The Lowdown on Va Foreclosures

A home is not just a dream it involves financial investment. The unfortunate part is that there are more people losing their homes everyday due to non-payment of loans. As a result, 2006 saw foreclosures rise by 72% as compared to 2005. You can imagine the number of HUD VA foreclosures that must have taken place in 2006. In fact, according to a report, between January and March of 2006, there have been 323,102 mortgage defaults as compared to 188,122 mortgage defaults between January and March of 2005. Why is there such a spike in HUD foreclosures? The reasons are plenty but some of the important ones are:

Unemployment
Rising interest rates
Death
Sickness, and
Natural calamities

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Growing Numbers of Foreclosures

According to some experts, the main reason behind real estate foreclosures is the popular variable-rate loans. Most people opt for this loan and it allows people to purchase expensive real estate property, which in a normal situation would be unaffordable. The adjustable rate loans actually accounts for 1/4th of all mortgages. The year 2006, saw Indianapolis leading with one out of every 69 homes in foreclosure. Atlanta followed closely with one out of every 70 homes and Dallas at a close third with one out of every 99 homes. Memphis stood fourth with one out of every 101 homes while Denver was at the bottom of the top five with one out of every 105 homes. In 2006, North Carolina foreclosures saw an all time high of 45,500 filings as compared to 44,213 filings in 2003 and 15,282 in 1998.

The Foreclosure Boom and VA Homes

The HUD VA foreclosures have risen in almost every state in the last six months. The total number of foreclosures for sale was at an astounding figure of 1.2 million in 2006. The figures also include HUD foreclosures, Fannie Mae foreclosures, VA and Freddie Mac foreclosures.

The Sale Process

Real estate owned by Fannie Mae is generally sold through real estate brokers. Most of the Fannie Mae foreclosures are listed in the local Multiple Listing System (MLS), which can be easily accessed by a real estate broker. If you are planning to invest in a Fannie Mae owned home, then you need to get in touch with your local real estate broker or agent to get more information on the property.

Leading economists say that the only way to bring down foreclosure rates is by having a healthy economy that creates more jobs.

Have you bought a foreclosed home?

After Your Purchase

If you have bought a home from the list of HUD VA foreclosures then you must have paid a discounted price. The HUD foreclosed homes at times require an influx of money for repairs. Apart from that, you can create recreation rooms, video room or a home theater room from the money saved in buying through a foreclosure auction. There are plenty of landscaping ideas that you can borrow from the internet and make you home look really special. In fact, there are many people who transform their backyard into small vegetable gardens.