Monday, March 17, 2008
Monday, March 3, 2008
It is really no secret that homeowners are often cajoled into agreeing to expensive payment plans or selling homes that they have worked their whole lives to purchase, simply to keep themselves out of foreclosure and pay the lender several thousand more dollars to keep their homes for a few more months. They are threatened with the impossibility of getting a loan after foreclosure or even being able to rent an apartment in many cases. But is it really a drawback for former homeowners not to be able to enslave themselves to a corrupt banking industry propped up by theft through government inflation?
Obviously, having a low credit score is entirely irrelevant to the person who relies only on himself to pay his way through life. Maintaining a great score in order to be able to increase limits on credit cards, buy homes with subprime adjustable-rate mortgages, and get a shiny new car every two years purchased with the money of others should not create a strong desire on the part of homeowners who have previously found themselves in the credit trap.
So, on the one hand, many homeowners will simply want to unplug from the system entirely, and live a voluntary life of sustaining themselves through their own efforts and productive work, while living within their means. Living independently without a credit score and credit history to worry about can be extremely fulfilling.
But on the other hand, there is also a privacy concern for many people, who do not want just anyone to be able to pull their credit, see that they have had a foreclosure, and send them unsolicited mail for more low-end credit. Thus, removing the foreclosure and as much negative information as possible may be a worthy goal for homeowners, to sanitize their credit report and move on without its use and without worrying about the past.
There are really only two ways to get a foreclosure off of a credit record. The first is relatively easy but takes a long time, whereas the second is quite difficult but can be result in the immediate removal of foreclosure from a credit report.
The first option every foreclosure victim has is to wait the 7-10 years (depending on all the circumstances, state, etc.) for the foreclosure to drop off of the credit report automatically. The credit agencies may keep reporting it after this period of time, but a few letters can have it removed after the time for its reporting has expired. In the meantime, the homeowner who does not wish to use credit any longer will simply have to wait it out. For those who do wish to keep themselves chained to the debt machine, even after foreclosure, the best thing to do may be to focus on building new, better credit records and put some time between themselves and the foreclosure. New lenders will give an old foreclosure less weight than 5 subsequent years of on-time payments, for instance.
The second way is to have the original lender remove the record from the credit report. Obviously, this is much more difficult than waiting nearly a decade, and lenders are not too willing to do this. However, it can be done the same way that consumers clean up their credit reports every day in other circumstances. Just dispute the debt, threaten the bank, sue the bank, sue the credit agencies, file complaints with regulatory agencies, and so on, until they realize that it is just easier to get rid of a crazy person by removing the foreclosure, rather than spend more time and money explaining its existence and accumulating complaints. Playing this role can often be very entertaining and enlightening for those cleaning up their credit reports, because they will experience first-hand how the bureaucrats and banks work together hand-in-hand against the average person.
Another tactic that homeowners may want to consider is emailing every single employee/officer of the bank whose email address they can locate and informing them that the complaints, letters, and negative press will continue until they remove the listing. Some lenders even publish company directories with email addresses of presidents, VPs, and directors. Again, there are no guarantees and this process is not easy, but the lender may eventually give in and remove the foreclosure or account altogether.
But it is completely up to the mortgage company as to what information is reported to the credit agencies. Especially if they have made some mistakes/violations, there is a good reason to start complaining and disputing. And all banks violate rules and laws all day, every day, because there are simply too many laws that contradict each other. It takes literally months for any of the disputes to be resolved, but this is significantly less time to worry about a foreclosure than waiting nearly a decade for it to drop off of the credit history automatically.
The ForeclosureFish.com website has been created to provide foreclosure help and information to homeowners in danger of losing their homes to the bank's lawsuit and county sheriff sale. The site contains descriptions of various methods to save a home, including short sales, bankruptcy to stop foreclosure, mortgage modification, and more. Visit the Foreclosure Fish website today to begin learning more about the legal process of foreclosure, as well as what options you may have to stop it before it is too late. Also download a free e-book explaining the basics of foreclosure: http://www.foreclosurefish.com/
Posted by William Coit at 8:36 PM
When most people think of bankruptcy, they think of a Chapter 7 Bankruptcy. A Chapter 7 is when the court seizes assets and eliminates the associated debt. This type of bankruptcy can stop foreclosure, but most people want to keep their home. This is where a Chapter 13 bankruptcy can help. A Chapter 13 bankruptcy allows the homeowner to keep their home and establishes a repayment plan with the lender. During the Chapter 13, the homeowner will not have a lot of extra money, but the court will make sure they are left with enough to live on and pay their bills. A Chapter 13 bankruptcy gives the homeowner a chance to get their affairs back in order and the time needed to recover from the hardship.
Bankruptcy has been a somewhat negative topic with homeowners, but bankruptcy was designed to help people through a hardship when they have nowhere else to turn. In my experience, this is exactly the situation foreclosure victims have found themselves in. We have been brought up to believe that we should always pay our debts and to not pay for our debts is shameful. This is one reason people have such a low opinion of bankruptcy and the people who file it. But bankruptcy is a legal option that was established to help those in need. It is not shameful to file a Chapter 13 bankruptcy. It shows that you are responsible for your debts and you will do whatever it takes to pay them.
Another negative aspect of bankruptcy is that it causes a drop in credit score, but when someone is facing foreclosure, their credit score is already very low. In reality, a bankruptcy could improve a foreclosure victim's credit, or at least speed up the recovery process. The bottom line is: when a man is faced with losing his home and moving his family into the streets, he should embrace the legal system and take full advantage of any assistance it can offer.
A Chapter 13 bankruptcy is not the only option to stop foreclosure, but it is considered one of the top ways to stop foreclosure and it can be considerably less expensive than other alternatives. When compared to other options, such as loan modification, refinance, or forbearance agreements, bankruptcy is easily the fastest and most reliable option when it comes to saving your home from foreclosure.
If you are facing foreclosure then you owe it to yourself and your family to speak with an attorney and discuss the option of bankruptcy. Your initial consultation should always be free and you should never work with an attorney you do not trust, so feel free to meet with several attorneys before you make any decisions. Bankruptcy is not for everyone, but it has helped many families save their homes from foreclosure and gives them the second chance they are desperately looking for.
The ForeclosureFish website has been created to provide homeowners with mortgage foreclosure help and resources that are designed to educate them on how foreclosure works and how it can be stopped. The site contains descriptions of numerous foreclosure solutions that may be applicable, including bankruptcy, short sales, loss mitigation, and more. Visit the site to read more about the foreclosure process and how to avoid losing your home before time runs out: http://www.foreclosurefish.net/
Monday, February 18, 2008
Often wonder why some houses can have a number of showings after its first week on the market, and similar ones seems to be left with no attention? A quick sell of a house is common enough to be expected by home sellers, but rare enough to remain a phenomenon in the market. It’s really a question of readiness – the houses being sold quickly are more well prepared to accept a new resident. Surely price and location is the major reason a house can appeal to home buyers, but there’s also more than meets the buyer’s eye. Here are some quick sell tips to make sure your house reaches that contract as soon as possible.
(a) Get a top-quality, state-of-the-art real estate agent. Sounds obvious, but the better qualified your agent is, the more experienced they are and the more guarantee that your house can be a quick sell
(b) Play the role of a buyer. Observe your house in the eye of a potential customer. Is there anything you see that makes you think “This is good, but it looks like they’re still working on that...”? Ask your friends or neighbours to do the same if necessary.
(c) There’s one sure-fire tip to get your house quickly noticed, and that’s putting out the heaviest advertising campaign you can manage. So many houses are being sold daily, how do you make sure the buyers would even see your home? Quick selling houses are results of excellent marketing skills.
(d) Offer incentives. When it’s time to take any means necessary, start negotiating extra perks to your buyers to lure them even more. A closing-cost help, for example, would motivate the buyers to speed up the decision to buying your house.
(e) When all else fails, and you’re starting to get really desperate, you might want to try renting your house. Afraid of never getting it off your back? Discuss with the renters that your initial need is to sell the house. A rented house with an option to buy is also a good idea
Some would tell you that quick sells are by means of luck. Though this is inevitably true, waiting for luck will do nothing to speed up the process. Preparation, preparation, and preparation are the three things you most need to ensure a quick sell.
home selling contract
When it’s time to finally seal the deal on your home selling, it’s time to take out the contract. Since it’s the document that will supposedly ends the process, it’s very important for home owners to understand the components of a real estate contract (even more if you’re selling the house on your own). Remember that even the contents in a contract is negotiable, so getting to know home selling contracts would put you in a better position for further discussion. You would also have less risk of being scammed by random contracts offered.
