Archive for June, 2010

Tuesday, June 22nd, 2010

foreclosure
Colin Egbert asked:


Foreclosure Process – Information for Investing in Pre-Foreclosures

Every state and county has slightly different rules concerning the sale of pre-foreclosures and short sale investing, but there is a basic process that each follows. This foreclosure process takes quite a long time before a property is sold at the sheriff’s auction and even, in some cases, before the homeowners are evicted from the property. Yet, even so it’s still a good chance for real estate investors to pick up properties at a discount along every step of the way.

It Begins with Non-Payment

A lender is often a bank that lends the buyer money based on their job, down payment and credit history to purchase a home. In return the buyer agrees to a home mortgage with that bank to begin paying back the loan. The bank makes money because the loan accrues interest over the lifetime of the mortgage. The buyer becomes a homeowner and everyone is happy. Should the buyer turned homeowner stop paying back the loan through the mortgage, the bank has a safety net in being able to take ownership of the homeowner’s property.

This is called a foreclosure. The foreclosure is initiated by the bank when the homeowner has stopped making payments on the home mortgage. The bank may wait an extended period of time before beginning the foreclosure, allowing anywhere from 3 to 6 months for the homeowner to being making payments on the mortgage again. The bank would prefer not to take a property back in foreclosure. It’s a messy, lengthy process and the loss mitigation officers must consider property the bank owns to be a non-performing asset.

Property Enters Pre-foreclosure

A foreclosure is begun when the bank files a Notice of Default through a trustee with the County Recorder’s Office. This notice lets the county and the homeowners know that the bank is getting ready to foreclosure on their property. In short sale investing the home is now considered to be in pre-foreclosure. The pre-foreclosure period is also known at the reinstatement period in that it allows the homeowner some time to catch up their past due amount on the mortgage and keep their property. This amount of time usually lasts about 3 months.

During pre-foreclosure the trustee appointed by the bank, usually a local attorney, prepares for a foreclosure. The trustee makes every reasonable effort to contact the homeowners and let them know about the upcoming foreclosure. This can be done by posting the Notice of Default on their property, sending it in the mail and also placing it in the classifieds of the local newspapers. The trustee may also call the homeowner to see if they can work out payment arrangements to get the mortgage back on track.

If the mortgage loan isn’t brought up to date in this 3 month period the trustee files a Notice of Sale with the County Recorder’s Office. This Notice of Sale is also posted at the homeowner’s property and placed in the local newspaper classifieds.

Goes to Court

Some states require that the Bank go to court and sue the homeowner for their property as part of the foreclosure process. This process can further lengthen the pre-foreclosure period which is a good thing in short sale investing. The short sale process can be a little lengthy itself, so the more time you have to put together a deal, the better.

The bank’s trustee will have to notify the homeowners of the upcoming court date and ask that they show up. However, many homeowners fail to show up in court to fight for their property. This can be because they are ashamed or afraid. Some don’t know the laws very well and could even be concerned that they’ll be arrested for a bad debt.

If the homeowner presents a good case in court or even if the homeowners just show up and provide their foreclosure information, there is a good chance that the court will provide the homeowners with a few more months to try and catch up their mortgage or make arrangements.

The court may also decide to award the property to the bank, especially if this property has gone to court previously or the homeowner doesn’t even show up to state their case.

Foreclosed Property Up for Sale

After the bank forecloses on the property it goes to the Sheriff’s Auction, also known as a Foreclosure Sale or Trustee Sale. This auction can be anywhere from a few weeks to several months from the time the bank has foreclosed on the property.

There are several different popular methods for holding a Sheriff’s Auction, but the most popular is held right on the courthouse steps. The county clerk auctions of the foreclosures one after the other by property number to the public. The highest bidder wins that property. The opening bid on each property is often equal to the remaining loan balance that the bank is owed, plus interest accrued and any additional fees associated with the Sheriff’s Auction.

At this point, short sale investing is bunk. If you still want that property you’ll need to wear the hat of a foreclosure investor and get right in there with the bidding.

