Published on on January 24, 2010 and filed in the Foreclosure Info. category.
If you’ve been looking into investing in government foreclosures, you’re on the right track. As far as investing in property goes, you can’t beat the profit potential inherent in tax foreclosure properties. If you bypass the tax sale auction and purchase directly from the owners themselves, you stand to find some pretty good deals. (See http://deedgrabbers.com for more info on buying directly from owners.) However, even if you hate owning property, you can still get real estate sized paydays from government foreclosures a different way.
How? By focusing on the overages created at tax sale.
When more is bid for government foreclosures than is owed in back taxes, the government keeps that excess money for the owner to collect (this is true in most cases for both mortgage foreclosure sale, and tax foreclosure sale). If the owner never comes to get the money, after a few years the government gets to keep it. Unfortunately, since many owners have moved on from their last known address, they aren’t notified of the funds, and lose the money - permanently, with no recourse. That’s where you come in.
As a “found money pro”, or someone who researches these overages, you can easily make a six-figure income notifying people of the money they are unaware of. How? Two simple words: finder’s fees. Huge insider loophole: while in most states, state unclaimed funds have a cap to the percentage you can charge for a finder’s fees, most of these real estate created funds do not. This means that you can charge 30-50% (industry standard) for your assistance in recovering these funds. Is this ethical? Yes. Without you, 99% of the time, these owners will never find out about this money, and will lose it permanently. Most owners are more than happy to pay your fee and receive 50-70% than to receive 100% of nothing.
Especially in the current economy, more government foreclosures are happening than ever before. These overages regularly run into the tens of thousands of dollars. So for example, when you locate a $40,000 overage and get the owner under contract to allow you to assist for a 40% fee, when all is said and done, you’ll walk away with a $16,000 paycheck. Not bad for a few days’ work, is it?
So where to find records of these funds, and how to find their owners? Read the *free* Hooked On Overages “Insider’s Guide.” Visit http://HookedOnOverages.org now.
Or, learn insider deedgrabbing strategies from this *free* guide. Visit http://DeedGrabber.com now.
Published on on January 23, 2010 and filed in the Foreclosure Info. category.
<br /><br />The foreclosure market has created a niche of its own in the real estate industry. This is because of the abundance of cheap foreclosure homes for sale and the growing number of people who prefer to buy them because of their low market prices.<br /><br />The thousands of people who lost their jobs and subsequently their homes are unfortunate turn of events but they have opened an opportunity for many people to buy and own a home. This is especially true with first-time homebuyers who are given an opportunity to buy and own affordable houses. There are a plethora of cheap foreclosed homes on the market, but as with other major investments, there are pitfalls and knowing what they are and how to avoid them are important to protect your investment.<br /><br />Learning the Legal Ropes of Buying Foreclosure Homes:<br /><br />Not all states have the same laws when it comes to buying and selling foreclosure homes. Therefore, it would be a smart move on your part if you learn the laws on buying home foreclosure of the area where you plan to make a purchase. Ignorance of the law may cause you to make immeasurable mistakes that can cost you a lot. Try to research local laws on foreclosure on the Internet or in your local courthouse.<br /><br />Getting a Proper Assessment:<br /><br />One way to make sure that you are buying a good deal is to check the local property values in the area where the foreclosed house is located to get the actual value. If you have to, hire a home inspector to make a home assessment.<br /><br />Lastly, many foreclosure homes for sale are owned by banks, thus you can get a discount on closing costs. If it is owned by the homeowner, check if he is on the final foreclosure stage. Homeowners who are on the brink of foreclosure are desperate to sell their houses even at a very low price.<br /><br />
Joseph B. Smith has been educating buyers on the finer points of Foreclosure Homes for Sale at BankForeclosuresSale.com for over five years. Contact Joseph B. Smith through BankForeclosuresSale.com if you need help finding information about Foreclosure Homes for Sale.
Published on on January 22, 2010 and filed in the Foreclosure Info. category.
