When your home is on the verge of foreclosure, you will do anything possible to save it. But the problem is how to do it. One answer, among many, is to ask your lender for help.
For most home owners, contacting the lender at the first sign of financial problems seems to be not so good of an idea. It may be because they are embarrassed to discuss money issues to others or they simply don’t see the need to inform their lender right away of their present financial standing. But the truth is, asking for your lender’s help will save you a lot of trouble and it could help you save your home.
Most people have the perception that lenders, think only of themselves and don’t care about the borrowers. This leads to the common notion that lenders show no mercy to homeowners who have defaulted on payments and will foreclose at the first opportunity. The truth is lenders like owners will do everything they can to avoid home foreclosures.
Lenders usually send a Notice of Default, also known as a NOD, if you miss payments for 3 consecutive months. DO NOT wait until you get the Notice to take action. Call your lender as soon as possible. Inform them why you have defaulted on a payment and ask for an alternative payment schedule or temporary lower rates until your finances have returned to normal. You can also ask for Forbearance where your lender waives some of the penalty fees as a result of default or a mortgage refinance without going through the process of re-application, whichever you think is more economical. Almost all mortgage lenders are more than willing to help you to avoid repossessing your home.
Make sure you talk to your lender, inform them the cause of your delay, and ask for payment alternatives. Don’t wait before you make a move to save your home. Act fast, understand the gravity of the situation and do something. It is your obligation to pay your mortgage but when worst comes to worst, your lender will help you keep your home.
Doc Schmyz has invested all over the US. His free website shares information for all over the US. Find
Are you interested in buying a home for an affordable price? If so, then you might want to think about purchasing a foreclosure. When buying foreclosure homes you can often purchase a foreclosed home for pennies on the dollar. But buying and then taking possession of a foreclosed house may not be as easy as you might think. Because of that some potential purchasers opt to avoid the hassle and look into buying REO properties or real estate owned property.
Some states draw out the process. You may be the winning bidder but still be unable to take possession of the home for a set period of time. And if the state has a redemption law, a delinquent borrower has the right to repay past due amounts on his mortgage and take back possession of their home. If this occurs you will be out of luck.
It’s important to realize that often people just do not want to accept that they have lost their home and they refuse to vacate the premises. When served with an eviction notice some will comply and leave; others will put up a fight. Even when they do decide to leave in most cases they will have a month or two to leave. And if they fight the eviction order, you may have to hire a lawyer to help adding significantly to your costs.
And finally, before you sign on the dotted line, check that the property does not have any liens against it. You will also want to verify that any tax arrears are taken care of before you take possession. Some states hold the new buyer responsible for taxes or liens.
Because of the risk associated with buying a foreclosed property, it’s much safer to purchase real estate owned property. REOs are owned by the original lender. They have already gone through the legal process of claiming the house, so you won’t have to. With the huge number of repossessed homes that have been returned to the original lender through the foreclosure process, there is a golden opportunity to make a hassle free great deal.
Experts are in agreement that if you are thinking of buying a foreclosure property you are likely to face fewer problems buying an REO property than a true foreclosure. That’s because at this stage in the foreclosure process, occupants will likely be out of the home. Large financial institutions will have an easier time legally removing occupants through eviction than you or I would. You will be able to take possession without fear of any legal proceedings from the former owners.
When you start looking for properties it would be smart to contact the bank or mortgage holder directly. Although some of these properties may be listed through a real estate office, the best deals will be had where you can cut out the middle man.
Start by calling or visiting local banks to see if they have any real estate owned properties currently available. If they do, make an appointment with bank personnel to discuss what’s available. Alternatively, you can check bank websites to see if they have any local listings. There may even be a link to view national listings.
You can save a lot of money by buying foreclosure homes or by buying REO properties. Just be sure to always do your due diligence whenever you are set to purchase property, be it foreclosures, REO property or even a home listed through an agent. Never sign any legal document without consulting an attorney who is a specialist in real estate law.
Looking to find a great deal when , then visit getforeclosurefacts.com to find the best advice on .
Those doing short sale investing or who are real estate agents dealing with short sales must understand “Shadow Inventory” and what it’s going to mean for your future in real estate.
Some experts say that the shadow inventory doesn’t exist, or that it doesn’t pose a problem, while others insist that the shadow inventory will cause another real estate market crash.
I’m going to discuss what shadow inventory is and how it will benefit short sale investors and real estate agents that deal with short sales. Let’s cover Shadow Inventory.
