In yesterday’s post on stopping foreclosure, we relayed how Chase bank was literally and figuratively clueless when it came to helping the homeowners whose loans they own stop foreclosure.

Well, there’s good news. One bank seems to be coming through for homeowners trying to stop foreclosure — Bank of America.

The large bank is writing down the principals of homeowner loans. What exactly does this mean? The HuffingtonPost.com article, Bank Of America Executive Acknowledges Poor Service In Mortgage Mod Program, details it best, explaining:

. . . an example of a homeowner who owed $250,000 on a home worth $200,000. The bank would take $50,000 off the mortgage and put it in an interest-free forbearance account. If the homeowner keeps up with his payments on the $200,000, the bank will forgive 20 percent of the forbearance account for each of the next three years, and for an additional two years if the homeowner remains underwater.

This is what many homeowners — and President Obama’s prevent foreclosure program — have wanted all along.

Finally, one big bank is playing ball.

Let’s see if others will follow — or force the hand of many homeonwers who are trying to prevent foreclosure; many of who will just do the “jingle mail walk.”

What’s the problem with Bank of America?

P.S.: Start a Business Cleaning Foreclosed Properties. While the foreclosure crisis has been a nightmare for many, it has presented a perfect small business opportunity for others. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

To be fair, it’s not just Chase bank that’s out of the loop when it comes to what’s happening with foreclosure loans and modifications; it’s just that they’re an obvious target when they keep popping up in the news with major blunders, as was discussed in this prevent foreclosure post which featured the lender.

The latest example is of a California couple whose home was foreclosed on – unbeknownst to Chase – who owns the loan. The homeowner was actually on the phone with a Chase representative when the real estate agent knocked on his door to tell him his home had been foreclosed on the day before.

The homeowner’s response:

I literally handed the phone to him [the real estate agent= and said, ‘Why don’t you tell this guy from Chase?’

California has a pending law to help prevent foreclosures – and clear up some of the confusion around the situation.

Read more about this foreclosure loans legislation and how it is projected to help even more homeowners stop foreclosure.

P.S.: Start a Business Cleaning Foreclosed Properties. While the foreclosure crisis has been a nightmare for many, it has presented a perfect small business opportunity for others. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

Foreclosure homes for sale are all over the place now. And, many newbies are jumping into the market trying to capitalize – either as an investment or for their primary residence. But, just because a home is in foreclosure does not mean it’s going to be a steal.

There are three types of foreclosures. Following is what they are – and which one is the best bargain.

Foreclosure Homes for Sale: The 3 Types of Foreclosed Properties Explained

Preforeclosure Properties: As the name suggests, these properties are still with the owners; they haven’t been put on the auction block, so to speak. BUT, they’re headed there.

Many times, you can get good deals from owners who may be willing to do short sales, let you take over payments, etc. Of course, all of this has to be approved by the lender. Remember, until a home is completely paid off, it still belongs to the bank so you just can’t make a deal with the owner. You’ll always have to be approved by the bank as well.

Courthouse Sales (Sheriff’s Auctions): These are exactly what they sound like. The lender is selling the home at auction to the highest bidder.

Now even here, while there are deals to be had, it’s not as cheap as you’d think. Lenders put a home on the market starting at what’s owed on it usually. So, if a homeowner owes $150,000 on a house that he paid $185,000 for 10 years ago, for example, the banks starting bid will be $150,000.

You have to have your financing all lined up because if you win a bid, you have to pay up rather quickly. And, there’s no home inspection beforehand. This is why experts advise leaving these types of “deals” to those who know what they’re doing, eg, professional investors.

Otherwise, you could wind up with a lemon of a home, having to sink more in repairs than you bargained on. Not the best way to go if you’re a newbie.

Repossessions: If a home doesn’t sell at auction, it stays with the bank (the lender). Banks/lenders are not in the real estate selling business. They’re in business to loan money. It’s important to know this because they try to unload these repossessions (REOs, which stands for real estate-owned properties) as quickly as possible.

You can pick up a good deal here because number one, the property didn’t sell at auction. So lenders are more eager – which means they may drop the price, do special financing offers and even do repairs (just don’t expect cosmetic repairs). And another thing, you get to have an inspection here (unlike with courthouse sales of foreclosed homess, where the properites are sold “as is”).

If you’re new to buying foreclosed homes for sale, preforeclosure properties and repossessions are the ones to go after.

Foreclosed properties bought at sheriff’s auctions are just too risky. Learn more about foreclosure homes for sale for new investors.

P.S.: Start a Business Cleaning Foreclosed Properties. While the foreclosure crisis has been a nightmare for many, it has presented a perfect small business opportunity for others. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.