Although not all home selling contracts follow the same standard, most of them should answer the following questions:
· What’s being sold? A description of the property on hand
· How much is it?
· How is the contingency of mortgage? An amount or a mortgage rate is needed.
· How much will the deposit be and whom will it be given to?
· When and where is the closing?
· What is the exact scope of the selling? A home selling contract, in its essence, should give a firm limit of what’s being sold and what’s not.
· Will the seller be able to do further home inspections?
· What kind of inspections (wellness, hygiene, termite inspection) will be done?
· Is there any insurance covering the house?
Once again, remember that familiarizing yourself with these points will prove useful for those suspicious clauses. Pay extra attention to the contingencies, as this is usually the most essential part of a home selling contract. The home buyers would want to make sure that if something occurs in the house before closing, they would have a way to back out without penalty. Make sure that you as the seller is equally unharmed by this.
The tough job is, even after you understand the main elements of a home selling contracts, you might experience difficulty in designing one for your transaction. Once again, it’s good to let your agent deal on these things, but if you’re selling your home on your own, do some research. Some websites could give you a format of a contract that you could use for self-selling that will not lead to detrimental effects. It’s very important to hire an attorney to help you get through the legal terms in contracts, especially when you chose not to hire a real estate agent.
At this moment, everything comes so fast. Everyone wants everything done fast in order to save time and money. But, not everything fast can give a better result and save more neither money nor time. Selling home fast is not an easy way but still possible to do. Selling home fast can be done with the help of the professional since we do not have the expertise in selling home.
There are many reasons why we want to sell our home fast, but do not make those reasons become barriers in selling your home fast. But, make them as an encouragement to you to selling your home fast with big effort.
First thing to remember in selling home fast is point out the very best part of your home to the customer. Make your home looks great and attractive. If you can make your home looks attractive and show it good to the buyers, the result will be much better than it should. Then, you will be asking how to make it looks attractive to the buyers while i already think that my home is attractive enough without costing much money.
If you want to sell your home fast, you will need some help from the professionals. To make the inside of your house is attractive; you will need to hire an interior design to create a lovely view of your home. A well-decorated will sell faster and for more money than one that does not well-decorated.
You will also need to hire the organizer to organize your home and storage such as bathroom, basement, garage, closets, and attic (if your home has one) so that your home will look organized and clean and tidy.
After your home is in its best performance, you can also hire a professional photographer to take some great pictures of your home. Why do you have to take pictures of your home? Because nowadays, lots of homebuyers, look for houses in the web and in that web you can put your home’s pictures so that the buyer can take a first look of your home. Remember that first impression is an important thing, how can you sell you home fast if your home itself does not look attractive on the web. Generally, if the buyers do not attracted to your home on the web, there will be little chance that they will be willing to see your home.
Make sure that your home is termite free, and has a good plumbing; water quality, lead, radon, septic tank, asbestos, electricity. You have to make the inside and outside your home is freshen up. After all those things set, you can start to make an “open house”. Open house should be scheduled on the time in which your home shows its best performance or condition. For example, if you have a beautiful garden, show it off during the morning before the flowers start to wilt. If there's one thing that you love most about your home, be sure to share it with potential buyers.
Selling home fast is not an impossible thing to do. But yet, you still have to spend extra money to hire design interior, home organizer, professional photographers, and other expenses. But those expenses really worthwhile compare to the money that you will get. Hope that you can sell your home quickly.
Tuesday, January 29, 2008
Investing in foreclosure homes is a great way to earn a lot of money. If you find the correct house from a list of distress homes, you will walk away with a favorable profit. Because of this reason, many people have begun investing in real estate. If you do not recognize investing in real estate a business, you will not do well. Understand that there will be hazards involved, much like any other business. Knowing the laws is the first step towards minimizing these hazards.
The procedure of purchasing a distressed home is governed by many laws. Depending on which sate you are in, these laws will change. Things that are not permissible in one state may be permissible in another. The ability for an owner to reclaim their property within a particular time period is granted in some states. As the investor of a foreclosure home, you run this chance. If you are looking for advice regarding the laws in your neighborhood, you must call the local clerk's office. This is the best place to find advice on the guidelines you are required to follow for investing. Although they are unable to give you any legal advice, they will be more than happy to tell you the method you must follow. It is imperative that you follow these steps. If you decide not to do so, you may lose your property.
If the owner misses payments, finance companies have the choice to foreclose on the property. As soon as the loan is declared as being in a state of default, the finance company will usually step in to reclaim the foreclosure homes. The highest bidder will then pay for this property at a sheriff's sale. In most cases, these distressed properties will sell at about two thirds of their appraised value. You can often find great reductions at these sheriff's sales.
The next step is deciding what to do with the property you have successfully bid on. If you are feeling industrious, you can flip the home. This means that after you make a few patches, you can put it back on the market. Another choice would be to keep it as a rental property. You may want to become a landlord, in which case it will be your pledge to maintain the property. Other costs will include insurance and taxes.
In order to sell a foreclosure that is real estate owned, a finance company will collaborate with you to avoid a sheriff's sale. There is no value in a vacant lot. The bank would prefer not to have a catalogue of properties on record.
Receiving a return of ten percent on a property is considered ideal by most investors. Less than thirty to fifty percent is considered inadequate by others. Before you can determine whether or not a property is a suitable investment, you must figure out how much the property will generate. A bad investment may be more expensive than it is worth, therefore, one must be very cautious. It is not in your best interest to buy a home in a neighborhood where a comparable home took more than a year to sell. That property would never generate a reasonable profit.
As you invest in foreclosure homes you will gain experience that will help you recognize good and bad properties. You will learn how to recognize the good areas as you begin to comprehend the market. If you find a marketing niche that suits you, you can potentially boost your profits. Some people refuse to buy homes that wouldn't interest seniors. Others insist on buying multi-family properties. The ruling is yours to make.
The stormy USA real estate market has a silver lining, and represents a golden opportunity for foreclosure investors and individuals looking for cheap houses.
Foreclosure is a legal process that happens over a period of several weeks and begins when a borrower fails to make timely mortgage payments. The lender has the right to take possession of the home and sell it to pay off any outstanding debts, and the final outcome of this procedure is usually a public auction to the highest bidder. Fueled by the subprime mortgage crisis, millions of loans have gone to the foreclosure auction block and are now offered by banks and mortgage lenders desperate to unload them in order to avoid greater financial losses.
But today's crisis is a rare opportunity for both investors and those individual homeowners who want to just buy a good house at a great price. A perfect storm of economic factors has combined to create the most remarkable foreclosure market in American history, and the chance to buy properties at bargain basement prices has never been better. Plus, the selection of single-family homes, condos, and miscellaneous income-producing rental properties includes all price ranges and stretches to neighborhoods throughout the entire USA.
Homeowners are not the only ones who lose equity when foreclosure happens. Banks and mortgage companies who get stuck with repossessed properties can rack up losses of as much as 50 percent.
Rather than accept severe losses and assume the responsibility for being a landlord for a repossessed home, lenders are usually eager to sell as quickly as possible. In the current sluggish sales environment that translates into wholesale or below-wholesale prices, and investors who know how to locate properties undergoing foreclosure can realize lucrative gains by buying distressed properties directly from banks.
Best of all, many foreclosure homes are in pristine condition and have tremendous potential market value. The only problem is that their owners are carrying more debt than they can handle. Because the current mortgage crisis is affecting people within every demographic - including many in the upper echelon - foreclosures run the gamut from studio lofts and starter homes to executive penthouses and mansion estates. Forbes Magazine featured a cover story about one foreclosure investor, for example, who only deals in luxurious homes valued around $500,000. He buys them, advertises them, and then "flips" them for fast profits, sometimes doubling his money.
There are no get rich quick methods, but smart, hardworking investors willing to do their research can certainly make money in this kind of market. The first challenge is to learn the ropes while avoiding common mistakes. One popular educational resource for newcomers wanting to enter the foreclosure arena can be found at the Web site www.ForeclosureProfitFinder.com, where a comprehensive "how-to" investment training course is offered.
