You are here: Home / Archives for Foreclosure

Why You Should Consider Bankruptcy

April 14, 2011 by Leave a Comment

When tough economic times hit, it can be hard to keep up with all of your bills. You still have your mortgage payment, car payment, food budget, daily living expenses, and the kids to feed. At some point in time, especially if you’ve recently lost your job or had a pay cut because of the recession, you may find yourself facing a foreclosure situation. The fact of the matter is, foreclosure happens to the very best of people. It’s not something to be ashamed or embarrassed of. Fortunately, if you are facing foreclosure there is some help.

If you want to save your house, you may want to consider Chapter 13 bankruptcy. This is different than Chapter 11 in many ways, and some of the key differences are:

  • When you file Chapter 13, you still pay your creditors for up to five years. This gives you a chance to catch up on what you may be behind on.
  • You can keep your house and other belongings by working with a trustee who will help pay your creditors.
  • You pay a trustee a small portion in order to make sure your debts are taken care of.

This type of bankruptcy can be a great option for many people who are a facing foreclosure. By contacting a bankruptcy lawyer, you can figure out your options with a flexible and creative bankruptcy plan. There’s no shame in asking for some help, so if you’ve found yourself down on your luck, consider Chapter 13.

Filed Under: Financial, General Tagged With: , ,

Don’t Look at a Foreclosure as a Used Home

February 5, 2011 by Leave a Comment

While most real estate agents will advertise a foreclosed home as a ‘used home,’ there is no reason to think of one as such! Sure, there may be some bad apples out of the bunch, but for the most part a foreclosure is simply a different type of opportunity – especially if you cannot afford the high price tag of a new home.

  1. They are often more affordable than a brand new home. There are many foreclosures that are well under $100,000. For this reason, they can be the perfect investment opportunity for a newlywed couple or a college student. However, it is very important to remember that there will almost always be some sort of repair that needs done – in other words, always make sure there is some money left over!
  2. You can get a larger home for a smaller dollar amount. Because a foreclosure is just another burden for a bank to carry most will try to get rid of them as soon as they can. This means that many expensive homes are being let go of for an insanely small price in comparison to all they have to offer. For this reason a foreclosure can be the ideal home for a larger family that needs a larger amount of space but can’t afford to buy a new home that has enough of it.
  3. There are thousands to pick from. Many people cannot afford to keep their homes from going into foreclosure. While this is a very sad reality, it also opens up the door to a great opportunity for people who do not have a lot of cash to spend on a new home.

Buying a foreclosed home does not reflect negatively on you – in fact, as long as you are wise in your purchase it shows that you are an informed, real estate savvy buyer.

Filed Under: Home, Home Decor Tagged With: , ,

A Foreclosure May Not Be a Better Deal

January 17, 2011 by Leave a Comment

For many people a foreclosed home offers a something that a newly built one can’t – an affordable price. However, there are certain conditions where a foreclosure can be a very poor choice on the buyer’s end. Here are a few of the top reasons why a foreclosure may not offer you a better deal, even if the price tag is initially lower.

  1. The repairs can become very costly. Sometimes the repairs that a foreclosed home requires are very easy – like a broken tile or some carpet that needs replaced. However, the repairs are often more serious than little cosmetic fixes. For instance, many inexperienced buyers suddenly find that they are in a bind money-wise because they need to completely replace an entire roof or an unstable entry way.
  2. Inspections do not always catch everything. You cannot rely on the home inspections to catch every single detail that will need repaired. For this reason it is a good idea to forgo the foreclosed home unless you have an eye that is experienced in construction.
  3. There is no warranty after you win the bid. While most new homes offer a warranty for a certain period of time after you purchase them, a foreclosed home comes with zero guarantees that it will be livable. This is the main reason that the above piece of advice in #2 is so important to remember.
  4. You will be competing with hundreds of other bidders and investors. This is a very tough pill for many new home buyers to swallow – if you are trying to purchase a foreclosed home the chance is very high that you will not win the bid on the house that you wanted. In fact, it may take over twenty bids to even get in the top three positions where you actually have a chance at getting the home.

The above list is not meant to completely discourage you from looking into purchasing a foreclosed home. However, it should give you a good idea of the risks you are taking if you choose to go the foreclosure route.

Filed Under: Apartments Tagged With: