Foreclosure Fortunes

Judd and Lynn of the Get Real Real-estate podcasts

As all the other episodes, this one starts with how to get the episode, but unlike the others this episode doesn’t go over listener questions, well actually they do go over one.  They actually start out pretty casual talking about what they’ve been up to recently, and what they did on their vacation to Key West….kind of odd!

The one question they do answer is from a guy who calls in asking their opinions about whether or not to invest in an opportunity to buy a bulk housing deal.  The concern is some of the houses are good deals but some of them are not so good deals and he wants to know if it’s worth it.  Basically they tell him to look at each house as an individual deal and see what kind of money you can make or what you will lose.  Once you figure that out, you should be able to tell on your own.  Another tip they give is regarding financing, they suggest getting partners for larger deals such as this.

They then continue into what the episode is all about, which is foreclosures and how to they are and will be affecting the real-estate market.  The main thing they focus on is a bill that is being voted on in congress regarding foreclosures.  The bill has a couple different things on it that will affect the real-estate, one of which is a tax credit for people who work with foreclosures.  The credit gives a $7000 to everyone for every foreclosure they buy.  The down side is this particular bill is going back and forth between the house and senate, and it has yet to be passed.

Another topic they cover during this episode is the FHA (Federal Housing Authority), what they do and who they are.  They are the backer for most owner occupier homes, but don’t deal much with investors and/or realtors because they feel they are messing up the market.  The FHA only covers about 385 billion dollars of the mortgage market which surprisingly is a small portion.  FHA also backs a lot of mortgage insurance which assures the bank they will get their money if the loaner can’t repay the loan.  Congress is now asking them to write loans, which will make them re-finance loans and be covering the whole loan instead of just a percent as it is now.

These are all just basic key points of the episode, if you would like to hear the episode yourself, look them up on I-tunes or check out www.getrealrei.com .  They have plenty of episodes about many real estate topics.