The proposal – which would sell foreclosure homes, often in bulk, to private investors from government inventory – is set to go live in the “near term”, according to the Federal Housing Finance Agency. According to reports, the two government-sponsored enterprises will allow pre-qualification for investors and third parties who want to bid on foreclosure properties owned by the government. This effectively opens the doors for foreclosure investors to get in line for bidding and save time before the full allotment of government foreclosure listings becomes available.

Government foreclosures come from several sources, most notably Department of Housing and Urban Development (HUD homes) and the Department of Veterans Affairs (VA homes). These homes come under government ownership when the federal government – due to its role as the guarantor of the mortgage secured by the property in question – takes possession of the home due to the homeowner’s default.

The hope is that investors and private equity firms will want to capitalize on a large inventory of cheap residential real estate properties that can be converted into income-generating rental properties – which are in high demand and have been for the past two years from previous homeowners, those looking to avoid buying a house in this climate, and those relocating for jobs.

As it stands now, the rental market suffers from a lack of supply while the housing market suffers from a glut of supply – a glut that has kept prices going down more and more with each quarter.

Already several major private equity firms have thrown their hat into the ring and announced intentions to actively participate in the government program. Some estimate that the foreclosure-into-rental market could be worth billions in the long run, and could deliver economic benefits to the economy as a whole beyond the profits obtained by investors if mass purchases cause home values to rise throughout the country.

The timeline for the full implementation of the program is still unclear, but the FHFA is seeking to make this a reality sooner than later – especially given the political pressure from the White House to bring stability to the housing market before presidential elections in November. Chances are the housing market will be a key issue.

Federal Foreclosure-into-Rental Program Picks Up Steam is a post from: Foreclosure Magazine - Read more about how does foreclosure work.

Where should you look, though? Some states are hotter than others, and the success of your venture will depend on finding the right markets. Here are ten states that hold the most promise to budding homeowners, entrepreneurs, and investors looking to score big in the market.

Ten States for Great Foreclosure Savings

One easily way to find foreclosure savings – the amount of money you can expect to save by buying foreclosures versus buying non-distressed properties – is to take the average home sales price in the state and subtract from it the average foreclosure sales price. Then, divide that number by the average home sales price to get the average discount available in the state.

Using that formula, the ten best states are:

Delaware

Georgia

Illinois

Maryland

Massachusetts

Michigan

Ohio

Oklahoma

Virginia

Wisconsin

The average foreclosure discounts for these states range from a low of 37% (Virginia and Georgia) to a high of 50% (Oklahoma). That last number is astounding. Just think – on average, buying a foreclosure in Oklahoma will save you 50% off the market price of a similar property!

The highest average foreclosure sales price was Virginia, with $237,742. The lowest average foreclosure sales price was in Michigan, at $60,211. Michigan also has the highest foreclosure rate in the bunch, with one out of every 346 units in the foreclosure pipeline.

Clearly, states like Michigan – states with high foreclosure rates, low average foreclosure prices, and substantial discounts – are the ideal shopping places for investors looking to turn distressed properties into lucrative investments. Of course, virtually any state has good deals available; all it takes is a little research and some simple math calculations.

Fine-Tuning Your Foreclosure Discounts

To get a better idea of how much you can truly save on a home, take into account the quality of the property itself and estimate how much money you will need to spend on it to make it livable. Also consider the neighborhood for the individual property and do your due diligence. Sometimes the largest discount isn’t the best. (In Michigan, after all, there have been foreclosure homes practically given away for free. The catch? They’re just one notch above condemned.)

Want Terrific Deals on Foreclosure Properties? Check Out These States is a post from: Foreclosure Magazine - Read more about how does foreclosure work.

Real estate agents and foreign entrepreneurs alike should be cautious and well-prepared when digging into local real estate for some of the best deals in the country.

Make Sure You Bring the Green

One problem that surfaced last year with foreign investors flocking to the U.S. for real estate deals and steals was financing. To put it simply, lenders are less likely to lend to foreign nationals than they are to American citizens – and they aren’t too eager to lend to Americans.

