Field Guide to Foreclosures

(Updated January 2008)

Foreclosures! Subprime Lending Scams! Risky Mortgages!
2007 news headlines and reports hammered us with these dire stories. To be sure the rate of foreclosures has increased substantially, but it has also created significant opportunities for real estate investors. Though not for the faint of heart, investing in foreclosed properties can prove profitable for those willing to put in the required research and work. This field guide provides links and tips for the potential investor as well as suggestions for those trying to prevent foreclosure. (D. Foligno, Information Specialist)

Contents: 

Foreclosure News  |  Profiting from Foreclosures  |  Foreclosure Help  |  Helpful Websites  |  Books, eBooks & Other Resources

Metropolitan Foreclosure Rates

Foreclosure News  

Dirty deeds - as housing crisis deepens, cities fight lenders over abandoned homes, (MSNBC, Jan. 7, 2008).

States clamp down on sharks; legitimate investors may feel sting, (REALTOR® Magazine Online, Jan. 2008).

A way for older homeowners to back out of a bind; some find banks are willing to accept reverse mortgages to retire troubled loans, (Wall Street Journal, Dec. 26, 2007). Q

Fraud seen as a driver In wave of foreclosures; Atlanta ring scams bear stearns, getting $6.8 million in loans, (Wall Street Journal, Dec. 21, 2007). Q

FORECLOSURES: NOT SO FAST; Court rulings may make it tougher for holders of mortgage-backed securities to take back the keys, (Business Week, Dec. 10, 2007). Q

Why aren't predatory loans illegal?, (RealtyTrac.com, Dec. 4, 2007).

How foreclosures may strain the rental market, (Harvard Joint Center for Housing Studies, Nov. 4, 2007).

ACORN study shows losses to cities could exceed $25 billion, (Acorn.org, Oct. 7, 2007). Metro area reports.

Man uses pigs to trash own house after foreclosure, (Northwest News Channel 8, May 27, 2007).

Rising foreclosures reshaping communities, (USA Today, Apr. 13, 2007).

Foreclosure crisis will hit minority communities hardest says new report, (CivilRights.org, Dec. 21, 2006).

Profiting from Foreclosures

The foreclosure bargain hunt, (Los Angeles Times, Dec. 9, 2007).

How to work in foreclosures and short sales, (Florida REALTOR® Magazine, Nov. 2007).

How to find true values in foreclosures, (Market Watch.com, Oct. 15, 2007).

Secrets to finding foreclosure deals, (Yahoo! Real Estate, Oct. 10, 2007).

Foreclosure bargain-hunting, (CNN Money, May 10, 2007).

Profiting on foreclosures, (Wall Street Journal, Feb. 10, 2007).

This old foreclosure: buying directly from a bank avoids some risks, but don't expect a steal, (Business Week, Sept. 17, 2006). Q

Retirement interrupted, (CNN Money, May 22, 2007).

Buyer beware: the dangers of investing in foreclosed properties, (Real Estate Finance, Oct. 2006). Q

Foreclosure auctions: bidder beware, (New York Times, Apr. 9, 2006).

Tax consequences of flipping real estate, (BankRate.com, Jan. 2006).

"Flip" - it's not just another four-letter word, (Realty Times, Jan. 2006).

Flipping houses is harder that it looks, (MSN Real Estate, 2006).

Foreclosure Help

Tips for avoiding foreclosure, (HUD, Jan 2., 2008)

Protect yourself from mortgage fraud, (YouTube.com, Dec. 2007). Freddie Mac video.

The court house: how one family fought foreclosure; amid mortgage misery, the Davets fended off eviction for eleven years, (Wall Street Journal, Dec. 28, 2007). Q

What should be done to help households facing foreclosure?, (Brookings Institution, Nov. 2007).

Foreclosure scams, (Bank Rate.com, Oct. 25, 2007).

Pre-foreclosure FAQs, (HUD, Feb. 27, 2007).

Avoiding foreclosure rescue scams, (CNN Money.com, Dec. 7, 2006).

Financial institutions and foreclosure intervention: innovative partnerships and strategies to better serve borrowers in default, (Neighbor Works America,Nov. 2007).

Maybe we can work it out; if banks would modify the loan terms, the majority of at-risk borrowers could pay their mortgages and stay in their homes., (Newsweek, Nov. 26, 2007). Q

'Helpers' want your house; Foreclosure scams spread, as lenders promise 'rescue' loans, (Wall Street Journal, Nov. 25, 2006). Q

Helpful Websites

Foreclosure assistance programs by state, (National Association of REALTORS®) .

Foreclosure FAQs, (HUD).

Foreclosures.com - Brief summary of foreclosure laws by state.

Learn How to Avoid Foreclosure and Keep Your Home - NAR downloadable brochure.

Federal Trade Commission - Mortgage payments sending you reeling? Here’s what to do.

CNN Money - Renovation calculator.

Bob Vila.com - Home improvement library.

Be Jane.com - Home improvement tutorials & articles.

Internal Revenue Service - IRS seized property auctions.

RealtyTrac.com - Fee-based foreclosed property search.

Foreclosure.com - Fee-based foreclosed property search.

eBooks & Other Resources

eBooks.realtor.org

The following ebooks and digital audiobooks are available to NAR members:

Buying Real Estate Foreclosures (Adobe eReader)

Goldmining in Foreclosure Properties (Adobe eReader)

How to Make Money on Foreclosures (Adobe eReader)

Make Money in Short Sale Foreclosures (Adobe eReader)

Quick Cash in Foreclosures (Adobe eReader)

Books, Videos, Research Reports & More

The resources below are available for loan through Information Central.  Up to three books, tapes, CDs and/or DVDs can be borrowed for 30 days from the Library for a nominal fee of $10.  Call Information Central at 800.874.6500 for assistance.

Complete guide to flipping properties, (Chicago, IL: John Wiley & Sons, 2004). HF 5438 B45c

Renovate to riches: buy, improve, and flip houses to create wealth , (Chicago, IL: John Wiley & Sons, 2004). HF 5438 D88

Foreclosure: Prevention and Opportunities for Buyer-Clients, (REBAC Course; 2008).

Field Guides & More

These Field Guides and other resources in the Virtual Library may also be of interest:

Field Guide to Short Sales

Field Guide to Remodeling

Field Guide to Investing in Real Estate

InfoCentral Blog

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The inclusion of links on this Field Guide does not imply endorsement by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked to this Field Guide complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.