Foreclosures Surge in NH, Up 214% from October 2005

Foreclosures jumped 37% from the previous month.

Nashua, NH (PRWEB) December 14, 2006 -- ForeclosuresNH.com, NH's primary foreclosure reporting service reports a surge in foreclosures in the state, up 214% since the same time last year and a month over month increase of 37%, ending October 31. Of the 418 foreclosures posted in October 2006, 72% were either purchased or refinanced in the last 2 years, most likely with a low adjustable rate mortgage (ARM). Homeowner's who took advantage of these low rates and payments were unprepared when the rate adjusted and faced a market that wasn't conducive to refinancing. The recent dip in the market has left homeowners in a situation where they cannot refinance because home values have dropped, depleting the equity that they had. Since they cannot refinance and their ARM's have adjusted, they are now facing a mortgage payment that is 20-40% higher than what they are used to. Most will struggle to make their new mortgage payments but many will be unable to afford the new payments and eventually lose their home to foreclosure.

"The decline in the real estate market is having a negative effect on home values, making it more difficult for homeowners to refinance or even sell to avoid foreclosure," says James Kenney, president of ForeclosuresNH.com. "The best option for homeowners in foreclosure is to contact their mortgage company to find out what they can do to avoid having their home go to foreclosure auction. In some cases, mortgagors may be willing to add the outstanding payments/fees to the end of the mortgage or even refinance to bring the mortgage current. Actually, the best piece of advice we can give to homeowners experiencing financial difficulties and who risk missing 1 mortgage payment is that they contact their mortgage company before they miss any payments, explain their situation and what they are doing to get back on track. This will show the mortgagor that they are being responsible and proactive, thus leading them to be more understanding of their situation. Missing 2 or 3 payments and waiting for the mortgagor to contact them shows that the homeowner is not responsible and that they may not be interested in keeping their home."    

"On the investment side of the foreclosure market, we are seeing a trend where properties are not being bid on or purchased at auction because there is either no equity or negative equity after all the up-front costs are paid to acquire the property, never mind any repairs that need to be completed. These foreclosures end up reverting back to the banks and mortgage companies who, in turn, are listing them with real estate brokers for a quick sale and to ensure a quick sale, the price is reduced periodically until the property is sold. In the buyers market that we are currently experiencing, investors have the advantage in purchasing bank owned property as opposed to foreclosures. The biggest advantage to purchasing these bank owned properties vs. foreclosures is that the bank will: work with the IRS to have the tax liens removed, perform repairs (if necessary), evict any occupants (if necessary) and provide title insurance. In foreclosure, the winning bidder would have to pay all back taxes, liens, repairs, and title insurance as well as evict any occupants (if necessary). Clearly, investors are saving time and money with bank owned property (REO) and our website provides a database of over 350 bank owned properties available in NH."

About ForeclosuresNH
ForeclosuresNH, founded in 2004, provides detailed and up to date foreclosure and REO databases with many complimentary services associated with finding, funding, and rehabbing investment property. Specializing in providing an online database of time sensitive information, ForeclosuresNH allows homeowners, mortgage brokers, real estate investors and agents a distinct advantage in the NH foreclosure market.

CONTACT:
James R Kenney
ForeclosuresNH.com
877-443-3584
http://www.foreclosuresNH.com

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