After the Sheriff’s Sale

If no one bids on the foreclosed property it is purchased by the bank’s trustee and becomes a bank owned property. It is called, ‘Real Estate Owned’ or REO at this point and usually sits on the banks portfolio until the bank can get it sold to a post-foreclosure investor.

If an investor bids on the property and wins it they are winning the Trustee’s Deed to the property. They become the owner and can do with the property as they wish.

Sometimes the homeowners may still be living in the property after it is sold at auction. In this case the new owner may wish to work out a rental agreement with the homeowners, or ask the homeowners to leave. If the homeowners refuse then the new owner must evict them.

The owner can file an eviction notice with the country sheriff and usually within a few weeks the sheriff comes out to forcibly evict the former homeowners. However, this happens several months to a year after the bank sent the home into pre-foreclosure. Most homeowners have plenty of time to make other arrangements and have either left or are in the process of leaving when the property is sold at auction.

The foreclosure process is a lengthy one, but it provides lots of time for short sale investing to take place before that sheriff’s auction.



San Antonio Foreclosed Homes – Benefits and How to Search Foreclosures in San Antonio?

Monday, June 21st, 2010

foreclosed homes
Fiona Livnat asked:


San Antonio is the second largest city of Texas and one of the major residential hotspots for homebuyers and investors due to its strong real estate market. Now with a large number of San Antonio foreclosed homes available at unimaginable deals homebuyers have been presented with a rare opportunity of owning a home in one of the fastest growing American cities at throwaway prices.

Buying a property through San Antonio foreclosed homes has various benefits as listed below:

Sound economy – Compared to other U.S. cities that are experiencing a slowdown in their economy the city has been cited by Forbes.com as having one of the strongest and recession proof economies in America.

Appreciating real estate – According to recent reports by The Board of Realtors (BOR) the price appreciation of properties has continued to show a steady increase despite the recession which makes buying San Antonio foreclosed homes a very good investment.

Affordable living -The Texas Business Journal, has ranked the city as one of the most affordable in the country in a study by that compared housing costs and income levels in the 95 U.S. metros with populations above 500,000. In fact, according to ACCRA Cost of Living Index the city’s costs of living are 22 percent below the national average.

Sports and cultural hub – The city is home to the four-time NBA champion SA Spurs as well as the annual Stock Show & Rodeo, one of the largest in the country making it a great choice for buying foreclosed property.

Excellent educational opportunities – The city is also home to more than 30 private schools and charter schools including national ranking institutions like the Central Catholic High School, Providence High School, and St. Anthony Catholic High School providing a solid educational foundation to children.

Given below are some important guidelines on finding the best deals on San Antonio foreclosed homes.

Foreclosure listings – Subscribing to online listing services as well as classifieds and business journals will give you the most updated information on San Antonio foreclosed homes.

Online public records – Looking up the official city and state website is also a good way of getting the latest updates on foreclosures.

Real estate agents – You can also contact a well reputed real estate agency to give you information on San Antonio foreclosed homes suiting you budget and other requirements.



Monday, June 21st, 2010

foreclosed homes
JosephSmith asked:


If you are looking for the most profitable Fort Lauderdale Foreclosed Homes, doing your share of research is very important. Some of the things needed to be researched include the market value, an inspection report, and an appraisal on the home.

The market value of a house is very important when you make a decision to buy. On foreclosures it is extremely important also that you choose to compare the market value. A foreclosed home should not be listed at the market value along with other homes on the MLS because it is in distress. Chances are good the home needs quite a bit of maintenance and is not in move in condition. Some foreclosed houses require thousands of dollars worth of work while others don’t need too much at all. It is best for you to find a house that is priced far below the market value of the properties for sale today.

An inspection report is a document you need to read. An inspection on a home will give you a list of the entire condition of the interior and exterior of the home. This way you can have knowledge if a water pipe is broken under the home before you purchase it. If the roof needs to be repaired, the inspection report will tell you this. An inspection report will list everything that needs to be done on the home so you can make a list of how much the costs will be to fix them.

