With an assault of foreclosures rising on the market in the next couple years it has never been more urgent to understand the HUD 9548 contract. Many licensed agents turn away HUD sales. Several analysts are predicting default rates in the coming years will be higher than we have ever seen ever since lending initiated. Why will this flourish HUD inventory? Because scores of loans made from 2005-2009 were fha backed, new home buyer loans. Hordes of those loans will be foreclosed upon and, because the value of those homes will now be down and in the FHA lending range thresholds, new home buyers will be convinced to once again endeavor to achieve the American Dream. Why does that matter? Read on.
Think about his. When the foreclosure crash initiated in 2005 buyers were running afraid and the "then" current home owners were panicking. What most didn't consider was that there were anxious, potential home buyers waiting in the wings that had been saving for years to buy a home. And, nationwide, they signed up quickly to get a home...tens of thousands.
Fast forward two years to 07. Market in a downtrend. Home prices descending. Anxious, new buyers securing loans and homes. Then, the Feds enact a first time home buyer tax credit and some states followed suit by offering state tax credits as well that continued on through 2010. Another buying explosion.
Why does this matter now? Because all banks love fha insured lending as their loan, to a certain percentage, is guaranteed against default and, predatory lending was still happening in 07. The government hadn't clamped down on these clowns. So, since the tax credits were offered, many easily influenced, first time buyers were signing up to get a loan and new home for any price and, no matter what the cost. Many of those loans were 3/1 and 5/1 ARM's. So, 2007 until 2010 ='s 3 years and then default. Boom! Another crisis is already in sight.
While those buyers were motivated, many bought because of the tax credits offered and low down payment. All buyers didn't consider that home prices were crumbling and the country was about to enter into a deep, multi-year recession. They were just in love with the American Dream. Well, scores of those buyers lost their jobs in the past couple of years and have now depleted their saving and are now falling behind on their loans.
Let's be honest, in our opinion, FHA borrowers/first time home buyers, for the most part, are cash strapped. With a double dip recession on the horizon all of these fha borrowers have received an NOD and are on the verge of officially defaulting. Tons of excited, new home owners from 2007 are now in a state of nervousness trying to preserve their home. The proper procedures weren't in place. Another crisis is upon us. We tried to solve a problem with a problem.
So, why is it more important now than ever before to be apprised of hud home sales and how to efficiently close these contracts? It is because FHA/HUD homes are now going to be the norm in the market place. Historically, home prices were inflated tremendously. When getting started as a new real estate agent you need to have knowledge of every dynamic associated with the Housing and Urban Development procedures and also the Federal Housing Administration lending. If you learn these simple processes now and master them you'll never will have a problem with getting an offer accepted or closed.
Think about his. When the foreclosure crash initiated in 2005 buyers were running afraid and the "then" current home owners were panicking. What most didn't consider was that there were anxious, potential home buyers waiting in the wings that had been saving for years to buy a home. And, nationwide, they signed up quickly to get a home...tens of thousands.
Fast forward two years to 07. Market in a downtrend. Home prices descending. Anxious, new buyers securing loans and homes. Then, the Feds enact a first time home buyer tax credit and some states followed suit by offering state tax credits as well that continued on through 2010. Another buying explosion.
Why does this matter now? Because all banks love fha insured lending as their loan, to a certain percentage, is guaranteed against default and, predatory lending was still happening in 07. The government hadn't clamped down on these clowns. So, since the tax credits were offered, many easily influenced, first time buyers were signing up to get a loan and new home for any price and, no matter what the cost. Many of those loans were 3/1 and 5/1 ARM's. So, 2007 until 2010 ='s 3 years and then default. Boom! Another crisis is already in sight.
While those buyers were motivated, many bought because of the tax credits offered and low down payment. All buyers didn't consider that home prices were crumbling and the country was about to enter into a deep, multi-year recession. They were just in love with the American Dream. Well, scores of those buyers lost their jobs in the past couple of years and have now depleted their saving and are now falling behind on their loans.
Let's be honest, in our opinion, FHA borrowers/first time home buyers, for the most part, are cash strapped. With a double dip recession on the horizon all of these fha borrowers have received an NOD and are on the verge of officially defaulting. Tons of excited, new home owners from 2007 are now in a state of nervousness trying to preserve their home. The proper procedures weren't in place. Another crisis is upon us. We tried to solve a problem with a problem.
So, why is it more important now than ever before to be apprised of hud home sales and how to efficiently close these contracts? It is because FHA/HUD homes are now going to be the norm in the market place. Historically, home prices were inflated tremendously. When getting started as a new real estate agent you need to have knowledge of every dynamic associated with the Housing and Urban Development procedures and also the Federal Housing Administration lending. If you learn these simple processes now and master them you'll never will have a problem with getting an offer accepted or closed.
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