search foreclosure information

New to Avoid-Foreclosure-Services? Here you'll find a free answers to foreclosure questions and how to stop foreclosure!

help prevent foreclosure Simply quote your foreclosure refinance and receive a free advice from foreclosure specialists. You have nothing to loose. Compare ways to stop foreclosure safely and securely.

Relevant searches
What other people who read this article are searching for:


  • Used Homes For Sale
  • Homes For Sale
  • For Sale By Owners
  • Temecula Homes For Sale
  • Mortgage Homes For Sale
  • Bank Home For Sale
  •  

    Picking the Right Loan is Vital for Temecula and Murrieta CA Real Estate
    by Stefan West


    There is no doubt that we are in a buyer's market. We have seen home prices drop about 10-15% over the last year and a half. The reason for much of this downtrend throughout the US is a significant oversupply of homes for sale currently on the market. And the reason for all these home offerings in many cases is directly due to the loan program the sellers either chose at purchase or via refinance.

    The reason why home owners often made poor loan selections is broad. In many cases they believed the market would continue to go up or they wanted to get the lowest possible payment. Perhaps they didn't do their own research and shop around for their loan program and thus were put into a loan program that was bad for them but very good for the bank. But most likely the just didn't think the loan program all the way through to see where it could situated them. It is funny but people will shop homes to death and compare them up against each other in every way manageable but they often completely ignore or don't understand their own loan choices.

    For this article I am going to discuss the choice of a pick-a-payment ARM or negative amortization loan program which is pretty much the worst loan choice for the majority of homeowners. What is a pick-a-payment loan and how can you be aware of it? These loans offer the borrower multiple payment options on a monthly basis. One option is the full traditional payment of principle and interest. Or the borrower can choose an interest only payment where there is no principle paid. But the worst option by far is the ultra-low payment where the borrower pays significantly less but the remaining amount due of the traditional payment is put directly back on the principle of the loan. This can be a terrible financial trap to fall into.

    The worst aspect of these loans is really two fold. First borrowers often get in a financial situation where the lowest payment option becomes the one they start using periodically or exclusively. Secondly, they chew right through their equity and quickly become unable to refinance into a better situation. Once the equity is used up the banks will not refinance the loans since the borrowers actually owe more than the home is worth. No bank will touch that and for good reason.

    Right about at this point the loan interest rate spikes up since it is on an ARM program and is adjustable with a payoff due in 3 to 5 years. There are people currently paying interest rates of 8.5% or more on the first loan when they could have a fixed 30 loan in the low 5-6% vicinity. Trying to take the least expensive monthly path in Real Estate is the quickest way to the most expensive and potentially investment destructive vehicle possible.

    It's not hard to imagine now why people are losing their Murrieta and Temecula homes, prices are dropping and the mortgage industry is in trouble. To sum up - the borrower has not paid any debt down but added significantly to the principle. Their monthly payment is higher because of the increasing interest rates. And they can't refinance because they owe too much and/or there is usually a significant loan pre-payment fee associated with these and other easier option loans. The home owner has literally no way out and thus often has to go into default thereby causing the current situation.

    One major thing to keep in mind is that lenders pay extra to loan officers and loan brokers for such programs because they are highly profitable to the bank. Sometimes credit dictates a loan pre-payment penalty. But often these are put in solely for increased loan commission. It is incredibly important to understand your loan program and to choose a responsible path for your family. There are some fantastic loan programs at historic lows available to any with decent to good credit.

    Please examine your choice in loan programs. If any of the above describes your situation try to resolve it before it gets too late.

    Stefan West is a Temecula and Murrieta California Real Estate Broker who specializes in the communities of Temecula, Murrieta, Menifee, and Wildomar Real Estate. To learn more please visit his website at http://www.stefanwest.com for more information.

    More info on your stop foreclosure information search:

    Get Free Foreclosure Advice and Free Refinance Quotes
    Get your free on-line foreclosure refinance quote and free advice from foreclosure mitigation specialist in minutes. Compare real offers from top national subprime and hard money lenders... more...


