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Posts Tagged Foreclosure

The \’Truth\’ About Real Estate Preforeclosure Profits

Oct 4

Posted by admin in Real Estate

If you want to make BIG money in the Real Estate Business you must know the \’truth\’ about preforeclosures; not only do you need to know exactly what preforeclosures are, but you also have to learn how and when to invest in preforeclosures.

As an investor you\’ll have to understand and be up-to-date with the foreclosure laws in the state where you live.

A foreclosure takes place when the owner (borrower) is unable to pay his lender the monthly mortgage payments; the lender will notify the borrower and let him know to find the money within a specified amount of time (varies in each state) otherwise the lender will be forced to repossess the home and begin the foreclosure procedure.

The borrower will have to leave his home; more than that, he will not be able to save his credit for other purchases.

The lender will try to sell the home at public auctions for a price lower than the actual market value of the house simply because he wants his money back.

Sometimes the house sells quickly, but often the lender is unable to sell the house and it will remain unoccupied.

Hope you get the BIG picture about foreclosures. Now, you must understand what a preforeclosure is.

A preforeclosure happens before the foreclosure procedure has taken place. In a preforeclosure, you contact the borrower yourself and let him know that you have a serious investor who is interested in buying the home from the borrower.

The borrower has the advantage of receiving money from the investor so he will not be forced to leave his home and his credit will not be ruined.

The lender receives the rest of his money (the borrower\’s mortgage) from your investor. Once you resell the house both you and your investor will remain with a NICE profit.

In a preforeclosure, ALL involved parties benefit: the lender, the borrower, you and the investor. It\’s a Win-Win situation.

Most real estate agents want to keep the information above SECRET because you are \’stealing\’ the business from them.

One of the \’BEST\’ ways to make profits with preforeclosures FAST is by looking on the Internet for preforeclosure listings.

Sign-up with a service that sends you preforeclosure listings (lis pendens) You\’ll receive official notices when a NEW foreclosure process is about to begin. You will also receive information on the house, the names of the lender and the owner (borrower).

Make sure you CREATE a list of the homes you are interested in and start contacting each owner (borrower) by phone or e-mail. It\’s faster than by doing it in person.

Talk with each person in a serious and warmly manner, pay attention to their wants and needs. Let them know that a preforeclosure is really their \’BEST\’ option and provide your SUPPORT and help along the way until you successfully make the deal and beyond.

If they are happy most will tell others about your HELP (e.g. friends, partners, contacts, etc.) thus generating for you more loyal LEADS for future business deals.

Remember: be persuasive, kind and helpful to ALL serious people in the real estate preforeclosures business and you\’ll succeed no matter what.

- Copyright C Mike Upshaw

Mike Upshaw
http://www.BigProfitsInRealEstate.com

For a ** FREE *** mini-Real Estate E-course click here mailto:BigProfitsInRealEstate@getresponse.com

or send a BLANK email to BigProfitsInRealEstate@getresponse.com

NEW Real Estate eCourses (INSTANT Download!) offered:

Course #1: How To Make Big Money With Probate Houses
Course #2: How To Buy Preforeclosure Houses For Big Profits
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Course #4: How To Buy Bank Repossessed Houses For Profits

Writen By : Mike Upshaw

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The Legal Process Of A Florida Mortgage: A Few Key Points

Sep 8

Posted by admin in Loans

When you want to buy a home in Florida, there are laws regarding purchase that may differ from other states where you have lived. You should learn as much as possible about the legal process of a Florida mortgage. Doing so can help save you money and protect your rights.

When you buy a home in Florida, your agent must first present you with a Real Estate Transfer Disclosure Statement. This is a document that is completed by the seller. In this document, all elements of the property are detailed. For example, if there are appliances or alarm systems that are included in the purchase price, these must be listed. The condition of both the property as well as the house must also be listed, with particular mention of anything that may be a potential hazard.

