Ernani Uchoa

Foreclosure homes provide good opportunities for real estate investment. Buying homes that are in some stage of the foreclosure process is typically a risky process that can give a big payoff for the well-researched buyer or investor. While it is possible to purchase foreclosure homes for up to 50 percent below market value, steals like these are not typical and much homework must be done before buying foreclosure homes.

Buying foreclosure homes represents one of the safest methods of entering the investment market.

Foreclosure occurs when a homeowner fails to make mortgage payments on his homes. A homeowner is allowed to be late on a few payments, as long as they are paid soon. They have to pay the payments along with the late charges. Foreclosure homes happens when numerous mortgage payments have been missed and the homeowner is unable to rectify the situation with payments. The foreclosure process does not happen overnight. It can take up to three months, but do not be fooled by this lengthy time period. It is important to take action immediately on foreclosure homes. An average of 4% of all homes purchased will be foreclosed upon. Therefore, foreclosure is an issue to many people. Purchasing foreclosure homes may be beneficial to both the buyer and the homeowner if the purchase occurs at the right time.

Homebuyers and investors may save 20-40% on homes by buying foreclosure homes.

Foreclosure homes provide excellent opportunities for homebuyers and investors to save money on their purchases. Homebuyers and investors may potentially save 20-40% of the market value on the foreclosure home. In pre-foreclosure, the buyer also has the opportunity to observe the condition of the home. This option is not available when the home reaches foreclosure status. If foreclosure is inevitable, a homeowner may want to consider foreclosure loans. A foreclosure loan can alleviate the problem immediately. However, they can be difficult to obtain. There are various requirements for approval, such as a good credit score and a minimum of 30% equity in the home.

Ernani Uchoa - ForeclosureDeals.com

Search More foreclosure articles and search free foreclosure listings at http://www.foreclosureDeals.com

Share This

Mark Nash

The slowing real estate market in 2006 will provide the first real price opportunities for buyers for the first time in most American residential real estate markets. But don’t look for bargain basement prices on foreclosures. Several factors will keep foreclosure prices at points that might not be worth the additional risks involved with them. Experienced foreclosure buyers will still be in the market, and don’t underestimate their influence if you end up in a bidding war with them at a foreclosure auction.

Foreclosures come in three basic varieties. First there is the auction or trustee sale which happens after the property owner defaults on their mortgage and the mortgage holder or lender sells the property to the highest bidder at a public sale. The second are the Real Estate Owned or REO property that the lender owns after the owner defaults on their mortgage, the lender manages and sells the home through a traditional real estate agent. And finally there are HUD foreclosures who in turn auctions those properties whose loans have been guaranteed by the U.S. Department of Housing and Urban Development, online. Mark Nash author of 1001 Tips for Buying and Selling a Home offers tips on buying foreclosed properties in 2006.

-Learn how the redemption period can impact a foreclosure. In some states homeowners have the legal right to buy back their property within a state mandated period of time, even after its sold at auction.

-Investigate properties that are near foreclosure. Some investors pick up properties before they go into formal proceedings. These homeowners have fallen behind on mortgage payments but legal remedies have not been initiated by the bank or lender to seize the home. Contact homeowners with direct mail or telephone campaigns. Remember though that if using the telephone, some homeowners might be registered on national Do-Not-Call lists.

-Foreclosures eat away at banking profits. Even though many think that banks would want to liquidate troubled loans, they are not in the business of owning real estate. Many lenders will work diligently with borrowers to avoid the lengthy and costly process of foreclosure.

-Foreclosed homes are not always bargains. According to industry sources foreclosed properties don’t sell for significantly less than other homes in most U.S. markets. If your in a high demand market don’t expect steep discounts. Don’t forget to factor in major repairs and minor improvements that foreclosed homes need. If owners couldn’t pay the mortgage, they couldn’t afford the maintenance, and often trash the homes in retaliation.

-Experienced investors who understand the risks buy the majority of properties sight unseen at public auctions. Auctions though can be risky for first-time investors. Many new investors aren’t aware that along with the property price come the unpaid taxes, liens and second mortgages that they are required to pay to receive title. And evictions can also come with the property, now you’ve just become a landlord. Know and understand landlord-tenant laws in your state before jumping into a sight-unseen foreclosure auction.

