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Solutions for the Subprime Lending Crisis
There are solutions for the subprime lending crisis that entail making changes to the way lenders are handling this crisis. There are distinct groups of individuals that are causing this foreclosure epidemic. First, there is the homeowner who got a “teaser interest rate” that was affordable at the time but became unaffordable when the interest rate adjusted. In addition to the teaser interest rates, lenders started a policy of “no documentation of income” or no-doc loans that did not require borrowers to show proof of their income and are now referred to as “liar’s loans”. The problem was that homeowners couldn’t afford the payment if there were any increases due to taxes, insurance, or an interest rate adjustment.

Next, there are individuals that purposely chose low-interest rate, interest only, and even negative amortization (neg-am) loans with the intent of flipping the property after one or two years and taking a huge capital gain. In the past few years, these “speculators” became trapped, either unable to sell or renting them with negative cash flows. The most viable option for these investors was to give the property back to the lender by foreclosure rather than bleeding monetarily every month.

Another typical foreclosure involved a homeowner cleverly refinancing his property but never making a payment and in effect selling his home to the lender, by taking out his equity on the refinance. There is a lingering question about whether these homeowners had “intent” to defraud the lenders, but that is better left to another discussion. And lastly, there are true personal hardships that resulted in foreclosure. Our estimates are that 95% of these homeowners want to keep their homes but are unable to reinstate the back payments.

Lending institutions can resolve many of these foreclosure issues by:

• Having counselors available to work with the homeowner for a
  solution. Possible solutions include loan modification (putting the late payments and costs on the end of their loan, accepting partial payments of the amount due until paid, reducing the interest rate adjustment(s), freezing the interest rate for the term of the loan, getting a deed in lieu of foreclosure in exchange for giving the homeowner a credit for a rental truck when they vacate, accepting partial mortgage payments for a limited time, assistance with applying for and getting government assistance including grants that could reduce the loan, and doing financial planning and credit counseling.
  
• If the borrower is an investor who can no longer afford the loan, the
  lender should get a deed in lieu of foreclosure, or a loan modification that is workable for both the lender and the investor which would be paid when the property was sold or refinanced.
  
• If a homeowner refinanced and never made a payment, the lender should request a deed in lieu of foreclosure and if the homeowner refuses, the lender should get a judgment after the foreclosure auction and collect this judgment. If fraud is suspected, the case should be pursued by local authorities for prosecution.
  
• True hardship cases should be handled on an individual basis with the interest of the borrower in mind. Loan modification and any other reasonable offers of help should be used to help resolve the problem. If a solution is impossible, a deed in lieu of foreclosure should be requested with a minimal compensation for moving expenses.

While certain banking regulations preclude some of these solutions Congress
and the Federal Reserve must quickly realize the nature of this crisis and its resemblance to the former Savings and Loan crisis. Immediate action should be taken before it becomes expensive for every taxpayer. To their credit, a number of insightful lenders have already taken steps to have counseling staffs on hand and work with homeowners. Now is the time to take more aggressive action before hundreds of thousands of homeowners find themselves no longer owning a home or even homeless.

Dave Dinkel has over 30 years experience in real estate investing which has given him a unique perspective into the workings of the real estate market. He has developed a CD entitled "How to Sell Your Home in as Little as 72 Hours", available at no cost for a limited time by going to <a href="http://www.fsbotlc.com">www.fsboTLC.com</a> and he shares even more techniques and secrets in his homeowner's home study course at <a href="http://www.fsboautopilot.com">www.FSBOautopilot.com</a>

The Reality Of Home Inspections
Home inspections are one of the most necessary steps in the purchase of any home, new or old. as a home is a major purchase, likely the most major purchase, and the most expensive purchase you will ever make, it only makes sense to ensure that you are getting what you paid for. Make sure that when you have the home inspected it is by a reputable and in dependent home inspector. It is their job to examine every aspect of the home and to make sure that not only is it safe, but that the seller has been earnest with their disclosure about the home. They can also help to find things that the seller may not have been aware of themselves. This is especially true in homes where the seller has not owned the home for an extended period of time.

Inspections are are a required aspect of real estate sales. They are in place to ensure that the home that is transferring hands is safe and livable. Inspectors visually check many aspects of the home during an average inspection. The most notable things are the home’s systems like plumbing, heating, electrical and so on. Another major aspect of a home inspection is the checking of the foundation and home itself for structural stability. If there is a problem like cracks in the foundation or leaks in the basement an inspection will identify these problems so that they can be dealt with before the sale is complete.

One thing that many regular inspections don’t look at that should be looked at is the possibility of mold in the home. Some inspectors are not fully versed in the identification of mold so it would benefit you greatly to find an inspector who is trained in the identification of mold. This will be particularly important in any home that is in close proximity to a water source such as a lake or river. Is is important to know about mold in a home as certain types of mold can be extremely harmful. Mold of any sort can inflame allergies and conditions of the respiratory system.

Don’t sell yourself short on a home purchase and be wary of any seller who seems to want to have the inspection step skipped. Maybe they are trying to hide something? Unless you get the inspection you may never know for sure.

