HUD homes, once the most numerous foreclosure homes on the market, were reduced in the past several years with the sky rocketing popularity of sub prime mortgages.
As sub prime mortgages provided even lower down payments or in many cases no down payments the homebuyer that would have utilized an FHA mortgage moved to a sub prime mortgage. This has greatly reduced the amount
It is not the desire of HUD to own homes. That is the last thing that HUD wishes to do. They inherit homes from lenders that provided their homebuyers with government insured mortgages and left the scene of the crime when the mortgage was not paid by the home buyer. In order for HUD to dispose of the negative asset they are forced to try and sell it on the open market.
Well the Nehemiah and Ameridream programs were dangerous for all of us. By allowing home buyers to finance a home without a down payment, these two programs did a lot of damage to the real estate market.
Like so many good ideas, these were bad ideas masquerading as a
Some experts say that the housing market will not turn around until late in 2011.
One thing for sure is that there is a lot of profit to be made in foreclosures. Either buying foreclosures to hold (which I have done many times) , selling foreclosures as a professional (the commission is often double, I did this thousands of times) or buying foreclosures to live in with your family (I haven’t done that…yet).
The positive side of foreclosures is that the word has never
Like every other third party mortgage investor on the planet, Fannie Mae has had a rough time lately. When Wall Street finally stopped buying sub-prime loans Fannie Mae found themselves holding millions of un-sellable mortgages…essentially holding the bag.
Was it greed that created this situation?
That is too easy of an answer. The truth is the system was set up for people who are responsible for the increase in the value of a company, to keep up with their investors desires for ever growing profits as compared to their competition.
The current economic recession, which began in December 2007 according to the National Bureau of Economic Research, has created grim conditions for some homeowners and neighborhoods throughout the country.
On February 18, 2009, President Barack Obama unveiled the Homeowner Affordability and Stability Plan, a $75 billion dollar program intended to assist homeowners facing bank foreclosure. The loan modification plan promised to "help between seven and nine million families restructure or refinance their mortgages," Obama said. Funded by the second half of the $700 billion Troubled Asset Relief Program bailout plan authorized by Congress in October, the Homeowners Stability Initiative fulfills a TARP provision for homeownership preservation by implementing loan modifications.