Flipping houses is a practice probably as old as real estate itself but have only been recently become popular again due to the plummeting home values. But this isn’t a get-rich-quick scheme; far from that. There are several risks involved in flipping houses and facing them with a plan is a must. And when you’re turning ugly Miami Beach foreclosures into a flock of splendid swans, remember these tips to avoid a flipping flop.
Have enough money
Aside from the money you need to buy Miami Beach foreclosures, you also need to have enough money for the repairs and upgrades. Right from the very beginning, calculate the cost of the property acquisition. When you are looking at foreclosures, in addition, assess how much you will need to make it snug again. There are several things that make foreclosures risky and that includes the amount of money you will need to renovate them. And when you see the property is going to be a potential money pit, it probably will be; take a gander at other properties.
Have enough time
Like money, you also have to invest a lot of time when flipping Miami Beach foreclosures, especially those that require more than the average elbow grease. Flipping houses, in general, is time-consuming. You should include this fact when you’re setting goals. Before you think about selling the property, consider putting a chunk of your time in fixing it. Nevertheless, time and money, when it comes to real-estate investing, are always related, so make sure you understand this concept before flipping the house.
Have enough help
If you’re good with a nail and hammer, you’ll find it easier to cut costs even by a tiny bit. Sweat equity brings a great relief from the wallet. But you must know that skills and knowledge, besides mechanical prowess, are also important when flipping houses.
Consider assembling a team that will help you finish your project on time. For instance, larger areas of the Miami Beach foreclosures that require attention will likely need professional help. Before you throw the idea of hiring a contractor for the job out of the window, consider the amount of time and, quite possibly, money you can save by letting a professional handle the work. If you are not confident with your skills, it’s best to clear the way for an experienced individual to handle the job, and oversee the progress closely.
Published on on January 20, 2010 and filed in the Foreclosure Info. category.
Foreclosures of residential houses have reached astronomical proportions in Oakland, California. Urban Strategies Council has been trying to chalk out a plan to help families from being evicted and becoming homeless. Junious Williams of the Council said, “We though we could intervene if we went upstream and could act preventively.” It is a non-profit group researching in the matter and trying to prevent the situation from worsening.
The council presented a project at a recent convention of advocacy and non-profit groups in tandem with Northern California Grantmakers. The plan was unique and simple – perhaps the first of its type in USA. The plan was to locate the households facing foreclosures – either owners or tenants having ARM mortgages that are poised to increase or those who are defaulting. From them get the information about the schools their children attend and use this has a vehicle of communication to pass on information of assistance to the families. The next step was to train the faculties along these lines so that families stay in their homes and the children do not fail to attend their schools.
The data was to be collected from First American Real Estate. Steve Spiker the technology director of Urban Strategies Council together with his colleagues was able to estimate from the information gathered how many pupils form Oakland Unified School District came from households facing foreclosure. The numbers reflected the gigantic proportions of the foreclosure crisis. 9% of the students from the public schools in this region numbering about 3,428 were under the cloud of foreclosure.
The activists located the students down to their schools and worked out a ranking of the schools having the highest number of households who were defaulting or who were holding mortgages that were poised to increase to high rates. From the schools the researchers got the information about those students who were regularly absent. This was from a previous study compiled by Urban Strategies Council. They now marked the schools that were worst affected. Striker said, “We know that foreclForeclosures of residential houses have reached astronomical proportions in Oakland, California. Urban Strategies Council has been trying to chalk out a plan to help families from being evicted and becoming homeless. Junious Williams of the Council said, “We though we could intervene if we went upstream and could act preventively.” It is a non-profit group researching in the matter and trying to prevent the situation from worsening.