An appraisal is another document that you should ask the bank for if you are interested in purchasing Fort Lauderdale Foreclosed Homes. An appraisal will give you a price of the value of your home in comparison with the local market. One thing to keep in mind is that sometimes appraisals list the home a little higher than they should, especially if someone is trying to qualify for a home loan that they may not be approved for. Because an appraisal is based on the market value of a home it is important that the report is less than 6 months old so the information is current.



There is a great many infomercials punting the idea of investing in tax foreclosed homes in order to make big profits. While these infomercials are true, many of them are a little misleading because basically they really want to sell you a product. It is possible to educate yourself regarding the processes involved in investing in tax foreclosed homes, just by reading the right kinds of books and collecting information from the internet.

It is certainly best to arm yourself with some education and research on this subject matter before entering the real estate investment market. And the purchase tax foreclosed homes does allow for some good profits to be made.

It is a sad fact of life that in today’s credit crunch, many homeowners are feeling the pinch. The Internal Revenue Service has the right to foreclose on a persons property if they have unpaid income taxes. This in not a quick process, but if the home owner is also in default with his mortgage the process speeds up somewhat. However it is important to know that a Tax lien is superior to any other lien over a mortgage. So even in the lender forecloses on the mortgage owner first the tax lien will still have to be paid. Lenders who purchase foreclosure homes on auction always pay the tax liens, as if they did not the property would become the property of the IRS.

If you are an informed investor, it is also possible for you to buy tax foreclosed homes on auction. There are greater rewards in this method of purchase, but also greater risks, particularly if you have not done your homework.

The beauty of investing in tax foreclosed homes is that you are allowed to inspect the property prior to bidding. This is not the case with bank foreclosures as generally the homeowner is still resident.

There are a number of reasons for properties being sold at foreclosure auctions these include:



Failure to meet the demands of mortgage repayments

Failure to make real estate property tax payments

Failure to make Income tax payments

Personal bankruptcy

Illegal activity by the owner



Tax foreclosed homes are either sold at a public auction or at a court auction, sometimes also referred to as a Sheriffs sale. In court auctions investors are not able to request discounts for early payment, pay in installments, modify the terms of the contract or transfer the title. This does make thing a little more sticky, but that is the way it goes. Some auction allow verbal bidding while others only accept bids as sealed written offers, so make sure you know what is required of you.

In “non judicial” states the foreclosure process proceeds much faster, generally around three months. In judicial states this process can take as long as eighteen to twenty-four months. For example, judicial states include:



Indiana

Connecticut

Louisiana

Florida

Maine

New York

New Jersey

North Dakota

Pennsylvania

Ohio

South Carolina

Saturday, June 19th, 2010

foreclosed homes
Kevin Simpson asked:




Saturday, June 19th, 2010

into foreclosure
Vikram kuamr asked:


When it is about the opportunities available to earn money then foreclosure is considered to be one of the best options. For the most fruitful results it is important for a person to make the best use of foreclosure listings.

Foreclosure is considered as the best option by which one can get best value of money and that too with very low degree of risk associated with it. In addition, it is even possible to get best returns in no time in case of this investment option.

If you are looking for free foreclosure then you can easily make an access to that as well. There are several sites available on the internet which can prove to be free but the best source for various types of foreclosures. It is an undeniable fact that foreclosure can serve you on the basis of various aspects. One of the best as well as common advantages of going for foreclosure is that it requires fewer amounts in the form of capital. It also offers you better returns without involvement of much risk. All you are required to do is to look for an online site which can not only prove to be the best source of free foreclosure but that can also offer you with well updated foreclosure listings.

If you look for one such site online then watchforeclosure can prove to be a productive option for you. There are several reasons because of which you can give preference to this site without any hesitation. For free foreclosure, this site can prove to be a great option for you. This is mainly because you can find foreclosure lists in your area with this site for free. With watchforeclosure, you need not to go for any kind of membership or a kind of free trial that expires after a week.  

