That’s all very good material and for that reason, I will leave your comment as it stands. I believe that my readers might find the information helpful.

However, despite the informational value of your post, it is not at all relevant to the post you have commented on. In fact, I get the impression that your sole purpose in posting was to advertise for some ”’how to buy foreclosures” program (which this website specifically sets out to put an end to). Therefore, while i have left your post, I have removed your links. Please notify me if my assessment of the situation is inaccurate.

Foreclosure statistics

Foreclosure statistics from 2006 show some frightening trends in the numbers of foreclosures and loan defaults. Foreclosures appear to be up nearly 40% from 2005, and almost 75% from the first three months of last year.

Americans are anxious in recent months to take on mortgages and real estate prices are rising fairly rapidly and dramatically. Housing has doubled in many cases, in both cost and in value.
Americans appear to be willing to go completely in debt to own a home, and are not always borrowing wisely.

Many will borrow vast sums to own a home they are ill able to afford or pay for, purchasing using such tools as interest only loans, which give them the right to make payments of interest only for the first several years, then balloon to include more than the interest. When first time buyers are being faced with not being able to own a home for a time, many are choosing more risky means of gaining access to that home, among them, such loans as interest only.

Banks and financial institutions are looking for ways to continue lending, particularly in light of the rising market values and their hopes that the market values will continue to rise rather than level off or fall. Each financial institution wants a piece of the action, and so they make the risky loans.
The problem with that is, that home prices are not guaranteed to continue on the upsurge, and buyers and borrowers are going to be faced, eventually with that shock when the actual payments begin.

After the five year interest only aspect of the loan, the payments could raise as much as 30 to 50%, and many borrowers will be ill equipped financially to deal with that. They will then be prime targets for default or foreclosure, being unable to meet the newer raised payments. Most will adopt another strategy. Prior to the costs and payments rising, they will hope to refinance their payments at the end of the interest only time period, and shop for new financiers. Many, who are unable to find one, will be enmeshed in payments they cannot afford, or party to a foreclosure action.

The reason for many foreclosures is high risk borrowing by those who absolutely cannot afford the payments on the home they choose, yet choose to purchase it anyway and to find a risky way to afford the mortgage. Research and realistic thinking will serve to prevent many foreclosures, making you one less statistic to be reported.

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First off, thanks for visiting my site!

Secondly, I’m a little confused as to whether you’re a homeowner in distress or an investor. These plans are aimed at creating ways for distressed homeowners to sell to investors without getting taken advantage of. However, if you’re trying to “flip” a property, you have an expectation of profit, and profit is one thing that you must bascially set aside when you own distressed property because no one (the banks, other investors, etc.) wants to let YOU profit from THEIR taking on your hardship.

I’ll email you to get more specifics and see what I can do to help, but one thing I should make clear is that flipping houses is a risky business and unless you have the financial means to weather a good deal of hardship, it probably isn’t for you. HGTV would have us all thinking that WE TOO could be real estate investors, but sadly, while we may be able to accomplish the remodelling ourselves, there is more to being an investor than simply rehabbing houses.