-The Internet is a good resource for finding more information on foreclosures. Visit web sites that will offer you lists from public records of those behind on their mortgage payments, for a subscription price. Contact experienced real estate agents for an inside line to problem properties before they have legal entanglements.

-Don’ be afraid to knock on doors. It might be old-fashioned, but getting out and knocking on doors might be a way to learn first-hand about potential foreclosures. Develop ways to qualify problem homeowners by property condition and follow-up with a professional but helpful style.

-Retain an real estate attorney. Well worth the cost to trouble shoot the many legal hurdles to owning a foreclosure property.

Mark Nash’s fourth real estate book, “1001 Tips for Buying and Selling a Home” (2005), and working as a real estate broker in Chicago are the foundation for his consumer-centric real estate perspective which has been featured on ABC-TV, CBS The Early Show, Bloomberg TV, CNN-TV, Chicago Sun Times & Tribune, Fidelity Investor?s Weekly, Dow Jones Market Watch, MSNBC.com, The New York Times, Realty Times, Universal Press Syndicate and USA Today.

Share This

Henry Noddy

Foreclosure auctions are events in which a bank sells a real estate property it has acquired through the foreclosure of a debt.

In foreclosure events, people are invited to bid for the property and the property is often sold to the person who offers to pay the most amount for the real estate.

In foreclosure auctions, you need to be careful in order to get the best deal out of the house.

Here are some tips in getting the best deal in a foreclosure auction:

1. Gather information -if possible, you should first study the real estate property in question. In order to know how much to bid in a foreclosure auction, you should have a clear idea about the true value of the property.

For this, you will need to get the services of a qualified assessor. You will need to rely upon your instincts and observe every minute detail regarding the real estate property.

You should include in your research any potential developments in the community, which could affect the value of the property. You should take into consideration any potential uses of the property in terms of business or commercial developments.

In gathering information, you must certify that each bit of information you acquire will be relevant to the foreclosure auction.

You may need to screen out information, which proves to be useless in the said foreclosure auction.

2. Be discreet -if you stumble across something big, you need to be discreet and use it as a weapon on the foreclosure auction. This way, you will be able to quickly gain the upper hand.

Discretion on your part will give you an advantage over the other bidders. Any information you stumble upon will help you set your boundaries and goals during the foreclosure auction.

3. Self-control -the reason you need to gather information is to set boundaries for yourself. You need to stick to those boundaries, no matter how much you want a property.

Self-control means being master, not a slave, to your emotions. You can let your passion fuel the foreclosure auction, but you cannot let those feelings rule the auction.

You need self-control in order to get the best deal possible in a foreclosure auction. You need to know when to walk away.

Some people tend to lose themselves in the sheer competition of a bidding war. In the end, you will have paid so much more than what you have anticipated.

This leads to bad deals, and a lot of hyperacidity.

4. Be flexible -having self-control does not necessarily mean dismissing a deal out of hand because it failed to meet your projections.

In a foreclosure auction you need to know when to push the advantage. You need to know when to go on bidding, and when the property is worth the additional price.

Being flexible means you can adjust your attitude and your bids according to the competitors in the foreclosure auction.

Remember that flexibility is what allowed the human race to survive thus far.

These are just some of the tips you may find useful in a foreclosure auction. In using these tips and techniques, you can be assured that you may gain some advantages over other bidders.

Remember always to keep to your plan, but be ready to divert when necessary.

And, as always, remember to be true.

insideforeclosure.com is a free information site that offers articles and resources on Fore Closure. If you want to read or share information on Business: Auction, you’re always welcome!

Share This

Matt Morrison

Reddington Beach Florida condos foreclosures and relocation tips is a hot topic among property owners. Reddington Beach, Florida is one of the most desirable locations in all of Florida. The beauty of the coastline and the perfection of the temperatures combine to make this the perfect location for your condo. However, there are a number of things that you should know about relocating to the area.

