estate: Strategic Defaults Account for 31% of All Foreclosures in March of 2010 - 05/10/10 08:50 AM
According to two studies conducted by the University of Chicago and Northwestern University,  the number of  homeowners defaulting on their mortgage (when the value of the home is less than the value of their mortgage) has increased significantly in the last year from 22% in 2009 in March to 31% in 2010.
 
The decrease in property values are pushing homeowners underwater. The social stigma attached to foreclosures is slowly eroding as delinquencies become more and more common. These industry studies find that even the homeowners that can afford to pay their mortgage are letting their homes go in increasing numbers. … (1 comments)

estate: Study shows correlation between financial literacy and foreclosure - 04/28/10 02:50 AM
A new study by The Federal Reserve Bank of Atlanta shows a direct connection between people's "financial literacy," and "numerical abilities," and their liklihood of experiencing the loss of their home through foreclosure.
Unsurprisingly, those who are less financially literate fare worse as homeowners, defaulting at significantly higher rates. The study, conducted between 2006 and 2007, shows they are far more likely to fall behind on mortgage payments. According to Credit.com, "Those who scored among the highest level for financial literacy were two-thirds less likely than those among the lowest group to experience foreclosure, according to the report. Members of the … (0 comments)

estate: New Maryland foreclosure law takes effect July 1 - 04/28/10 01:51 AM
The State of Maryland has passed a new foreclosure mediation law that takes effect July 1. The Baltimore Sun published a Q&A interview with Raymond A. Skinner, the state's secretary of housing and community development, in which he explains the details of the new legislation and implications for struggling Maryland homeowners.
Question: What will change for homeowners and lenders?
Answer: What we’re trying to do is to put in place a process which is really kind of the last step before foreclosure can proceed. And it gives the homeowner a chance to sit down face to face with their lender or … (1 comments)

estate: Md. Foreclosure Rate Jumps 80 Percent Since 2009 - 04/27/10 02:48 AM
According to new reports, home foreclosures in Maryland have gone up 80 percent compared to this time last April.
In February, Heavy Hammer Inc., and USHUD.com predicted a doubling of real estate foreclosure rates in 2010. As we're seeing, a confluence of factors driven by financial industry practices and changing government policies and regulations continue to exacerbate an already devastated housing market.
The first and most obvious factor is the unemployment rate that continues to languish in the 10 percent range nationally, and often much higher regionally. Similar unemployment rates have historically affected 20 to 30 percent of home owners’ ability … (1 comments)

estate: REOs jump in 1Q2010 - 04/25/10 09:34 AM
The data for 1Q12010 is in, and it shows that foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 932,234 properties in the first quarter, a 7 percent increase from the previous quarter and a 16 percent increase from the first quarter of 2009. One in every 138 U.S. housing units received a foreclosure filing during the quarter.
The most time consuming and complicated foreclosure homes to buy are, without a doubt, Bank REO (Real Estate Owned) properties. Information on bank REOs is rarely easy to obtain. A great deal of research is required and the … (2 comments)

estate: Understanding FICO scores and their impact - 04/25/10 05:13 AM
This post explains what FICO is, how a FICO score is calculated and what the implications are for homebuyers.
FICO stands for Fair Isaac & Company. Credit scores are reported by each of the three major credit bureaus: TRW (Experian), Equifax, and Trans-Union. The credit score does not come up exactly the same with each credit bureau because the bureaus each place a slightly different emphasis on different items. The credit score itself can range from 300 to 900. The formula for exactly how the credit score is calculated is proprietary information and owned by Fair Isaac. Here, however, is an … (1 comments)

estate: Inspections are essential when considering a foreclosure purchase! - 04/23/10 01:51 PM
Because HUD foreclosure  homes have typically been vacant for an extended period of time, often without any utilities turned on, extra care must be taken during inspection. HUD is working with its private marketing and management contractors (M&Ms) to come up with an efficient way of getting utilities turned on in a foreclosure home before appraisal is completed and keeping things like sump pumps running through the process. Until recently, appraisers did not necessarily have the benefit of having gas and electric service. How could they give a reasonable determination of foreclosure home value without knowing if the plumbing, electric, heating … (0 comments)

