Foreclosures Minnesota

Understanding HAFA-What Is It & How It Works

This explains what the HAFA is and how it might work for you. This might work for people that are in distress and would like to try and avoid a foreclosure. Here is a link for additional information http://www.CDPE.com/hafa I work with homeowners who need help at this difficult time-let me know what I can do for you.

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Owner Financing – The Foreclosure Process

By Craig Meriwether

One of the great parts of the owner finance home sale is the opportunity to work with the buyer in the case of financial problems. By creating a solution that works for both parties a home owner is more than likely to stay in the house and the loan holder will continue to receive monthly payments. If a solution cannot be created then unfortunately foreclosure might be the only option to take. This article will present a look and some of the different ways foreclosures can be handled.

In some states, the beneficiary can choose one of two methods to foreclose judicial or non-judicial. In a judicial foreclosure, the beneficiary files a lawsuit against the trustor in Superior Court to foreclose on the property. The case is then set for trial. If the court rules in favor of the beneficiary, the property will be ordered sold at a public sale. In most instances, however, it is a non-judicial foreclosure. In a non-judicial foreclosure, the court system is not involved. To foreclose non-judicially, the deed of trust or mortgage must contain a power of sale clause. The power of sale clause gives the trustee the right to begin foreclosure without going to court. To include a power of sale clause does not require a specific form or language.

If, on the other hand, the security instrument does not contain a power of sale provision, judicial foreclosure is the beneficiary’s only way to obtain the property. Most conventional deeds of trust say “with the power of sale”.

Judicial and non-judicial foreclosures differ in many ways. The foreclosure method selected by the beneficiary has significant consequences for the trustor.

Non judicial foreclosure is relatively fast, as this method does not involve the court system. In most instances, non-judicial foreclosure takes, at minimum, about four months after the trustor has failed to meet the obligation or defaulted on the loan. Judicial foreclosure, on the other hand, may take up to several years.

Non judicial foreclosure is generally less costly than judicial foreclosure. In a non-judicial foreclosure, the trustee’s and attorney’s fees are largely specified by law. In a judicial foreclosure, however, there are generally no legal limits for attorney’s fees. As a result, the trustor may be liable for significant legal expenses.

Another major difference between the two foreclosure methods is the beneficiary’s right to a deficiency judgment. A deficiency judgment is a court order stating that the trustor still owes money to the beneficiary if the proceeds from the foreclosure sale are not sufficient to pay the balance of the debt.

Some state laws do not allow a deficiency judgment in a non-judicial foreclosure on residential purchase money loans. A residential purchase money loan is one in which loan proceeds are used to purchase the property. Furthermore, state laws do not allow deficiency judgments against the residential trustor where the loan was made by the seller of the property or by a third party lender (often a financial institution) on a four-unit or less residential property that is the principal residence of the trustor. If the beneficiary judicially forecloses on a non-purchase money residential loan, a deficiency judgment may be obtained against the trustor.

Non-judicial and judicial foreclosures also differ with regard to the trustor’s right of redemption after the foreclosure sale. This is the trustor’s right to reclaim the foreclosure property. In a non-judicial foreclosure, the sale of the property at the trustee’s sale is an irrevocable final sale, and the trustor does not have the right to redeem or reclaim the property after the sale. Judicial sales, however, are subject to redemption by the trustor.

This summary of the major differences between non-judicial and judicial foreclosure shows the advantages of non-judicial foreclosure for the beneficiary. The non-judicial foreclosure is timely, economical, non subject to redemption, and may command a higher sales price. In addition, it is unlikely that the beneficiary would recover any losses through a deficiency judgment, as the trustor could not make the loan payments in the first place. Because of these advantages, beneficiaries typically prefer to foreclose non-judicially. Beneficiaries might foreclose judicially when they see an opportunity to recover any losses through a deficiency judgment.

The following two sections give detailed information on each of the foreclosure methods.

Non-Judicial Foreclosure

This section describes the major procedural requirements of non-judicial foreclosure, discusses the trustor’s reinstatement and redemption rights, reviews legal provisions for trustee’s fees and summarizes special legal provisions affecting foreclosures in many states.

Many states allow the beneficiary of a deed of trust containing the power of sale provision to foreclose non-judicially after the trustor has defaulted on one or more contractual obligations. In case of default, the beneficiary may order the trustee to initiate foreclosure.

Notice of Default

Foreclosure begins when the beneficiary notifies the trustee that the trustor has defaulted on any obligations stated in the promissory note and deed of trust. The beneficiary gives the trustee information concerning the condition of the debt such as the amount of the unpaid balance and due dates. Upon receipt of this information, the trustee prepares the Notice of Default.

The Notice of Default must be recorded in the office of the recorder of the county where the property is located. If the deed of trust encumbers property located in more than one county, the Notice of Default should be recorded in the other counties as well.

The trustee must mail a copy of the Notice of Default to the trustor and to each person requesting notice within ten days of recording the notice. The law specifies additional notification requirements under certain circumstances. The Notice of Default must be published weekly for four weeks in a newspaper or personally be served on the Trustor, if the trustor has not requested to be notified of its recordation of the notice

Trustor’s should always notify the beneficiary and the trustee of any address changes to ensure prompt receipt of any correspondence from the beneficiary or trustee.

Before January 1, 1986, the trustor and beneficiaries under subordinate deeds of trust were given three months from the recordation of the Notice of Default to cure the default. An amendment to the law extended the expiration of the reinstatement period to five business days before the scheduled trustee’s sale. If the trustee’s sale is postponed, the reinstatement period is extended to five business days before the new date of the sale.

At any time during the reinstatement period, the trustor may stop the default by paying the beneficiary all sums of money due on the loan up to that point including additional costs incurred by the beneficiary, and attorney’s or trustee’s fees as specified by law. It is not necessary to repay the entire loan balance.

After reinstatement of the loan, the foreclosure proceeding is discontinued and the trustor resumes making the regular periodic payments.

Notice of Trustee’s Sale

If three months have passed since recording the Notice of Default, and the trustor has not begun to reinstate the loan; the trustee may proceed with the foreclosure by preparing a Notice of Trustee’s Sale.

The Notice of Trustee’s Sale must be recorded in the office of the recorder of the county in which the property is located at least 14 days before the date of the sale. As with the Notice of Default, the Notice of Trustee’s Sale must be mailed to the trustor’s last address actually known to the trustee.

The Notice of Trustee’s Sale also must be published in a newspaper of general circulation in the city, judicial district or county where the property is located. The notice must be published once a week over a 20-day period before the sale.

In addition to mailing and publication, the Notice of Trustee’s Sale must be posted for at least 20 days before the sale at the following locations:

o In at least one public place in the city, judicial district, or county in which the property is to be sold; and

o In a conspicuous place on the property to be sold

Improperly broadcasting the Notice of Trustee’s Sale typically will result in the cancellation and re-notice of the sale.

As mentioned before, the trustor can cure the default during the reinstatement period that runs up to five days before the schedule sale. After the reinstatement period expires, the trustor must pay the entire indebtedness plus foreclosure costs to avoid foreclosure. This is called redemption and only can be done during the five days before the sale. The trustor’s right of redemption ends once bidding at the foreclosure sale starts.

Trustee’s Sale

The trustee or the trustee’s agent must conduct the foreclosure sale at a public auction in the county where the property is located. The sale is to the highest bidder who must pay in cash, cashiers check or cash equivalent as specified in the notice and acceptable to the trustee.

The trustee may postpone the sale at any time before it is completed. The sale may be postponed at the trustee’s discretion, upon instruction by the beneficiary, or upon a written request by the trustor who has the right to request a one-day delay to obtain sufficient cash to pay the debt or bid at the sale. The trustor’s request for postponement must include a statement identifying the source of the funds. The law allows for three postponements. After three postponements, a new notice of sale must be given, except for postponements requested by the trustor or ordered by a court.

After the sale to the highest bidder, the trustee executes and delivers a trustee’s deed to the purchaser. The trustee’s deed conveys title to the purchase free and clear. The issuance of the trustee’s deed terminates the previous trustor’s legal and equitable rights in the property. It should be noted, however, that title to the property is conveyed subject to all senior liens, including liens for property taxes and assessments.

The purchaser of the foreclosed property is entitled to take immediate possession. A trustor who refuses to vacate the property may be legally forced to do so.

Rent and Rental Income

Generally, the trustor occupying the property does not have to pay rent to the beneficiary while in default. If a deed of trust should indicate a rent liability, enforcement of it would be unlikely.

The beneficiary may have a right, however, to any rental income generated by the property during the period of default. In the absence of such a provision in the deed of trust, the beneficiary is generally not entitled to any rental income.

Deficiency Judgment

In General, the law prohibits a deficiency judgment in a non-judicial foreclosure with a power of sale provision. Even if the proceeds from the foreclosure are inadequate to repay the loan, the beneficiary has no other possibility to recover.

Trustee’s Fees

The fees a trustee is entitled to charge the beneficiary or deduct from the proceeds of the sale are prescribed by law. The trustee may charge for costs incurred in recording, mailing, publishing, and posting of Notice of Default and Notice of Trustee’s Sale; the cost of postponing the sale by request of the trustor (not to exceed $50 per postponement) and the cost of a trustee’s sale guarantee. In addition to charging for these actual costs, the law provides for a fee schedule based on the amounts of the unpaid debt.