The council presented a project at a recent convention of advocacy and non-profit groups in tandem with Northern California Grantmakers. The plan was unique and simple – perhaps the first of its type in USA. The plan was to locate the households facing foreclosures – either owners or tenants having ARM mortgages that are poised to increase or those who are defaulting. From them get the information about the schools their children attend and use this has a vehicle of communication to pass on information of assistance to the families. The next step was to train the faculties along these lines so that families stay in their homes and the children do not fail to attend their schools.
The data was to be collected from First American Real Estate. Steve Spiker the technology director of Urban Strategies Council together with his colleagues was able to estimate from the information gathered how many pupils form Oakland Unified School District came from households facing foreclosure. The numbers reflected the gigantic proportions of the foreclosure crisis. 9% of the students from the public schools in this region numbering about 3,428 were under the cloud of foreclosure.
The activists located the students down to their schools and worked out a ranking of the schools having the highest number of households who were defaulting or who were holding mortgages that were poised to increase to high rates. From the schools the researchers got the information about those students who were regularly absent. This was from a previous study compiled by Urban Strategies Council. They now marked the schools that were worst affected. Striker said, “We know that foreclosures are happening in largely low-income communities of color. And we know students in those areas generally have poorer educational outcomes.”
Thus the first step was collecting the numbers and honing in on the susceptible households. The next plan was the distribution of an informational brochure to the families but here the plan failed. The Oakland school district failed to distribute the same most probably for reasons relating to confidentiality. Striker explained, “The original hope was that it would go to every kid in the district. That would have been complete saturation from our point of view. We have opened up discussions around this with a few people to make sure it is getting used in the district.”
osures are happening in largely low-income communities of color. And we know students in those areas generally have poorer educational outcomes.”
Thus the first step was collecting the numbers and honing in on the susceptible households. The next plan was the distribution of an informational brochure to the families but here the plan failed. The Oakland school district failed to distribute the same most probably for reasons relating to confidentiality. Striker explained, “The original hope was that it would go to every kid in the district. That would have been complete saturation from our point of view. We have opened up discussions around this with a few people to make sure it is getting used in the district.”
Published on on January 18, 2010 and filed in the Foreclosure Info. category.
Facing foreclosure is a difficult and often painful experience. It can raise your credit score making it impossible to get another loan for a house or a car or any other big expense. It can drain a family financially and emotionally, as the family now has to find another suitable place to live. The longer a family is in the home, the more painful a foreclosure is because of sentimental value. It can especially difficult on children as they have attended the same school as their peers and it can be painfully difficult for children to leave their friends.
There is help for homeowners facing foreclosures, one option and probably the most important one are to contact the lender and explain your situation to them. When you contact the lender the lender can offer many choices for the borrower to make an educated decision about the next steps to take. Many homeowners think the bank does not want to deal with delinquent payments but in reality, banks are more than willing to work with people that have fallen behind on their mortgages.
One way to ask for help from the lender is to ask for a lower interest rate, this reduces the monthly payment significantly, another is to ask for the loan to be modified, in other words either by reducing the interest and or extending the life of the loan to reduce the payments. Extending the life of the loan can only work when the home is still worth more than the loan.
Another way is to seek counseling regarding debt control and or budget classes to gain a perspective on how much money is coming in versus how much needs to go out each month. There are several companies and organizations that offer counseling to get out of debt, one way to avoid a foreclosure is to set up a meeting to meet with a counselor who can help you design a budget while still making your monthly payments.
One final way to avoid foreclosure is to catch up on all monthly payments up to date; this will stop the foreclosure process and bring the loan current. Bringing the loan current has no effect on the credit score of the borrower and will show the lender that you are responsible and have taken the possibility of foreclosure seriously. The worst thing to do is nothing; not making an attempt will ultimately result in a foreclosure.
Foreclosure is a difficult and expensive process and the best way to avoid it is to acknowledge the problem and speak to a loan officer at your lenders office to keep the bank from taking your home. Losing a home can be painful and stressful to any family so the best thing to do is get some help with your budget and work with your lender to get back on track with your payments. Doing nothing will only allow the problem to get worse and foreclosure will ultimately happen to those that do nothing about the problem.