Financing stateside is still possible, of course, especially if the investor is representing or operating as a corporation (see more below for that). But having cash on hand is highly preferable. The main issue with cash is timing, so an experienced real estate agent is a virtual requirement. If you stay too long, you could be taxed as an American citizen.

Additionally, it helps to secure lending – if required – from a lender in your home country, then using the bank’s relationship to have the money transferred for the purchase.

Buy as a Corporation, Not as an Individual

Many foreign investors may already practice this, but it generally is a better idea to buy property as a corporation, rather than as an individual. There is a myriad of reasons why this is so, namely due to American tax laws (particularly estate taxes). You also avoid personal liability issues that could arise if you rent the property and hire a professional property management company to oversee it.

With a B-1 Business Visitor visa, you can even incorporate in the U.S. and buy and sell property (although you will have to have an American property management company manage your holdings).

Distressed Properties Give You More Bang for Your Buck

Finally, be sure to turn to the foreclosure market for the best deals in the market – by far. Prices are still incredibly depressed, so there is plenty of upside potential available. REO homes and HUD homes in particular are prime targets for quick purchases – perfect for foreign investors looking to make a steal in a hot market.

Tons of Opportunities and Potential Pratfalls for Foreign Real Estate Investors in the U.S. is a post from: Foreclosure Magazine - Read more about how does foreclosure work.

The Map View

The number one reason to utilize Google Maps when looking for a new home outside of your area is that it is free. All you have to do is log onto Google Maps and type in the address for the property you are considering purchasing. Instantly you will see a map view of where your home is located, complete with street names and some of the surrounding businesses.

The great thing about this version of the maps offered by Google Maps is that you can often determine everything from the nearest grocery store to nearby schools. You can then click “directions” to quickly find the directions from the home you are considering and other areas of interest such as work, school, and shopping.

The Satellite View

Along with the map view of Google Maps, you can also click “satellite” on the upper right hand corner of the screen in order to see an actual satellite view of the area. Zoom in to see details such as the neighborhood layout. Plus, some addresses will even enable you to take a street view of the property providing you with a better idea of what your home looks like from the road.

While utilizing the satellite feature, you can also determine the general neighborhood condition, including the upkeep of nearby homes. However, when opting for the satellite version of the map it is important to remember that it does not stream live; as a result, the maps are often rather dated.

Join Features

Regardless of whether you are using the map view or the satellite view, you are able to use the plus (+) and minus (-) signs on the left size of the screen to zoom in and out. In addition, you can click on the “A,” which is the address you entered, and then click “search nearby.” By simply typing it something like “pizza” local pizza restaurants will appear. This search feature is a great tool to help you determine how far away the home you are considering is from places you visit frequently.

In the end, Google Maps is a great asset when looking for a new home.

How to Use Google Maps When Looking for a New Home is a post from: Foreclosure Magazine - Read more about how does foreclosure work.

Williams, 53, was announced as the director of the beleaguered agency in 2008 after the federal government stepped in and placed both firms into government conservatorship. The move has cost taxpayers roughly $150 billion, and that price tag could climb to well above $250 billion – a quarter of a trillion dollars – before it is all said and done.

Since his appointment, Williams has faced intense fire from critics who have blasted Fannie Mae from both sides of the aisle in regards to the agency’s alleged role in foreclosure fraud scandals to over $35 million in executive bonuses granted to key leadership in 2009 and 2010, which led to many foreclosures on the market that had been considered “robo-signed”. Williams last appeared before Congress last December in a hearing regarding the executive compensation packages that became notorious symbols of executive excess in the midst of a housing crisis that continues.

In stepping down, Williams creates yet another opening at the Federal Housing Finance Administration, the independent federal body that oversees both Fannie Mae and Freddie Mac. Given the level of difficulty President Obama has faced with filling key federal positions as of late from Senate Republicans, the successor to Williams may be some time in coming.

There are essentially two questions that emerge as a result of this news. The first question is this: What will become of the agency in the time between now and the eventual appointment of a new director? The answer to this question is unclear, primarily because Senate Republicans constitute a roadblock to virtually any key, high-level executive positions within the Obama administration.