The legal limitations for trustee’s and attorney’s fees do not apply to attorney’s fees the beneficiary is entitled to recover under special provisions of the deed of trust.

Special Legal Provisions

Special federal and state laws may affect the manner in which the foreclosure is conducted. If the loan is insured or guaranteed by the U. S. Department of Housing and urban Development (HUD! EHA) or the Veterans Administration (VA), certain procedures must be followed. In the case of a VA-guaranteed loan, the trustor may be liable for any deficiency, unless the veteran obtains a release of liability from the VA. California law does not necessarily protect the trustor from liability for a deficiency on a VA guaranteed loan. Federal laws governing the VA loan program take precedence over any conflicting California law. Trustors should contact the VA for details concerning their rights and to learn about specific requirements.

Judicial Foreclosure

Judicial Foreclosure is tried in some state Superior Courts. The beneficiary, upon default of obligation by the trustor, brings a foreclosure lawsuit against the trustor. If successful, the court will issue an order to sell the property at a public sale. The beneficiary must use judicial foreclosure if the security instrument does not contain a power of sale provision. A mortgage or deed of trust containing the power of sale provision may be foreclosed judicially if the beneficiary chooses to do so.

The decision to foreclose judicially or non-judicially is not necessarily final. The beneficiary may discontinue judicial foreclosure at any time and commence non-judicial foreclosure.

Conversely, the beneficiary may abandon non-judicial foreclosure and initiate judicial foreclosure. Beneficiaries sometimes initiate both types of foreclosure simultaneously.

Foreclosure Sale

A court-appointed commissioner or sheriff in the public place must give notice of the sale of the property for 20 days preceding in the date of the sale. This same notice must be published in a newspaper of general circulation weekly for 20 days. The notice also must be sent by certified mail to all defendants at their last known addresses.

At the foreclosure sale, the property must be sold by the auctioneer to the highest bidder who is financially qualified.

Redemption of Property

In a judicial sale, the trustor has the right to redeem or reclaim the property after the foreclosure sale. For a trustor, the right of redemption makes a judicial sale attractive. It should be remembered, however, that a judicial sale might also lead to a deficiency judgment. This possibility does not exist in a non-judicial foreclosure.

Deficiency Judgment

In a judicial foreclosure, the beneficiary has, under certain circumstances, a right to a deficiency judgment. The deficiency judgment is limited to an amount equal to either the difference between the indebtedness and the fair market value of the property, or the indebtedness and the sales price at the foreclosure sale, whichever is less.

Rent and Rental Income

The trustor occupying the disputed property does not have to pay the beneficiary rent while in default. The beneficiary may be entitled, however, to any rental income generated by the property.

After the sale, the trustor retains possession of the property and does not have to pay the beneficiary rent while in default. The beneficiary may be entitled, however, to any rental income generated by the property.

Craig Meriwether is owner of Kula Investments, a company founded you help you get top dollar for you owner financed real estate loan. [http://www.ioubuyer.com]

Article Source: http://EzineArticles.com/?expert=Craig_Meriwether

http://EzineArticles.com/?Owner-Financing—The-Foreclosure-Process&id=2140489

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Outstanding Video-An Inspiration To All-Be The Best You Can Be!

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Twin Cities Home buyer book

Thinking about buying a home but don’t know where to start? Why not start by reading the home buyer hand book that we have provided below. It is a great place to start to get the information you need. When you’re ready, we would love to help you find and finance a new home.

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The Short Sale Process For A Seller

This ppt. will explain the basics involved in a short sale. Today, lenders are starting to put in place systems that will make the short sale process work smoother. This presentation covers what is generally involved.

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How A FEW Are Profiting HUGELY From A Government Sweetheart Deal

If you haven’t been getting much success with a modification and wonder why-maybe this video will help explain things.  As an agent who works really hard to keep people in their homes FIRST, I found this very upsetting.  I can tell you many many people who would have stayed in their homes, albeit at a reduced payment if they had some payment relief.  Instead, lenders foreclosed or forced a short sale and ultimately lost a lot more than the interest differential.  It is sad to think that even one family might have had to leave their home because of a profit incentive that encourages it.  Here is the video:  http://www.thinkbigworksmall.com/mypage/archive/1/29027

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What Happens When They Come For YOU

While this posts title is just a play on the TV show COPS, it is possible that if you sell a home short or have a foreclosure that results in a loss, that the lender could pursue a deficiency judgement.  In MN, they are doing this more often.  The LAST thing I am giving anyone is tax or legal advice.  Just be aware of the fact in MN, lenders can choose how they foreclosure.  A judicial foreclosure can result in pursuing a deficiency vs a foreclosure by advertisement.  There are resources like http://www.HOCM.org which provide Minnesota consumers with information and possibly assistance with trying to figure out options and repercussions.  Research the Mortgage Tax Forgiveness Act of 2007, extended in 2009 until the end of 2012.  Also call the IRS at 1800-829-1040 or visit them online at IRS.gov

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Items Necessary to Submit a Short Sale Package

Just because you owe more than your home is worth does not mean that you will be eligible to do a short sale.  The key is being able to show that you qualify based on a acceptable hardship.  The lender needs you to explain your situation in a hardship letter.  With that, there are items they will need.  These items include the following:  A financial statement showing what your current assets are and what your expenses happen to be, A couple of recent paystubs if you are employed that show your year to date income, all pages of your bank statements, your two most recent signed tax returns, asset statements like 401K & IRA’s, and a list of any other liens that encumber the property title such as back real estate taxes, second mortgages, third mortgages, and IRS tax liens that are recorded against title.

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Minnesota Deficiency Judgements Due To Mortgage Defaults Appear To Be Increasing!! Be Careful!

I recently read an article about the banks pursuing judgements after a short sale or foreclosure. The Minnesota home ownership center is FANTASTIC. They have lots of great information. Here is the link to their article:
Minnesota Home Ownership Center: Sued – After A Foreclosure

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Open Source Documents-Unbelievable Resources-Find YOUR topic of Interest

If you’ve never visited http://www.Archive.org, you are missing a wonderful site.  From this site, you will find many resources that are out of copyright and you can download and use them as you wish.  You will find all the classics and some fun things as well.  Just for fun, I have the download of a book called “Little Gardens” which is a book about setting up a garden on a city lot.  This is just one of the MANY fun things you’ll find.  You can download and watch old music, movies, and cartoons as well.  Plan to spend some time on the site should you decide to visit, as it is very cool.  Click here to download the book Little Gardens

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FHA Loss Mitigation Options For Those With FHA Loans

Here is the latest FHA Mortgagee letter that explains what options are available for people in default with their FHA mortgage. There are options, you need to explore them if you are in danger of losing your home.

FHA Loss Mitigation

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Sell Your Home Faster-Learn The Home Selling Secrets Of Successful Sellers

Here is a special report that outlines over 450 ideas on how to sell your home faster.  This report is just one of the many home buyer, home seller, and investor reports that I can make available to you.  Read this report and call me to arrange a time to see how I can help.  Download Now

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Homeowners Assistance Program-Department Of Defense

http://hap.usace.army.mil/ Look at this-From the website:

The Department of Defense (DOD) is proud to offer the Homeowners Assistance Program (HAP) to eligible service members and federal civilian, including non-appropriated fund, employees. The program is authorized by law, and administered by the US Army Corps of Engineers (USACE) to assist eligible homeowners who face financial loss when selling their primary residence homes in areas where real estate values have declined because of a base closure or realignment announcement.

The American Recovery and Reinvestment Act of 2009 (ARRA) temporarily expands the HAP to assist service members and DOD employees who are wounded, injured or become ill when deployed, surviving spouses of service members or DOD employees killed or died of wounds while deployed, service member and civilian employees assigned to BRAC 05 organizations, and service members required to permanently relocate during the home mortgage crisis.

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Why Flip Houses

There are many great questions to ask when it comes to real estate investing and one of the many that you should consider if you are thinking of flipping houses for your real estate investment is: why? Why flip houses? It certainly seems as though it’s a great deal of work and it is. It isn’t an easy task to take upon your own shoulders and yet many people around the world purchase houses each and every day for the purpose of flipping those houses. Why? Profit is the long and the short answer but it goes much deeper than that for many who are interested in flipping houses even if profit is the ultimate goal.

Some people really enjoy working with their hands. Purchasing a property in need of light cosmetic repairs and retouches is a great way to get your hands dirty without risking too much money, time or effort. Properties needing more serious work may require a pair of hands that have some degree of experience rather than hands that are best suited for balancing books. That being said if you want to do the work yourself and enjoy the prospect you may find that you can save a great deal of money if you use your own labor rather than paying for the labor of others when it comes to flipping a house.

Other people go into this line of work because the idea of giving a family their dream home is so appealing. When you go in and flip a house you are putting your sweat into creating someone else’s dream. You are taking something that may have been plain, ugly, or drab and turning it into a beautiful home in which they can build their dreams. While it may seem a little romantic, it is in a way. This is part of the beauty of flipping houses though; there really is no wrong reason to do it.

Some people choose this line of work because deep down inside they need the pain that goes into turning a lump of coal into a diamond. I think the literal term for these people (and really this could apply to anyone who decided to flip houses for a living) is masochist. The shoe fits for most people who flip houses. If they didn’t know going into it the first time they certainly know before they go into it a second time.