estate: Find free foreclosure listings online - 04/22/10 11:20 AM
As there are hundreds of online foreclosure providers, it takes some effort to find the most useful, free sites. Finding the best sites will depend on your ability to recognize and understand the difference between data and information.
Information is actionable data. Data by itself is confusing and can be more aggravating than beneficial. So let's look at some of the online resources and how they do business.
Most Web sites offering foreclosure data charge a monthly subscription fee. This can be tricky because their data is intentionally old and out of date. They do this so they can claim to … (1 comments)

estate: Know the advantages of first-time homebuying - 04/22/10 11:10 AM
In this post, I've explained a number of the advantages you (or your client for that matter) can enjoy as a first time buyer. Feel free to expand on any of these points in the comments section.
Lower Interest Rates For First Time Homebuyers As a first time homebuyer, you are offered far lower interest rates than an investor. If the standard interest rate you are being quoted is 7.5%, then you can be sure that the real estate investor who is interested in your hopeful new foreclosure home is going to be faced with an interest rate of at least … (0 comments)

estate: Congress must expand tax relief for distressed homeowners and those who experienced foreclosures and short sales - 04/21/10 06:24 AM
Congress must change the Mortgage Debt Relief Act of 2007 to extend the life of the legislation and expand benefits for homeowners affected by the housing crisis.
The Mortgage Debt Relief Act of 2007 allows homeowners to avoid paying taxes on mortgage debt forgiven though the foreclosure or loan modification process under certain conditions, but will expire in 2012. Given projections of a prolonged housing crisis, it is appropriate for Congress to extend the legislation another five years, and expand the provisions to give tax protection to those who lost investment properties or refinanced to pay off student loans and other … (2 comments)

estate: Foreclosure scams on the rise: What to watch for - 04/19/10 01:12 AM
CBS News ran a story today warning of new and increasing scams targeting struggling homeowners. The scam, in all its variations, is especially despicable as it takes advantage of those who, in desperation and out of fear for losing their homes, are looking for a way to salvage their American dream.  
The report cited a 35 percent rise in foreclosure rates through the first quarter of 2010 as providing a rich target environment for scam artists. On average, consumers lose $3,000 if they're victimized by such fraud, but could stand to lose their entire homes. In the state of Nevada … (2 comments)

estate: Non-veterans can buy VA foreclosures, too. - 04/18/10 03:46 PM
Few are aware of the best-kept secret of buying foreclosure homes: It is possible to purchase a foreclosure home with no money down. Even real estate agents don't often understand how to get their buyers into a foreclosure with zero money down. Let me share some helpful tips and information.
#1 little known fact about VA foreclosure homes -- You don't need to be a veteran to buy a VA foreclosure home or have the VA guarantee the financing on the foreclosure home.
#2 little known fact about VA foreclosure homes -- You can buy a foreclosure home from the VA … (2 comments)

estate: Tell a friend: HUD program helps teachers and first responders buy half-price homes! - 04/18/10 02:48 PM
When I cme across an opportunity to give something back to those selfless few who give so much in service to others, I'm all too happy to pass it along. This is an outstandng government program that benefits the educators and emergency first responders we rely on every day.
Law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD's Good Neighbor Next Door Sales Program.
Not only is this an outstanding way to say, "Thank you," to our often underappreciated heroes-next-door, but the program also helps populate the … (1 comments)

estate: There are three types of foreclosure investing, know the risks and benefits of each - 04/18/10 02:36 PM
There are three distinct kinds of foreclosure investing opportunities. Understanding the risks and benefits of each is key to your success as a foreclosurfe investor. They are: the "Default/Pre-Foreclosure" phase, the "Auction/Sale" phase and the "REO" phase. This blog post discusses the risks and the rewards of each opportunity.
Buying Pre-Foreclosures
Buying pre-foreclosures involves working directly with the homeowner and sometimes the lender. Your goal is to create a Win-Win scenario. One win is for the homeowners (they make a sale) and one win is for yourself (you buy the property at a substantial discount).
To accomplish a successful purchase, most … (0 comments)

estate: Important tips for the novice foreclosure investor - 04/18/10 02:23 PM
There isn't much difference between investing in foreclosure homes for resale and investing in foreclosure homes for rental income. Many of the same rules apply and many guidelines remain constant. As with any type of investing, the point at which you enter will determine how profitably you exit. The single largest distinction between real estate investing and stocks, bonds, mutual funds or precious metal is that real estate allows the investor the opportunity to have a more direct and immediate impact on the investment vehicle, the foreclosure home, through rehab, paint, carpet, etc. This post demonstrates how to quickly make an … (0 comments)

estate: Make your real estate business recession proof with foreclosures - 04/17/10 05:11 AM
 
