Welcome to An Informative Guide to Foreclosure
Maine Foreclosure Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
from: Foreclosure Loans Help Build Real Estate Fortunes
Once a person’s property goes into foreclosure, it will be difficult if not impossible for them to get a loan to save their property. However, this is how many other people make a profit. By finding properties in foreclosure and securing a loan before the auction they can bid on and win property based on the value of foreclosure loans.
Typically, properties sold at auction will be sold for at least 66 percent of its appraised value, and securing foreclosure loans for that amount should not be difficult, provided the borrower has a credit rating sufficient to obtain the loan. Since the foreclosure loans will be for less that the property’s value, the lender will see at least 30 percent of the value in equity once the sale is finalized, their potential for loss is minimized.
For example, a parcel of land valued to $30,000 is sold for $20,000, financed through foreclosure loans and the new owner use the $10,000 equity on a loan to build a new house. If the house costs $100,000 to build and it can be sold, with the land for $175,000 the builder can conceivably see a profit of $45,000 with no expenses coming out of his pocket. After three or four such deals, he can now buy the land, build the house without borrowing money and be on his way to riches.
Buying Before Auction May Be Cheaper
By watching the legal notices, a person can learn about homes in the early stages of foreclosure and approach the landowner about selling the property before it is repossessed for auction. Considering the equity in the land, the owner may be willing to sell for the balance owed to the lender, plus half the equity for example, allowing them to move out with a few dollars and their integrity. This type of purchase through foreclosure loans is generally easy as the lender does not have to go through the entire process and they are receiving what they are owed.
This sale can generally be accomplished much easier once the owner receives a demand for payment, which states the amount the lender wants to halt foreclosure proceedings. Faced with the bank wolves knocking on the door and the possibility of his name being ruined by a foreclosure, many are willing to give new buyers time too seek foreclosure loans in order to pay off the bank and walk away.
Not everyone can wait for approval of foreclosure loans and even though a pending sale is in the works, if the loan does not go through in time foreclosure will proceed and they have nothing to show for their efforts.
Maine Foreclosure Specific links
Maine Foreclosure News
Rock-A-Way auction stalled
YORK, Maine — A scheduled foreclosure auction Tuesday of the building known as the Rock-A-Way, at 6 Main St., was postponed due to the entity declaring bankruptcy the day of the auction.
Read more...Mortgage foreclosures dropping nationwide; good news for Maine
Posted May 18, 2012, at 6:04 a.m. National mortgage-foreclosure activity in April decreased 5 percent from March and was down 14 percent from April 2011, according to a report by RealtyTrac released Thursday. One in every 698 U.S. housing units had a foreclosure filing during the month.
Read more...Kelli Gilzow, SPRQ Studio: From Welfare Recipient To CEO
When Kelli Gilzow needed public assistance to get through college, she never thought she'd have to go back on welfare years later as a single mother. But after separating from her husband, who was diagnosed with AIDS, she was forced to move back to her hometown in Maine, live in a shelter run by nuns and apply for welfare to support her two kids.
Read more...Billion dollar bait & switch: States divert foreclosure deal funds
States have diverted $974 million from this year's landmark mortgage settlement to pay down budget deficits or fund programs unrelated to the foreclosure crisis.
Read more...Foreclosure sales May 21-25, 2012
The Volusia County Clerk of Court conducts its foreclosure sales at 11 a.m. in conference room D-251 of the Volusia County Courthouse at 101 N. Alabama Ave., DeLand. The Flagler County Clerk of Court conducts sales at 11 a.m. on...
Read more...Richard Zombeck: Below the Fold: Feds Pipe Up and Greedy Governors Screw Homeowners
A wrap-up of stories and posts you might have missed or overlooked -- the ones below the fold: There's been more than the usual static from the Federal Reserve Banks this month.
Read more...Rights to former Searsport-to-Limestone jet fuel pipeline go on auction block
Posted May 03, 2012, at 6:49 p.m. LIMESTONE, Maine — Control of the 200-mile-long pipeline that once linked jet fuel tanks in Searsport with the former Loring Air Force Base will be auctioned off next month.
Read more...