Then there are those that are simply driven by profit. There really isn’t anything at all wrong with that. Most of us would never get into this business if there weren’t some hope of a pot of gold on the other side of the rainbow. This is hard work and there are days that the promise of a pay off is the only thing that gets you out of bed and hitting the ground running yet again.

Just remember that at the end of the day it doesn’t matter what your goal in flipping houses is. What matters is that you show up day after day and do the work necessary to pull off your house flip. This is what makes the difference between those playing at flipping houses and those who are doomed to be one hit wonders in this brutal business. Of course, there are still those few who flip houses just for the sake of seeing the finished product when everything is said and done.

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The Risks of Flipping Houses

Real estate investing is a field in which millionaires are made and lost on an almost daily basis. Most of the wealthiest investors in the world will agree that real estate is by far one of the most profitable fields in which you could invest. It also carries some of the biggest risks when it comes to investing at the same time. Real estate investments are large investments for the most part so when you loose on an investment such as this the losses tend to be much greater than when you loose in other investment avenues.

When it comes to flipping houses there are several risks that you should consider before diving in headfirst. While most of the risks are not something you can anticipate or plan for they are risks that you should be aware of and carefully consider before investing in a risky venture such as a property flip.

1. Fickle market. The real estate market is a fickle business. There are countless things that can greatly impact the likelihood that your investment will sell quickly or sit on the market for months on end and most of them are beyond your control Tornadoes strike nearby, crime happens nearby, a big company goes out of business, or a new company moves into the neighborhood. For better or worse all of these things have a profound impact on the real estate values nearby.

2. Neighborhood knowledge. It is very important that you take the time to get to know the neighborhood before you invest in a house you are planning to flip. You want to make sure that your vision for the home fits with the reality of the neighborhood and that the average income of the people in the neighborhood will be able to purchase the home you are creating.

3. Bursting bubbles. I’m sure you’ve heard all kinds of talk about the real estate bubble and how it seams to be bursting. While I’m not sure I put much stock in that I do know that heavy taxes in an area, new taxes in an area, and the encroachment of crime in an area can give you a sudden stream of competition for low prices while also making it more difficult in general for the property to sell.

4. Underestimating your own limitations. This is a big deal when it comes to risks in the business of flipping houses. You need to have realistic expectations before getting in of the time frame for completion, budget, and what you can do yourself and what you will need to hire professionals to handle. If you don’t you can seriously impair your budget and the impact of the work you do as a whole.

5. Underestimating prices. This is another big deal because you need to have realistic expectations when it comes to the price of supplies, tools, labor, and equipment that will be required in order to complete your house flip. Failing to have a reasonable grasp of current prices can have a devastating impact on your budget and how much you can actually accomplish during the course of your house flip.

6. Great profits. While some do not necessarily consider this a risk, excessive profits do work to impair your ability to pull out your wallet at the bank or anywhere else along the way. While we could be all so lucky as to call that a risk it is a very possible outcome of your house flipping attempt as long as you spend at least as much time in planning your flip as you do in executing it.

You should understand that there is no such thing as a no risk flip or a no risk real estate investment. You cannot eliminate the risk all together for the types of rewards that stand to be made through real estate investing and flipping houses. Tread softly, plan wisely, and work diligently in order to make your financial dreams a reality through real estate investing.

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Risks of Real Estate Investing

All good things carry with them some degree of risk. The same holds true with real estate investing. Despite the promise of high rewards you should temper those ambitions with the reality that the risks involved are more often than not just as high as the potential rewards. For this reason you need to take every possible precaution in order to insure that you minimize your exposure to risk whenever possible or at the very least are prepared, financially and mentally to accept the consequences of those risks if the time comes.

The most obvious risk when it comes to real estate investing is the immediate risk of losing your investment. This risk can be a huge blow depending on how large your investment was to begin with but isn’t the worst thing that can happen during the course of a real estate investment gone wrong. While I’m certainly not trying to talk you out of investing in real estate all together it is a good idea to have a realistic view of the risks and the potential rewards.

If you are flipping houses as your real estate investment you have the potential to loose a little more as you can become injured during the course of your work. The sad truth is that many who are attempting to break into the business of flipping houses have neither adequate insurance coverage (this is true of themselves and the property in general and others that may be working on the property), the money, nor the time that a serious injury might require.

Another risk common to real estate investing is the fact that stuff happens. Market trends tumble, companies go out of business leaving towns and the local real estate market in shambles, accidents happen during the course of the work, natural disasters occur, and buyers change their minds and pull out at the last minute. Each of these things can have devastating consequences and are almost always events that are completely beyond your control as a real estate investor.

If that wasn’t enough many investors fail to have a proper inspection and find out when it is really too late that there are serious structural problems and other sorts of things wrong with the property. These things cost money to repair and cut into profits, occasionally resulting in a loss. The thing is that once you find out something is wrong with the property you are honor bound to either reveal the problem to potential buyers or fix the problems before selling the house. In the case of a flip, many major problems will undo the work that has already be done. If this doesn’t remind you of the importance of a thorough inspection I have no idea exactly what will but inspections are important for many reasons and can save a lot of time and money if you have one done ahead of time.

Do not allow the risks of real estate investing prevent you from taking the plunge. They are spelled out here to remind you that prudence and caution are wise when investing in real estate not to talk you out of this potentially lucrative field of investing. If you are interested in real estate investing there is no reason on earth you shouldn’t take the time and make the effort to learn more about its potential.

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Rental Ownership Woes

While real estate investing is a great line of business to get into in order to make copious piles of money there are a few things to consider before jumping into the fray. This is particularly true if you are considering going the route of a rental property owner. There are all kinds of reasons that this is a good solid investment for most that are interested in investing in the real estate business however, it doesn’t come without a few drawbacks, not all of which are financial. It would be wise to consider these things however before you buy your first rental property.

First of all, if you own rental properties and elect to manage them yourself, which is probably wise unless your first property is a multiple rental unit, you will quickly discover that your life is no longer your own. You are literally on call 24 hours a day 7 days a week to handle problems that may arise from pipes bursting, heating going out, electric issues, noxious fumes, leaky roofs and window sills and countless other complaints that may erupt at odd hours of the day or night. Your tenants will have your phone number and expect you to always take their calls.

Second, you have to play the role of Mr. or Mrs. Mean every month when the rent is due. This is probably the least tasteful task of owning rental properties for many rental property owners and one reason that many resort to the services of a property management agency above all other reasons. You will hear all manner of sob stories in your role as landlord but you need to treat this like the business even the things about your business you don’t like such as rent collecting and, when necessary, eviction proceedings.

Third, the constant need for upkeep and repair is often daunting to rental property owners. It’s a sad truth that people do not treat rental properties with the respect that they would treat a home of their own. For this reason you almost always need to paint and replace carpeting, at the very least in between tenants. This takes works and time not to mention the fact that the time that is spent painting and replacing the flooring is time that the property is going to be empty of tenants and not bringing in any income.

Finally, there is the constant need to have the property occupied. As the owner of a rental property you will need to find new tenants when the old ones leave because every day the property is empty is a day you aren’t making money. You want to have the property filled as often as possible and you really want long term tenants whenever you can manage that. One way of course is by making sure that your tenants are treated well, not overcharged, and happy with their homes.

Owning rental property can be financially rewarding but it is a lot more work than many people give it credit for being in light of other careers within the real estate investment field that may require more work upfront. Rental properties require a long-term commitment to keeping the property in good working order and making it a profitable venture for many years to come. If you are considering this business and the above things are a deterrent for you it might be a good idea to obtain the services of a property manager.

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Real Estate Investing-Everything You Need To Know!

I came across this e-book and I wanted to share it with you.  I thought the information was useful, the rolodex link in the back of the book with investor resources was incredible.  I think you will enjoy it-it is a pretty light read.  If you get all fired up and want to start looking for property, just give me a call.

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Making Home Affordable

Recently the government published an update to what had come out earlier in the year.  This new report shows what is being done to help homeowners sell their home or make an arrangement with their lender.  Download the report at this link.  This should make the process of coming up with a solution that much easier, now that they have defined the guidelines better.

http://www.treas.gov/press/releases/docs/05142009FactSheet-MakingHomesAffordable.pdf

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Introduction of Home Affordable Foreclosure Alternatives – Short Sale and Deed-in-Lieu of Foreclosure

This is FANTASTIC NEWS!!!  FINALLY, they are establishing minimum requirements on resolving the short sale procedural process.  Here is the link to the government news release:

https://www.hmpadmin.com/portal/docs/hamp_servicer/sd0909.pdf

Short Sales have been difficult to close, and these new measures are a huge step in the right direction. One major highlight: A lender must give a yes or no answer to an offer within 10 days. Also included: a moving allowance, incentives for sellers and lenders, commission rules, and a stipulation that releases sellers from debt liabilities.

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RECENT News Release: Legal Service Plans Can Benefit Homeowners Facing Foreclosure

Pre-paid legal recently had a news release that explains how their service may benefit homeowners who are in distress and facing a foreclosure. We sell the PPD Pre-Paid Legal service plan at our website https://www.prepaidlegal.com/Multisite/Multisite?site=hub&assoc=mazzara You probably want to look at the family plans unless you are a small business. You can visit the site, watch the video, and learn more. I not only sell the plan, I am also a user of the plan. I think PPD is great based on my own personal experience. I have called upon them to answer questions and they have been of assistance over the years. If you have questions that aren’t answered online, call me.