At 1st Foreclosure Prevention, we understand your plight and are willing to work with you to help you stop foreclosure by loan modification & loss mitigation processing with every option that is available to you.
Published on on January 17, 2010 and filed in the Foreclosure Info. category.
Quickly flipping property for profit was all the rage a just a few short years ago. With a bit of research and a touch of basic handyman skills, a beginner entrepreneur could easily find a fixer-upper in a decent location, throw in a few upgrades and some paint, and quickly offload for a generous profit. In the current volatile real estate markets of the US, quick flips by amateur investors are risky at best, and more than likely to get the average person into real trouble. Being that so many people are loosing their homes to foreclosure, the present situation begs the question of what is a good way to make money at real estate today? Identifying financially distressed properties and making your purchase when an owner is in the pre-foreclosure stage is the true way to profit at real estate flipping regardless of the current state of the real estate market.
Most people are somewhat familiar with what foreclosure means in terms of real estate, and it is a position in which no home owner ever wants to be. Pre-foreclosure then is the period initial phase of foreclosure and occurs when the borrower has not stayed current on payments and the lender initiates formal foreclosure proceedings. During this period, the current mortgage holder has a few options to rectify the situation, from refinancing to outright paying the loan in full or he/she has the option of getting current on payments plus any attached fees.
It’s highly likely that the current home owner of a distressed property hasn’t the means to do any of these things, otherwise the property would not be in distress in the first place. This is where you as a savvy investor and successful negotiator have a true opportunity to find a winning property on which to make some serious quick returns.
The most profitable properties are those in which the outstanding loan balance is less than the present value of the home, but finding such properties is not as easy at it may seem. Most troubled home owners are in their predicaments because they have borrowed more than what the property is now worth. Here are some basic steps for locating and purchasing homes in pre-foreclosure:
1. Locate Distressed Properties - There are various online services with sizeable databases to help investors locate properties that are in foreclosure. If you plan to work within the area in which you live, check county records of current home owners or regularly check the Legal Notices section of your local newspaper where information is often printed in regard to distressed property.
2. Contact the Current Home Owner - You can do this by a simple face-to-face contact with a knock on the person’s door, or you can take the cold-call approach. Your best bet is to contact the home owner with a professional letter, informing them of your knowledge of their predicament and some initial information on how you plan to help them. With the current state of most real estate markets, you could even blanket a whole area with these types of letters.
3. Calculate Your Costs - Find out if any liens or other mortgages are listed against the property. If so, avoid the property as you will profit little if any at all, but if not, go on with a good inspection/appraisal to determine the property’s current value. Ensure the present value includes enough equity to cover transaction costs, along with carrying and renovation costs. If you’re only going to break even on paper, you’re most likely going to end up in the red after the project is completed, so be careful. 70% of current value including all your costs is a good measurement since it gives you some leeway for fluctuations in the market.
3. Work Out a Purchase Agreement - If everything looks good and you want to go forward on the project, you have all the advantages since you will ultimately be aiding the current lender and the property owner when taking over a property in pre-foreclosure. The lender won’t have to go through a costly foreclosure process, and the current owner may be able to get through the whole ordeal with minimal damage to their credit and reputation. If you go with the 70% standard, you can include a bit of cold cash to sweeten the deal for the current owner, which is ultimately an even greater encouragement for him/her to more forward with the deal.
In the end, any form of investing is all about risk vs. return. So to minimize your risk at flipping property, ensure you do some good research into flipping pre-foreclosures. This is a sure way to profit in any real estate market.
Joel Henderson is an avid writer and passionate about real estate investing. You can read more aboutFlipping Real Estate Property for Profit at PropertyClimb.com.
Published on on January 16, 2010 and filed in the Foreclosure Info. category.