Variable interest rates on mortgages are also subject to regulation in the state of Florida. For instance, if the mortgage you are taking out is large, you will be guaranteed a mortgage rate that is fixed. Also, interest charges can only be begun a day before the recording of the mortgage. Even if you receive the loan before that time, this is still the case.

Many other laws are in place for the protection of home buyers. One such law makes it illegal for a lender to charge points and fees that total more than 6% of the principal of the loan. Others protect borrowers from taking out a loan that is greater than they can afford to repay.

You may be eligible for a Florida FHA loan if you are buying your first home. You may even be able to get your down payment and closing costs covered as well. There are even some additional credits available for people employed in education. Qualified home buyers may be able to get an Interest Only PLUS mortgage that allows the buyer to pay interest only for the first five years of the loan.

You may be subject to foreclosure if you cannot keep up with your mortgage payments. In this event, you must be notified in writing ahead of time. You will then have a few different possible options. You can try to negotiate the situation with the holder of your mortgage. You can try to refinance or to sell your home. Note that refinancing may not be possible if you are not up to date with your payments and if the equity you hold in your home is not sufficient.

You can also attempt to fight the foreclosure process. When a foreclosure case is being fought, you are not required to make payments on your mortgage. At the very least, this can buy you some time to figure out a way to keep your home.

In some cases, it turns out that by filing a counter suit against the foreclosure, dishonest practices by the lenders come to light. In these situations, the lender may actually end up having to pay you damages. If you do find yourself in a foreclosure situation, you will do yourself a service by finding out as much as possible about your legal rights.

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The Legal Process Of A Florida Mortgage : A Few Key Points

Aug 30

Posted by admin in Finance, Loans

When you want to buy a home in Florida, there are laws regarding purchase that may differ from other states where you have lived. You should learn as much as possible about the legal process of a Florida mortgage. Doing so can help save you money and protect your rights.

When you buy a home in Florida, your agent must first present you with a Real Estate Transfer Disclosure Statement. This is a document that is completed by the seller. In this document, all elements of the property are detailed. For example, if there are appliances or alarm systems that are included in the purchase price, these must be listed. The condition of both the property as well as the house must also be listed, with particular mention of anything that may be a potential hazard.

Variable interest rates on mortgages are also subject to regulation in the state of Florida. For instance, if the mortgage you are taking out is large, you will be guaranteed a mortgage rate that is fixed. Also, interest charges can only be begun a day before the recording of the mortgage. Even if you receive the loan before that time, this is still the case.

Many other laws are in place for the protection of home buyers. One such law makes it illegal for a lender to charge points and fees that total more than 6% of the principal of the loan. Others protect borrowers from taking out a loan that is greater than they can afford to repay.

You may be eligible for a Florida FHA loan if you are buying your first home. You may even be able to get your down payment and closing costs covered as well. There are even some additional credits available for people employed in education. Qualified home buyers may be able to get an Interest Only PLUS mortgage that allows the buyer to pay interest only for the first five years of the loan.

You may be subject to foreclosure if you cannot keep up with your mortgage payments. In this event, you must be notified in writing ahead of time. You will then have a few different possible options. You can try to negotiate the situation with the holder of your mortgage. You can try to refinance or to sell your home. Note that refinancing may not be possible if you are not up to date with your payments and if the equity you hold in your home is not sufficient.

You can also attempt to fight the foreclosure process. When a foreclosure case is being fought, you are not required to make payments on your mortgage. At the very least, this can buy you some time to figure out a way to keep your home.

In some cases, it turns out that by filing a counter suit against the foreclosure, dishonest practices by the lenders come to light. In these situations, the lender may actually end up having to pay you damages. If you do find yourself in a foreclosure situation, you will do yourself a service by finding out as much as possible about your legal rights.

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Looking At California Foreclosures And Their Impact On The Golden State

Aug 25

Posted by admin in Personal Finance, Real Estate

When considering California foreclosures and how they affect California, consider how many different things had to have gone wrong for the Golden State to have ended up with the foreclosure issues it now is facing. Rampant speculation and unbridled exuberance masked the fact that the good times could not possibly have lasted forever, though many thought they would.