Read the news release here:
http://www.prnewswire.com/news-releases/legal-service-plans-can-benefit-homeowners-facing-foreclosure-70452157.html

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Extension And Expansion Of Home Buyer Credit-4/30/2010

A Big WOW!!  The credit has been expanded to include homeowners who have owned their home for the past 5 years. No longer do you need to be a first time buyer.  The dollar limit is $8000 for first time buyers and $6500 for move up buyers.  This GREAT news.  Combine this with 50 year lows in interest rates, and you’d be crazy not to consider making a move.  If you feel secure in your job, think hard about buying  home at this time.  We can help you make the right move. Visit this site-which is from the National Association Of Home Builders  http://www.federalhousingtaxcredit.com/faq2.php This site give you all the rules and regulations as they now apply.

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Why Foreclosure Is Often Preferred By The Loan Servicer Instead Of Offering A Loan Modification

Have you ever wondered why a foreclosure occurs when a better solution might have been a modification?  Would you like to read the facts and figures and see how mortgages are bundled, sold and serviced?  You will soon see it is isn’t pretty, we are in the midst of a crisis, and it is likely to get worse before it gets better.  That being said, you can probably guess why-it’s about the money.  It is a little more complex than that-the report is 60 pages-but is explains the incentive and disincentives that are at conflict within the mortgage market today.  Once you understand how all the pieces go together, you can see that something “different” needs to be done.  I am a strong free market believer, but in this case, the government needs to have a mandate and rule that is guided towards keeping people in their homes.  Left to current industry solutions, the mortgage mess will continue to play out and get worse.  If you click on the link below, you will find the free report from the National Consumer Law Center.

http://www.consumerlaw.org/issues/mortgage_servicing/content/Servicer-Report1009.pdf

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Home Buyer Tax Credit Information Update

It’s now official!! The tax credit has been extended and expanded. YOU NEED TO HURRY! You now have until the end of April 2010. The following summary of the credit is provided by the National Association Of Realtors. The following two documents cover the changes in the new law. Now get out there and buy a home!!

NAR FAQ: Homebuyer Tax Credit Changes
NAR Issue Brief: Homebuyer Tax Credit Changes

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Freddie Mac Foreclosure Prevention

Are you wondering what the government has to offer as far as resources? Here are a couple of links that will hopefully help you make the right decision. There MAY be options that will help you avoid a foreclosure.

http://www.freddiemac.com/avoidforeclosure/

http://www.freddiemac.com/avoidforeclosure/stop_foreclosure.html

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Postponing a MN foreclosure-New Law

MN allows a foreclosure to be postponed, but there is a tradeoff-shortening the redemption period. This may help someone who is able to get back on their feet and catch up with the back payments. Click Here

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Minnesota Real Estate Newsletter Gives Access To Great Computer & Life Tips

I maintain a number of real estate sites, blogs, and newsletters. One newsletter that provides a number of computer tips to help you function better with a computer is http://www.REcyber.com/cybertips/r11627 The site is full of cyber space tricks and great places to visit. We have link to this site on the list of MN Real Estate links, but I wanted to highlight this particular newsletter because it different from what most agents provide. From this newsletter, you can also access all the back issues-from 2001 and beyond. It is really quite a useful resource-spend some time there if you have a chance.

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Buy A Minnesota Investment Property With Confidence

RE/MAX has put together a “how to guide” on how to buy investment property. Since knowledge is power, get the guide and brush up. It’s your money-get the information you need to become a successful Minnesota investment property investor.

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Foreclosure Secrets-Watch-Listen-Learn Webinar On Buying Foreclosures The Right Way

As a Twin Cities Realtor, I work and market homes within the area of distressed homes as well as the non distressed home marketplace. I work with a group of banks, investors and Realltors that market, sell and invest in foreclosed homes. Many people approach me to buy a foreclosure propery as either a primary residence or as an investment. I would like to make one thing perfectly clear-BUYING DISTRESSED PROPERTIES IS NOT LIKE BUYING A REGULAR HOME FROM A REGULAR SELLER IN A NATURAL MARKET. Now that we are clear on that point, I’d like to strongly recommend you watch this webinar. This webinar will explain what to expect and the entire process. When you become a client, I will walk you through this information as well. Having this knowledge upfront is INVALUABLE. My advanced training and experience in this area of the market will help you navigate the process.

PLEASE take an hour of your time and view this webinar:
http://www.xiosoftpresenter.com/Default_xpv2.asp?eventid=7231737

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What Would You Do If You Can’t Make Your House Payment?

This question confronts millions of people-daily. Unfortunately, people often don’t know what to do, so they do nothing, until it’s too late to consider anything other than foreclosure. When is the last time you did nothing and had your problem solved miraculously by itself? It just doesn’t happen. YOU must take action. Foreclosure MIGHT be the only option. BUT, IT MIGHT NOT!! You owe it yourself to find out what other solutions exist. Please print out the PDF and share it with someone who might be asking themselves how they are going to solve their problem. If you or someone you love are a homeowner in trouble- within Minnesota and the Twin Cities area specifically- I might be able to help.

Click Here for the PDF file.

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National Mortgage Default Statistics

This information takes us through Q2. What it doesn’t show is the number of option arms and other “prime” type mortgag arms that are re-setting over the next years. It starts the fall of 09 and increases through 2011. The next shoe to drop will be in larger homes with “prime” loans. The solution to the problem is steady employment and job creation.

See National Mortgage Default Statistics

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Minnesota Foreclosure Data

Here is a report on foreclosures throughout the state of MN.  This is a great report that shows foreclosure data in each of the respective counties. Click below.

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Learn the different impact between a short sale vs foreclosure

Sometimes, a short sale will be viewed more favorably during underwriting a new loan. A foreclosure will generally have a longer lasting negative affect. This short report give you some things to think about. Of course, things are always subject to change.

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Minnesota Short Sale Seller’s Guide

Do you owe more than your home is worth?   Do you need to sell your home but can’t bring the cash difference to a closing.  If you have a hardship, you may qualify for a  short sale.  Learn what happens during a short sale and see if you are a candidate.

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Minnesota Short Sale Buyer’s Guide

Are you considering buying a property that is being marketed as a short sale?  If so, why not get this guide today.  It it free and useful.  Once you understand the process, you will know what to expect.  One of the biggest problems I see in the marketplace is people not willing to get the knowledge upfront and then expecting a different outcome.  Don’t let a short sale be a frustrating experience.

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Find out if your home has a Freddie Mac or Fannie Mae Loan

Fannie Mae Lookup
http://www.loanlookup.fanniemae.com/loanlookup

Freddie Mac Loan Lookup
https://www.ww3.freddiemac.com/corporate

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National Foreclosure & Homeowner Resources

The Home Affordable Refinance Program
http://www.MakingHomeAffordable.gov

HOPE Now

http://www.HopeNow.com

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Minnesota Homeowners In Foreclosure

One of the best places to get more information is at http://www.Hocmn.org Please visit their site and download their informational PDF’s explaining the foreclosure procedure in Minnesota.

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Facing Foreclosure In MN

You need to understand all your options.  Make sure you visit http://www.hocmn.org and get the information you need.  This link is to a non profit site that has counselors that can help.

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Minnesota Foreclosure Data

Foreclosures in Minnesota:  Click Here to Read
A Report Based on County Sheriff’s Sale Data

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Applying For A Mortgage Loan Modification

Many people are now facing a lot of trouble with their mortgage payments simply because of the type of loan that they signed for. Those with adjustable rate mortgages have watched their payments go up a good bit and sometimes their payments can be double the amount that they used to be. With so many people living paycheck-to-paycheck, especially in this rough economy, there is no room for increased mortgage payments. Other times people are finding that they are falling behind on their mortgage payments due to other hardships such as a temporary loss of work or an illness.

There are options though and the main one, the most beneficial one, is that of the mortgage loan modification. Many mortgage companies have a hardship department or a customer retention department that is able to assist customers in finding the right program or help that they need. Most of the time, it is found that the loan modification is the best route to take. It is simple and pain free and unlike a refinance, there are no extra fees or charges to pay upfront.  The problem for the past due payments will be looked at closely though.

If your past due payments are simply because of the increased mortgage payment because you had an adjustable rate mortgage you may have no problems getting the help you need. You will though have to prove that your income and other expenses support the fact that you can reasonably afford the payments at the amount they used to be. If you are falling behind on the mortgage because you were out of work or were extremely ill, you are generally going to have to show proof that your hardship is now over. All of this is done through the hardship letter that is written by the person seeking out the loan modification.

The hardship letters are what the bank needs in order to justify why they are extending this help to you. They have to make sure that you have a valid reason for falling behind and that you are now able to make timely payments if you were caught up to date and given an easier to afford monthly payment. A sample hardship letter is generally sent to those customers who are applying for a loan modification so that it can be seen how it should be written. If your loan company does not provide you with that you can very well find a sample hardship letter online.

