Tag Archive: loan

Florida, California, and Nevada Tally Half of the Nation’s Foreclosures

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Florida Mortgage - Florida, Nevada, California Account for 1/2 the nation's foreclosuresForeclosures have pretty much dominated the nation’s newspapers and online real estate blogs since 2007. Seems it’s nearly impossible to turn on the news or open a paper without some foreclosure-related story.

Interestingly, much of the nation’s foreclosure activity seems to be geographically centered.  Per the folks at RealtyTrac.com, over half of the foreclosures we saw in March stemmed from just 3 states — Florida, California and Nevada.

This statistic is pretty huge, but makes sense in that these 3 states account for about 19 percent of the US population.

Regardless of this close nit local concentration of foreclosures, the situation does impact the nation as a whole. Why? Well, it’s because mortgage lenders lend in all 50 states — not just 3 of them — so the impact of mortgage defaults in one region can quickly spread to others.

We’re all experiencing the ramifications of the foreclosure picture, specifically as they relate to:

  • Tightened mortgage guideline restrictions
  • Increased downpayment requirements
  • Increased private mortgage insurance (PMI) costs

These changes have really impacted would-be borrowers and those looking to refinance.   In some cases, it can keep a person from qualifying.

Wondering what foreclosures look like in your area?  Search the March 2009 foreclosure report for yourself on RealtyTrac.com’s website.

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Winter Haven 203(k) Rehab Loans – Part 2: Eligible Properties

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In part one of this Winter Haven 203(k) Rehab Loan series, we talked about some of the basic components of the FHA 203(k) Rehab Loan.  This post provides some basic insight into the types of properties eligible for this program.

Eligible Property:

1. Property has to be a one – to four-family dwelling that has been completed for at least one year. Cooperative units are not eligible.

2. You may use the FHA 203(k) rehab loan for properties in distressed and even (beyond distressed!) condition.  Yup – even homes that have been demolished are eligible if some of the existing foundation system remains in place!

3. Have an existing home or modular unit you want to move onto a new site? No sweat!  An existing house or modular unit on another site can be moved to the mortgaged property.

4.  Want to live where you work?  You can do this, too – as FHA 203K mortgages may be used for “mixed use” residential properties. Part of the use can be for homes, part for commercial use. Note: there are restrictions.

5. Live in a Winter Haven, Florida condo?  The 203K rehab loans can be used for individual units in condominium projects that have been approved by FHA or VA.

6.  Looking at a GINORMOUS rehab bill?  Awesome.  The needed repairs actually require repair totals to meet or exceed $5,000!

7. The property has to appraise for the purchase price plus rehab costs after the renovations are completed.

I hope this clears things up a bit.  The FHA 203(k) rehab loan program can do a lot to revamp or renovate homes here in Winter Haven that have been neglected by those going through the repossession or foreclosure process.  If you find a good deal out there, don’t hesitate to jump on it, as this program can turn that junker into a gem!

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