For around a decade, from 1995 to 2005, California experienced some of the hottest real estate market activity in the country. Before 1995, it was a fact that home prices most anywhere usually rose at a very steady and controllable pace. Indeed, homes were looked at as places where people tended to live and not just invest in and then take profits and move on from after a sale occurred soon after a purchase.

However, a new phenomenon began to emerge which eventually led to an increase in the rate of California foreclosures out in California. Many home buyers began to expect that they’d be able to pull large profits from a home not soon after its purchase. As a result, many began to over-leverage themselves by taking on equity lines of credit and second mortgages and the like.

It wasn’t uncommon during the 1995 to 2005 run-up in real estate prices in California to see buyers get into a home and get out a year or two later with a 30% return on their investment. Any person with economic savvy would have said that this wouldn’t have been able to last forever, but unbridled exuberance convinced many that it could, unfortunately.

Combine much of this over-exuberance for California real estate with the fact that many people were loading themselves up with much more home than they should have bought and it was easy to see that real problems might develop over time. A lot of people bought homes with initially-low payments on the expectation that they’d be out of those homes with a nice profit before those payments increased.

But that kind of formula (buying more home than could be afforded and taking profits before the monthly payments went up steeply) can only work as long as home prices continue to climb. It was inevitable that a recession would hit and one did in 2007, though California began to experience a softening of the real estate market in late 2005. Many people chose to ignore it, unfortunately.

Once Golden State property values started on a downward swing, that drop was only intensified by the fact that financial markets themselves tanked in late 2008. At that point, California foreclosures really began to increase as many home owners found themselves in even more dire fiscal straits than could have been foreseen at the time many of these homes were purchased, shortly before the recession.

What this rate of California foreclosures means for the Golden State is simple; a steep drop in home ownership, which means a commensurate steep drop in revenues brought in by municipalities and the state from owners of those homes (banks pay minimal property tax according to valuation of the property) and no end in sight, at present. Perhaps California can patch itself up soon, which is something many sincerely hope.

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How to Earn Huge Profits From Las Vegas Distressed Properties Auctions

Jul 20

Posted by admin in Real Estate

Buying Las Vegas distressed properties from auctions is one of the best ways to earn huge profits and ensure your future financial security. Maybe you have heard all sorts of negative stories that could dissuade you against buying foreclosures from auctions. But keep in mind that all the challenges you will encounter when buying from auctions can be avoided if you are fully armed with pertinent information about the process.

What is Foreclosure?
A foreclosure happens when homeowners are unable to pay their monthly mortgage payments despite repeated demands from the lenders. A certain period of time will be given to the distressed homeowner to find ways to pay his arrears and update his account. If he still was not able to pay his mortgages after the grace period, the mortgage servicer will be forced to take over the property, hence the start of the foreclosure process.

What is Foreclosure Auction?
The major reason why foreclosure auctions are held is to allow lenders to sell the repossessed properties and recover their investments. Many auctions are held in public locations and the properties auctioned off are priced way below their market value to attract potential bidders and to allow lenders to quickly dispose of the foreclosed homes to get back their investments.

Things to Consider Before Making a Bid:
Make sure that before you attend an auction, you have set your budget. The auction process moves fast and can be quite exhilarating. Setting a budget would ensure that despite the excitement going on around, you would not get carried away and bid on a property that is not worth the price you paid. Keep in mind that the higher the amount you bid, the lesser is your chance of earning a huge profit.

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Mortgage Modification Rejections Can Be A Good Thing

Jul 7

Posted by admin in Personal Finance

It’s just part and parcel of the mortgage modification process in 2010 – REJECTION! Lenders can’t deliver performance levels that satisfies anyone in spite of over two years of work and over eighteen months of financial incentives from the President’s Making Homes Affordable Modification Program (HAMP). Even well qualified applicants are getting rejected. Sometimes, more than once.