Before you move to an area like Reddington, it is essential to make sure that your budget can handle such a relocation. You may be looking at the condo of your dreams, but if you can’t afford it at a very basic level, it is important that you not move into the area. In order to determine if you can afford the Reddington Beach condo of your dreams, start with your monthly budget figures. Don’t forget to include figures for how much of your monthly cash should be headed into retirement accounts, college funds, and a simple savings account. Once you’re finished making a current monthly budget, you should have some idea of what you might be able to spend on your Reddington Beach, Florida condo payment. It’s now time to start shopping for a realtor who can answer all of your questions and show you the right properties. There are a number of realtors who service the Reddington Beach area, and a quick trip to cyberspace should help you find the right realtor for you. Once you and your realtor meet, be sure to examine several Reddington beach properties that meet your needs. This should help you in your later figures. When you have seen all you need to, complete your monthly budget exercise for each property you are seriously considering. There are several free mortgage calculators online that could help you with this little exercise. If the numbers work, contact your realtor to start the purchase process.

Even if the numbers work, though, remember that surprises crop up in life. Many Reddington Beach, Florida condo owners who are facing foreclosure can tell you that. The foreclosure rate on Reddington Beach is quite high simply because of the cost of properties in the area. As a result, making sure that you have a budget that will give you a bit of room in case a financial emergency comes up is very important to avoiding Reddington Beach, Florida condo foreclosure.

Make sure you have all of the facts about both Reddington Beach Florida condos foreclosures and relocation before you make any final decisions.

Matt Morrison is a regular author for Florida South Homes, Las Vegas Homes and California Real Estate Pierce.

Share This

John Appleseed

Unlike real estate listing web sites, which listings are offered free on a number of real estate listing sites, foreclosure listings are generally sold to the first-time home buyer or real estate investor. The question is why do sites charge for foreclosure listing information?

Locating Foreclosure Properties Starts with the Default Process
Understanding the foreclosure default process and how the information is generated provides a clue as to where the data is derived from. Since a foreclosure signifies the start of a legal process, notification (Notice of default) must be made and recorded publicly therein lies how the listing is created. Foreclosure listings are public information and generally available at the local recorders’ office. Finding foreclosure properties can be done by visiting the local recorder’s office and making photocopies, since listings are added on a daily basis, this can be daunting.

Using the internet, a number of web sites allow searches by state, county, city, and zipcode. All the sites listed below offer listings for a fee. Take advantage of the free trial period offered evaluate their listings. The sites should offer the latest listings with daily/monthly updates.

Finding Quality Foreclosure Listings
As a real estate investor, you can find foreclosure list for free or at a price. Although both will provide you with information on available house, the difference between the two is of significant importance. A free listing service will only give you scanty information about which homes are going for foreclosure but a paid service will give you much detailed information needed to proceed with the sale or investment of the property. Therefore, in evaluating foreclosure-listing services, the quality of the listing or “freshness” is important. Since most foreclosure listing sites offer a free trial period, take advantage to determine if the quality of data and services meet your needs.

Summary
Like with any product, an extensive search for and comparison for available foreclosure list will give you the best price and value for money. If you are buying foreclosure, it is advisable to rely on reputable companies only for foreclosure listings. Try to read from companies who have been in the business of foreclosure listings and who offer a trial period. Try a number of foreclosure listings sites and evaluate which offers the best most current listings.

Responding to the lack accurate foreclosure knowledge, John Appleseed has spent the last 15 years practicing the art of real estate foreclosure investing. John Appleseed is contributor to http://www.bankforclosurelistings.com, where is insider knowledge of bank foreclosure listings are freely shared.

Share This

Greg Picone

We?re going to briefly address 4 misconceptions about foreclosure that can cost you thousands.

Misconception #1 Bankruptcy Will Stop Or Avoid Foreclosure.
This is a big one. Bankruptcy, whether chapter 7 or 13, will NOT prevent a foreclosure. What it will do is delay it for a time. As soon as a homeowner files BK, the lender(s) are held at bay by an “automatic stay?. The lender immediately requests a relief from stay, and as soon as it is granted they will complete the foreclosure.