    Sell My House - How To Sell My Home Fast - FSBO
    Here is the truth about selling your home FSBO. Indeed you can save money from other traditional selling solutions but selling your home on you own is not for everyone and should not be used in every situation. Below you will find the basic steps in selling your home by yourself. Selling You Home ... more...

    California Home Equity Sales Contract Act - A Mine Field for the Unprepared!
    When I first got started in the real estate investing business in 2006, the avalanche of foreclosures was just beginning. Before attempting my first short sale here in Southern California, I discovered I needed to comply with Civil Code Section 1695 by using a very particular type of purchase and ... more...

    Clean Home - Easy Sale
    One of the biggest problems people run into when selling their home is the process of preparing it for sale. Many homes are simply places where we keep the accumulated treasures of the years. Are you a clutter-bug, a pack-rat? It's OK, we all are to some degree. When preparing a home for sale, we ... more...

    Pricing Your Home In An Adjusting Market
    The real estate market over the last several years has progressed through a number of phases. There is no doubt that a price adjustment has taken place in the real estate market in the last few years. Newspapers across the country have reported price adjustments in the residential market that seem ... more...


    More on used homes for sale...

     

    avoid foreclosure services
    Home
    search foreclosure info answers
    Search
    about  us
    About
    privacy policy
    Privacy
    terms of service
    Terms
    contact us
    Contact
    information for doeclosure specialists
    Agents
    Foreclosure Refinance: Stop Foreclosure Refinance , FHA Foreclosure Refinance, VA Foreclosure,
    Ways to Stop Foreclosure: How to avoid losing your home, Foreclosure Help Loans, We pay cash for houses, Foreclosure Mitigation, stop foreclosure in Alabama, stop foreclosure in Alaska, stop foreclosure in Arizona, stop foreclosure in Arkansas, stop foreclosure in California, stop foreclosure in South Carolina, stop foreclosure in North Carolina, stop foreclosure in Colorado, stop foreclosure in Connecticut, stop foreclosure in Dakota, stop foreclosure in DC, stop foreclosure in Delaware, stop foreclosure in Florida, stop foreclosure in Georgia, stop foreclosure in New Hampshire, stop foreclosure in Hawaii, stop foreclosure in Idaho, stop foreclosure in Illinois, stop foreclosure in Indiana, stop foreclosure in Iowa, stop foreclosure in New Jersey, stop foreclosure in Kansas, stop foreclosure in Kentucky, stop foreclosure in Louisiana, stop foreclosure in Maine, stop foreclosure in Maryland, stop foreclosure in Massachusetts, stop foreclosure in New Mexico, stop foreclosure in Michigan, stop foreclosure in Minnesota, stop foreclosure in Mississippi, stop foreclosure in Missouri, stop foreclosure in Montana, stop foreclosure in Nebraska, stop foreclosure in Nevada, stop foreclosure in New York, stop foreclosure in Ohio, stop foreclosure in Oklahoma, stop foreclosure in Oregon, stop foreclosure in Pennsylvania, stop foreclosure in Tennessee, stop foreclosure in Texas, stop foreclosure in Utah, stop foreclosure in Vermont, stop foreclosure in Virginia, stop foreclosure in Virginia, stop foreclosure in Washington, stop foreclosure in Wisconsin, stop foreclosure in Wyoming
    Foreclosure Laws: How to avoid losing your home, Alabama, Alaska, Arizona, Arkansas, California, South Carolina, North Carolina, Colorado, Connecticut, Dakota, DC, Delaware, Florida, Georgia, New Hampshire, Hawaii, Idaho, Illinois, Indiana, Iowa, New Jersey, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, New Mexico, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Utah, Vermont, Virginia, Virginia, Washington, Wisconsin, Wyoming
    Avoid-Foreclosure-Services.com is a free tool to find foreclosure information when your need it most. Avoid-Foreclosure-Services.com is not a lender, broker, foreclosure mitigation company, or affiliate of any foreclosure financial services. © 2007-2008