I’ve come to think that rejection is a good thing! Recently, I reviewed our files and in the past 6 months not a single mortgage modification was granted without first being rejected. Every one of the modifications I have completed for clients this year have been rejected before being accepted. Even when Trial Modifications were in place, rejection of the permanent Modification took place before finally getting approved. Several of the mortgage modifications I have successfully managed in 2010 were rejected as three times before being approved.

It’s hard enough to meet the challenging application procedures and follow-up effectively to keep your application on-track. To have to also escalate your rejections to supervisors, managers, Directors , Vice Presidents and CEOs and to contact your local congressperson, the regulatory agencies, the trade associations and even the press in order to get it done? This is tough stuff!

But, hey, quit with the whining! That is the way it is – so cope! You will get rejected for one of about two dozen common reasons. Sometimes I think they are posted as a type of “cheat sheet” on the computer monitors of new Loss Mitigation Agents. Things like “Your loan investor does not participate in modification programs”, “Failed the NPV calculation”, “Income too high”, “Your income is too low”, “You have too many assets”, “Your 4506-T has expired”, “Your Ratios are wrong”, “You did not provide updated docs”, “We need a note from your mommy (O.K., I made this one up!)”, and etc., etc., etc.

All of the reasons above can be valid. Sometimes they are. But, all too often, they are simply erroneous, and are the result of the lender having mismanaged the file or simply untrue statements that slow or end the application process if the borrower does not object. So, when you get rejected, press on. At least you’re not being ignored! Immediately demand (nicely!) an explanation of exactly why you were rejected. Go through several agents and escalate to a supervisor if you must to get the answer. Then, deal with it. Supply the missing document or sign the updated form or correct the data entry error on your income (No, it’s not $85,000 per month. It’s $850!) or do whatever it takes to get them back on track. You can request reconsideration when you submit the information or correction to the agent.If you have submitted a good and accurate application upfront, you will eventually be accepted and get the relief that the mortgage modification programs were intended to provide.

So, don’t be dicouraged when you get rejected for a mortgage modification. It’s significantly better than getting the dreaded “Your application is under active review and no further action is required of you at this time. Please call back in 10 days”. Oh, it’s even hard for me to write those words! Rather, take the rejection as encouragement that you are actually getting some traction and will likely get approved very soon. Takes a lot of perseverence, eh?

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Avoiding The Steps Leading To Foreclosure

Jun 19

Posted by admin in Loans

The last thing a homeowner wants is to be trapped in a foreclosure, but what usually occurs is that it catches them off guard, despite the warnings. No one plans in advance to lose his house; they always think they can buy more time to do something about it. But understanding how the foreclosure process works will help the borrower avoid it.

First of all, the borrower misses a monthly payment. Usually a notice or letter reminding of the due date will be sentout. In many cases, the homeowner can get the payment made, albeit a little late. If he still is not able to he should let his lender know as soon as he can.

If a second payment is missed, the bank will usually make direct contact. After all, they do not know if the borrower is sick or even dead and cannot respond to the notices. The worse thing to do is avoid these calls. Your lender wants to try to work out an arrangement.

If the homeowner fails to make the third month’s payment, the loan is now considered in default. Now, the borrower will receive a certified notice giving the borrower dates by which settlement must be made. The official title of this letter is a Demand Letter or a Letter to Accelerate; if the borrower ignores it, the foreclosure proceedings will begin.

Most borrowers have given up on their home once they have reached this point, but the bank is still willing to make an accommodation.

Once the homeowner has missed the fourth payment, the terms outlined in the letter to accelerate have expired and the lender has pretty much given up on the borrower. Lawyers are needed to draw up the official paperwork, and the fees of the lawyers will be tacked onto the borrower’s bills. The home will be placed on official sale.

The official date of the home foreclosure is this sale date. The lender posts the sale on the house, in a newspaper and by letter to the borrower. The homeowner can still reclaim his home, but at a very expensive level.

What do all of these steps tell us about the steps of foreclosure ? That until the very last instant, there is the time and the possibility to negotiate a solution with your bank. The most critical aspect of running into difficulties with your bank is keeping the communication lines open to work out an issue you both want to resolve.

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