1. Millions of homeowners that are currently “safe” with their payments, and in no trouble with their loan simply want to move for location sake, upsize, downsize etc. Many of these homeowners are waiting to put their properties on the market, because they feel like the market will “turn around” and they can get a much better price. The end result will be when these millions of homeowners decide to sell at the same time, creating an oversupply of homes on the market, thereby driving prices down.
2. Let’s talk about the six hundred thousand homes that lenders are holding in their REO inventory. Most people don’t know that when a lender forecloses on a home, they don’t have to sell it right away. They can hold it until they decide to sell. What are they doing? Well, they too are “waiting” for the market to go up so they can add their huge inventory to the market.
3. There is an estimated 7 million homeowners currently in default in the US. this is massive beyond all measure, and will add to the 2 above. They will be trying to sell before losing their home to foreclosure, or simply adding to the banks’ inventory.
If you’re a real estate agent working short sales, or if you’re doing short sale investing, you are part of the solution. Without these solutions, the market will most likely get worse. Worse then we’ve ever seen it. Now is the time to learn about short sales, if you’re involved at all, you can help. It can also be very lucrative.
You can get a free ebook and the top 10 mistakes to avoid with foreclosure at our . The 3 best strategies on is also available there as a free gift.
“We buy homes for cash” – Everyone has seen those small signs around neighborhoods. There’s a reason why there are so many: It’s because they work. Direct mail works, too.
But what if you want to let people know that you are a real estate investor and you’d like to buy an inexpensive home for cash? What should you do? Will your small “we buy homes for cash” sign be seen beside all the others?
Here are 2 secrets that you need to know in order to successfully market your real estate business:
REAL ESTATE INVESTING MARKETING SECRET #1: Be different!
When there are a dozen of those “we buy homes for cash” signs on the street corner, it’s hard to see the difference between one and another. But if you have yours in the window of a store or on the side of your car or on a free mug that you fill with candy and leave on the doorsteps of homes in your target neighborhood, you’re setting yourself apart. You’re being different. When you do that, you’re likely to be heard above the noise. It’s not that your message is any different, it’s just that you’re reaching your target market in a way that no one else is.
How else can you be successful in this way? If no one else is doing postcards, do a postcard. If no one else is hiring a clown to go door to door to hand out flyers, do that. Do whatever it takes to look different from your competitors.
REAL ESTATE INVESTING MARKETING SECRET #2: WIIFM?
When you are marketing your business to people, remember to always keep coming back to the fundamental acronym: WIIFM. That means “What’s in it for me?” and the “me” in this acronym is your audience. Don’t go to a homeowner who is down on his or her luck and say “I’d like to earn an income by selling your home to someone else. That’s focused on you! Instead, say “I’d like to help you get back on your financial feet.” Notice the difference?
It works the same for everyone else, too. When you approach a bank, remember that their primary concern is trying to recapture as much of that money as possible. Going through a foreclosure for them is extremely expensive so you can point out to them that you can make it cheaper by taking a property off their hands.
Remember these two important secrets and you’ll never miss out on potential business again!
Claim your free RE Newsletter by going to: http://realestateinvestingnewsletter.com
Want to find out more on real estate investing , then visit Nancy Geils site on how to choose the best business lines of credit for your needs.
Have you ever wondered how some people can make huge profits in the real estate market? You may want to know that a great deal of this success stories is due to Foreclosures Investing. In fact many Investors Tycoons including Donald Trump bought properties when no body would at discounted prices and than made a fortune when the market picked up.
There are 3 stages of the foreclosure process that you can use to make money: Pre-foreclosure, foreclosure auction, and bank owned properties REO. Each stage in the foreclosure process can become very profitable when you understand each of the different stages and use the correct stage for the correct real estate investing techniques.
1) Did you know that with Pre-Foreclosures with Short Sales you could get a discounted loan from the lender, as the lender doesn’t want to loose either their income or money through the foreclosure process? 2) Did you know that with the Real Estate Auction or Foreclosure Auction you could get make a killing by getting investment opportunities with discounts as much as .50 on the dollar? 3) Did you know that Bank owned properties commonly called REO or real estate owned is one of the most common foreclosure investment practices today. Did you know that this property can be so cheap they can be turn around for a huge profit?
A few ways to make fast profits with foreclosure, could involve: A) Reselling the property they bought at a discounted price for a mark-up value. B) Fix and improve the property and than resell that property they bought at a discounted price for a higher mark-up value. C) Make a few repairs, update the property and rent it out for fast cash flow. D) Buy, Fix, Hold and (Rent – this is optional) Resell when the market has picked up for a big mark-up E) Buy, Fix, Hold and Rent and when the market has picked up access the equity you have build for anything you like
These updates and repairs tend to increase the value of the foreclosure property. Since foreclosure properties are already being sold at below market values, many can be resold without any repairs or updates for a profit. Those who play their cards right can make a significant profit with the buying, updating, and reselling of foreclosure properties.
