Topic: State Foreclosures Only Produce More Questions

The leading short sale and pre-foreclosure expert nation wide is Jeff Kaller. His students have really done well in our Michigan Market. If they do well in Michigan depress real estate market you know Jeff Kaller is doing a great job of teaching the short sale business. This is one of his articles for your reading. You can find great value from his workshops and his free reports and CD’s:

Check out his workshops- Jeff is doing them all over the country http://www.JeffsWorkshop.com (LA in January)

Topic: State Foreclosures Only Produce More Questions

By: Jeff Kaller Republished by Ralph Mark Maupin

Nationally, much of the blame for the current housing downturn has been placed on easy access mortgages that targeted many consumers who are now unable to pay.

Although clearly the market is going down, the foreclosure issue is far more complicated to some. Industry insiders who make their living from mortgages say some statistics are multiply by a factor of 2 to the number of foreclosures recorded. A state level mortgage executive clams that federal government is “double dipping” the numbers by counting second mortgages, using an inconsistent sample population from year to year, and counting all the different phases of a foreclosure as new filings. He point is well taken, clearly complicating the issue.

However with more that 5 percent of American homeowners delinquent in their payments, a jump of three-quarters of a percentage point from last year, and the numbers are still staggering. But lately, several options have surfaced to aid the troubled homeowner. One choice of particular interest is the pre-foreclosure sale, it allows you to sell your home and pay off your mortgage before a foreclosure, thereby preventing damage to your credit rating.

Not your typical real estate investor, pre-foreclosure specialist Jeff Kaller, advises, “Home owners need to know what terms they have, pre-foreclosure investor want to assist in finding the best option for the plan…the majority of lenders don't want to foreclose.” This could be a clear indication for many homeowners facing a possible foreclosure to pull out their mortgage documents and double-check the terms.
Nationwide, foreclosures continue to be on a steady rise; 36 percent from July to August with an eight-month total of 244,000 foreclosed homes, an increase of 115 percent from last year. Currently, foreclosures are soaring in Maryland, and many of the loans that homeowners are defaulting on are interest-only loans where no principal is paid. For which the interest-only periods have recently ended. Many other borrowers took out adjustable-rate mortgages (ARMs) over the past two years, and now the low initial payment period of the ARMS has ended. In both cases, borrowers are finding themselves equally trapped with higher interest rates that translate into significantly increased monthly mortgage payments that could go even higher.
“Government officials are steadily trying to develop ways to assist strapped families, now that the housing boom the nation experienced over the past five years has declined,” said real estate investor and pre-foreclosure investor Jeff Kaller.