Loan Modification

One million foreclosure landmark a boon for some buyers

By Jay Hammond

The Center for Responsible Lending (CRL) estimates that one million new foreclosures have been filed so far in 2009. The news comes on the heels of the release of the first quarter 2009 National Delinquency Survey from the Mortgage Bankers Association (MBA) which reveals that 12 percent of all mortgages are now delinquent, the highest level in the 37 years the MBA has been measuring delinquency rates.

Yet, for some Americans, foreclosure properties represent an excellent opportunity to buy homes.

CNNMoney.com reports that more Americans than ever are interested in purchasing properties that have been foreclosed upon. The article also provides some suggestions regrading where to find listings of foreclosure properties. One site they missed however, is ForeclosureDataBank.com.

?There are just so many foreclosure listings on the market right now,? said Moises Da Silva, CEO of Brivin Corporation, the parent company of ForeclosureDataBank.com, one of the largest foreclosure databases on the Web. ?In an area where options were once somewhat limited, the choices are now absolutely amazing for first time home buyers and real estate investors.?

Currently, ForeclosureDataBank.com lists more than 1 million properties in its database. Many of the properties listed in the database, which is updated daily, are 20 to 40 percent beneath market value. According to the Standard & Poor’s Case-Shiller Home Price Index,  which are calculated monthly but published with a lag of two months, reveals that home prices in 20 major metropolitan areas declined 18.7 percent during March. A similar drop occurred in February while January experienced a record plunge of 19 percent.

ForclosureDataBank.com offers consumers educational tools, search filter options and access to neighborhood demographic information as well as an easy-to-use interface and 24/7 customer support. It is not the only resource for buyers considering the purchase of foreclosed properties. The Wall Street Journal Blogs offer advice on  making money in real estate as does NCFly.net. Organizations such as Habitat for Humanity are also purchasing foreclosed properties and restoring them, as described in this article on Foreclosure Homes Information, which also lists foreclosure homes for sale. As these sites indicate, purchasing foreclosure property is not without risks…or rewards, both for the buyer and the larger economy.

?The escalation of foreclosures on all types of loans is alarming,? said Michael Calhoun, President of CRL. ?It’s easy to think, ‘Well that’s tough luck for the families that lose their homes.’ The truth is that foreclosures are costing neighboring families hundred of billions of dollars and dragging down the entire economy. Foreclosure’s started today’s crisis, and foreclosures will keep the crisis going if this epidemic continues.?

Full post as published by Blown Mortgage on June 01, 2009 (boomark / email).