Visitors to the site can first sample a free report, "7 Foreclosure Secrets", which provides insight into foreclosure investment and provides professional tips on buying property without using your own money or personal credit. Especially in today's tightly restricted mortgage climate, information like that can be invaluable. In fact, much of the housing trouble is related to consumer mortgages that were advertised with low introductory rates, or so-called "teaser" rates. Millions of buyers used these cheap loans to buy houses they could not actually afford, and planned to sell or before the rates rose. But when the housing bubble burst these borrowers were left holding the bag.
Within the next 18 months, approximately 2 million adjustable rate loans will "reset" to higher rates, and many homeowners will suddenly see their monthly payments double. With home prices sinking, vast numbers of consumers cannot qualify for refinancing and now owe more than their property that it is worth. With no way to sell or refinance to pay off their debts, scores of homeowners are defaulting on loans and their houses are entering foreclosure.
Getting educated about foreclosures from sources like ForeclosureProfitFinder.com is, in itself, a solid investment. Economists predict that if housing prices drop another 30 percent, an estimated 20 million more homeowners will be left "upside down" in their loans. But for those who know how to find and invest in foreclosures that scenario could generate the buying opportunity of a lifetime.
The foreclosure investment market is primed for success, whether you are interested in finding a primary residence for yourself and your family, a second home to use as a vacation home, or a property you can rehab and then sell for a profit. Avail yourself of training resources and updated data, invest wisely, and then take advantage of a rare opportunity while there is still time to capture high yields with a minimum amount of effort.
These five methods are commonly used and not brand new techniques.
1.Lines of credit
2.Hard money loans and private money loans
3.Debt and equity partners
4.Standard mortgage financing
5.Broker and investor program
Lines of credit- Remember that you could easily get a line of credit on your own home and use that to make money. Don't overlook major credit cards as a source of funds but realize that the rate of interest will be higher than a home line of credit. A home line of credit is a second mortgage. The lending institutions will sometimes allow you to borrow more than the value of your home. This type of financing is really effective for short term loans.
We have have used home equity loans for a number of years for investing as the interest is tax deductible.
Hard money loans is money loaned from a private individual or individuals. They frequently like short term loans as their money keeps turning over. A major advantage of using this type of loan is that the money can be available in as short a time as 2 weeks. Check your local newspapers or join an investors club and you will find this type of individual.
Debt partners are excellent sources of revenue if you don't mind sharing the proceeds. This is one of the best ways to start your investing business. You do the leg work and join with a partner to supply the money.
Using standard mortgage financing hardly needs much space here. We are all aware of what it takes to get a standard mortgage so we won't dwell on this phase.
A mortgage broker will match borrowers and lenders. They work with several different lenders so they the ins and outs for the particular type of financing you are looking to arrange. They normally charge 1 point (1%) for their services. A good mortgage broker is worth his weight in gold!
A good broker will make the difference between making profitable deals or not. Work with more than one broker. It will pay off in the end. A good broker can get the correct financing moving from a short phone call.
As shown above it doesn't take a lot of money to get started in buying and selling real estate.
Dive in and go for the gold!
Ray Caran has owned and operated a multitude of businesses over the years. He has been buying and selling real estate for over 20 years. For more tips go to: Property Money Making Secrets.
To subscribe to his free opt-in email go to: Property Money Making Secrets and you will never miss an exciting issue.
Article Source: http://EzineArticles.com/?expert=Ray_Caran
Saturday, January 19, 2008
How does a foreclosure effect your credit report is a perplexing question. This is because Fair-Isaac Company, who started the credit scoring system, will not share this information. What complicates the issue even further is that all the credit information reported is calculated into the individuals' credit score as it occurs. The credit score is updated instantly whenever there is an inquiry, otherwise it sits waiting for some person or institution to access it.
To get negative information on your credit report concerning a foreclosure, the homeowner must not have paid his mortgage or loan payment for 30 to 90 days. So to begin with, his score is decreased by the late payments. Usually, the homeowner is also late on other bills because of his financial crisis and has additional late payments, collections, or judgments. So if he had his credit pulled on a specific date before he started his personal financial decline, he would have seen one score (i.e. 680). The next time he pulls his credit report, after he has been served with his foreclosure notice or even after the foreclosure is completed; he sees his new score (i.e. 450). He is probably shocked and dismayed, especially when he realizes how much more interest the lenders want because of his low credit score. For example, an auto loan to an "A+" credit customer could be 0% interest while for a "D" credit customer, it could be 11% or higher. What does that actually mean? It means that the "D" credit individual will pay $5,500 to $8,000 more for the same car as the "A" credit buyer! The collateral for the loan is the same car, so the "D" credit person is unfairly penalized for his credit situation.
Your credit score "before and after" the foreclosure is no conclusive answer as to how much the foreclosure has hurt your credit report, but it is an indication. Homeowners tend to believe that once they have had a foreclosure they can never buy a home again. This is absolutely untrue, as we see people buying homes within a year of losing their previous home. They will have to pay a higher interest rate unless their down payment is substantial, usually 15% to 20% of the purchase price. But this sizable down payment is often obtained from friends or family members and carried as a second lien on the property. Also the credit score reduction for the foreclosure is reduced as time goes on, until it settles at a minimal number after a few years.
The foreclosure's immediate impact on an individual's credit report is estimated to be about 100 to 140 points. The bigger impact is from the late payments on other bills which quickly mount up. Doing a "deed in Lieu of Foreclosure" with the lender reports the same as a foreclosure. It is generally believed that a foreclosure stays on your credit report for seven years, but it can stay on longer because it is part of the public record, which could be open for 20 years. So make certain when you do your credit restoration you have it taken off, if it isn't removed automatically.
Dave Dinkel is the author of "32 Ways to Quickly Stop Foreclosure" and has been helping foreclosure victims for nearly 33 years. If you are facing foreclosure, visit http://www.StopMyForeclosureMess.com. The author also teaches homeowners how to get the most money for their home - visit www.FSBOautopilot.com for more information.
Article Source: http://EzineArticles.com/?expert=Dave_Dinkel
It's so easy to fall into the trap of thinking that after a foreclosure, your debts have been wiped clean and you can start over again. But, it just isn't that easy. Any time you have been forced to file for bankruptcy because of your financial difficulties, your credit rating has been damaged. Credit repair after foreclosure is possible, but the smart consumer will also take steps to monitor his spending so as not to fall into the same trap again a few years down the line.
The steps to begin to rebuild your credit after a foreclosure are quite simple, but it isn't always easy to get into the habit of doing them. Still, it is imperative that you attempt to put the following into practice -
- Create a family budget, and then stick to it - no exceptions!
- Don't let anything stand in the way of you paying your bills on time.
- Get some professional help in managing your finances.
The last item is the one that many people seem to have a problem with. The common consensus among family members is usually that it's easy to handle this new plan of living within a budget themselves. You will need to stand firm and ignore all protests, for if it were that simple, you would not be in the situation you are in right now.
Taking Your Time Pays Off
You are not going to be able to do all of this overnight. This is where the plan of receiving counseling can pay off in a big way. Counselors will allow you to talk it all out, and perhaps you can better understand how you and your family managed to get into the habit of throwing caution to the winds and overspending. Credit counselors will also impress upon you the importance of repairing your credit, and how vital it can be to your future.
Poor credit can keep you from getting a good mortgage rate should you ever want to buy a home, which is the dream of every American family. It can affect your chances of getting a better-paying job, or stop short any prospect of getting a promotion in the career you already have established. Yes, your employer can and will check your credit record! Many people are surprised to hear this, but poor credit has kept many an enterprising soul from being offered a promotion that could make a world of difference to families' finances.
And, how about that new car you have your eye on? Unless you can get your budget established and your credit straightened out, you can kiss goodbye the chances of getting it financed at an agreeable rate. You got into debt for reasons that seemed right to you at the time. Now, with the aid of credit repair after foreclosure, you can smooth out your mistake and plan for the future with a smile of confidence.
Not sure what your credit score is? No problem obtain a TRW free credit report by visiting http://www.creditreportguideonline.com, a popular credit report site that provides advices, tips and resources including information on applying for a bad credit history loans quickly and easily.
