Foreclosure Sellers: Attract Buyers by Preparing Home

If you look at today’s housing market, you will notice that there is more than enough supply of foreclosure homes for sale. The problem lies with the lack of buyer. There are those who are interested in making a purchase but have chose to wait patiently for better prices and larger selection.

Convincing a buyer to take the plunge is quite challenging especially if you are a homeowner facing foreclosure. With time against you, you will have to come up with marketing strategies to attract more buyers and improve your chances of selling your home before the re-instatement period is up.

• Improve Curb Appeal

The first thing that potential buyers notice is the exterior of your home. for this reason, you must check how your home looks from their point a view. Ask yourself if you are willing to buy a property that looks unkempt and ill-maintained on the outside. You should consider this question and work hard to make your home attractive at first sight.

• Get Rid of Clutter

Even if your home looks presentable outside, you can still lose a potential buyer if your home is filled with clutter. Keep in mind that removing clutter will make your home look bigger than it is. If possible, throw out broken appliances and furniture as well and go for a minimalist look. The important thing is that your home looks clean, organized and tidy. For sure, buyers will consider this as a sign that you know how to take care of your home.

• Emphasize Best Home Features

If your home features amenities such as a swimming pool or spacious backyard, you should try to make them the focal point of your home. If you can spare some money on some repairs or renovations of these amenities, you should not hesitate to do so. If not, you could always do the improvement yourself. Focusing on the best features of your home will let buyers see its distinctness from other foreclosure homes on the market.

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National Foreclosure Rate Soar 53%

According to the most recent US housing market data released by RealtyTrac, the number of homes that entered some stage of foreclosure has grown by over 50 percent in the last twelve months. For the month of June alone, there were actually 252,363 foreclosure filings.

Although the percentage of foreclosure filing went down by 3 percent compared to last month, the numbers are just too overwhelming to ignore. There were only eleven states, which did not experience any increase in foreclosure rate and the states hardest hit by the foreclosure crisis remain to be Nevada, Arizona, Michigan, California and Florida.

Troubled homeowners are actually dealing with a lot of factors that prevent them from finding a way to manage their mortgage problem. The high national foreclosure rate has already prompted the government to impose a tighter lending guideline, which in return resulted to sluggish home sales. In addition, the declining home prices, soaring fuel prices and weakening US economy have further added to the consumer’s burden.

There are actually very few options left for most of these troubled homeowners. Those who are considering selling their home are having difficulties finding buyers. Other homeowners who found themselves with more mortgage debt than equity simply choose to walk away and abandon their homes, even at the risk of having a foreclosure record on their credit history.

If the trend continues, the number of foreclosure filings might reach over 2.5 million by the end of the year. Experts and analysts observed that the industry’s and federal government’s efforts to curb the crisis in the housing market are being overwhelmed by the volume of properties in foreclosure.

For some government officials, the current problems in the mortgage industry could have been prevented if borrowers realized early on that they were taking out loans that they could not really afford. Such realization would have helped them avoid losing their home to foreclosure.

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Jessica Elliott

Maybe you?re buying your first home in Alabama, or perhaps you?re relocating to Alabama from another state. Either way, it?s important that you educate yourself on Alabama home loans before shopping for a home and mortgage. This article explains what you?ll need to know before buying a home in Alabama:

The average price of a home in Alabama in October of 2005 was $147,678, and homes in Alabama appreciate at one-half of the rate of the average national home appreciation. The rate of job growth in Alabama is equal to the national average. However, income levels in many parts of Alabama are too low to purchase a median-priced home with a conventional loan.

Alabama is a non-community property state. This means that married persons do not have to include their spouse?s income and liabilities on their mortgage if they choose not too. Home buyers can simply leave their spouse?s name off of their application. Additionally, Alabama has a Fair Housing Act that prohibits housing providers from declining housing to anyone based on their race, color, religion, gender, or national origin.

If you?re buying a home in the state of Alabama, you qualify for both federal and state FHA and VA loans. First-time home buyers qualify for Alabama FHA loans with below-market interest rates, and, depending on their income, may also qualify for down payment assistance. Additionally, Alabama?s Step-Up program offers down-payment assistance to home buyers with moderate incomes.

Access Alabama is a state program that makes mortgages more affordable for both disabled residents and residents with a disabled person in their care. Through this program, Alabama residents with disabilities can get technical assistance with the home-buying process and assistance with down payment and closing costs.

