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Many Foreclosures Homes Could Be Saved
By Myles Johnstone

There are many factors involved resulting in foreclosures, homes being on top of the list of properties, with nearly 80,000 residential homes on the foreclosure list in the spring of 2007. This would include foreclosures on homes financed through HUD, VA and Fannie Mae as well as traditional home loans.

There are some people who may take advantage of those less fortunate in snapping up foreclosed properties but taking advantage of those less fortunate is nothing unusual. What is rapidly becoming illegal in many states is predatory lending practices resulting in foreclosures, homes sold by a company knowing the buyer will be unable to meet the terms of the loan agreement. Many false promises are made and it is not unusual for a company to sell the same home three or four times to the financial detriment to hapless buyers.

Typically, these lenders will find a list of foreclosures, homes that recently went on the market, and buy them below market value. They then convince buyers with questionable credit and those turned down by other lenders, that they can afford a home. They manage to get the loan through, either through inaccurate accounting or downright fraud and when the buyer cannot make the payments, the home is foreclosed again. Another sale follows the same route, leaving another consumer in the dust.

List Of Foreclosures Homes Ever Changing

There are numerous sources to find a list of foreclosures, homes among them, and some companies will charge a small fee for the list. Unfortunately, the lists being peddled are usually outdated, sometimes by as much as several months, with no recourse to recoup your investment. All government agencies maintain a listing of properties that have been foreclosed and are up for sale and will readily give it out just for asking.

While it may take a few minutes to make a call and ask for the list, these is no good reason to pay someone to compile the list for you. Even HUD and the Veterans Administration maintain accurate listings, sorted by state and region.

While foreclosures are generally the result of someone's misfortune, being able to buy a foreclosed home can often allow someone the opportunity to own more of a home than they can afford. Typically, a home that is foreclosed cannot sell for less than three-fourths of its appraised value, but a buyer can still get more house for the money.

About the Author
Myles Johnstone writes exclusively for business & finance related sites about such subjects as commercial mortgages and foreclosures

Source: Business Articles

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