Article Source: http://EzineArticles.com/?expert=Ann_Richter
Monday, December 31, 2007
Cancun has some of the world's most scenic white sand beaches with crystal clear waters of the Caribbean Sea . This made Cancun, the top tourist destination in Mexico . Coupled to this, friendly Latin people and the vibrant culture of Mexico attract more and more tourists to its shores. No wonder that there is an excellent opportunity for investing in Cancun Real Estate.
Real estate industry is experiencing a boom in residential sector and it is estimated that it will continue for at least next 5 years. Many new developments with excellent facilities and attractive offerings are coming up fast in Cancun and its surrounding areas.
Cancun has many other factors going for it. It is also rapidly reinventing itself as the major centre of business in the region with newer and bigger shopping, services, businesses and distribution centers coming up quickly. Since the economic growth of Cancun is attracting more investment and business is growing every passing year to the area, Mexicans and visitors keep returning to Cancun and many of preferring to buy to second home.
This has made Cancun one of the most preferred residential tourist destination in Latin America, therefore it offers ample opportunity for investing Property in Cancun! Nowadays, with people opting for high-end luxury residential tourist condominiums and mega developments, the sun is really shining brightly on Cancun real estate market.
There has been never been a better time for those really interested in Cancun real estate investing to cash in on this boom. It's not a big secret that pre-construction luxury condos in Cancun give the best returns. More often then not all the condos get sold even before they are full complete and are available only high prices thereafter.
In addition, according to AMPI (The Mexican Association of Real Estate Professionals) this year the amount of Americans and European buyers has increased dramatically in the Mexico, which is further indication that this is the best time ever for Cancun real estate investing.
Tom Budniak operates, owns, and manages Realty Executives Mexican Carribean here in Cancun, Mexico. For the best deals in Cancun Real Estate, contact Tom Budniak. Check out all of the resources available through Tom and Realty Executives Mexican Carribean for the best deals in Real Estate in Cancun. Tom is a Certified Member of RMRE and MLS 4 Riviera Maya.
Article Source: http://EzineArticles.com/?expert=T._Budniak
Thursday, December 13, 2007
If your adjustable rate has pushed your mortgage payment to unaffordable levels, you may have some relief. In response to the crisis of people facing default on their home mortgages because their adjustable rate mortgages are no longer affordable, the Federal Housing Administration is coming out with the FHA Secure Refinance Program.
The new FHA Secure program would help home owners who have fallen behind on their home mortgage and are possibly facing foreclosure because of their new higher monthly payments. The new program would allow the delinquent home owners to refinance their Adjustable Rate Mortgages into a fixed rate FHA loan. The FHA Secure program is intended to help homeowners that may have been tricked into expensive Adjustable Rate Mortgages with teaser interest rates. If you qualify for an FHA mortgage your loan will be funded by a conventional mortgage lender.
Remember, FHA mortgage loans are insured by the Federal Housing Administration. The FHA does not lend money; they simply insure your debt with an approved FHA lender.
Because your mortgage is insured against default by the government, FHA loans offer significantly less risk for lenders, allowing homeowners, even those with poor credit, to qualify for lower mortgage rates. The FHA will accept homeowners with blemished credit… especially if you are working on improving your finances and can document your current situation. In the past, the FHA has not required borrowers to have a minimum credit score. Instead, they have focused on one's overall credit history.
Therefore, it may be possible to qualify even though you may have a low credit score, perhaps 500 (or less). If you are a homeowner with tarnished credit and are concerned that the current “mortgage crisis” will prevent you from refinancing before your lender begins adjusting your interest rate and payment amount, FHA backed mortgage refinancing could be your answer.
Apparently, the FHA's focus will remain on looking to the good credit profile of applicants rather than a credit score, And, until now, the FHA has not permitted delinquent borrowers to qualify for their loan program.
To qualify, you must show….
-That your loan is a non-FHA ARM.
-A history of on-time mortgage payments "prior" to the borrower's ARM loan resetting to the higher rate.
-The Arm loan interest rate must have either reset or be scheduled to reset between June 2005 and December 2009.
-Mortgage late payments are allowed after the reset date if they are directly related to your higher loan payment. In addition, if you are in a mortgage payment plan because of late payments and there is sufficient equity in the home, the late amounts can be rolled into the new loan.
-A minimum of 3% cash or equity in the home.
-A sustained history of employment.
-Sufficient income to make the new mortgage payment.
While the new program will help those borrowers who qualify save their homes, it is obviously not a free ride. It is designed for homeowner's who just need a little assistance in order to get out from underneath expensive ARM interest rates.
The FHA will not insure interest-only or Pay Option ARMs; and will not help home owners who have properties that have depreciated in value and are now worth less then the current mortgage balance. You must use an FHA approved lender to see if you qualify for the FHA Secure Refinance Program. For FHA lenders in your neighborhood, go to
While this program may not help everyone, it certainly doesn’t hurt to see if you qualify. It could be a resource to take your ARM to a fixed rate mortgage that is actually affordable.
Posted by William Coit at 7:58 PM
The most important issue in the entire foreclosure process is that of how long it will take from the first payment being missed to the eviction of the homeowners. It is also an issue that most foreclosure victims have no idea about, and spend more time worrying about than any other aspect. Without knowing if or when the process has started, when the sheriff sale will be conducted, and how long they have after the auction until they are removed from the property, homeowners feel they have little control over the situation. Having a firm idea of the time frame of the foreclosure process, though, will allow them to put together reasonable plans to stop it with the time they have available.
The timeline of the foreclosure process will depend almost entirely on the state laws, so homeowners in danger of missing more than one mortgage payment should look those up as soon as possible. Various time lines are determined by the state, including notices that must be posted or mailed, redemption periods after the sale, and the scheduling and confirmation of the sheriff sale. Even procedures for postponing a sheriff sale are determined by the state laws. All of these aspects will be taken into account for the actual time that foreclosure victims have available to save their homes.
However, in general, the mortgage company will start the foreclosure process about 3-6 months after the first missed mortgage payment. Even though they can start it after the loan is technically in default (after 30 days late), lenders understand that many homeowners face short-term financial hardships and will be able to get back on track quickly. If the homeowners are keeping in contact with the bank, working out a repayment plan or trying to sell, they may postpone the actual foreclosure filing for a number of months, depending on the success of the homeowners. The mortgage company will want to give their clients some extra time to pay the loan back if the lines of communication are open. Of course, if the homeowners do not call the bank and ignore the phone when the lender calls to find out why they are not making the payments, then the foreclosure will begin much earlier.
Generally, a few weeks to a few months after the foreclosure is filed, the sheriff sale will be conducted at the county courthouse. Again, homeowners can get this postponed for a while, if they are working on a solution to save the home. Keeping in contact with the bank, letting them know how the process is going, and asking for more time if it is needed are all actions that foreclosure victims can take to prevent losing the home at a hastily scheduled foreclosure auction. The homeowners will have to put something in writing to the bank to show what they are working on, but postponing a sheriff sale can be quite simple. All it takes is communicating with the bank and working on a solution to the problem.
Now, after the sheriff sale, there are two possibilities, depending on the state foreclosure laws. First, the eviction process may begin right away. If this is the case, it can be another 2 weeks to a month or so between the sale date and the eviction date. The bank will have to ask the court for possession, the court will have to confirm the sale and order the county sheriff to evict the former homeowners and change the locks. But this is not a one-day process, with the sheriff kicking out the homeowners a few hours after the auction. Homeowners will still have a small amount of time to plan their future, find a new place to live after foreclosure, and move items out of the house.
The second possibility is if the state law allows for a redemption period, which is extra time after the sale that homeowners can work to keep their homes. During the redemption, they can try refinancing, selling, or paying the loan in full some other way, and keep the home in their names. After the end of redemption, though, the eviction process will start and it will be a few weeks after that that the sheriff shows up to remove everyone. But, if homeowners are unaware of the extra time they are given by state law, they may move out of the house before they have to. Redemption periods can be used by homeowners to begin a savings plan, pay off other debts to improve their credit, or begin to recover financially in other ways.
Without having the relevant information to understand how long the foreclosure process will take, many homeowners make mistakes that could otherwise be avoided. They may believe they have to move out before it is necessary, crippling their ability to start repairing their financial lives. Or, they may think that they have a lot of time left because of faulty assumptions about when the bank will start the foreclosure process, which can leave them staring at a sheriff sale before they even know it has been scheduled. Knowing how long foreclosure takes, and understanding that it is conducted differently in each state, is some of the most important advice that homeowners can receive, and will allow them the greatest chances to save their homes.