There are many other unique reasons as well due to which watchforeclosure can undoubtedly prove to be the right choice for you. They are listed as under:



Goodwill: Watchforeclosure is a site which has a strong goodwill in the market. This is mainly because it is the premier source of free Home Foreclosures, Pre-Foreclosure, Bank and Government Foreclosures. It is a site which believes in offering the best which all the other sites believe to be impossible.





 Free search: It is yet another important unique feature of this site that it offers the option of free foreclosure search. It is a site which believes in giving priority to visitor’s interest and demands. Here, you can search for foreclosure listings with complete property information and that too absolutely free!





Foreclosure news: with watchforeclosure you can also get yourself familiar with latest foreclosure news related to mortgage, commercial properties, etc. You can keep yourself updated with the help of this site.





Ease of selection: Watchforeclosure also offers you the ease of selection. You can look for all kinds of free foreclosures available without facing any kind of trouble sooner or later on.  You just need to visit this site and you will understand by your own the real worth of this site.  





Updated foreclosure listings: Watchforeclosure is a site which frequently gets updated. There is no question of getting familiar with old or expired results. This site certainly offers you best of the returns in no time.



So what are you looking for? Go and visit watchforeclosure right now!!



City gets $7 million for foreclosure fix-ups

Friday, June 18th, 2010

KRQE asked:


The federal government will give the city of Albuquerque $7 million to buy and rehabilitate foreclosed home to resell to low-income families.

Friday, June 18th, 2010

foreclosure
Otto Ruebsamen asked:


FHA foreclosures have been steadily rising in the last three years and the number of new homes getting on the selling block keeps coming by the day. A dominant market is taking a new form today and that is FHA foreclosures.

Real estate market forces have pushed the price tags of homes down nationwide but the number of FHA foreclosures has continued a sustained increase in rate up to this point.  Market analysts are even predicting a new wave of foreclosures.  This time, it will hit the prime mortgage sector.

At face value, this means more homes priced cheaper will be available for potential homeowners as mortgage lenders are pressed to dispose of FHA foreclosures to ease their liquidity problems.  The prospects seem to be attractive for those with sufficient equity.

Words of Caution on FHA Foreclosures

Buyers of FHA foreclosures should be wary with their buying of homes from the FHA foreclosure listing.  As would be expected, most of the foreclosure homes for sale are results of default of sub-prime mortgage loans.  In this case, a lot of these real estate properties have not sufficiently built on its equity from payment of mortgage from the original homeowners.  You might end up with a home with a price tag that is almost equal to its actual value or at best with only 10% off from the original cost.

Buyers of FHA foreclosures are forewarned of these types of foreclosure homes for sale which investment experts term as “land mines.”

Buyers of FHA foreclosures are strongly advised to do a thorough title search.  Study the structure of mortgage on the foreclosure homes for sale.  In some instances, there might be a second mortgage on top of the principal mortgage.

These types of FHA foreclosures are not the “best buys” we are looking for.

Another aspect to consider when buying foreclosure homes for sale is that the real estate properties are being sold “as is.” It is then imperative on your part to factor in at least an additional 25% on the price tag of the property you are buying.  This amount should cover all the unforeseen costs involving repairs and defects on the home which may not be apparent on initial inspection.  You don’t want to end up spending the 30% savings you thought you got from buying FHA foreclosures for repairs and defects you only discover after you move in to your new home.

Another practical tip for would-be buyers is to avoid foreclosure homes for sale that were already on the listing for quite a while already.  On inspection you would most likely find out that these homes have significantly deteriorated as most mortgage lenders are hard pressed to maintain an even increasing number of foreclosed properties.

A final reminder to buyers of foreclosed homes; most of the FHA foreclosures were originally owned by people who would have surely gone into serious financial troubles.  With this situation in mind, expect these former owners of not being able to have done some decent maintenance and care of the now foreclosed property.