Despite being sold at below market value, foreclosure properties cannot make money themselves. There is a Matrix or a steps-by-step process that you will have to take to turn them into extremely profitable investment properties.
When it comes to determining which approach you should take, you are advised to do a little bit of research. There is a free video you can watch (link below in the resource box) that offers the resources you need to discover how to become extremely wealthy from foreclosures without using your money or credit using a simple step-by-step system that works!
It doesn’t cost anything to see this video, so take action now and start learning how you can become a Real Estate Investor today.
Paolo Tiberi is a renowned Life Coach, Marketer and Real Estate Investor that went from being hugely in debt to a stress-free lifestyle. Today Paolo helps individuals building a positive cash flow and income through Online Businesses and Real Estate Investing. Before you decide to do anything with Foreclosure please see the free video resource at
Short sales are becoming much more frequent in the United States, mainly because they are an alternative to foreclosure. Homeowners who are facing foreclosure are looking for ways to keep from damaging their credit, and a short sale does just that. Quite basically, a short sale is when the lender agrees to accept an amount less than what is owed on the property loan. It is important to understand that not all lenders will accept a short sale. In this article, you will learn some information about short sales and how to deal with the process.
If you are considering a short sale, you should first call the lender that is holding your mortgage loan. You need to specify that you need to speak only to someone who handles the short sales for the company. Be prepared to be put on hold, transferred, and even disconnected a ton of times before you get to the right person. You may even have to explain what a short sale is to the person on the other end. You do not want the general department either. You should ask to speak directly to the supervisor of the short sales department.
Your next step is to send in a written letter of authorization. This will give the lending company written permission to disclose any pertinent information to the parties that request it. You should include your name, address, the date, and account number. You should also have the document notarized, just to be on the safe side. Make a copy for yourself.
Somewhere along the way, you may find that you need a real estate lawyer. It would be best if you contact one as soon as you start looking into a short sale. The lawyer can help you through the process. When you contact a real estate lawyer, you need to ask them to prepare a preliminary net sheet for you. This document is a bunch of fee calculations that show the price you expect, the costs associated with selling the home, unpaid money you owe, and back payments and late fees.
You will also need to provide a written hardship letter. The best tip that you can get for writing this letter is to be as pitiful as possible, within reason of course. Do not simply say that you lost your job and cannot pay the full amount. You need to include other hardships that you have suffered as well as the loan problems. If you have children, you add them in somewhere as well. It sounds awful, but you need to play the sympathy card here.
In many situations, you cannot sell the home for the amount that is owed. The market rises and falls so quickly, but when it falls, it stays down for awhile. This is usually the main reason for a short sale. It is simply impossible for you to pay the amount that is still owed on the loan because the house will not sell for that much. In this case, you can obtain a comparative market analysis from the real estate agent. If you provide this document to the lender with any other documentation that they need, you are more likely to get the short sale approved.
Short sales can be a headache, not just for you, but for the real estate agents as well. There will be tons on paperwork and records that you will need to fill out and send in, but just keep in mind that lenders tend to look at short sales as a way for them to lose money so they will be rather demanding.
Keep your patience and provide what you can. Be sure, better days are ahead………
Find out more at www.investingwiththerealestatestars.com
Want to find out more about , then visit Nancy Geils’s site to get your free newsletter for all your real estate information needs.
Are you planning to buy that perfect house? Or looking at investing in real estate? Whatever may be the case, buying property weather for personal use or for commercial purpose is a major decision as it involves a huge sum of money. There are some critical decisions to be taken regarding the property as well as the type of loan that suits your needs. Here are some of the pointers which will help you in making the decision
Do the proper research First and foremost thing is to do is to have all the ground work done beforehand. If you are a novice in this area then you will have to do lots of reading to fully understand how real estate business works. With little research you should be able to find out about the value of the property you are interested in. Check out the current prices of the area you are planning to invest in. Also keep in mind the purpose of your buying a property–weather it is for renting or selling and will the price that you buy it for will be covered in the future returns you will be getting from it.
Real Estate Agents If you are interested in buying a property but you are not ready to take the headache that comes with it, you can take the help of a real estate agent. A real estate agent will help you find the kind of property you are looking for with your price range in mind. You will be able to close the deal in lesser time as well. But before taking the help of any real estate agent, make a background check of the agent and see if he keeps your preferences in mind or not.