Alabama also offers Mortgage Credit Certificates to first time home buyers. Mortgage Credit Certificates help first time home buyers manage the costs of purchasing their first home by reducing the amount of federal income tax that they?re required to pay.

Jessica Elliott recommends that you visit
Mortgage Lenders Plus.com for more information about
Alabama Mortgage Rates and Loans.

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Rebecca O’Connor

Borrowers that find they are in over their head with debt and credit card payments may also discover that they suddenly have low Ficos and bad credit as well. Many consumers assume that once they?ve dug this hole there is no getting out. However, today?s mortgage products also offer solutions to those who no longer have good credit. Non conforming loans are available to consumers with home equity from many reputable mortgage companies not only for a purchase loan, but also for second mortgages. The underwriting guidelines for second mortgages became more lenient recently and may be the answer for those that are burdened with unsecured debt.

Bad credit equity loans, often called a sub-prime second mortgage can help borrowers that have hit hard times get back on their feet. These loans can be easier to secure than a refinance to cash out on home equity. Even borrowers with bankruptcies and late mortgage payments can likely qualify for a loan.

Using an unconventional mortgage to consolidate your debt can save you money on interest, lower your payments and raise your credit score. A fixed rate home equity loan can also eliminate the annual fee of credit lines. Once your payments are manageable and are being made consistently on time, this will also help your credit score rise. This trick, of course is to cut up credit cards and stay on track getting out of debt.

There are many more options today for securing and using a second mortgage. Marc Stefanski, chairman and CEO of Third Federal Savings & Loan, notes that ?Today, second mortgages are widely acceptable. People view their homes as just another way to tap into their credit.? He warns though that, ?Debt is not bad, as long as it?s managed. On the other hand, it can get away from you very quickly.? Don?t forget that it is your home that secures your debt in a second mortgage. A bad credit second mortgage can get you back on your feet, but if you don?t curb your debt building, you could lose your home. Find a lender you trust, then choose and use your nonconforming second mortgage wisely.

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Carrie Reeder

After a bankruptcy is discharged, many lenders will offer you a home loan. In most cases, these lenders do not require new lines of credit or a high credit rating. Buying a home with good or fair credit has its advantages. These individuals likely obtain better mortgage rates and qualify for a range of home loans. Here are a few tips on ways to raise your credit score before applying for a mortgage.

Pay Creditors on Time

The habit you adopt for paying creditors can have a negative or positive effect on your credit report. If bills are regularly paid on time, your score will soar. Yet, paying a bill one day late may decrease your credit score by as much as 10 points.

If possible, pay bills a couple of days before the due date. Waiting until the due date to pay credit card bills will not have a negative effect on your score; however, you may gain a few extra points with early payments.

Maintain Low Credit Card Balances

Following a bankruptcy, it is essential to open a new line of credit. This can be in the form of a credit card, gas card, retail store card, etc. If applying for a new credit card, avoid high balances. Ideally, consumers should keep credit cards at approximately 25% of the limit. Keeping a large balance will lower your credit score.

Stay Away from Credit Inquiries

Although credit inquiries are inevitable, especially when trying to re-establish credit, avoid applying for too many credit accounts. Many consumers are unaware of the damaging effects of inquiries. However, one inquiry can lower your credit score by 10 to 12 points. Because credit scores are already low following a bankruptcy, it is very important to keep inquiries to a minimum.

Carefully Monitor Credit Report

Try using one of ABC Loan Guide’s
Recommended Mortgage After Bankruptcy Lenders.

If attempting to boost your credit score, regular credit report monitoring is important. Homebuyers hoping to get approved for a prime rate mortgage will need a credit score of at least 680. After a bankruptcy, it will take time to achieve a high credit rating. However, if you take immediate steps to boost your score, it may be possible to get approved for a low rate mortgage within 24 months.

View our recommended lenders for
Bad Credit Mortgage Loans. Also, view our recommended sources for a Free Credit Report Online.

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Anonymous

Dallas, TX January 15 2004–Availent Financial, Inc., (“Availent” or the “Company”) a rapidly growing mortgage banking operation, has announced the acquisition of substantially all of the assets of First Texas Residential (“First Texas), a Houston based mortgage brokerage operation.

The purchase price was substantially paid with a promissory note that matures on February 1, 2004 with one thirty day extension at the sole option of Availent. The Company anticipates that it will be successful in obtaining the required financing to timely pay the promissory note in full.