Expect to face some serious house repair of practically all aspects of the entire property.  Don’t be surprised to find some punched holes in doors and wall panels courtesy of the former owners of the home.

Once these are sufficiently covered by the would-be buyer, then it is safe to move on to the next phase, and that is to commence the buying of FHA foreclosures.



Stop Foreclosure With a Loan Modification

Thursday, June 17th, 2010

into foreclosure
jamiehanson asked:


Stop Foreclosure helps the borrowers who cannot make loan payments and hence helps them save their home from foreclosure. If any homeowner has a fear of loosing his/her home, he/she has a wide choice to help him save his home from foreclosure. Whatever may be the situation of the borrower the financial institutions offer great help to them and hence stops foreclosure on their home. However to benefit from the stop foreclosure with loan modifications the borrowers should take assistance from a number of mortgage institutions that are willing to help him to get a loan modification done with the approval of the lender and help him save his home on stop foreclosure. All the borrower needs is to do a bit of documentation process and provide the details accurately to the mortgage company. The mortgage company further evaluates the information provided by the borrower and then provides a number of options for loan modification to the eligible borrower. The borrower is eligible for stop foreclosure with loan modifications if he has a valid reason to miss his loan payment. This may happen if he looses his job or may fall ill, or due to an increase in genuine expenses or simply fall short of funds to make loan payments. The mortgage company helps the borrower to modify his loan and assist him to save home by stop home foreclosure. If the borrower fails to make loan payment for the first time, the investor or the bank charges you a 30-day late fee. For this the investor or the bank sends a prior notice as a reminder for non-payment. The bank also discusses forbearance plan with the borrower to work on the missed loan payment and to bring you again on path. This special plan helps the borrower to reduce his payments or delay payments to help the borrower to repay the loan. The investor or the bank may also help by refinancing the loan and helps make the payment more reasonable. For this the borrower should confirm that he will anyhow handle the modification made on payments. But if you are unsuccessful to initiate your bank or investor and further avoid payments you may be charged late charges for 6 months , then 9 months and so on…till this period you loose your credit ratings and may even loose to gain from the forbearance plan or refinance assistance provided by the bank helping you avoid home foreclosure. If the borrower can not make payments for 90 days, the bank or investor charges you with an NOD (Notice of Default) which states that the borrower has 30 days to make his loan current for which the borrower may approach the court or be prepared for foreclosure. The court orders an auction for your home to sell it within seven days. If there is no buyer for the home on auction, the bank or the lender takesover the ownership and starts with legal formalities like name transfer public notice etc… Other way round, if the borrower pays all the charges like legal fee, late fee, foreclosure fee he might be saved. A foreclosure leads to a tremendous drop in his credit ratings and may not be further eligible to borrow loans for at least four years. Luckily there are other simple ways by which a borrower can stop loan foreclosure without a big deal: a) Refinance b) Forbearance Plan c) Partial Claim d) Pre-foreclosure e) Deed-in Lieu of foreclosure f) Real estates short sales Refinance is the help offered by the bank that enables the borrower to easily pay off the loan for he should be qualified to make the payments. Forbearance Plan helps to ease or suspend payments till the payments are current again. A partial claim plan allows the borrower to make advance payment to the lender by a Promissory Note. HUD helps to grant a partial claim. A pre-foreclosure helps to sell the homeowners home with less effort and thus avoid foreclosure. Deed-in Lieu helps the borrower to stop foreclosure by selling back the property to the lender or the bank itself. Hence avoids foreclosure but at the cost of the borrowers home. Thus the borrower under a financial burden who can not make the payments to the bank or the investor can stop foreclosure by opting a number of ways mentioned above and thus saves his home with Stop Foreclosure with Loan Modifications.



Los Angeles foreclosed homes –Benefits and Guidelines on Buying Los Angeles Foreclosures

Wednesday, June 16th, 2010

foreclosed homes
Fiona Livnat asked:


Located in the State of California, Los Angeles is the second largest city in the United States and is considered as a prime area for real estate. Now with the help of Los Angeles foreclosed homes purchasing a property in this vibrant city has become a very affordable bargain deal.