The Foreclosurefish.com website provides homeowners with free foreclosure help and advice and encourages visitors to put together a comprehensive plan on their own to save their homes. With hundreds of pages of blog entries, articles, and reference materials, foreclosure victims can research nearly every known way to prevent foreclosure. Some of the options offered include qualifying for a loan to stop foreclosure, mortgage forbearance agreements, and short sales. Visit the ForeclosureFish.com website today to learn more about how to avoid foreclosure and download a free e-book explaining the basics of the foreclosure process and what homeowners can do to stop it: http://www.foreclosurefish.com/
The recent collapses in the mortgage industry have left a large number of consumers scratching their heads in an effort to better understand the economics behind borrowing money. From the opposite side of the spectrum, this rash of foreclosures has left many savvy real estate investors scratching their heads trying to figure out how they can make money from the foreclosed properties. Though the processes can be lengthy and rather complicated, the best place to start is with a basic understanding of how foreclosure works, and what it actually means.
Foreclosure is simply the act of a bank, mortgage company, or anyone else who loaned you money for your house saying, "We loaned you money and you aren't paying us back in the way that we agreed. As a result, the loan is cancelled. Pay us now." Most people cannot repay the loan immediately so the house is claimed as collateral. This process can take several different forms.
The first is judicial foreclosure. Judicial foreclosure involves the court system. This is the most common type of foreclosure, and in many areas it is the only legal option of foreclosure available. The court system will oversee the sale of the foreclosed property and the money made from the sale will go to pay back the bank or mortgage company. If there is any money left over, it will be used to pay off any liens that may be held against the property. Liens are claims that other creditors may place against your property. The lien is a legal agreement that says. "Party A owes me money, so if they decide to sell their house then they don't get any of the money until the debt to me has been paid in full." After all the creditors and lien holders are paid, the original homeowner will get whatever is left.
The second type of foreclosure is non judicial foreclosure. Also known as "foreclosure by power of sale," this is the preferred method by most creditors because the process tends to move much faster than court supervised foreclosure. This method is not legal in every state. The distribution of funds follows the same schedule as the court supervised foreclosures, with the original homeowner finally getting whatever proceeds of the sale are left at the end.
If you are an investor seeking to take a 2nd mortgage and buy foreclosed real estate, then you will quickly become familiar with the term, listen dens. This is a Latin phrase meaning "pending lawsuit." In the world of mortgages and foreclosures, it is a publicly recorded list of properties that are about to foreclose. Once the process has begun for judicial foreclosure, the municipal clerk in your county or town will publish the list of suits that have been filed. This is a great place to look for real estate investors who may be able to buy homes directly from people who are about to go through foreclosure. It is a chance to pick up property for a good price and for them to avoid going through the foreclosure process.
Before a suit is filed, the creditor is required to issue a Notice of Default.This is a legal notice that informs you, the borrower, that your original loan is in default status and that the original agreement that was established for payment is no longer binding. Most lenders will place a mortgage into default status when the payment reaches the point of being 90 days late. By day 95, the Notice of Default will have been presented to you. If you have a default loan you may still be able to salvage your home, but you will need to act quickly.
As a real estate investor, there are two different ways to buy distressed properties. The first is to purchase pre-foreclosure properties. It is pre -foreclosure because the property still belongs to the original homeowner. Though proceedings for the foreclosure may be underway, the homeowner may be willing to sell the property for just enough to satisfy the amount of the loan. This leaves the investor with a great deal on a piece of property and the homeowner avoids the traumatic experience of foreclosure. Foreclosure property sales that are not "pre" have already reached the point where the property is back in the banks name and they are selling it just to see how much they can recover. Again, this is a great opportunity to buy, as the banks often don't push for higher prices at auction. They simply want to recover the outstanding portion of the loan.
The increase in sheer volume of foreclosure is evidence that many people simply do not understand what they are getting into when they buy their first home. Having identified this as a problem, there are many government back institutions and even some private ones, who offer assistance to home buyers.While they can help you secure funding, organizations like VA/HUD, Freddie Mac, and Fannie Mae are also excellent sources of information.
Tenants are often some of the last people to find out the house they are renting is going into foreclosure. The landlord often withholds this information, fearing that, if the renters knew of the pending legal action against the property, they would stop paying rent, and the landlord would not have this money to rely on if he is attempting to save the home or just use the money to move on with his family's life after the process has ended. In all honesty, the tenants are still bound to the terms of the lease as long as the landlord still owns the home, and a pending foreclosure would not alter that fact. If the homeowners are unable to find a solution, though, it may be in the tenants' best interest to attempt purchasing the house, either before or after the process has gone through. This may allow them to make the jump from renter to owner, and avoid having to move out of a house that will soon be evicted by the county sheriff.
The first question that homeowners usually have is whom should they buy the property from. They can make an offer to the landlord now, but the owners may want the full market value of the property, in order to pay off the loan in full and use as much of the proceeds as possible to begin recovering from the foreclosure. Of course, they may be willing to give a good deal to the tenants, who are helping them out of the difficult situation, and this humanitarian motive to purchase the home before the sheriff sale should be considered by the renters. However, if the landlord demands full market value, and is unwilling to work with the tenants, assuming an "all or nothing" attitude, another approach may result in a better deal for the potential home buyers.
In this case, where the landlord is unwilling to sell the home for less than full price, thereby giving the tenants a good deal for helping stop the foreclosure process, it may be wiser to wait until after the county-conducted auction when the landlord is no longer the legal owner of the property. He will no longer be able to negotiate a sale on a property he no longer has any interest in. It may be better for the potential buyers to work with the bank after the sheriff sale to get a better price. There are good and bad points about this approach, though, both of which must be taken into account before moving forward with this option.
First, the bad. The tenants absolutely must contact the bank before the sheriff sale or very, very soon after in order to tell the lender they are interested in purchasing the home and that they are currently living there as tenants of the previous owner. During the entire foreclosure process, they should try and save up for a down payment and get qualified for a loan as soon as possible, so they can prove to the bank that they are serious about buying the house, working towards that goal, and not just trying to avoid getting evicted. The bank will have to inspect the house and have it appraised before they accept any offer, of course, so the tenants can expect the mortgage company to send out a Realtor or appraiser to get an accurate value.
This is assuming the bank buys the property back at the foreclosure auction, of course. This happens almost all of the time, but there is a chance a third party interested in the home will purchase the house and want to move in or hold it as an investment. They may be understanding of the renter's situation and willing to sell the property they just purchased for market value, but then the renter's potential great deal will turn into buying a house for full price. This is an outside chance, but worth mentioning, as it can put the renters back in the same bargaining position they were in with the landlord demanding full price to sell the property to stop the process.
Now for the good aspects of purchasing a home after the sheriff sale The first is the fact that the mortgage company will be willing to sell quick and for a small gain on what they purchase it for at the auction. The tenants need to find out what the selling price was at the sale and what the true market value of the property is currently estimated to be. This will help them determine how much to offer the bank, although a wise bet would be to offer an amount somewhere in the middle of the auction price and the market value and back up the offer with a contract and qualification letter. If the offer is not made with a valid contract and some proof of being qualified for a loan, the bank will not take the entire offer seriously, as there is no documentation to persuade them to hold off on the eviction process.
As long as the bank knows that the potential buyers are working on getting the home and can document the mortgage process as it goes along, they will be willing to hold off on the eviction process for a reasonable length of time. They will not want to pay to evict someone through the court system if the current tenants are trying to buy the house. However, they will not wait forever for the loan to go through, and a closing date should be sought after as quickly as possible. Every minor delay or setback can cause the bank to change its mind, decide not to extend the contract, and pursue the process of forcefully removing the occupants and list the property on the open market. Time is of the essence in this situation.
Finding out that one is renting a home in the middle of the foreclosure process is often quite worrying to tenants. Although they are not legally released from the obligation to pay rent to the landlord for as long as he is the owner of the property, foreclosing banks will be quite sympathetic to renters in this situation. As long as the tenants become aware of the situation with some time to spare, they may be able to get the funds together to quality to purchase the home and avoid being evicted. They may also have the opportunity to help out the landlord by assisting in the effort to avoid foreclosure and purchase the property before the sheriff sale. If this is not possible, even greater deals may await after the county auction has taken place. Although being a tenant in this type of situation can seem like one of the most distressing situation to find oneself in, the tenants themselves can turn it into a win-win situation.