The second question – Will this make any difference in the residential market? – may make the first answer irrelevant anyway. Most critics do not expect significant, lasting change to come as a result of Williams’s resignation. Even in the event of a new successor being appointed and confirmed immediately, it is unlikely that the agency will be able to address the residential market in a meaningful and effective way without the distraction of the executive compensation scandal that is still unresolved.

Williams intends on remaining in the position until a replacement is found. Until then, Fannie Mae continues to own or guarantee roughly half of all home mortgages in existence today in the United States, even as a chapter in the company’s history appears to draw to a close.

Fannie Mae CEO Michael J. Williams Resigns is a post from: Foreclosure Magazine - Read more about how does foreclosure work.

Trying to sell a home, or thinking about it in the near future? If so, you have somewhat of a challenge ahead of you, as today’s housing market is definitely a buyer’s market. Selling a home isn’t nearly as simple as it was prior to the housing bubble popping in 2007; now, sellers have to take extra steps and pull out all the stops to make their home as presentable as possible.

One way you can put your home in the best light possible is to stage it appropriately, taking into consideration what people desire when they look for a home. Here we’ll discuss what goes into a successful staging that’ll catch eyes and attract interested buyers eager to buy your property.

What Potential Buyers Look For in a Prospective Home

There are a few factors you will need to consider when staging your home, to take advantage of what most prospective buyers look for when searching for an ideal property.

Layout

Buyers these days love a nice, open layout – a layout that allows freedom of movement and ample living space. A buyer wants to see how a home will look, and a lot of that comes from how the layout is arranged. Try to emphasize clear and open lines of travel from room to room, with a lack of major furniture pieces in the middle blocking traffic and clear lines of sight throughout the house. If you can walk from one end of your home to the other easily, your layout is attractive.

Open Space

To go along with the layout of the home, a buyer wants plenty of open space – space where he or she can use to truly customize the home. Open space makes a home appear larger than it really is. It also reduces feelings of being cramped and cluttered, especially with larger households. Emphasizing open space through a clean and streamlined layout helps immensely.

Special Features

Of course, any special feature that your home has should be prominently featured. Do you have exquisite countertops? Nothing should be obscuring their view or distracting the gaze away from your polished granite beauties in your kitchen. Have a spa or a Jacuzzi? Make it easy to see. Play up to your home’s special features, things that are considered “bonus” features or items and make sure your layout is designed to incorporate them fully.

The Purpose of Staging a Home

Now we will get into the nuts and bolts of staging a home appropriately for a potential showing and for any prospective buyers who come by.

Creating a Better Image

Staging a home involves putting your home in order in a way that makes it look its best – and no home looks its best when it looks empty. You want to create the best possible image for your home, and that involves highlighting its selling points while minimizing its weaknesses.

For example, if your dining room has a beautiful, full-length dining bay with French windows, stage your home with carefully-selected furniture, curtains, and other furnishings to highlight the area. Accent your vaulted ceilings with artwork and other pieces of décor that draw attention upwards. Creating a better image is all about creating an ideal appearance for your home.

Giving an Impression of a Livable House

Staging a home also involves giving your prospective buyer an idea of what the home may look like once it has been set up. A properly-staged home features just enough furniture, décor, and fixtures to make the living space attractive, draw attention to the open space and layout, and present a possibility for the buyer. When you do this, though, try to avoid putting in personal effects; you want to create something of a blank canvas for your buyer’s imagination to use.

A living room with a couple of couches, a coffee table, and a throw rug, accented with a candle or two and soft music is a welcoming and comforting staging for that living space. A warm kitchen with a pleasing aroma and cooking implements casually placed around on the countertops and table is another way to highlight this particular room.

Creating Helpful Suggestions

When you stage a home, you also help the buyer see what he or she should do when fixing up their own home. This doesn’t mean they’ll take your indirect advice, but subconsciously, they will appreciate the appearance of a well-kept home that looks ‘lived in’ – and may even keep the same arrangement.