Just make sure that you are being completely honest in your hardship letter. If your hardship is not completely over then you are just going to find yourself in the same situation all over again within a matter of a few months. Many lenders have a limit on how many times a customer can get a loan modification. A lot of banks set their limit at two for the entire course of the loan. This means that you want to be careful when you use these chances so that you are only taking advantage of them when you really need it and when there is no other way out.

In your hardship letter, you are going to want to state your case and make it clear that your hardship was one that was completely out of your control. Basically, the banks want to make sure that you just were not out there spending all of your paychecks at the mall when you should have been paying them. Explain how you would benefit from being brought current and given a lower interest rate. Adjusting the terms of the mortgage could save you a lot of money in the long run. While a lower interest rate means less extra money for the bank, it is a lot better then you not being able to afford making the payments at all.

Keep in mind that while the bank may not be your friend; it is not out to take your home. Mortgage companies are in the business of making money through servicing mortgages, not through owning and selling real estate. The bank does not want your house but will take it if there is no other way to receive money from you. Just make sure that you are not being too relaxed with that information though. You have to be proactive and get started working on your loan modification application as the entire process could take up to sixty days.

You will also need to be prepared to maintain at least one monthly payment during the application process. These payments will prove that you are serious about your house and that you can afford the property, given the chance that the payments are brought back up to date. While you will explain in your hardship letters that there was a solid and explainable reason why you were not able to make your mortgage payments a while back, you have to prove that you can now. You have to be convincing and willing to work with the bank. They are after all holding the future of your home in their hands. Mortgage companies are not required to give you the modification. It is a case-by-case judgment call that they are in complete control of.

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Real Estate Owned Properties for Sale

If you have a mortgage and failed to repay the monthly payment, you are in the risk of getting a foreclosure. The lender, mainly the banks will file for Notice of Default and there is nothing you can do once the foreclosure is finalized. However, there are many ways you can avoid and stop a foreclosure from happening. You can find out more about this online or get a professional point of view in this matter.

When a foreclosure happens, the lender such as the banks will take over the properties involved in the foreclosure and try to sell it off at the foreclosure auctions. A foreclosure auction is going to take place to auction off the properties to the public. Before the auction take place, you will be able to see many advertisements whether in the newspapers, billboards and even online banking portals. Some of the legal paper are good places to look.  In the Twin Cities area, you would want to look at Finance And Commerce as well as the St Paul Legal ledger.

However, most of the properties have no buyers as the price of purchasing the mortgage is much higher than the market price. Therefore people are not interested in the properties that are more expensive than the market price for similar properties. Why would you pay more for the same property?  Unless of course, the banks are willing to reduce the price, and this is usually what happens.   Since marketing a home for more than it’s worth will give the bank no chance of unloading the property.  There is no way the banks can get people to buy the properties unless they make their property more attractive.  In order to solicit an offer, banks often sell at slight discount to true market value-10-20% of a discount on such properties. Investors and the consumers do their homework.  The internet and the data it provides is the great equalizer.

Real estate owned or “REO” describes one of the classifications for property owned by a lender. Normally the lender is a bank and the property becomes repossessed by the bank after an unsuccessful sale at a foreclosure auction. This is a normal process as most of the properties in the foreclosure sale are worth less than the amount supposedly owed to the bank.

Therefore people are unlikely to buy such properties and the properties end up in the bank’s inventory. The minimum bid for the foreclosure properties is the same as the total amount of the outstanding mortgage amount. As such, most people are not interested at all at the properties until after the sheriff’s sale- no matter how enticing or beautiful the property might be.

People are smart enough to check out the market value for the similar homes before they buy it to make sure that they are not on the losing side. However, some people might think that it might be profitable to buy a property that has been foreclosured. They might think that if they can get the property at the lowest price, they can sell it back at a higher price.  While good in concept, it is unlikely to happen until the current inventory is absorbed and the market starts to march forward once again.

Recently we are seeing wholesale liquidation where numerous properties are disposed of at auction.  So what happen when the foreclosure auction fails? The bank will try to sell the property on its own, meaning the bank will remove some of the liens and other expenses included before the property is up for sale in future auctions. The bank might offer the property directly to the public through a Realtor. This is possibly the best way for the banks to get the properties off their listing as the chances to get buyers would be higher and market conditions will dictate the final price.

Now, from a personal point of view,  the truth about many of the properties that become REO’s is that most of the REO properties are in bad condition and are poorly maintenanced. You might get a REO property that has a missing door, bad or missing piping and even with broken windows as well as other things you might not want to know about. People in distress will take out their anger at the house and the bank that lent them the money so they could buy the house.  These are perfect opportunities for someone with time and some cash to do the repairs.  The more repairs required, generally the larger the discount.  The types of “dirty dogs” are perfect for investors or  real estate agents that can recognize the potential.  Banks aren’t in the fix up business.  They want to remove the property from their books and move on.  You might want to look at these opportunities if they are selling at a low enough price to compensate you for the bad condition of the properties.

A Multiple Listing Service (MLS) is a group of private databases that contain the listing of properties represented by a real estate broker who is representing the seller to share information about the properties with other real estate brokers who represent the potential buyers. The purpose of the MLS establishment is to allow efficient distribution of information. When a real estate agent is introduced to a potential home buyer the agent is able to search the MLS system and get the information about all the homes available for sale in an area. Recently, our Northstar MLS in the Twin Cities Minnesota has created a search field specifically for foreclosed homes.  This will allow you pinpoint this type of property more easily.

Why do banks want to get a Realtor to help sell off the properties in the banks inventory? If the banks have too many properties in the inventory, it will do the banks no good to hold inventory of homes-especially in a declining valuation market.   If the banks get an agent to help sell off the properties, at least the chances of getting people to buy the properties would be higher, since most buyers use a real estate agent. The banks want to get rid of the properties not keep them. Banks are in the money lending business, not the real estate investment business.

Banks want to get back the money supposedly the previous owner owed them but if they can get at least half of it, they might not mind.  In some cases that is better than waiting six more months and now only recovering a third.   As long as they can get the money and the property off their listing, the banks would not mind to sell the properties at a lower price compared to the original pricing of the properties. The banks are getting many properties today.   Yet, not many people are able to buy them because of the tight mortgage market.

When the real estate agents get the properties as a listing, they will try their best to find potential buyers so they can sell off the properties.  Agents are often the bearers of the bad news, bringing in a low priced offer.  The main point is to get the properties out of the banks listing inventory, as there are so many more properties being filed into foreclosure everyday. More and more people are having the problems to repay the monthly repayment for the mortgages. Eventually, things will stabilize.  But, until then, the buyers have the upper hand.

Now, if you are one of those who want to buy a foreclosure property, it is very important to make sure that you know everything about foreclosure properties, the fees involved when you want to purchase, any hidden cost, additional cost and the total amount you will be paying in the end to get the property. Is it worth paying such a big cost to get a foreclosure property? It sure could be.  On the other hand remember the latin phrase “Caveat Emptor”-Buyer Beware.  You will have to think about it before you decide whether you want to buy or not.

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The Foreclosure Process and Alternative Options

Unfortunately there is a huge amount of foreclosure that are going on across the United States, and Minnesota is no exception. There have been many people who have ended up bailing out on a Minnesota mortgage, only to end up having their home foreclosed on. It is both difficult for mortgage companies as well as homeowners and so many foreclosures are occurring. Even though there is a redemption period in Minnesota that is 6 months if you have a primary residence, you’ll find that there are still far too many foreclosures occurring. Let’s take a look at the stages of the foreclosure process, the reasons so many lenders are not interested in distressed real estate in MN, and some alternative options to foreclosure that you have as a homeowner.

The Stages of the Foreclosure Process

First of all, it’s important that you understand all the stages of the foreclosure process. Basically a foreclosure happens when owners can’t make their payments, which leads to the piece of real estate being taken and sold by the lender in order for them to try to recover the money that they lose from the mortgage. Here are three stages in the foreclosure process.

• Stage #1 – You Miss 3-6 Payments – The first stage of the foreclosure process is that you start missing payments. While usually you’ll find that the lender can’t do something right away, once you miss 3-6 payments, you’ll find that this can begin the first stage of the foreclosure process. If you begin missing payments, it is important that you work to find a resolution before it even gets this far in the process. You’ll have more options the sooner you try to solve the problem.

• Stage #2 – Notice of Default – The next stage is when you get a Notice of Default. After you have missed too many payments, then a trustee is going to be ordered to record one of these notices by the lender. This is done at the County recorder’s Office. This means that you will be notified that you are going to face a foreclosure in the future. Then you have a reinstatement period that will go until about 5 days before the auction of the home. You want to leave enough time before the actual sherrif’s sale.

• Stage #3 – Notice of Sale – The next stage in the process is the Notice of Sale. If the loan is not brought current, then the sale date will be made. The notice of the sale will also be put up on the property as well.

Reasons Lenders Don’t Want Distressed Homes

Many times when people are going through a foreclosure, they cease to care about their home. Often they are not able to keep up with repairs that need to be done, which can lead to the homes becoming distressed. Most lenders out there are not going to want to own distressed real estate in MN for a variety of reasons. Here are a few of the reasons that they don’t really want these homes that have become distressed.