“We are excited to have First Texas as part of the Availent team,” said Patrick A. McGeeney, Availent’s president and CEO. “First Texas provides us with a significant presence in the Houston market along with strategic relationships with real estate brokerage firms and developers.” McGeeney further stated that in 2003, First Texas had approximately $300 million in mortgage loan closings and expects the acquisition to achieve approximately $400 million in mortgage loan closings in 2004.

About Availent
Availent is a rapidly growing public mortgage banking operation that underwrites, closes, and funds residential mortgage loans. For more information about Availent visit the company’s web site at: www.availentfinancial.com.

This press release does not constitute an offer to sell or solicitation of an offer to purchase our securities. any offer of securities made by us or any other person on our behalf may be made only pursuant to materials and other offering documents prepared by us and delivered to qualified purchasers expressly for use in connection with such placements, and any such offer shall be made in compliance with, or pursuant to an exemption from, section 5 of the securities act of 1933. The securities offered by the company will not be registered under the securities act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from registration requirements.

Certain statements contained herein may be considered “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These statements are based upon the belief of the Company’s management, as well as assumptions made beyond information currently available to the Company’s management, and may be, but not necessarily are, identified by such words as expect, plan, anticipate, target, and goal. Because such “forward-looking statements” are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from the Company’s expectations include financial performance; conditions in the mortgage banking industry; the Company’s ability to obtain financing for working capital and anticipated acquisitions; failure to successfully or timely execute or conclude contracts and agreements; market acceptance of the Company’s products; changes in local, national or global economic conditions, and similar variables. Also refer to the cautionary statements contained in the most recent Forms 10-KSB and 10-QSB, which may be obtained by writing or calling the Company at 2720 Stemmons, Suite 600, Dallas, TX 75007. 214/637-2972.

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Richard Green

The British government at the beginning of this year officially launched its Child Trust Fund (CTF) initiative in an effort to encourage parents and children to develop the savings habit and to teach children the value of saving their own money.

Chancellor, Gordon Brown said, “The Child Trust Fund is designed to ensure that every child in our country has assets and wealth and that no child is left out and all children in Britain have a stake in the wealth of the nation”.

The basis of the CTF scheme is that every child born in the UK on or after 1 September 2002, will receive an initial Government payment of ?250-?500 (depending on family income), which must be placed into a tax-free CTF savings account which cannot be accessed for withdrawals until the child reaches 18 years of age. Additional contributions to the account can be made by the child?s family or friends, and the government also plans to make another payment to children on their seventh birthday. Parents that do not invest the government’s gift within a year will have it invested for them by the Inland Revenue.

This ?free money? for children idea seems on the face of it to be a great idea for parents. A recent survey by the Halifax has shown that, of those parents who have already opened a CTF account, six out of 10 planned to make further contributions, and wanted their children to use the cash from a matured CTF to pay towards a university course. The survey also showed that 28% of parents hoped the cash could be used to buy a car, while 19% hoped the money could be put towards a deposit for a flat or house.

Although some families have taken to the idea by quickly investing the funds to maximise the cash return for their child when they reach 18, with figures from HM Revenue and Customs recently showing that nearly half a million CTFs had been opened, others have been more reticent, with approximately 1.2 million CTF vouchers sent out to parents still not invested.

A study by Abbey found that of those who had so far not invested their CTF voucher, nearly two-thirds stated that they, “just hadn’t got round to it yet”, while about one-quarter had not invested the money because they did not know which supplier to choose.

Another problem that has been recently highlighted is the lack of provision that has been made for Islamic children, as none of the existing CTF accounts complied with Sharia law. Under Sharia law, it is forbidden to give or receive interest or to invest in unethical firms. This meant that, in order to use the voucher, parents of the 120,000 eligible Muslim babies could only choose non-Sharia compliant accounts. Thankfully, in a move welcomed by the government, the first Sharia compliant CTF has just been launched by Children’s Mutual, allowing a growing community of people who were previously reluctant to invest their CTF, the opportunity to benefit from CTFs.

The take-up of the CTF has proved to be extremely disappointing for the Government, with those who have not so far invested their voucher being at risk missing out on valuable growth to their fund.
Ray Milne, managing director of Halifax Financial Services, said that “Most parents probably still have opening a Child Trust Fund on their ‘to do’ list, but we’re urging them to act now and ensure their children benefit from their investment”.

