Archive for 'New Hampshire'

Governor John Lynch of New Hampshire signed a new bill, HB 1286, in an effort to curb rising foreclosure rate in the state. The said bill requires the licensing of mortgage originators in order to discourage them from aggressive lending practices. It was authored by Senator Lou D’Allesandro and Representative Tara Reardon.

According to the New Hampshire governor, the new law will help protect consumers from foreclosure. Statewide, the number of homes that entered some stage of foreclosure has soared over the past year. It is believed that the primary reason involved mortgage lenders and brokers who took advantage of borrowers during the most recent housing boom.

With the new law, mortgage originators will recognize their important obligation to their clients and will make sure that all standard guidelines and regulations are followed. This is actually the second step that the state government has taken in response to the enduring foreclosure crisis. Last year, a law involving new regulations and standards on pre-foreclosure transactions, penalties for scam artists and requirement for foreclosure consulting firms to provide greater disclosure was implemented.

In addition, the New Hampshire Banking Department has established a hotline which consumers and troubled homeowners may call if they need answers to mortgage-related questions. The hotline is manned by well-trained and highly-knowledgeable staff, who will guide callers accordingly.

Nationwide, local governments have been forging ties with non-profit organizations in order to provide assistance to distressed homeowners. As the foreclosure crisis endures, many homeowners find themselves with mortgage debts that are no longer manageable. To make matters worse, the skyrocketing prices of fuel has made it even more difficult for these homeowners to prioritize mortgage payments, choosing instead to allocate their money for food and utilities.

For the month of May, the foreclosure rate of New Hampshire posted a 71.14 percent increase from the same period last year, with one filing for every 873 homes.

A study conducted by Dover-based PolEcon Research showed that the New Hampshire real estate market will continue to see an increase in foreclosure filings, particularly mortgage defaults. Although the state has the 32nd highest foreclosures rate in the nation, the number of New Hampshire foreclosure homes has risen considerably over the past two years. Experts believe that the situation will peak by 2008, as more owners of bad credit mortgages default on their payments.

Majority of these bad credit housing loans were written by mortgage lenders and companies; and only 3 percent is of the mortgage market is held by banks. Because the number of mortgage defaults is expected to rise, the inventory of New Hampshire foreclosure homes is expected to grow bigger. This situation is actually alarming for banks or mortgage lenders who have ended up owning the foreclosure homes that did not survive the foreclosure auctions. As the inventory grows, so are the holding costs that include insurances and property taxes. Sellers start to get anxious and offer more discounts to reduce the number of real estate owned homes.

Although the study seem disappointing, seasoned buyers still consider this a great investment opportunity. For one thing, the state has one of the lowest foreclosures rate and home prices are not affected. In fact, home appreciation values in most cities in New Hampshire remain to be positive. Buyers of New Hampshire foreclosure homes can expect instant equity. Of course, they will have to be in the right place and time to grab the hottest foreclosure properties offering the most potential.

This is where foreclosure brokers like Foreclosure Deals come in handy. Their database of real estate foreclosures will provide buyers with the ease of choosing which among the thousands of foreclosures fit their budget and preferences.