• Reason #1 – Too Much Work – First of all, dealing with distressed real estate in MN is just too much work for lenders. Usually they come with problems that would have to be fixed before a sale could occur. Lenders just want to get their money and they don’t want to spend time working on the property. So, this is one reason that they don’t want these homes.

• Reason #2 – Costs Money to Fix Problems – Another reasons that they don’t want to deal with distressed homes is that it takes quite a bit of money to fix up these homes much of the time. They are already facing a loss, so the last thing they want to do is actually spend money trying to fix up homes that have been distressed due to problems with foreclosure.

• Reason #3 – They Lose Money – If lenders end up having to deal with distress real estate in MN, usually they end up losing money. They are working to find options where they don’t lose a huge amount of money. Distressed homes will just make them lose more money, so they don’t want to have to deal with them and will look for other options

Alternative Options to Foreclosure

Of course there are some alternate options to foreclosure that can help out homeowners and lenders alike. Finding an option to foreclosure is definitely a great idea. Here are just a few of the best options to foreclosure that can save the day if you are facing a foreclosure in the near future.

• Option #1 – Refinancing – One option that you have is refinancing when you are trying to avoid foreclosure. In some cases you may be able to get a mortgage refinance that will bring your mortgage current and help you to avoid going through the foreclosure.

• Option #2 – Forbearance – Forbearance on the part of the lender is another option. However, you’ll have to prove that you are having financial difficulties if you use this option.

• Option #3 – Short Sale – A short sale is an excellent option that is available if you are trying to avoid a foreclosure as well. Often this helps to lenders to get most of their money, although they probably won’t get all of it. However, they are often ready to go with this option if they need to.

• Option #4 – Mortgage Modification – Mortgage modification can be a help as well. If the lender will modify the terms, give you a lower interest rate, or tack on missed payments to the end of the loan, you may be able to avoid the foreclosure, which benefits the lender and the homeowner.

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Foreclosure Sales – A Real Estate Agent Can Help

Today you’ll find that there is a lot of money that you can make by going to foreclosure sales and purchasing them to sell again and make money. This is one great way that many investors make their money today. Although some of these properties are considered to be distressed properties, you’ll find that they are worth investing in. In fact, many investors make their money just from investing in bank foreclosures. So let’s take a look at how you can find foreclosure listings and how to find a great foreclosure real estate agent that can help you to find the listings that you want and need.

Finding Foreclosure Listings

Sometimes you’ll find that finding foreclosure listings is the tough part when you want to invest in foreclosures. Although there are many foreclosed homes out there today, just finding good ones to invest in can often be a problem. So, how can you find bank foreclosures and bank owned properties? Well, here are a few ways that you can find some great foreclosure sales and listings to invest in.

• Searching Online - One great way that you can find foreclosure listings is to take a look at the foreclosure websites that are available on the web today. Just looking online is a great way that you can find out about foreclosure homes in your area and REO properties as well. Although it will take a bit of time on your part, you’ll definitely find that this can be a great way to find the foreclosure properties that you are looking for.

• Looking Through Public Records – Looking for public records can help you to find out about foreclosure sales that are available in your area as well. Foreclosures have to be listed on the public records and you can easily find them through this venue.

• Local Newspapers – Another way to find great foreclosure listings it to take a look at your local newspapers. Most of the time bank sales and foreclosure sales are listed in local newspapers and you’ll be able to find out about them before they happen quite easily this way.

• Using a Real Estate Agent – Using a real estate agent is probably one of the best ways that you can find foreclosure lists to help you find great foreclosures to invest in. Going with an agent that is in your local area is an excellent idea and they can provide you with various services, such as an MLS foreclosure search, first hand knowledge of foreclosure sales, and even information about pre foreclosures where you may be able to purchase a property through a short sale.

Tips for Finding the Best Foreclosure Real Estate Agent

Of course if you are going to go with a real estate agent to help you find good foreclosure listings, you’ll want to find the best foreclosure real estate agent possible. This is very important if you want to succeed at investing in foreclosure properties. So, here are a few tips that will help you to find a top quality agent that is skilled in handling foreclosures.

• Tip #1 – Look for Agents in Your Area – First of all, you’ll want to make sure that you look for agents in your area. This is important because you’ll want to go with an agent that is familiar with the local market and any local foreclosure sales that will be going on. An agent in a town 100 miles away may not be able to provide you with the help that you need.

• Tip #2 – Make Sure They Have Experience with Foreclosures – You’ll also want to make sure that you go with a real estate agent that has experience with foreclosures. Investing in foreclosures is not easy and it takes experience. The last thing you need is a real estate agent that doesn’t even know how to do a MLM foreclosure search for you. So, if you want a great agent that will help you out in this area of investing, make sure that the agent has experience with dealing with foreclosure properties.

• Tip #3 – Ask for Referrals – Asking for referrals is a great idea as well when you’re trying to find the best foreclosure real estate agent. Take the time to ask other foreclosure investors about the agent that they work with. If you have an agent in mind, ask that agent for some referrals that will give you an opinion of how they work with foreclosures. A good track record will speak for itself.

• Tip #4 – Look at Foreclosure Signs – If you’re out looking for properties that are being foreclosure on, then take a look at the foreclosure signs that you see. Take note of names and numbers of the real estate agents that are handling these foreclosure sales. This will give you some ideas of real estate agents in your area that work with real estate foreclosures already.

• Tip #5 – Get Recommendations from Other Professionals – Getting recommendations from other professionals is a great idea as well. Talk to other investors and find out who they use when they are dealing with foreclosure listings. Usually other real estate investors will be able to help you find the best foreclosure agents around that can help you to find great foreclosure listings so you can make money investing in foreclosures.

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Foreclosure Options: What Happens When You Can’t Make the Payment?

If you are facing a foreclosure, you will often feel as if there is just one option and it is by no means pleasant for you!  With that in mind, there is a good chance that you are feeling stressed, panicked and upset.  While foreclosure on a home that you are living is very much cause for alarm, take a moment to breathe and to really consider your options.  There are many different choices that you may have in front of you, so make sure that you aware of them.  No matter what is going on, or what stage of foreclosure you are in, you’ll find that understanding your choices and what the consequences are can help you a great deal.

Although it will end up costing you money, and although there will still be a drop in your credit rating, you may be interested in seeing if a short sale is available. In a short sale, you  are essentially selling someone the house based on the amount that still needs to be paid.  With a short sale, you’ll find that you are in a place where the lender will agree to discount a loan balance.  There are several circumstances that need to be met before you qualify for a short sale, so take some time and really consider whether this is the right option.  With this option, you will need to enter into communication with a bank’s loss mitigation department.  You will sell the property for the outstanding balance of the loan and then turn the money over to the lender.   There are lots of standards that need to be met if you are in a place where you want a short sale, so make your consultation as soon as you know that this is an option that interests you.  In many cases, banks will only allow this if you are looking at a case of financial hardship and if the market will allow it.

Another option that you have in front of you when you are thinking about what your choices are going to be in the event of facing a foreclosure is the prospect of renting the property out.  If you have family members or friends that you can live with, you may find that setting yourself up as a landlord and renting the property out for the cost of the mortgage can go a long way towards getting you back on track.  This is something that many people are interested in, and if you have any sort of experience working with renters, you’ll find that you are in a terrific place to start looking around. Make sure that you have a place to stay, and always interview your renters before you give them the key, but in many places, this can be something that will get you right back to where you need to be. Renting out the property to reliable people is a good way to make sure that foreclosure is something that you are not going to need to worry about.

Also keep in mind the fact that you can always go to a deed-in-lieu in order to avoid foreclosure.  Although the result is the same, you will find that the process is one that can be quite a bit easier on you.  Essentially, you will find that when you have decided to go with a deed-in-lieu that you will essentially be turning over the property to the lender so that it can be sold and the lender can recoup their loss.  One of the major advantages that this method of sale has for you is that it can immediately from most or all of the debt associated with the defaulted loans.  You will be able to avoid the publicity of a foreclosure and in many ways, you will find that are lot of different ways that this can work in your favor.  While the downside of this arrangement is still that you are going to lose your home, you’ll find that it can get you into another home much more quickly.

As soon as you are afraid that you might be in a situation where a foreclosure is likely, call up your lending institution and start talking with them.  There are many different things that you can do when you are in a place where are facing financial hardship, and you never know when they are going to be able to give you an option that will allow you to avoid foreclosure.  Remember that the more time you give them before you miss a payment, the more options you will have towards saving your home.  This can make all the difference in the world, so get things taken care of as early as you can.

Remember that when you are facing a foreclosure that you still have options in front of you. Contact third party counselors and make sure that you are getting all the choices you have in front of you.  When it comes to a foreclosure, remember that you are never as lost when it comes to options as you might be afraid that you are.  Look into organizations like HOPE NOW and the Homeowners Preservation Foundation.  You may be surprised at the resources that they can provide you with.  The more information that you have when you are looking to go into such a scary time, the more likely it is that you will come out of it unscathed.

If you are in a place where you are looking at getting the right kind of work taken care of, the better your options are going to be.  Consider what is going on and what events in your life are shaping it, and always make sure that your situation is such that you have all the information that you need as soon as you need it.