The ForeclosureFish.com website provides homeowners with information and resources designed to help them avoid foreclosure on their own. Hundreds of pages of articles, blog entries, and reference materials educate foreclosure victims on ways they can save their homes, including forbearance agreements, short sales, and bankruptcy, among many others. Visit the website today to begin researching how the foreclosure process works and how it can be prevented: http://www.foreclosurefish.com/
Posted by William Coit at 7:50 PM
It saddens me to see so many people losing their homes to foreclosure when it is often unnecessary. Why give up the biggest investment of your lifetime - your dream home - when money that changes hands nearly every day is available to help you make that mortgage payment?
Yes, subprime mortgage losses are grabbing all the headlines these days. It appears the banking crises will only get worse. And that's bad news for many Americans for various reasons.
But guess what? Despite the mess created by adjustable-rate mortgages and other questionable loans, there is no need to fear your monthly mortgage or credit cars bills. And there is no need to fear not having enough money even if your mortgage rate rises. You just need to know where to find the extra cash to cover your costs. Let me explain.
When individuals and couples prepare to buy a new home, what do they do? They begin to watch interest rates. They know they'll save enormous amounts of money if they can lock in a low rate on a 20- or 30-year loan. But once they've purchased their home, painted it and moved in all their furniture and appliances, then what do they do? Stop watching interest rates. This is a big mistake.
Owning a home is not an investment, according to Robert Kiyosaki, author of Rich Dad, Poor Dad. It is a liability. Your home provides shelter, yes, but it also drinks money every month. And consider the many things that can go wrong: bad plumbing, leaky roof, bad neighborhood, falling home values, etc. Most homeowners don't realize that owning a home is like owning a business. You must reckon with a changing economy to sustain and protect what may be the single largest investment of your lifetime.
Homeowners must learn to hedge against disaster. This is what corporations and other businesses do. Do you think corporations that make breakfast food can withstand inflated prices in corn, wheat and sugar? No. They watch those prices like a hawk and take action to protect their bottom line. They do this because they do not want to foreclose on their business loans. Homeowners who fear foreclosure, or simply want to exploit economic conditions like bankers and creditors, can follow this example by watching and learning about interest rates.
Nearly every day a newspaper story or cable news broadcast mentions interest rates. Why? Because rate cuts or hikes affect the economy. Hikes slow borrowing, whereas cuts - lower rates - generally ease the availability of loans. Although many headlines anticipate or report what the Federal Reserve will do at their FOMC meetings - hike or cut rates - interest rates change every business day. And common people with a little knowledge can learn how to make money by exploiting these changes. All they need to do is learn some basics about U.S. Treasury bond options.
A few hundred dollars a month may not sound like much. But for homeowners who find it difficult to make their mortgage payment a modest sum would be a big help. So why don't homeowners learn about options? They've stopped watching interest rates. They think only banks and creditors and "big business" can get involved. Nonsense.
If you did nothing else but spend 10 minutes a day watching how U.S. Treasury bond prices move following the release of economic data, you would begin to see the answer to your prayers. Start today. Free information about the U.S. Treasury bond options market is available at the Chicago Board of Trade website and at http://afterthenoise.com
Douglas Glenn Clark is the author of T-Bonding with the Trend, an options guidebook that reveals how homeowners can learn to pay mortgages and credit card bills as interest rates change. http://AfterTheNoise.com
Article Source: http://EzineArticles.com/?expert=Douglas_Glenn_Clark
Posted by William Coit at 7:46 PM
Friday, November 23, 2007
When investing in real estate one important thing you should know is ways of coming up with a down payment. One way of coming up with a down payment when investing is pulling the down payment from the equity in another property that you own. If doing this it is important to make an assessment on how much it will cost to refinance and how much it will cost to close the new property. If you can't afford the closing cost you can ask the bank if you can spread the payments for the closing cost over time. Some banks can be very flexible.
Another way of coming up with a down payment when investing is to borrow it from the seller. You can pay the down payment back over time. If you do a deal like this it is recommended that you put everything about the deal in writing. By doing this you will make sure that everyone is on the same page. One other good thing about doing a deal like this is if everything goes well, you will have someone that will speak for your trust worthiness the next time you decide to do a similar deal.
One of the last ways of coming up with a down payment when investing is to borrow the down payment from a friend or a family member. If you do borrow the down payment from a friend or a family member it is recommended that you also put the deal in writing. You will not want to damage your relationship with your friend or your family member because of some misunderstanding. Coming up with a down payment can help you invest in more real estate faster then saving it up for yourself, but if you do borrow it is important to make an assessment to make sure a property is worth investing in.
A good web site where you can see more information on topics like this is Real Estate Facts which is highly recommended. Another article witch is also recommended is Things You Can Do If You Are Having Trouble Getting Financing Thank you and enjoy.
Article Source : Ways Of Coming Up With A Down Payment
Article Source: http://EzineArticles.com/?expert=Kevin_Cox
Department of Housing and Urban Development (HUD) residential foreclosures are available throughout the United States. The sales process for purchasing a HUD home isn’t quite the same as you’ll encounter when buying a home from an individual, so take a few notes before you go home shopping.
The Federal Housing Administration (FHA) is a part of HUD–the part that provides federal mortgage insurance. If a foreclosed home was purchased with a loan insured by the FHA, the lender can file a claim for the balance due on the mortgage. FHA pays the lender’s claim, then transfers ownership of the property to HUD, which sells the home. HUd homes are then appraised priced at fair market value for their location. The price of a home in need of repairs is adjusted downwards to reflect the investment the new owner must make to improve the home.HUD homes are sold as-is. The new owner is responsible for all repairs and improvements.
You can view HUD listings by coming to our website www.RealEstateInvestorsLife.com for more info and tips and direct links to HUD owned property listings.Each state’s Internet destination is set up a little differently, so take some time to browse the search engines and layout.When you’ve located a home you would like to see, any HUD-approved real estate office can show you the property. They are listed on the WEb site. HUD employees do not work with home buyers–you must use an agent.
Do I simply make an offer to purchase a home?
HUD foreclosures are sold using a bidding process. There’s an Offer Period, during which sealed bids are accepted from your agent. At the end of that period, all offers are opened. HUD will generally accept the highest bid, or the bid that brings them the highest net. If the home remains unsold after the initial period, bids are opened as received. If your bid is accepted, your agent will be notified within a day or two. You will be given a settlement date, usually 30-60 days from the date of your accepted contract. HUD will pay real estate agencies a commission of up to 6% for the sale of the home. Be aware that to get paid, the selling agent must insert wording in the contract that verifies HUD will pay his or her commission.
Does HUD Provide Financing?
HUD does not finance homes. You’ll need to arrange for conventional or other financing. Be sure your financing is in order before you make an offer. If your bid is accepted, and you do not close on the house, you may lose the earnest money deposit you submitted with the offer.
Home inspections are recommended for any home purchase. You should inspect a HUD foreclosure before you make the offer to purchase. It will help you determine a bidding price, especially if repairs are required.Homes build prior to 1978 may contain lead paint, so learn more lead paint hazards before making an offer. Other items to consider are asbestos content, buried storage tanks, and other environmental
Can I buy a HUD foreclosure for investment purposes?
During the initial offering, HUD homes are usually available only to those who wish to live in the home. If an owner-occupant does not bid on the home, investors are allowed to enter the bidding process. If foreclosures are not sold within six months, HUD will sell them for $1 each to approved nonprofit organizations and government agencies. Homes must then be used create housing for families in need or to benefit neighborhoods.HUD offers special home purchase programs for teachers and full time law enforcement officers.
For more information and resources visit www.RealEstateInvestorsLife.com
Rick Sarouk is an active nationwide real estate investor and certified appraiser. He has been investing in foreclosure and preforeclosure real estate for the past 18 years. website: http://www.RealEstateInvestorsLife.com
Article Source: http://EzineArticles.com/?expert=Rick_Saroukhanian
Wednesday, November 7, 2007
Third quarter 2007 results are in and not looking good for the real estate market. Foreclosures continue to rise across the nation. The largest contributor to the increase in the rate is adjustable rate mortgages.