Different types of Mortgage One of the most important steps in any real estate deal is the mortgage. You will have to find a reputed mortgage lender from whom you will secure the loan. Based on your preference there are different types of loans which you can take for example —Fixed Rate Mortgage, Interest Only Fixed Rate Mortgage or Adjustable-Rate Mortgage.
Fixed Rate -In this type pf loan your rate of interest remains the same throughout the duration of loan.
Interest Only Fixed Rate Mortgage-This type of loan the money you have to pay is broken down in two parts .In the first half you need to pay only the interest due to you while in the second half you need to pay both interest and the principle amount
Adjustable-Rate Mortgage-This is another popular way of procuring the loan .In this for a certain period the rate of interest remain fixed after that the interest in revised very year. But there is also a “maximum limit” to which the interest rate can increase.
I hope with proper planning and strategy and right financial loans, you will end up buying or investing in the lucrative real estate market and reap great dividends in future. All the best!
Want to find out more about how to invest in real estate , then visit Nancy Geils site to get free access to our weekly webinar trainings for your needs.
Banks all require that you provide them with a certain set of documents in a Short Sale package. The following are the documents that most banks all require before they entertain a Short Sale
1.) A hardship letter from the homeowner outlining what is causing missed payments and what the homeowner has done to try to change the situation.
Begin the hardship letter with a short description of the property, the loan number, as well as an apology for the situation.
Then the homeowner should tell in their own words exactly what caused the missed payments. Extensive medical bills? Job loss? Did the homeowner retire, cutting income substantially? Has an adjustable rate loan readjusted? Is the home underwater on its mortgage? Has the homeowner been transferred to another part of the country and the home is not selling? All of these are valid hardships that can be explained in a letter to the Lender’s Loss Mitigation Department.
Also include a description of any efforts the homeowner has made to resolve the problem. Has a new job been found? Have they eliminated all discretionary spending?
2.) Every member of the household who is contributing to the household income should include their last two pay stubs. This is including, but not limited to, commissions from the last few months, child support payments, alimony checks, and annuity payments.
3.) If the homeowner has a business, the Lender will want to see profit and loss statements and a current balance sheet.
4.) In order to get an idea of the homeowner’s spending habits, the bank will want to see your last two months’ bank statements. If the homeowner has a lot of credit card debt, they might be able to get a debt counselor to work with the Lenders to restructure the debt to have lower interest rates and monthly payments or forgive some of the debt altogether.
5.) The last two years’ tax returns. They give an accurate picture of financial stability and ability to pay. It also gives the Lender an idea of other resources that might be tapped if the Lender goes through with foreclosure and files a deficiency judgment against the homeowner.
6.) The bank also wants to see a realistic budget for the homeowner. If the homeowner’s budget is $300 above or below balanced on average, they might be able to restructure their finances if they prefer to save the house.
7.) A listing agreement with a price. The real estate agent should include their normal commission and closing costs on the listing agreement. Lenders who approve Short Sales also pay for the commissions and most other closing costs.
8.) An offer. Your offer, as well as the power of attorney gives you the power to negotiate the Short Sale and list the property. You cannot do these deals without having both of these documents.
9.) Power of Attorney. You must have an authorization form giving you or your negotiator permission to talk to the Lender. This is actually the first document that you should obtain from the homeowner so that you can obtain any special instructions from the Lender before the Short Sale package is submitted.
After you have all of this information, you are well on the way to getting your short sale deal done!
Want to find out more about ? Then visit Bob Massey’s site and learn for the maximum profit in today’s market.
Real Estate Investing is the absolute best way to build fast cash in the current economy. It is said that 90% of the world’s millionaires became wealthy through flipping houses. But how can an ordinary person flip houses and make a substantial amount of money in today’s real estate market? What are the main things you need to understand before going to flip a house? And why is it important to educate yourself before real estate investing? In this article I will go over several ways that will assist you in your real estate investing venture.
Action Step 1: Find Buyers
In order to make money in flipping houses, it makes sense to find buyers first. You can build a buyers list by calling we buy houses signs, attending real estate auctions, working with real estate agents and using the Multiple Listing Service as well as other simple strategies and tactics. The best strategy to use if you ask me would be to target buyers that have a history of purchasing properties for cash.
Tip number 2: Gather Necessary Information
After finding your buyers what you need to do is find out what your buyer want to invest in. You can do this by asking them what areas of town they are investing in. How much they are looking to invest on their ideal property? What type of property they are currently investing in? And how fast they can close? Getting these questions answered will give you an idea of what to approach your buyers with.