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Save Your Home From Foreclosure-WORK It Out

When you are in a place where you are facing foreclosure, you may very feel as though the world is very frightening place.  Having your home threatened and feeling as though there is nothing that you can do about is terrifying, but the truth of the matter is that there are many things that you can do.  Don’t let panic and increasingly angry calls from your lender get you down.  Once you have a plan in place and know what is going on, you will find that you are going to feel much better.  Foreclosure is something that should be avoided at all costs, and the truth is that there are methods that can help you get back on track.

First, consider the reinstatement of the existing loan by making up back payments and fees.  This is perhaps the most basic and straightforward way to get out of foreclosure.  Remember that the bank wants to avoid foreclosure nearly as much as you do, given the loss that they take.  When you are able to get back to square one by making up back payments and fees, you’ll find that this is certainly what you want to do.  This is perhaps the ideal solution, but it can be a difficult one to accomplish.  Typically, people can get to this place by making cashing in on assets or even by selling other property.

Another thing that you want to consider is the possibility of modifying the existing loan.  Consult with your bank, or even consider refinancing.  You may find that it is possible to lower the balance, the payment and the interest rate right across the board.  Take some time to do your research, especially if you have a feeling that there might be hard economic and financial times coming.  Take some time and really consider what your options are going to be in this regard.  The sooner you act, the more likely that you and your lender can make this this action come to pass.

When the foreclosure process is looming large and seems inevitable, you’ll find that it is time for you to consider finding out if a forbearance is possible.  A forbearance is typically only possible if you are in a place where financial hardship has been an issue, and if you are going to be able to pay off the debt at a latter time.  A forbearance can be extremely helpful, as it can have you staying in your home without needing to make payments for up to a year.  Within a year’s time, you may have been able to recover from any medical bills that were an issue, or even find a new job if you have been let go.  With a foreclosure, you’ll find that you are in a place where you need to think about reinstated-back payments/fees are added to the back of the loan or even forgiven.

The issue of what do when you are facing a foreclosure is a difficult one to deal with, but the first and most important thing that you need to keep in mind is that the earlier you deal with it, the better.  When things are falling apart, when medical bills are piling up or even when you have lost your job, it can be difficult to know what fire to put out first, but remember that you are dealing with a situation where you need to take care of your housing.  When you see the economic equivalent of an avalanche heading your way, make sure that figuring out what to do with your mortgage is your first priority.

Remember that the lending institution is not a force that simply wants to take your home from you.  In all likelihood, they would rather that you stay right there and pay out on the investment that they have made on you.  Consider what your options are going to be and make sure that you consult them early and often when it comes to possible financial difficulty.  The earlier a problem is caught, the more likely that it can be solved in your favor.  The situation that you have is one that many, many people find themselves in.  Consider what your options are and what you can do when you are looking at getting the results that you need.

Another thing that you should consider is that there are third parties out there who are willing to give you advice and support, and in many cases, they are willing to give it free of charge.  HOPE NOW and the Homeowners Preservation Foundation are just two of the organizations that can do you a great deal of good.   They have toll free numbers and in many cases they can help you put together a plan that will enable you to avoid foreclosure all together.  The Homeowners Preservation Foundation is can even provide HUD approved counselors to get you back on track.  Remember that you have many different options available, and that these are just two of the larger ones.  Also look for help from more local sources.

Keep in mind the fact that foreclosure is not something to be ashamed of.  It is something that happens to thousands of people, and there are solutions out there.  Do not let this problem go until is something overwhelming and difficult to cope with.  Consider what your issues are and what you can do to solve them.  Taking action right now is something that can do you a great deal of good, so ease back and really consider your options.

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Third Party Advocates You Need To Know If You Are Foreclosure

If you are facing foreclosure, it can often feel as though your life is falling apart around you.  The truth is that with more and more households looking at the specter of foreclosure and with the current economic climate making this a frightening reality, this may well be something that you need to consider.  The problem that many people run into when they are facing foreclosure is that they feel that they are facing it alone.  If you are the prime breadwinner in your home and if you are the one who is making all the financial decisions, you’ll find that there actually is help out there.

Stress can be something that is very loud, and one of the most harmful things that getting overwhelmed with an imminent foreclosure can do is that it can convince you that there is no one out there that can help you.  No matter what stage you are at when it comes to your foreclosure and no matter what situation pushed you to this point, there is help available, and there are many people who are willing to give you the resources that can help make foreclosure much less painful or even stop it from happening at all.

When you are in a place where you need to think hard about foreclosure, make sure that you think about some of the following resources.  Take some time to really consider what your options are and see what these third party advocates can do to help you recover and get back to a more financial and secure place.  There are definitely actions that they can take that can help you a great deal, and you will also find that you are going to be in a place where they can show you what the next step can be.

The HOPE NOW Alliance

With the HOPE NOW Alliance, you’ll find you can have access to counselors, mortgage companies, investors  and other mortgage market participants.  These professionals are all dedicated towards helpin you keep your home, and essentially, this group was designed with that idea in mind.  They take a great deal of time in order to reach out to homeowners who are in distress.  Essentially, they can help you stay in your home and they will work with you so that you have a good plan that allows you to do so.  The HOPE NOW Alliance is specifically designed to give people options and choices and when you are facing a foreclosure, you may feel that you are in place where you have none.  The Department of the Treasury and the U.S. Department of Housing and Urban Development  both encouraged the forming of this alliance and its efforts.

The Homeownership Preservation Foundation

Another resource that you have to look at when you fear foreclosure is the Homeownership Preservation Foundation.  The Homeownership Preservation Foundation is essentially a counseling service that is designed to help you work towards finding a solution.  The entire mantra of this foundation is that the sooner you call, the better off you are going to be when it comes to keeping your home.  The site reminds you that you are not alone, and that there are millions of people who have problems with their mortgage every year.  The Homeownership Preservation Federation has been helping people find ways to keep their homes since 2002, and they have provided more than 300,000 people with help and education in this regard.  Their goal is to help you avoid foreclosure, and they are listed as an independent provider of HUD approved counselors.

Local Religious Groups

One part of dealing with foreclosure is going to be dealing with the stresses and the fears, and because of this, you may wish to take a look at the resources that are available to you at your local religious organization.  Not only will you be making sure that you are connecting with your community, they may be able to put you in touch with local resources or advocates that advertise only within your area.  Don’t underestimate the simple effect of being able spend your time speaking with someone who will not judge you.  Consider what your life is like, and consult with the local religious figure in your area. Even a small measure of peace can go a long way towards helping you deal with the problems that you are facing.

For Profit Companies

When you are in a place where you need to think about foreclosure, you will also find that there are a number for profit organizations that will negotiate on your behalf.  Take some time and do some research; you’ll find that there are many organizations which are dedicated towards helping you figure out your situation and even negotiating with the banks on your behalf.  While these companies do require payment and they have fees, you will find that it can be helpful to get in touch with a service that will go to bat on your behalf when it comes to how you are going to be able to talk with your bank.  Consider what your options are going to be for payment, and you may find that looking into for profit companies can go a long way towards getting you out of your foreclosure needs.

Do not let your fear of foreclosure keep you from seeking help.  There are many resources that are available to you when you are looking at getting your needs taken care of, and at the end of the day, the faster you consult with them, the better off you are going to be  Consider the resources above, and make sure that you understand what is available.

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10 Reasons why A Distressed Mortgage Situation Occurs

A number of ways exist to end up in a situation that has you facing the loss of your home. Some of these you may have control over such as overwhelming debt other reasons may be completely beyond your control such as the death of a loved one. Whatever the reason it can be easy to get into a situation where you are in default or having difficulty making payments.

One of the biggest and most preventable issues that can cause a distressed mortgage situation is the result of an increase in your mortgage payment. This is usually the result of your mortgage going from a fixed rate to a variable rate on your interest rate. Many people choose an ARM because of the exceptionally low interest rate. However, this interest rate only lasts a short time before it shifts to a higher and highly variable rate. This means that every month the mortgage payment changes as interest rates fluctuate making it difficult to make payments especially if you purchased a home outside your means because of the deal you received on the mortgage. The solution to this is to refinance at a lower fixed rate mortgage.

Losing a job or having a business fail may or may not be preventable but they both can cause issues with your mortgage. Many people do not think what will happen if, when it comes to losing a job or having a business fail. It is important to know what your options are in these situations you may want to request a loan modification, a refinance if this might lower payments or even a forbearance if one if available. You should not wait to act since these situations tend to cause situations where you could lose your home. Being proactive in these situations is usually your best defense against the threat of foreclosure and other problems with your mortgage. It can also help to ensure that your loss of job or failed business does not compound by loss of credit.

Most insurance policies do not cover for everything and even if they cover flood, fire, and natural disaster when it comes time to file the claim it may not be enough to do all the work that is needed. When this happens, you may end up in a serious situation. You could end up with a home that is not livable, that you cannot fix up and cannot sell for what you have in it leaving you in a distressed situation.  Many people do not realize that their coverage may not be enough to replace their home. This is because the majority of people choose options that are more affordable but may offer less coverage than options that provide for the replacement of the home in case of property damage.

The death of someone close to you can be devastating and can often lead you in a financial bind especially if that person was generating the income for or part of the income for your mortgage. This is why death of a spouse, significant other, family member or close friend ranks as some of the top ten reasons for entering into a distressed situation when it comes to a mortgage. It can be difficult paying for funeral costs and trying to make ends meet if you are starting out in the work force or simply shifting from two incomes to a single income.