Home to renowned institutions covering a broad range of professional and cultural fields, buying a property in this city through Los Angeles foreclosed homes has the following benefits:

•    Entertainment Capital of the World – Being the home base of Hollywood, the city is known as the “Entertainment Capital of the World” and is leading the world in the creation of motion pictures, television production and recorded music.

•    Diverse cultures – The city is home to people from more than 140 countries speaking 224 different identified languages and has some famous ethnic enclaves like Chinatown, Historic Filipino town, Little Armenia, and Little Ethiopia.

•    Wide housing options – There are a wide range of foreclosed properties available in the city in different price ranges and sizes from the simplistic locales of West Adams, Venice Beach, Silver Lake to the more affluent areas of Bel Air, Hollywood Hills, Hancock Park, and Brentwood.

•    Highest employment rates – With companies such as US Bancorp, Ernst & Young, Aon, Manulife Financial, City National Bank, Bank of America, Deloitte, KPMG and the Union Bank of California having offices in the Downtown Financial District, the city has one of the highest employment rates in the country.

•    Convenient transportation – The city has very good transportation facilities with the Red and Purple subway lines, as well as the Gold, Blue, and Green light rail lines and the Metro Rapid buses as well as the commuter rail system Metro-link which links the city to all neighboring counties as well as many suburbs.

While purchasing a property through Los Angeles foreclosed homes there are some important guidelines to be kept in mind in order to ensure a successful deal.

Subscribing to online foreclosure listings is the wisest way to access information on available Los Angeles foreclosed homes.

You can look out for public auctions for buying suitable foreclosed properties directly.

Before taking a final decision on the property of your choice through Los Angeles foreclosed homes always remember to make a thorough ground examination of the property and the locality.



Wednesday, June 16th, 2010

foreclosed homes
Fiona Livnat asked:


If you are looking for affordable housing options in a good location then opting for Phoenix foreclosed homes could be just the right thing for you. The combined promise of economic opportunity and quality living  are the high points of this city and now with foreclosed properties  available at great bargain deals there has never been a better opportunity for home buyers.

Buying a property through Phoenix foreclosed homes has some great advantages as listed below:

Country’s fifth-largest city – The city is an eclectic mix of a sophisticated urban region with a marketplace valued at more than $50 billion making it a great destination for real estate investment as well as for business and employment opportunities.

Friendly communities – With a relatively young, educated, multi-cultural and upwardly mobile population the city one of the outstanding features of the city are its friendly and diverse communities in beautiful towns such as Scottsdale, Carefree, Glendale and others distinct and uniquely appealing neighborhoods.

Low cost of living – In contrast with the rich culture and top notch utilities in the city, the cost of living is relatively much low due to better and affordable housing facilities, fewer taxes and various low interest government loan schemes.

Diverse art and culture scene – The city is also home to numerous vibrant cultures – African, Anglo, Asian, Hispanic, Mexican and Native American contributing to an incredibly rich and diverse art and cultural scene which makes residing in the city through Phoenix foreclosed homes a great choice.

Given below are some effective steps that will help you in buying a property through Phoenix foreclosed homes successfully:

1.    Decide your criterions- The first step to finding a suitable property through Phoenix foreclosed homes is to decide upon the size, location, no of rooms your budget.

2.    Subscribe to online listings – Online listings provide you with the latest information at a very nominal fee and are a great tool for finding good bargain foreclosure deals.

3.    Inspect the neighborhood – Inspecting the neighborhood and its amenities, along with the education and health care facilities is very vital.

4.    Assess property value – Once you have zeroed in on a property, make a thorough inspection and estimate its renovation costs in order to assess its real worth.

5.    Negotiate – The sellers are always keen on parting with Phoenix foreclosed homes and therefore there is a wide some of getting a better deal than the asking price with some negotiation.