Whilst many view the whole idea of the CTFs as a waste of tax-payers money given the ensuing pensions problem that is looming, others see that any benefit to future university students would be overshadowed by the rising cost of university tuition fees.

“For those who choose to go to university it is a particularly hollow gesture as the government will give them a few hundred pounds in cash and at the same time a mortgage-style bill in tuition fees,” stated Phil Willis, the Liberal Democrat education spokesman.

Whatever your opinion of the scheme itself, it seems that even the majority of those whose children will benefit from the fund are either not interested or feel they do not have enough knowledge to choose a provider. While the government can produce expensive adverts to raise pubic awareness and companies can provide information on the accounts that are available, the public?s fear and apathy regarding all things related to personal finance may prove a more difficult hurdle to overcome, and this may be a problem that not only affect us, but will also lead to many of our children paying the penalty in later life.

Further information:

Shariah compliant CTF

Moneynet child investment account comparisons

Trust fund information

Richard works in Edinburgh for a media company, occasionally writing for the personal finance blog Cashzilla, and drinking too much coffee.

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Ambrose Dan

Applications for home equity loan refinancing have reached a 15 year high. According to Freddie Mac, “88% of homeowners who refinance their homes in the 1st quarter got a mortgage at least 5% larger than their first loan.” This was the highest loan application increase since 1990.

Interest rates are going up, so you would think that people who be taking out loans at a slower pace. To some degree that is true, because anyone who locked a 30 year fixed under 6% is most likely not going to refinance. They are likely however to take out a home equity loan for cash out or for debt consolidation. Al Perida, a broker from Bridge Capital, said, “People continue to run up credit card bills, and consolidating their debt with a second mortgage will save them thousands of dollars in interest.” Perida continued, “tax deductions and lower payments are 2 reasons people will continue to take out loans in 2006.”

The market is trending away from refinancing first mortgages, and moving towards a home equity loan market. Homeowners will be refinancing this year, only they will be refinancing their adjustable rate second mortgages, rather than their conventional mortgage in first position. If you purchase a home recently with an 80-20 combination, you may want to consider refinancing the adjustable rate credit. The rate is variable and refinancing with a fixed rate equity loan will save you money.

Dan Ambrose is a true mortgage authority who has been in the business for nearly 15 years. Today Dan is a free-lance writer, and account executive for Irwin Home Equity. He offers loan tips to anyone interested in maximizing home equity. Dan recommends BD Nationwide Mortgage, a nationwide broker from California. You can read more of his articles at the BD Nationwide Mortgage & Equity Loans website and get more information about home credit lines and 2nd mortgage refinancing. For a complete look at home mortgages please visit 2nd Mortgage & Debt Consolidation or go to 125 second mortgages online.

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Justin Power

The is one simple but incredibly effective step you can take to dramatically increase your wealth. It?s a step, which, for a typical family, could mean anything from ?100 to ?2,000 or even more, tax-free, to spend or save every month. Interested? All it involves is reviewing your loans ? mortgage, bank borrowing, leasing, credit cards and other debts ? and re-organising them so that you pay the lowest amount of interest and repayment. This may not sound a very worthwhile activity so let me start with a real-life example.

The Pattersons are in a good financial position with two incomes and plenty of equity in their home. Before taking action their borrowings were as follows:

