By Paul Chavez
 Foreclosure rates are still on the rise, leading some lenders to fail, and leaving millions of Americans without a home of their own. Fannie Mae and Freddie Mac needed a "bail-out" of themselves from the government. The foreclosures are still occurring, with another wave about to begin in 2009.
Many of these will be Pay Option Arm borrowers. This is what is known as a Negative Amortization loan, something that has greatly increased in popularity over the course of the last five years. Don't be surprised if congress passes a bill to prevent these loans from being sold to unsuspecting borrowers in the near future.
There are four payments options every month with the Pay Option Arm. The "minimum" Negative AM payment, interest only, 30-year (interest and principal amount)
and 15-year (principal and interest). Minimum monthly payments were based on a teaser rate of somewhere between 1%-4% that provided negative amortization on the loan.25%. While a person may be able to get this loan, it is often the case that a qualified borrower may only be able to make the minimum |
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By Joseph Smith
 President Barack Obama is set to launch his foreclosure mitigation plan in Phoenix, Arizona, one of the most adversely affected by the foreclosure crisis in the U.S. The unloading of foreclosed properties into Phoenix's housing market has pushed down median home prices in the city from $262,000 in 2007 to $150,000 in the first months of 2009.
According to home foreclosure tracking firm RealtyTrac, the nationwide foreclosure rate increased by 81 percent between December 2007 and December 2008, with over 2.3 million homeowners given foreclosure notices in 2008. Notices of default, auction sale and repossession continued to rise in January 2009, increasing at a rate of 18 percent over January 2008.
RealtyTrac's vice president Rick Sharga said that the flood of foreclosures arose from big increases in monthly payments for borrowers that accepted high-risk mortgage loans and the steep decline in home prices that discouraged people from refinancing their houses.
President Obama is expected to allocate between $50,000 billion and $100,000 to rescue homeowners. Many economists and financial analysts believe that the president's foreclosure plan will focus on |
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By Deb Weidenhamer
 Are you thinking about buying or selling a home at an Arizona real estate auction? This article is designed to provide you with the details on how real estate auctions work and how you can get involved while protecting yourself and your assets. Specifics may vary from auction to auction; however, the following information includes helpful and important guidelines from which everyone can benefit.
In 1994, twelve percent of all real estate was sold and purchased at auction. The auction field of real estate sales is growing, according to a Gallup Poll conducted for the National Auctions Association; in 1993, more than $40 billion in commercial and residential property was auctioned off, four times more than in 1980. Before you commit to your first real estate auction, examine why the popularity of real estate auctions is growing and what is required to penetrate this lucrative field.
Real estate auctions are no longer viewed as distress sales -- on the contrary many home sellers are viewed as savvy sellers who want to avoid "the unknown" that comes with traditional brokerage methods of |
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