Home Staging as a Good Selling Tactic

Home staging is a great selling tactic for a variety of reasons, primarily because it presents your home in the best possible light for a wide variety of buyers who want to see the ideal version of a home – not a home that is stripped bare with white walls and no character or personality.

A staged home is an exciting home, full of possibilities. It gets the buyer’s creative juices flowing, instead of presenting the buyer with a completely blank canvas without any suggestions or hints as to what makes the home really come alive.

Staging a home also encourages the homeowner to play around with the layout and furniture as you have presented them. It is guaranteed that any interested buyer will start to mentally place his or her furniture in the rooms instead, to see how it would look versus what you have – and that automatically starts them down the road of a purchase.

At the end of the day, staging a home gives your buyers every incentive to want to buy your home, all things considered equal. It is a must and something worth perfecting when selling your property.

How Home Staging Helps Sell a Home is a post from: Foreclosure Magazine - Read more about how does foreclosure work.

As 2012 begins to kick into full gear, the real estate market is already heating up.

If you’re talking about rentals, that is.

Truth be told, renting has become the fastest-growing component of the overall real estate market over the last year, simply because fewer people are buying homes than they otherwise would in a healthy year. Falling home prices, incredibly-tight lending standards, and stubborn unemployment rates have all contributed to pushing would-be buyers to the other side – renting.

This isn’t to say that renting is inherently “bad” – for many people, renting is the cheaper and wiser option. But for those who want to build up equity in a home, break free of a landlord once and for all, and purchase a home at severely-discounted prices, renting just will not do.

Fortunately (or unfortunately), renting will have a noticeable impact on buying and selling homes in 2012, perhaps even more so than in 2011.

The Market Outlook for 2012

First, we will take a look at the general outlook for real estate as a whole –both in the residential rental market and the new/existing home sales market – to see where we are headed.

Home Sales Outlook

The general consensus among industry experts is that median home prices will continue to fall in 2012, perhaps as much as 3.5% by mid-year. This will impact new and existing home sales, but perhaps not in a negative way. The National Association of Realtors, for example, predicts that home sales will increase by 5%, with new housing starts going up by 15% from 2011. Naturally, this depends on where you live, and largely trends began in 2011 will continue through 2012.

In short, demand for homes will rise – but so will foreclosures. In fact, foreclosure properties are expected to increase throughout 2012 and likely into 2013, meaning the residential real estate market will have plenty of supply in the form of cheap, discounted properties in the form of foreclosed homes.

Rental Market Outlook

By and large, the rental market across the nation will continue to improve as it did throughout 2011. In many metropolitan areas in particular, vacancy rates have plummeted and rental prices have risen sharply. This trend may taper off a tad, but more or less will continue throughout the year – meaning people will be paying more money to rent the same apartment in 2012 as they would have in 2011.

In fact, the proposition that more job growth in 2012 will lower the unemployment rate (as is expected) will only increase this because more people will be relocating for these jobs – which always translates into upward pressure in real estate.

How Foreclosures Benefit the Rental Market

How do foreclosures and rentals interact with each other, and with the real estate market as a whole? Well, when everything above is put together, we see a picture of a lot of people looking for affordable places to live.

Since rental prices are increasing, people will be looking for some relief from rising rates – which could very well come in the form of foreclosures being opened up to renting by investors who want to capitalize on more home foreclosures on the open market. This is especially pragmatic because buying foreclosures and profiting off of an appreciation in value – the traditional way to profit in a down real estate market – may seem less attractive than buying foreclosures and simply renting them out.

We expect higher numbers of foreclosures to provide additional supply in a tight rental market – meaning more families will have more opportunities to find affordable housing, particularly in metropolitan areas. For investors, all of that translates into enormous potential.

How Renting Can Soon Change the Real Estate Market is a post from: Foreclosure Magazine - Read more about how does foreclosure work.

When it comes to buying a home, many things come into play. One of the most important aspects of the traditional home buying process is your agent. Your agents will be doing the negotiations for you; therefore, it is essential that you trust your agent. In order to trust your agent, you should know important things about your agent before entering into the home buying process. When picking an agent, make sure you ask the right questions and do your research beforehand.