Type of loan Remaining term Rate Amount Monthly cost

Mortgage 18 yrs (25yr term) 4.03% ? 234K ? 1239.02

Home improvement 4 yrs (5 yr term) 8.5% ? 18K ? 369.30

Car loan 2 yrs (4 yr term) 7.5% ? 20K ? 483.58

Credit Card 1 N/A 16.9% ? 6K ? 300.00

Credit Card 2 N/A 10% ? 4K ? 200.00

Store Card N/A 23% ? 8K ? 400.00

Although they could well afford the total cost of their loan repayments ? a staggering ? 2991.90 a month ? they were paying much more than they needed to for their borrowing. They decided to consolidate ? in other words, move all their debt (? 290,000) to a single lender ? and thus benefit from a considerably lower rate of interest. In fact, as they own their own home, they were able to find them a new mortgage at just 3.5% a year ? only 1% over the European Central Bank rate. This gave the Pattersons two choices. They could carry on paying the same amount each month. The advantage of this would be that their mortgage (and all their other debts) would be paid off sooner ? in just under 10 years ? and also that they would save a staggering ? 115,217 in interest. Or they could take advantage of the lower interest rate they had negotiated to cut their monthly payments to just ? 1451.81 ? a
reduction of ? 1540.09 ! However, if they decided to go for an interest only
loan ( repaying the full amount at the end of the term or by lump sum
reductions at no penalty costs during the term) their repayment at the same
interest rate would be down to just ? 845.83 per month ! The Pattersons
went for the ?1451.81 monthly payment and decided to invest the difference in bonds. As a result they are looking forward to receiving a lump sum in excess of ?180,000 the same year they pay their mortgage off and will be free to pursue other, exciting investment opportunities.

Should you be following the Pattersons? example and thinking of
consolidating your debt? If you have a variety of loans at different rates
then it could save you a great deal of money. However, consolidating loans
in with your mortgage should be an once-in-a-lifetime strategy. This is
because what you are doing is converting short-term, expensive debt to
long-term, inexpensive debt. If you repeat the process then what you will
gain in lower interest rates, you will lose in a longer repayment term.
Consolidation requires discipline, too. You?ll be no better off if you
replace one set of high interest loans with another, or if you don?t use
your monthly ?saving? to good purpose.

Whether or not you consolidate, it goes without saying that you should
review your level of indebtedness on a regular basis. In particular, you
should:

- Check that you have the most competitive mortgage rate
available. If you save just 0.5% a year over the term of a 25 year,
?250K home loan, it will be worth a staggering ? 20,409 to you.
- Avoid borrowing money on credit cards or store cards. I have seen interest rates as high as 23%. If you use ?plastic?, pay the balance off each month and don?t fall into the ?minimum payment? trap. If you make the minimum monthly payment on a ? 1,000 balance at 17% it will take you 11 years to pay off the debt and cost you a staggering
?1,870 in interest alone.

- Never borrow to pay for living expenses or ?lifestyle?.

If you don?t want to consolidate using a mortgage ? but you do want to
reduce your debts ? then you can adopt what I call the ?sniper? approach.
This involves picking off your debts one at a time, starting with the most
expensive. At the same time, you should move your borrowing to where it will cost you least.

Attitudes to debt have changed considerably over the last few decades.
Greater wealth, greater competition in the financial services sector and a
period of stable, relatively low interest rates have all resulted in an
explosion in consumer borrowing. This in itself is no bad thing. It makes
excellent sense to borrow money for such purposes as buying a home, funding an education or making a major purchase or investment. It may also make excellent sense to borrow money and re-invest at a higher return. This
column is all about making money. One of the best ways to do this is to make sure you aren?t wasting your cash on expensive or unnecessary debt. If you want assistance in this area then you should consult your professional
financial adviser.

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Martin Lukac

According to the Mortgage Bankers Association Weekly Mortgage Applications survey, loan application volume has decreased for the week ending July 28.

The Market Composite Index saw a decrease of 1.2% on a seasonally adjusted basis, landing at 527.6. This is the lowest point for the index since May 2002.

On an unadjusted basis, the Index was down 1.4% when compared to the previous week. When compared to the same week last year, the Index was down 29%. This indicates that the housing market is indeed in the mist of a severe slowdown.

The seasonally-adjusted Purchase Index saw a decline of 3.3%, down to 376.2 from 389.0 the week earlier. This is the lowest point for purchases since November 2003.

However, the Refinance Index experienced an increase of 2.3%. The Government Index also saw an increase of 0.9% for the week.

The four week moving average for the Market Index is down 1.5%. The purchase index is down 2.3, while the Refinance Index is down 0.1%.

Refinancings accounting for 37% of all mortgage activities, up from 35.6% the week earlier. The ARM share of activity fell to 27.8% of total applications, down from 28.6%. This is the lowest share for ARMs since March 2004.

The average interest rate on a 30-year, fixed-rate mortgage fell to 6.62%, dwon from 6.69%. Points also decreased to 1.00 from 1.07 for 80% mortgages.

The average interest rate for a one-year ARM fell to 6.18%, down from 6.25%. Points decreased slightly, from 0.83% to 0.81% on 80% mortgages.

Overall, the market is slowing. Sales of new homes are down 11% in the past year, while existing home sales are down 8.9%. Housing starts have decreased 11% in the last year. The home builders sentiment index — the report of builder confidence — is down 41 points in the past year, to a low of 39.

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