Between 2004 and 2006 adjustable rate mortgages were given to just about anyone who could sign their name on the dotted line and show proof of a heart beat. Now with the real estate market slow, people who can not afford their mortgage are falling into foreclosure. The scary part is there are still thousands of ARMs that are due to adjust in 2008.
The state with the highest rate is Nevada with one in every sixty one homes falling into foreclosures. The crisis in Nevada is also due in part from over building of homes by home builders and speculator real estate investing. Never the less Las Vegas which is located in Nevada has one of the best work forces in the nation. The state population also continues to grow rapidly which will help the local real estate market in the future.
The other top 5 states with the highest foreclosure rates in the nation are:
California with 1 out of 88 homes going into foreclosure
Florida with 1 out of 95 homes going into foreclosure
Michigan with 1 out of 102 homes going into foreclosure
Ohio with 1 out of 107 homes going into foreclosure
Colorado with 1 out of 109 homes going into foreclosure
Almost all states are experiencing an increase in the number filings. States like Idaho (thank include Boise, Nampa, Eagle, Start and Meridian Cities), that rank 19 in have a 138 percent increase in the number of filings from the same time one year ago.
Some of you may say, "The foreclosure rate may be increasing for the entire nation, but real estate is a local market". Well that is true; real estate is a local market. Some areas of the nation may be experiencing a buyers market while others are experiencing a strong buyers market.
If you are interested to see how your state ranks for foreclosures, check out the article by RealtyTrac.
Sell My House Fast To A Local Home Buyer
Article Source: http://EzineArticles.com/?expert=Shaun_Greer
Posted by William Coit at 11:09 AM
Saturday, October 13, 2007
Their profile looms larger, foreclosure homes are coming out of the shadows to be more of an opportunity as a way to buy your family home sooner than you expected. Just how familiar with investors’ gambits do you have to be to buy at a price that means you will have cash for the inevitable repairs and replacements yet still pay less than you would for a home you could walk into tomorrow?
Of the three stages of foreclosure, the final stage, when the home has failed to sell either before or at auction, is usually recommended for the beginner or first-time foreclosures buyer. That’s because REO status has some benefits over pre foreclosure such as a title free of debt and straight forward negotiation with unemotional lender-owners, and over first time buying at auction or sheriff sale. If you are buying with the intention of a long term investment in a family home, then, apart from some precautions to take over the state of the property, then the differences in procedure and paperwork will be efficiently dealt with by your realtor, and much of that investor speak can pass you by.
Buying at the auction may seem like a challenge that once met carries a swagger, but is best left to the investor who knows his state foreclosures laws, has access to a line of credit or hard money, and knows when to stop bidding. Auctions scheduled on many courthouse steps are cancelled or postponed, as owners anxious to save their homes work out a way. The competition at the auction is not just from the real estate investor pros in town, but from the lender or lenders who determine the upset price.
Buying a home in pre foreclosure, before the auction is certainly more challenging, there are many pitfalls to avoid, and unless you want to pay close to fair market value in order to avoid a complicated short sale situation, you will have to know the various ways to structure a deal that will work for three parties.
You are going to find opportunities to buy at a discount at both ends of the foreclosure timeline. Your challenge will be to preserve a big part of that discount and not squander it on nasty surprises. Common sense, smart searching of foreclosure listings and the prudent use of expert advisors, your realtor, appraiser and attorney, will get your new home soonest.
Wednesday, October 3, 2007
As if declining property values haven't been enough of a hit to anyone that purchasd a preconstruction property now they may have to worry about obtaining financing on it. A preconstruction property, for those of you that have been in a time capsule for the last 5 years, is a property that you purchase before it is constructed. You sign a contract to purchase it and then close on the property once construction is complete. When properties were appreciating at double digit speed a lot of people got into the preconstruction craze. Regular joes, and by that I mean people that had no experience in real estate investing, were purchasing properties and reselling them at unbelieveable profits. Most of the time they never even had to close on the property.
I purchased a preconstruction property myself but didn't close on it because the property never did get approval on their plans with the City of Miami so the project was never built. By this time real estate sales were slowing to a halt in South Florida so lucky for me I was able to get all of my deposit back. I was so happy the day I got the letter from the attorney stateing that I could get my money back now, if I so desired.
There are going to be many others that are not going to be lucky enough to get their deposits back if they don't close on the preconstruction property. With mortgage banks and lenders tightening up on their programs there are going to be alot of purchasers that cannot close on the loan. If they need a stated income/stated asset (SISA) mortgage for a wage earner (W-2'd employee) there is only one lender that will still do this type of mortgage and it's going to be at a high interest rate too. All lenders have also raised the limits on how low a credit score can be. Alot of people that purchased preconstruction properties bought them as investment properties which lenders are now not as quick to provide a mortgage on.
If this applies to you get busy calling a broker to see if you will still qualify to purchase the home. Do this right away, even if your home will not be ready for months because this will give you time to get your credit repaired if your credit score is not high enough to qualify with today's underwriting guidelines. Don't get stuck at the last minute.
Sandra Sheely is President of First Financial Mortgage, Inc. in Sunrise, FL. She has been in the Real Estate Industry for 12 years with experience in the mortgage industry and title industry. She has a couple of Mortgage websites. http://www.ffinancialmortgage.com and http://www.lowestraterefi.com She has a credit repair website at http://firstfinancial.fixcreditbiz.com/
Article Source: http://EzineArticles.com/?expert=Sandra_Sheely
Wednesday, September 12, 2007
Homeowners in foreclosure, for one reason or another, often find that they have run out of time to stop foreclosure before they have run out of options that could save their homes. Often, this is due to one plan falling through at the last minute, or a simple inability of some foreclosure victims to make a decision on what to do to save their homes. By the time they have decided which option would work best for them, there is just not enough time to complete the method and actually prevent the foreclosure. When this happens, though, homeowners will often be scrambling around, looking for the most efficient way that they can put the foreclosure process on hold or stop the sheriff sale.
The fastest way to delay a foreclosure is to contact the bank as soon as the homeowners know they may begin missing payments. By keeping in touch with them throughout a financial hardship, the mortgage company will often be willing to postpone certain dates, like the initial foreclosure filing and the sheriff sale date. Obviously, this may not be applicable for homeowners who have avoided talking to the lender throughout the foreclosure process, but it is important to contact that bank as soon as possible. The lender will not always respond negatively, and they may be willing to work with the foreclosure victims to give more time or put together a solution to foreclosure. The important thing is to call the lender, though, and inform them of the situation and what is being done to avoid foreclosure.
Two dates that lenders are often willing to postpone are the sheriff sale date and the original foreclosure filing. The bank may be willing to hold off on filing the actual foreclosure paperwork, in order to give their clients more time to come up with the money to reinstate the loan, or become qualified for an affordable repayment plan or loan modification. Once the foreclosure is filed, though, interest is often accelerated and court costs and attorney fees are added into the balance of the loan, making it more difficult to qualify for a solution.
We have discussed stopping a sheriff sale in other articles and on our blog, so readers are referred to those entries, but lenders will often delay a sheriff sale if there is a reasonable solution being offered them. A thirty-day postponement is often all homeowners need to work out a long-term solution to foreclosure, and banks will be glad to avoid the foreclosure auction if there is a good chance they will get the mortgage paid off in other ways.
However, lenders are much more strict on the end of redemption, unfortunately. They do not like postponing this important foreclosure date, since they have waited such a long time to take the property back in the first place. If the homeowners have been in contact with them, though, they may be willing to provide more time to move out, postponing the actual eviction process for a few weeks. This may not help homeowners dramatically, and will not result in saving the house, but lenders do not want to forcefully evict former clients, either. Giving an extra couple of weeks to effect a peaceful transfer of the property and prevent damage is in the bank's best interests.
Unless the foreclosure victims need more than a few weeks, though, it may be a good idea to start looking for other places to live once the end of redemption comes close. Obviously, the mortgage company will not let them live in the house for a long time until their income recovers or they can qualify for a new mortgage, since the bank will want to get the property ready to sell to make back the money they lost on the loan they made that went into foreclosure.