Home buying can be an arduous task even for the most skilled investors. Such difficulty is brought about by the economic slumps still present in most real estate markets all over the country. The real estate slumps also paved the way for an increased number of homeowners to engage in foreclosure or the real estate owned processes. If you are looking into buying either type of property, it is primarily important to distinguish the differences between these two dealings.
Here are some areas where the differentiation between a foreclosure and REO are eminent:
Ownership – a home under the former procedure is still under the control of the homeowner while the latter establishes the lending company or bank has all the rights to the property and can dispose of it in any manner. In addition, there are different stages in foreclosure. The homeowner can still engage in short sales, meaning the house can be sold for less than the remaining debt, however if the lender agrees to do so.
Process of sale – foreclosed properties are sold at public auctions. Once the lender seeks assistance from the court, the officer or sheriff announces that the home is open for bidding. REO properties are listed by the bank, thus any private transaction can be pursued.
Pricing – foreclosed properties are priced according to the amount equivalent to the outstanding loan as acquired by the delinquent homeowner. It should not also be more than the market value of the property. Reduced prices of such homes range from $30,000 to $250,000 depending on the condition, year of construction, facilities and appliances included and location of the property. The other type of property is relatively more expensive as the lender has full control in this matter. The lenders usually do not take offers below the list price in order to recover the losses immediately.
Condition of the property – both property types are most probably in good condition already before put out on auction or real estate listing. Both mechanisms provide funding for the property inspection and minimal repairs to attract as many potential buyers. On the other hand, some foreclosed properties are marketed as they were.
Lien attachments – both properties can be relieved of such obligations depending on the negotiations between the lender and lien holders.
Eviction – once again, foreclosure requires assistance from an officer of the court or a sheriff while the latter proceeds with the use of only a private eviction coordinator.
Further legal issues – foreclosure can either be judicial or non-judicial. The former empowers the lender to sue the borrower in case the repayment of the debt has not been completed. The non-judicial process allows the lender to take advantage of the clause contained in the mortgage document, saying “power of sale.” The property can then be enforced to be entered in the market without a court order.
Both properties have risks and advantages. The crucial success of buying either a foreclosed or REO property relies in your hands. You have to be adept in assessing an attractive auction bid or buyer offer. You have to be financially ready so as to easily respond to demands once undisclosed during the initial stages of the transaction. Also, it is important to always seek guidance from experienced real estate agents or other investors who are well-versed in either purchasing endeavor.
Published on on January 15, 2010 and filed in the Foreclosure Info. category.
Like other foreclosure market, Miami foreclosures also consist of three stages: pre-foreclosures, foreclosure and post-foreclosure. Out of the three, auction is the easiest and most accessible. Pre-foreclosures require experience; post-foreclosures need patience. Auctions, on the other hand, only require promptness and readiness. Here is a simple guide in surviving auction events.
Set the financing beforehand
If you think that pre-approval is useful only for traditional properties, think again. Miami foreclosures also require a pre-approved mortgage. Having one can help you avoid problems after winning a bid. So before you start looking at properties, invest a lot of time and patience in shopping for the right mortgage.
You will be hard-pressed in finding a lender that can provide the loan. Miami foreclosures are high-risk properties that many lenders stay away from. But with patience and a lot of determination—not to mention, sturdy financial help to back it all up—you will definitely find the financing you need.
Research the process
First-timers mustn’t be afraid of auction events. On the other hand, it is imperative to fully equip yourself with the basic knowledge of foreclosure auctions. Some things you must be ready for are: seasoned investors, cash (but other financing, like aforementioned, is possible), pre-inspection, lien and other money encumbrance.
Also, when you spot a property you want, remember to check the auction schedule and location. Regularly check this information as auction schedules are often altered without prior notice. This information is also available through the county clerk, or if you are attending a private auction, through a website or agency.
Set the bid amount
Now, this is the most crucial part. Set the amount too high and you’re at risk for overspending; too low and you’ll miss out on a potential bargain. Several factors play a major part in determining the bid amount. The baseline number, however, should be below twenty-percent of the total home value.