Step 3: Finding Sellers
If you want to make money in real estate investing you have to understand that working with motivated sellers is a must. But what is a motivated seller? Motivated sellers can be anyone who is financially, or physically distressed. An example of a motivated seller is someone who is getting a divorce, going into foreclosure, paying 2 mortgages, need to rehab their property but don’t have the cash, going bankrupt, etc. Therefore, in order to get a great deal in real estate investing you have to find someone that falls within this category. You can find these sellers using various forms of advertising.
Tip number 4: Pre-screen the Seller
When your advertising is working and the motivated sellers are calling, in order to really get a good investment property deal you want to get as much information from the seller as possible. You can do this by asking the seller for information on their house. You want to find out what type of condition the house is in as well as the asking price of the property, but the most important question you need to know is why the seller is determined to get rid of their property.
Tip number 5: Get Comparable Sales
Once you receive the information from the seller, the next thing you need to do is run comps to see if the deal will be a good investment property. You can do this by going to sites like Realquest.com, Zillow.com, Bank of America has a home value estimator and you can find it by going to Google.com and punching in Bank of America Home Value Estimator. You can also use sites like Eppraisal.com, or consult with a Realtor. There are many ways to run comps when you’re looking to find out what a house is truly worth.
Action Step 6: Confirm the Numbers
After you get the comps for the house the next thing you need to do in order to flip a house is work the numbers. You can do this buy understanding the MAO formula. The MAO formula is as followed: You take the ARV (After repair value) and you multiply it by 65% and that leaves you with the amount that you’re willing to pay for the house. Then you subtract the rehab cost, closing cost and overhead and that leaves you with the MAO or (Maximum Allowable Offer) that you can make on the house.
Action Step 7: Getting your Offer In
Once you have the MAO, the next thing you do is get your offer in. Your should always offer less than what your maximum allowable offer is. The best thing to do in this case is to subtract and additional 10% off of the MAO and start you’re bidding with the motivated seller from there. Negotiations can make or break your deal when it comes to flipping houses so make sure that you’re sincere and very clear with the seller from the beginning.
Action Step 8: Making Cashola!
Once you get all of this done, you need to approach your buyers list that fit the criteria of the particular property. Doing this will allow you to sell the property rapidly, being that you have pre-screen the buyers and you know that they can close fast! Once you have solid buyer then all you need to do is send the contracts over to the title company and wait for your check to come in the mail. The best strategy to use in real estate investing would be to sell the property for less than the market value without rehabbing it. This is called wholesaling the property.
Copyright 2010 Jamel Gibbs
All Rights Reserved
Want to find out more about , then you can get more
Investing in real estate has become a new lifestyle choice for thousands of people all over the world. With the increase in foreclosed homes and auction sold properties in the last year; there has been a dramatic increase in the possibilities of finding great houses for bargain prices. Investors are buying foreclosed properties, doing them up and selling them on for great profits. Flipping houses has become a new trend in real estate, and has proved to be a great way to make money. Having money readily available to refurbish the properties however is one of the biggest problems that new investors face, but business lines of credit are providing them with the ultimate solution.
Business lines of credit are a revolving credit facility provided by banks and financial institutions. Investors can apply for a line of credit with a bank which is typically given as either a cash credit or in the form of an overdraft. The agreed credit limit is then readily available for when the need arises, and the money can be used to flip a new home.
Business lines of credit are proving to be very beneficial to businesses worldwide. Unlike the traditional loans; lines of credit can be drawn upon and repaid at any time, and interest is only charged on the outstanding balance. There is no term time for business lines of credit, so the money can sit in your bank until it is needed. There is typically an annual review conducted with the financial institution, where credit amounts can be changed if desired.
Real estate investors are finding business lines of credit a very valuable asset. The increased cash flow enables refurbishment and renovation work to be done on a property without the need of having to use your own money. Cash can be drawn out of the bank and used to decorate and do up a property, and can be repaid upon the sale of the house. Business lines of credit provide investors with a new flexibility which is proving to be highly valuable.
Having money readily available to buy and do up a property is one of the biggest problems that a new real estate investor can face, and business lines of credit are solving that problem. After having purchased a home in need of revamping; money is at hand to fix up the house to a great standard. The property can then be put back onto the real estate market and be sold for a large profit to a new buyer. The money made on the sale of the house can be partly used to repay the financial institution or bank, and the rest is pure profit. Once a new investor has flipped their first house, it becomes easier to do a second, and eventually to manage a larger property portfolio. Business lines of credit are allowing new investors to find the means to buy and do up homes and to realise their dreams as real estate investors.
For more info: Go to www.findcashforrealestate.com
Want to find out more about lines of credit for your deals? , then visit Nancy Geils’s site on how to invest in real estate and join our free training classes with the experts! for all your needs.