Foreclosure sales represented 47 percent of all homes sold in the first half of 2009 with no signs of slowing. Google shows searches for terms like “homes,” and “real estate” were down by more than 50 percent from the previous year, yet terms such as “foreclosure homes” were up by roughly the same number.
 
So the real estate business has not slowed, it has changed. If you are not part of the change, you are missing out on a great opportunity. Selling foreclosures also pays more per transaction than conventional real estate, and foreclosures are actually easier to sell.
(3 comments)

estate: California gives tax break to those in foreclosures and short sales - 04/12/10 12:56 AM
California Governor Arnold Schwarzenegger is poised to sign into law SB 401, legislation that will waive state taxes on mortgage debt that has been forgiven in a foreclosure or short sale. The new legislation is expected to benefit about 34,000 California taxpayers. In a report Friday, the L.A. Times said Schwarzenegger would sign the bill in time for taxpayers to take advantage of the benefits before the April 15 deadline to file tax returns. The legislation also contains about $60 million in tax incentives to encourage corporate energy efficiency. The relief for Californians affected by the housing crises couldn't come at … (0 comments)

estate: Five Tips for the Foreclosure Investor - 04/07/10 02:48 PM
These simple, yet effective tips I havepersonally found invaluable. Hopefully you, too, will benefit from them as you invest in real estate foreclosures. 
Tip #1 - The rewards are greatest when the real estate investor is a knowledgeable, proactive force in the process. Take an active roll in your foreclosure home investment. This begins with the right state of mind.
Tip #2 - The figure for days on the market (DOM) a property was available before its eventual sale will be found in the MLS listing. Be sure to ask your local real estate agent for these figures specifically to help … (4 comments)

estate: What Happened to Fannie Mae? - 04/03/10 01:23 PM
Like every other third party mortgage investor on the planet, Fannie Mae has had a rough time lately. When Wall Street finally stopped buying sub-prime loans, Fannie Mae found themselves holding millions of unsellable mortgages. Essentially they were left holding the bag.
Was it greed that created this situation?
That is too easy of an answer. The truth is the system was set up for people who are responsible for the increase in the value of a company, to keep up with their investors desires for ever growing profits as compared to their competition.
In other words, they have to keep … (1 comments)

estate: House flipping makes a comeback ... in the most surprising places - 04/02/10 01:56 PM
House flipping, the selling of property within six months of purchase by investors, was once discouraged by the government. But these days, the activity is more than welcome as investors fixing up and quickly selling at a profit is helping to reenergize some of the hardest hit housing markets. The Federal Housing Administration implemented a one-year waiver of anti-flipping rules effective Feb. 1, so borrowers can now get FHA financing to acquire homes from investors who have held title for less than 90 days.
So where is flipping making a comeback? In some of the most depressed markets in the nation. … (0 comments)

 
Tim Fry (USHUD.com)

Tim Fry

Annapolis, MD

More about me…

USHUD.com

Address: 65 Old Solomons Island Rd, Annapolis, MD, 21401

Office: (410) 268-3310

Michael Urbanski is the chief executive officer of Heavy Hammer, Inc., and USHUD.com. Headquartered in Annapolis, Michael oversees the online networking and consulting company advocating for American homebuyers, connecting them with trusted experts and valuable resources. Driving one of the most widely used suites of foreclosure Websites, Heavy Hammer delivers all-inclusive, free lists of foreclosure properties to more than 500,000 homebuyers monthly. In business since 1998, Heavy Hammer has focused on geographically-based ad serving technology and processes allowing thousands of professionals to target specific locations, connecting directly with consumers in specific locations. Starting with USHUD.com, this group of sites now includes more than 30 state- and region-specific sites.


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