Once you are bidding, you can easily get caught in the frenzy, especially if there are plenty of other buyers vying for the same property; focus and you’ll be safe. Observe how others bid but don’t let their bid dictate yours. If the Miami foreclosures start to become a money pit, take a step back and think about your next move. Another property might be more advantageous, but that naturally depends on your willingness to give up your prior choice. Nevertheless, always remember to keep your cool.
Published on on January 14, 2010 and filed in the Foreclosure Info. category.
It is true that most of the people will seek a help of an expert that will assist them to avoid the process of foreclosure. The residents of Maryland are also finding a professional help that allow them to get rid of the process of foreclosure homes in Maryland. People would prefer to have a professional help because they are more aware about the ways that will help them to stop the process of foreclosure. Understanding your existing financial situation and spending capacity will allow you to organize a deal that will help to stop process of foreclosure homes in Maryland.
If you are facing the process of foreclosure homes in Maryland then you must try to discuss with your lending organization. Discussing with your lender is essential because it will allow the lender to understand that you are wiling to pay but the circumstances are against your thinking. This will help the lender to come up with a solution for you, which will avoid process of foreclosure homes in Maryland. If the lender has not heard anything from you for your miss payments then they may start the process of foreclosure homes in Maryland.
It is true that the process of foreclosure homes in Maryland will depend on deeds of trusts. They may either use a judicial or non judicial procedure for foreclosure homes in Maryland.
You will be happy to know that the procedure of foreclosure homes in Maryland will allow you to get a time line of ninety days, from the date your missed the first installment till a Notice of Sale is developed for you’re the date of sale of the foreclosed property. This means, the borrower has a period of ninety days to sell the house and repay the loan. During this period, if you are able to manage something that will clear the amount of loan then you will be able to avoid the process of foreclosure. Remember that a borrower in the state of Maryland does not have the right of liberation but are permitted for paucity judgments.
Published on on January 12, 2010 and filed in the Foreclosure Info. category.
The US economy is far from the recovery stage. There are still adverse currents on the “recovery path.” The primary reason is foreclosure. The government must be able to respond strongly to the crises. It must be able to wind up the emergency programs. This was revealed by Treasury Secretary Timothy Geithner. Geithner said that the real estate market is yet to recover. The Troubled Asset Relief Program (TARP) prevented complete meltdown. However, Geithner believes that the economy is far from the recovery stage. It may take a while for the economy to bounce back on the growth track.
There are still a few stumbling blocks in the path of recovery. These are the high rate of unemployment and foreclosure rate. Foreclosures are still very high in many states. The worst hit regions are Nevada, California and Arizona where many people have negative equity on their homes. That means they owe more on their houses than they are worth. Besides foreclosures, there is credit crunch in the market. Lenders are very hesitant to lend to people. The damaged securitization market is another stumbling block to recovery. The bail-out program has been extended for a year till October 3, 2010. However, the program will be phased out soon after that. He defended the extension of the bailout program by saying that such policies that help to contain crises must be continued for a while. Then only it would have significant impact. In 2009, Congress approved a US$700-billion program to help buy toxic assets from banks. The funds thereby created were injected into sick banks as capital. Now the biggies in the financial market are keen on exiting TARP. They wish to repay their money so that they are free from all restrictions. The Bank of America Corp had sent Treasury US$45-billion cheque. Citigroup, too, is also negotiating with Treasury for payment. It is worth mentioning that Citigroup received US$45-billion in 2009.
Geithner observes that banks are returning TARP money faster than expected. That will generate “substantial income” from the sale of warrants. TARP would be extended to help the government cope with the crisis.
Experts are of the opinion that unless the employment scenario improves, the economy will not recover. Initially, it was the subprime loans that caused the crash in the real estate market. Now, it is unemployment. As people lose jobs even those who had always been regular in mortgage payment faltered, triggering off foreclosures.