Often, the fastest way to delay an important date in the foreclosure process is simply to keep the bank informed and ask for more time, based on the chances for success of the method being pursued to stop foreclosure. Gaining more time during the foreclosure process can be an easy procedure or it can be like pulling teeth, depending on how much communication there has been between the homeowners and the lender. As early in the financial hardship as is possible, foreclosure victims need to begin working with their banks to find solutions to foreclosure, and work on various options on their own, as well. Then, in the event a plan falls through at the last minute, the bank will much more willing to put a hold on things in order to give the homeowners, who have been working hard on finding solutions, more time to complete a plan and save their homes from foreclosure.
The ForeclosureFish.com website specializes in teaching homeowners exactly what they can do to stop foreclosure on their own. With hundreds of blog entries, articles, and reference materials on the site, foreclosure victims can put together a comprehensive plan to save their homes from foreclosure. Visit the ForeclosureFish.com website today to download a free foreclosure e-book and browse through material on various topics, such as loan modification and short sales: http://www.foreclosurefish.com/
Article Source: http://EzineArticles.com/?expert=Nick_Adama
Monday, September 10, 2007
One way to save a home from foreclosure is obviously to sell the house. With the real estate market stagnating and property values declining, though, most homeowners facing the loss of their homes simply do not have enough time to sell the house on the open market through a real estate agent. So they have to turn to alternate buyers if selling to stop foreclosure is one of the only options left. Nearly every homeowner and everyone else are familiar with the most popular quick-sell companies out there. Their advertisements are all over television and billboards and can be seen in almost any major populated area in the country advertising for ugly homes to buy with cash right away. Are these companies legitimate, though, and what is it about them that homeowners should take into consideration when looking into an offer they present?
To begin with, there are a number of legitimate companies that can buy houses out of foreclosure. In general, they provide a valuable service and a very quick means of liquidating the house to pay off the mortgage and end the foreclosure process. The ones that may be seen advertising on billboards with statements such as "We Buy Ugly Homes," "Will Pay Cash For Your House Today," etc. are all legitimate companies. Granted, some of their representatives may not be the most ethical or knowledgeable, but the companies themselves are usually in good standing. They are simply bargain shoppers looking for the lowest possible price for a property that they can make an almost immediate profit on reselling.
However, few of these companies, if any, will offer foreclosure victims a fair price for their house to get them out of foreclosure. That is not their business model, and they do not act out of purely altruistic reasons to help homeowners prevent foreclosure. If homeowners want a fair market price for their house, they will have to list the house on the open market and search for a buyer willing to pay the fair market value. Of course, the problem with this approach is that there is no easy way to magically come up with a buyer willing to pay full price. As many homeowners trying to sell their properties now are realizing, finding a willing buyer who qualifies for a purchase can take more than a year, if the property sells at all.
However, the companies with fast cash are offering homeowners a lower amount now -- without having to wait for open houses, Realtors to show the property, or random families to respond to a yard sign. Homeowners in foreclosure will have to decide between definitely less cash now or maybe more cash later. That is the trade-off for working with these companies. But for homeowners in foreclosure who are running out of time to come up with a solution before they lose their home, selling and making no profit may be a better option than going through with the foreclosure.
Furthermore, the quick-sale low-offer companies only offer homeowners a price that they know they will most likely be able to make a profit on in a few months to a year. So if the homeowners themselves have a few months to spare or can put together a temporary solution to avoid foreclosure, then they might be able to sell for the price that the company is estimating they would be able to sell the property for. Of course, with foreclosure fees, attorney costs, and accelerated loan interest and late fees, the homeowners' profit margin on the house will shrink over time, unless they can work out a solution that puts the foreclosure on hold or stops the process altogether.
Most of these companies can offer a legitimate service to unload a house quickly. They are not designed to emulate the open market, though, so their offers will be quite low (possibly in the 60-70% range). It will be up to the individual foreclosure victims to look into their offers and determine if it is something that will help the situation or if there is a better alternative. Of course, in any foreclosure situation, homeowners should not rely on just this option to save their homes and should gain as much foreclosure advice as possible and put together numerous plans, in case this option or any other falls through. Even more important than having a solution to foreclosure is having a backup plan when the first solution fails.
The ForeclosureFish.com website provides homeowners with the resources and information they need to put together a plan to stop foreclosure on their own. Hundreds of pages of articles, general information, blog entries, and reference materials educate foreclosure victims on all of the most common ways to save a home from foreclosure. Visit the ForeclosureFish.com website today to learn more about foreclosure, browse through a daily-updated foreclosure blog, and download a free copy of an e-book that explains the basics of the foreclosure process and how to stop it: http://www.foreclosurefish.com/
Article Source: http://EzineArticles.com/?expert=Nick_Adama
Wednesday, August 29, 2007
The recent national surge in home foreclosures coming on the heels of the collapse of the sub-prime lending industry and decline in home values likely means additional bad news for those former homeowners who feel like they just lost everything: additional income tax liability.
Income tax liability? From losing your home? Such is the nature of the United States Internal Revenue Code.
Given the foreclosure epidemic and the huge losses to which lenders of all sizes are now exposed, many lenders are willing to enter into a variety of work-out programs with their borrowers to avoid foreclosure. Avoiding foreclosure does not necessarily mean keeping the home, however.
The foreclosure process is time-consuming for the lenders and often subjects them to the additional time and expense of physically evicting the former home owner from the home after the foreclosure sale. From the borrower's perspective, a foreclosure is a huge blow to credit worthiness and will impact the borrower's ability to finance major purchases for years to come.
Considering many lenders' goals of reducing their losses on foreclosures, borrowers have met with success recently in negotiating "short sales" with their lenders. A short sale is the borrower's reconveyance of the home to the lender for less than the amount owed on the mortgage.
For example: Joe obtained a creative home loan and purchased a home at the height of home values and during the most liberal period in sub-prime lending.
Eventually, the appraised value of Joe's home began to drop and the "creative" part of his home loan kicked-in. Perhaps his interest rate adjusted or his interest-only payments ceased and he was required to commence paying both principal and interest.
In any event, Joe finds that he cannot afford to continue making the mortgage payments and, due to market circumstances, he now owes more on the mortgage than the home is worth. In other words, he is upside down in the home.
Joe defaults on the mortgage payments and is now subject to the foreclosure process.
Applied to the example above, the borrower might successfully negotiate a short sale with his lender. Many lenders are now accepting a reconveyance of the home and forgiving the remaining debt exceeding the value of the home.
In the example, Joe may have purchased the home for $300,000. He has made interest-only payments on the loan for a year, but due to the recent slump in the market, the home is now worth only $250,000. He still owes $300,000 on the mortgage. The lender, therefore, may accept a reconveyance of the home - in essence a $250,000 payment - against the $300,000 debt.
The sale is "short" because the value of the home does not cover the amount of the mortgage. The lender may forgive the additional $50,000 owed by the borrower in order to avoid the foreclosure process, or to avoid litigation expenses in pursuing the borrower for the deficiency balance, and essentially cut its losses.
For the borrower, he avoids foreclosure and its ramifications to his credit, as well as facing a likely judgment for the amount still owed on the debt.
The hidden drawback here, though, is that the tax code treats Joe's debt relief as income. By being relieved of the obligation to pay $50,000, the IRS considers that Joe has in effect put $50,000 in his pocket.
The debt relief is subject to ordinary income tax. Joe may not even know of his additional tax liability until he receives an envelope in the mail from the lender containing a 1099 form reporting the debt relief income to the IRS.
The same result may follow if Joe simply walks away from the home, allows foreclosure to proceed, and then the lender elects not to pursue Joe for collection of the deficiency balance on the loan.
The ripple effect of the sub-prime lending market over the past couple of years has yet to reach its full effect. Individual homeowners must be wary of all consequences of divesting themselves of the homes they purchased in that market.
While financial planning might be the last thing on a borrower's mind when he or she faces the harsh reality that the home will be lost in some way, the unforeseen consequences of a foreclosure or short sale can only be addressed through the sound advice of a tax professional, CPA, or, at the very least, the IRS website.
Of interest to us lawyers, however, is the approach the IRS will take to the likely spate of litigation that will proceed, alleging that these borrowers, now facing additional income tax liability through the loss of their homes, should not be responsible for the 1099 income tax burden, by virtue of alleged fraud or misrepresentation on the part of the sub-prime lenders.
As they say, "the Wheels of Justice grind slowly." We will all have to wait to see how this shakes out.
Posted by William Coit at 6:07 PM