      
 Interest Rates Affect Foreclosure AuctionsPublished: Tuesday, September 08, 2009 Buyers at foreclosed home auctions have the choice of all cash purchases or auction approved lender financing. If you are one of the 60% of real estate auction buyers using lender financing, knowing the best deals on interest rates is as important as finding the best deals on Southern California foreclosures. With mortgage rates remaining at their lowest in recent years, today's buyers are in the unique position of leveraging rock bottom home prices with favorable interest rates. 30 Year Fixed Rate DroppingTraditional 30-year fixed rate mortgages fell this week to 5.21%, down from 5.29% at the end of August. The most common mortgage financing for first time home buyers finding bargains at foreclosed home auctions, the 30-year fixed rate is also the benchmark for the status of mortgage rates across the country. First time home buyers hoping to take advantage of the $8,000 federal tax credit are compounding their savings by buying Southern California foreclosures at real estate auctions this fall. The tax credit expires November 30th. Foreclosures Pricing Creates Opportunities for 15-year MortgagesOne of the benefits of lower purchase prices is the opportunity to take advantage of great rates on 15-year mortgages. Higher mortgages may put these shortened, yet slightly higher payments out of reach for first time home buyers, but great deals on Riverside County foreclosures, Orange County bank homes and coastal San Diego foreclosures make the 4.72% offered on 15-year notes attractive. As an example, the median home values among Inland Empire foreclosures, specifically Murrieta bank homes, is $220,000. Payments at today's 30-year rate, assuming a 10% down payment, would be approximately $1,088. Up your down payment to 20% and the payment drops to $989 a month. However if buyers selected a 15-year loan with an interest rate below 5%, the payment on the same Murrieta foreclosures would be $1,537 with a 30 year note and only $1,397 with a 15 year note. Over the life of the loan there would be significant savings with a 15-year mortgage and at today's low rates, the payments fall below area rents on single family homes. Buying foreclosures at auction does require auction approval on lender financing, so be sure to contact the real estate auction company before deciding which mortgage to choose from. However having guaranteed loan approval at these remarkable rates will net home auction buyers significant savings over the life of their loans. Other Recent ArticlesHome Buyer Tax Credit Extended Until April, 2010Category: Recent Articles Published: Thursday, December 10, 2009 The federal tax credit has been extended to April, 2010, including an expanded benefit to existing home owners who sell their homes and then repurchase a new primary residence valued at $800,000 or less. This could be the perfect opportunity for buyers who wanted to cash in on home auction bargains but were fearful of lower resales on their existing homes. 57,000 Foreclosures Remain in California – Lenders Scheduling More Home AuctionsCategory: Recent Articles Published: Thursday, December 03, 2009 The Southern California foreclosures market may be shifting, with fewer homes entering foreclosure than in previous quarters. However there are still 57,000 existing foreclosures statewide that need to be sold, and lenders are looking at foreclosed home auctions as a major tool to sell large numbers of foreclosures in a short amount of time. Southern California Foreclosures Still the Bulk of Home SalesCategory: Recent Articles Published: Friday, November 27, 2009 Southern California foreclosures still account for the bulk of area homes sales and lenders are finding real estate auctions the fastest and most efficient method of clearing their books of REO properties. Buying a home at auction requires a little prep work, however and the experts at homeauctionexpo.com share their insight on how to find the best auction properties.  September 2009
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