Agent Background and Expertise

As with anyone that you hire, you should take into consideration the agent’s real estate experiences. Look online to see if you can find information about the agent including reviews from previous clients. You can also ask the agent to provide you with references, which you can call to obtain detailed information from previous clients. These references can provide you with the best information about what to expect if pursuing the home-buying process with the particular agent.

When doing your research, make sure to determine which areas the agent has the most expertise. What are his or her strengths? Furthermore, ensure that the agent has specific experiences that involve the type of home you desire to purchase. For example, if the agent mainly has experience with rentals and you desire to purchase a foreclosure, then you may need to find a lender with expertise in working with foreclosure properties. It is often best to utilize an agent that does most of his or her work in the area in which you desire to purchase.

Finally, research not only the specific agent but also the company with which the agent is associated. The best way to research the company is to utilize online search engines. Simply type in the company’s name followed by “reviews.” Within seconds you should be able to find numerous reviews from previous clients that will help you to determine the reputation of the company in which your agent is associated.

Finishing Touches

After obtaining information and reviews about the agent and the company online and through references, it is time to finalize your research. Obtain detailed information from the agent about what you can expect throughout the home- buying process if you choose that agent. What is the agent’s workload? Will there be enough time to meet your individual needs or will you merely be a number? Finally, contact the real estate department within your state to ensure that the company and agent both have a great reputation within your state.

After doing your research and determining the reputation of both the agent and the company, if you feel like the agent would be a great fit for your home buying needs then it is time to hire the agent and start the search for your new dream home!

What You Should Know About Your Agent is a post from: Foreclosure Magazine - Read more about how does foreclosure work.

A couple wants to buy a home and begins the paperwork for a mortgage, but is surprised to learn that the bank has turned them down due to having a low credit score.

Sound familiar? For many families in America, that is an all-too common tale, especially in the post-crash years in the real estate market.

The truth is, credit scores are more important than ever before when buying a home. And getting the right score can be a pain – especially if you are fighting an uphill battle, like many Americans. But, there is good news. Getting the right score to qualify is not only possible, but realistic if you take the appropriate steps.

Here is a simple guide to boosting your score so that mortgage loan can become yours.

Checking Your Credit

The first step is to find out what your credit score actually is. Without being aware of your credit score and your record, you’ll have no chance of repairing it – which means your home loan application is marked for failure.

There are three national credit bureaus that work with the federal government to supply you with three free credit reports every year – one from each bureau. They are Equifax, Experian, and TransUnion, and each offers to show you what is showing up on your credit record, the report that lenders review when seeing if you qualify for a loan.

The only way to get a reliable and free credit report is to go to AnnualCreditReport.com and request one. That is the only website that is authorized by the Federal Trade Commission to deliver these reports; any other sources are for-profit entities (or scams).

You can request one report per bureau per year. It always helps to check often, so requesting one report every four months is a good idea.

Cleaning Up/Fixing Your Credit History

When you receive your report, you will be shown:

- Any missing payments to any creditor you’ve had (credit card, utilities, auto, etc.)

- The number of on-time payments

- Any outstanding amounts owed currently

- Any amounts turned over to collection agencies

Start by clearing up any errors that appear on your credit report. These most typically are items that have been paid by you, but are still showing up. You will more than likely have to contact the creditor and request that they fix the mix-up, and may have to show proof of payment.

Also look to see if there are any other collection situations or mix-ups caused by changes of address, name changes, or any other situation – anything that could have resulted in a miscommunication between you and your creditors.

Surprisingly, errors make up a good chunk of what penalizes people on their credit histories – and many are never corrected. Cleaning up your record will be a good start.

Adjusting Your Credit

Contrary to what infomercials may tell you, credit repair is not an easy, one-click fix. It requires months and sometimes years of work to demonstrate diligence, responsibility, and credit trustworthiness. But, it is definitely possible.