Bob Nachman is a REALTOR:&reg; specializing in <a href="http://www.movetoarizonahomes.com/" target="_blank">Arizona real estate</a>. Bob has extensive training in the world of real estate and is dedicated to providing customers with an elite level of service and information. For more info on <a href="http://www.movetoarizonahomes.com/mls-listings.php" target="_blank">Arizona homes and properties</a> contact Bob soon at MoveToArizonaHomes.com

Do I Need A Realtor To Sell My Home?
Good question. In fact, this is a question that is asked more commonly than one may think. Years ago it was a simple theory that if you wanted to sell a home you called your neighborhood agent and your home was listed, simple. This is not so true anymore as sellers are seeking ways to keep a bit more money in their pockets. In asking this question the main thing to think about is whether or not you are ready to do all the work that an agent typically does. So what is it exactly that an agent does do to sell a home? This is stuff that anyone who is considering selling their own home should know so that they can have a realistic gameplan for the home sale. You will need to know the specific steps that an agent takes and what your options are so you can make an educated decision when necessary. It never pays to rush into anything without knowing what you are getting into.

The first step that is usually taken in any home sale is determining the value and proper range of the asking price. This is largely based on similar homes listed in the area and homes that have sold recently. Once this is established then the particular assets of the home can be factored into the price, and it can be adjusted accordingly. Once the proper price has been determined for the home the agent then wheels into motion the advertising aspect of the sale. This usually consists of many different forms of media including newspaper ads, MLS listing, open houses and most notably in this age, website listing. The internet has become the front line of the real estate industry with more homes than ever being viewed and even purchased online. This is one aspect of the sale that any FSBO seller will have to consider carefully. Most agents have an established online presence that is hugely profitable in terms of showing the home to as many people as possible. One thing that can help this deficiency is finding a flat fee MLS listing and a national FSBO site where your listing can be posted to capture the attention of buyers across the country.

The final step is learning about the process of conveyance and what your role will be in it. Of course you will have to coordinate the shows and open houses but you should have little trouble doing this as you likely know the home fairly well. Be mindful not to appear to personally involved (this will be hard) as this can cause viewers to become uncomfortable. It can be hard for buyers to place themselves and their families in your home if you are telling them stories about the events that happened there. Keep it professional and it should go a little smoother. Finally, make sure that you have a certified legal professional involved in the closing and conveyance of title. Having a lawyer involved is essential in assuring that all legal aspects of the sale are proper and done according to law.

<a href="http://www.homesbylender.com">HomesByLender.com</a> is the elite source for <a href="http://www.homesbylender.com/mortgage-preapprovals.htm">FSBO financing</a> and homes for sale by owners. Utilize our nationwide search to locate FSBO homes in any state or town. HomesByLender.com is your one-stop FSBO information source.

Undervalued Property Prices Make Huntsville Real Estate A Bargain
by Mike Manosky

A recent study by Housing Market Analysis conducted by National City Corp reveals there are many real estate markets nationwide with drastically inflated housing prices. One of the worst cases is Naples, Florida, which boasts prices that are 84% higher than they should be, according to CNNMoney.com. “National City arrives at its estimates of what the typical house in these markets should cost by examining the town’s population densities, local interest rates, and income levels. It also factors in historical premiums and discounts for each area,” states the CNNMoney.com site.

However, not all markets fall into this same category. In fact, numerous others are right in line or even undervalued. It’s those undervalued cities that offer some of the best bargains in real estate. One such area is Huntsville. Real estate in this Alabama town is reportedly 11% below average market rates. To put that in real dollars, a home that might cost $100,000 in Albuquerque, New Mexico could only cost $89,000 in Huntsville.

Real estate, however, is not the only advantage to buying in Huntsville. Employment is a big advantage. With an unemployment rate of nearly half the national average, Huntsville has plenty of opportunities for those in real estate, construction, professional & technical services, and government. Adding to the mix is the Base Realignments and Closures (BRAC), which is opening civilian and government jobs as those from closed or restructured bases move into the Huntsville area.

In addition, employment needs will increase from the residual affects of thousands of added citizens. Childcare and real estate are two areas that will find particular needs. As more people flood into Huntsville, the need for childcare will grow tremendously. This will make those with professional childcare experience extremely valuable. Likewise, the new infusion of people will also create a housing boom spinning off jobs due to rising demand. New positions including construction worker, architect, real estate agent, rental agent and more are expected to become available.

Lastly, a lower cost of living makes Huntsville appealing. With the cost of living and salary adjustments, someone moving from Stamford, Connecticut to Huntsville, Alabama making $35,000 per year would typically see an increase in disposable income of $7,988 per year, according to Salary.com. Considering the 11% lower property valuation mentioned earlier, this means housing dollars can be stretched to buy homes significantly larger and nicer than in other areas of the country.

Before considering a move to other cities, be sure to assess every aspect to determine the town’s true value. Jobs, cost of living and real estate prices all come together to develop a true picture of a city and what type of lifestyle you can expect to achieve. Don’t settle when you have an opportunity to have it all!

Mike Manosky has over 15-years experience serving the needs of those who wish to buy <a href="http://www.movetohuntsville.com">Huntsville real estate</a>. If you're thinking of moving to Huntsville, real estate listings that match your criteria can be sent to you immediately. Contact Mike today to get started. <a href="http://www.movetohuntsville.com">http://www.movetohuntsville.com</a>. ? 2007, All Rights Reserved