Another major reason why people end up having issues with their mortgage is illness. This could be simply overwhelming medical bills outside of what insurance will cover or the loss of wages caused by being out of work recovering from an illness or injury.  While this is not always preventable there are usually provisions provided by lenders for situations involving accident, injury, illness and the resulting time off work. This may or may not include loan modification or forbearance options, which can help, get you over the hill when it comes to these particular reasons. Refinance options can also help. As soon as you know, you may have a problem talk to your lender and explain the situation. The sooner you act the more options are available to you.

Taxes are one of the leading reasons people end up with issues. Especially if those taxes are associated with an inheritance, this is especially true when the taxes outweigh the cost of the inheritance leaving you to pay the difference. This could put and unwanted strain on finances that can leave you facing difficulties with your mortgage.

One of the top reasons in fact it could be ranked number one or two that people have issues with their mortgage is when they go through a divorce or separation. There are a lot of various financial issues that come up during these situations. This can but a strain and force a situation where there is a danger in losing the house or defaulting on the mortgage. Going form a double to single income household can also cause this to occur.

Finally attempting to maintain the mortgage on two homes is doable provided you have the income or the cash flow, such as renting out the one property while you are selling it, occurs. However, many people end up running into a situation where they may have to relocate, for example, because of work and cannot sell their home before they move. This can cause them to overextend themselves by purchasing another home or even maintaining another home as a rental while still dealing with the mortgage payments for the first home. This can leave many people in a financial bind especially if they cannot sell the home in a reasonable amount of time.

These are just some of the reasons you may experience a situation involving a distressed mortgage. While many of these situations are not preventable causing your mortgage to go into default, in many cases can be if action is taken quickly as soon as the problem arises.

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What happens When Foreclosure Occurs – The Basic Process Of Foreclosure

Foreclosure is something no one wants to face but in current economic times it is something more and more people are looking at as possibilities. More and more homes are being listed as foreclosures and more and more people are losing their homes to this financial process. There is a basic procedure that accompanies every foreclosure and while many people are facing it and have faced it this process is something most people never want to have to deal with.

The first thing that happens in a foreclosure is the default. This is the first step in the basic foreclosure process. Default basically means you have missed a certain number of payments. These are usually whole payments however, constantly making short payments can also cause you to go into default. Just because you are paying, something does not mean that you are safe from this first step in the foreclosure process. However, you can lengthen the time it takes for the default to occur by making partial payments. However, this should not be relied on as it is subject to the terms of lending agreed to when you signed your mortgage some lenders may be willing to extend, others may not and may consider partial payments to be equal to no payment when it comes in terms of defaulting on your mortgage.

Once you have reached a certain number of missed payments you are labeled, as being in default on your mortgage this is when a legal notice is sent stating that you are in default and that foreclosure proceedings will begin. This letter usually has a date on it that tells you how long you have before the foreclosure is processed and the home is returned to the bank’s possession. It is important if you have not already done something to do something at this point. Usually short sale is one of your only options. You can try to sell your home in the time given to you. If you cannot, however the home is taken and returned to the banks possession. From this point, the home is listed as a foreclosed property and usually goes up for one of the following sales, bank or sheriff sale.

A bank sale is simply when the bank sells off the property. More often than not, this is done through a regular real estate agent or one that deals strictly with foreclosures for the most part, however most real estate agents are going to have some foreclosures in their listings. Another option is it may go up for sheriff sale. This is basically an auction where the properties are auctioned off.

An auction date is usually posted in advance. In some cases, it may even be on the paper work that is sent to you when you are foreclosed on. Either a bank sale or auction is designed for the bank to resell the property and earn back some of what was lost when the mortgage went into default. It also helps to pay for some of the costs that are incurred during a foreclosure. In most cases, auctions are held on a monthly or bi monthly basis. In areas where foreclosures are high they may be held more frequently but this is not usually the case since lists are generated and advertising for the properties is done prior to the auction.

There is one thing about foreclosures they have what is called a redemption period. This happens with properties that are seized for taxes as well. This period is a period after the reselling of the home where the original owner who was foreclosed on can repurchase the home for the cost of the debt owed on it. This is not the debt they owned but what is currently owned on the property. In other words in order to regain the property they would have to in essence by out the current owner for the amount they owe on the mortgage.

In order for the property to be regained during the redemption period, certain conditions must be met in order to qualify. The redemption period is usually set to a specified period of time after the sale of the property though it may be set to after the date the property is originally lost. The conditions that must be met may vary as well so if you are looking to regain your home during the redemption period after a foreclosure it is important to be aware of the time you have and the conditions you must meet in order to regain your home.

The new owners usually have no say in the repossession of their home during the redemption period. This is why the amount that must be paid is the amount of debt incurred by the new owners. This pays off the mortgage for them in its entirety. This is one of the reasons why owning a home that was sold at auction, during a bank sale or that was a foreclosure can be a more difficult proposition that purchasing a house outright despite the savings that can be had by purchasing a home in this manner. Once this redemption period has passed, it is not possible to regain the home in this manner.

This is the basic procedure, which occurs during a foreclosure from the initial default through the redemption period. There are conditions that must be met in order to foreclose as well as to regain the home once a foreclosure has occurred. The bank usually supplies enough time after the default occurs for another residence to be secured and there may be additional financial options, which are available during this period that can prevent a foreclosure. However, usually once a foreclosure has begun it is difficult to stop. This is why it is important to arrange for alternatives and solutions prior to entering the foreclosure process in order to secure your home in times of financial difficulty and crisis.

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Use Refinance options To Avoid Foreclosure on Your Home

Many people wait far too long and end up facing foreclosure when it is not something that needs to happen. Many options, which can be done early on, can prevent this action from happen. One of the first things that can be done is a loan modification called a refinance. Refinancing allows you to lower your monthly payments as well as extend the life of your loan. You may also be able to lower interest rates and in some instances generate enough excess cash from your refinance to use for debt consolidation.

There are two types of refinance, a short refinance and a regular refinance. There is little difference between the two except for when they are used. A regular refinance can be done at any time and should be done prior to going into a distressed situation. However, if you are already in a distressed situation then a short refi or short refinance is the perfect option to refinance your home. It is similar to a short sale in that it is done quickly in order to avoid foreclosure but not at the expense of having to sell your home.

Getting into a situation where debt becomes a major factor in your life is not hard nor is it something many people plan for but things happen and come up and before you know it, you could be overwhelmed by the payments and end up going over budget every month. Your home is an essential aspect of life and you should not have to worry about losing it. A refinance can assist you in avoiding foreclosure and getting out of debt if necessary depending on your situation.

For example, if you were working as a two income house hold and suddenly became a one income household. You may not be overwhelmed with debt but you may find that your mortgage payments are harder to meet. By taking your current mortgage and refinancing even if you were to only take the amount you have left, you would be extending it over a 30 year period or a 15 year depending on how much you wanted to reduce payments and how much time you had left on your mortgage. This could also depending on interest rates drop your interest rate further lowering payments making it easier to keep your home even on a single income.

If you were in the same situation and needed extra funds to see you over or pay off bills then a refinance may be able to provide you with that little extra you need to avoid a serious situation. It has to be done in this instance before you reach a position of being distressed financially with your mortgage payments. Waiting until you are facing foreclosure and behind seriously in your payments will make this scenario less viable and make a short refinance one of your only options.

A short refinance is one of the ways that you can get out of a distressed situation. It is especially designed for people who are facing foreclosure and looking for ways to avoid it. It offers limited terms usually restricted to a 30 year mortgage and the interest rate is usually higher than on a regular refinance because of the financial situation that would be required in order to make a short refi your refinance option.

Debt consolidation is also a major factor when someone is faced with foreclosure normally foreclosure and overwhelming debt seem to go hand in hand and a refinance in any fore may be able to assist you in relieving the pressure of some of that debt and help you get back on your feet. Usually you can obtain a large amount of cash in a lump sum from a refinance depending on the value of your home, how much you have left on your mortgage in both value and time and so forth. This lump sum makes a great bank to use when settling debts especially high interest debts like credit cards.

The reason being is that many people get involved in having to pay off every debt that they often stretch so far past their means they end up facing things like foreclosure. By settling larger interest debts and netting them under a smaller interest single payment, you do two things. The first is that you reduce the number of bills you have. You are still going to be making the same monthly payment no matter how you use the cash from your refinance so why not use it to eliminate some of the debt that could or is causing you issues. The second is that each debt individually has its own interest rate.

For example, say you have five credit cards, each one of them has an interest rate so you are paying five times the interest on the total balance of all your cards. By consolidating your debt, you drop that to a single interest rate that is lower in many cases than the interest rate on your lowest card. This means that you have the interest you would be paying the other four times ultimately lowering the bill.

It also helps you repair your credit even if you did a short refinance option by settling your other debts you dramatically improve your credit score, rating and history and help to show that you are serious about getting back on your feet financially. Dealing with debt can be difficult but it does not have to cost you your home. Refinance options can be one way out whether you take it as soon as you think trouble is coming, as soon as you get into trouble or when you are faced with foreclosure. You can also use this option to consolidate other debts and get your financial situation looking brighter than ever no matter what issues may have put you in the situation of needing a refinance to begin with; you do not have to let debt take your home.

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