If your problem is missing payments on your bills because you forget to make the payments, set up payment alerts on your phone, email, or computer. Request these well in advance so you know that you have something to take care of soon. You can go a step further by signing up for automatic payments to be drafted from a bank account – which ensures your payments are never late (and if they are, it isn’t your fault).

If you frequently run into problems paying for your charges and debts, you’ll have no other option than to restrict your spending. Budget well, consolidate your debt when available, and don’t carry balances on your credit cards if at all possible.

You may have to keep a strict budget for six months to a year before your negative credit score starts to really pick up, but the benefits – including being able to buy a home – are definitely worth it.

By the way, what is considered a “good” credit score? The minimum score for a maximum HUD loan is 580, but you are considered pretty set from a credit score standpoint if your score is 720 or higher. You can still qualify for home loans with credit scores from 600-700, but your chances diminish the lower your score.

Buying a Home? A Guide to Getting the Right Score to Qualify is a post from: Foreclosure Magazine - Read more about how does foreclosure work.

Everyone knows just how opportunistic today’s market can be with an abundance of foreclosed homes up for grabs. It seems like new foreclosure listings appear daily, with thousands of investors competing for the best discounted properties available.

Part of succeeding in such a market involves doing one’s homework regarding a particular property and making sure it is a sound investment. That means, among other things, having the property properly inspected. Here we’ll talk about strategies behind foreclosure inspection, why you should have your prospective foreclosures inspected, critical issues that you may encounter, and particular areas of emphasis to cover during your inspection.

Strategies and Tips for Better Inspections

These days, foreclosures run the gamut in terms of quality. Not all are created equal. Dilapidated, abandoned, and neglected foreclosures in the slums are a different beast altogether than recently-vacant, well-maintained, and intact foreclosures in higher-end neighborhoods in the suburbs.

Because of this, it helps to have inspections for your properties. The scope and detail of an inspection will depend on the quality of the home itself. For example, if you are dealing with a foreclosure in a relatively decent neighborhood, and the home appears to be well-maintained and in good order, you could probably deal with inspecting the home yourself for minor repairs and leave it at that. If that is your course of action, it helps to attend a professional home inspection at least once so you can get a good feel for how it is supposed to work.

Let’s say that the home appears to be in worse shape, or could potentially require extensive work. Even if nothing on the outside appears out of order, if your instincts tell you differently, it helps to go with a more in-depth home inspection, particularly with a professional home inspector.

If this is the case, you (or your inspector) will want to pay attention to these critical areas:

- Electrical wiring

o Look for exposed wires, damaged wiring, circuits that don’t work properly, stripped wiring, wiring that is old and not properly upgraded, etc.

- Plumbing

o Foreclosures often are victim of having copper plumbing stripped and sold for scrap. Check and see if everything is in place; if it is, see if there is any evidence of water damage or leaking in the home.

- Roof

o Leaks are a major concern; check the attic if applicable or the ceiling.

- Foundation

o Every foundation needs to be checked for cracking. Crawl space foundations are more susceptible to rotting and termite-infested wood, especially with older homes.

- HVAC

o Are there any missing implements? Are the heating elements properly installed and in good working condition? If not, they could pose a safety hazard.

One smart idea is to hire another trusted contractor or company to perform a second inspection and give you a better idea of what needs to be fixed with the home before you proceed further.

Benefits of Foreclosure Inspections

The main benefit of a foreclosure inspection is to help you determine how sound of an investment a foreclosure may be, so you are not pouring money into a money pit. Again, not all foreclosed homes are equal; some will require extensive, major renovations that could eat away at your profit margin and leave you in the red.

Another benefit is time. If you are purchasing this home for yourself, you can avoid potential issues that you’ll have to correct in the future. If you are trying to fix it and sell it, you will have less work before you.

Finally, inspecting a home makes it easier to price a home and bid competitively, and obtain permits for a home once the purchase has been made. If you know what the home will cost to repair to proper standards, you will have an inside track on pricing your bid or offer and maximizing your spending power.

Steps for Inspecting a Foreclosure Home is a post from: Foreclosure Magazine - Read more about how does foreclosure work.