA allows borrowers with good credit to buy a home with as little as 3.5% down and to refinance easily. It remains a popular program in a tough mortgage market.

Additionally, the FHA supports home values by providing a steady source of mortgage financing for families across the country.

“In this economy,” according to Nicolas P. Retsinas, director of Harvard University’s Joint Center for Housing Studies, “it’s difficult for families to save due to low wages, and it’s difficult to have a pristine credit rating. Without FHA, they would have no place to go to get home financing.”

How do FHA-loans work? First, the FHA offers mortgage insurance on loans originated by agency-approved lenders. This FHA insurance protects approved lenders in case the borrower defaults on the loan, enabling the lender to pass along benefits to buyers like you.

Some FHA-backed loan benefits include:

  • Low down payments
  • Low closing costs
  • Easy credit qualifying

FHA-backed loans are helping make new homeowners every day.