Misconception #2 Foreclosure Is No Worse Than Bankruptcy On Credit.
Foreclosure is worse than BK on credit. It is the worst possible indicator of risk to a potential future creditor. In some cases, after filing BK, you can be re-established in 12 months. However, foreclosure will give you a very hard time for years. This also trickles down into other areas of your life, such as rate adjustments on auto insurance, credit cards, even employment review can be affected.

Misconception #3 Deed-in-lieu Of Foreclosure Is a Godsend.
Not really. It is only slightly better on a credit report than foreclosure. There are some potential nasty surprises with a deed-in-lieu that most people don?t know about if the document isn?t prepared properly in the homeowner?s favor. This should be a plan Y (plan Z being foreclosure) and handled correctly.

Misconception #4 After The Foreclosure, It?s All Done.
Wrong! In some states, the lender has the right to pursue deficiency judgment against the borrower if the sale of the property doesn?t recoup the lenders investment. This may include junior lienholders as well. There are also possible tax implications that are complex and beyond the scope of this article

The bottom line is to completely avoid foreclosure. This may mean keeping your house with proper arrangements being made with the lender if your financial situation has changed for the better. However, if your financial situation has not changed you may need to sell to avoid foreclosure. This may enable you to better protect your future. Either way, seek competent help.

Greg Picone is the President of Ideal Homes, LLC, a company that specializes in helping folks out of foreclosure even with little or no equity. You can visit their website at http://www.solvedquick.com

Share This

Kenneth DeLashmutt

Prove Up of the Claim

To recover on a promissory note the Plaintiff (lender) must prove existence of the note.

To recover on a promissory note, the plaintiff must prove:

(1) the existence of the note in question;

(2) that the party sued signed the note;

(3) that the plaintiff is the owner or holder of the note in due course; and
(4) that a certain balance is due and owing on the note.

In a foreclosure, if a default judgment is entered you can file a ?Motion to Set Aside Foreclosure & Decree and Motion for New Trial.

This motion seeks relief from the judgment of foreclosure on the ground that the lenders failure to produce the original of the promissory note is newly discovered evidence justifying a new trial.

In the new trial you demand discovery of the ?holder in due course? of the ?ORIGINAL? promissory note. The plaintiff must produce the original promissory note.

Trial court is in error when it does not proceed to take testimony before it enters a default judgment in a foreclosure for the plaintiff; the unsworn statement of plaintiff’s attorney can not support default judgment rendered.

In the case of mortgage foreclosures, prove up of the claim requires presentment of the “original” promissory note and general account and ledger statement. Claim of damages, to be admissible as evidence, must incorporate records such as a general ledger and accounting of an alleged unpaid promissory note, the person responsible for preparing and maintaining the account general ledger must provide a complete accounting which must be sworn to and dated by the person who maintained the ledger.

Supporting Case Law

Where the complaining party cannot prove the existence of the note, then there is no note.

See Pacific Concrete F.C.U. V. Kauanoe, 62 Haw. 334, 614 P.2d 936 (1980),

GE Capital Hawaii, Inc. v. Yonenaka 25 P.3d 807, 96 Hawaii 32, (Hawaii App 2001),

Fooks v. Norwich Housing Authority 28 Conn. L. Rptr. 371, (Conn. Super.2000), and

Town of Brookfield v. Candlewood Shores Estates, Inc. 513 A.2d 1218, 201 Conn.1 (1986). See also Solon v. Godbole, 163 Ill. App. 3d 845, 114 Ill. Dec. 890, 516 N. E.2d 1045 (3Dist. 1987).

Siwooganock Bank in Lancaster NH, in alleged foreclosure suit, failed or refused to produce the actual note which Siwooganock alleges Eva J. Lovejoy owed.
To recover on a promissory note, the plaintiff must prove:

(1) the existence of the note in question;

(2) that the party sued signed the note;

(3) that the plaintiff is the owner or holder of the note; and

(4) that a certain balance is due and owing on the note. See In Re: SMS Financial LLC. v. Abco Homes, Inc. No.98-50117 February 18, 1999 (5th Circuit Court of Appeals.)

Volume 29 of the New Jersey Practice Series, Chapter 10 Section 123, page 566, emphatically states, ?…; and no part payments should be made on the bond or note unless the person to whom payment is made is able to produce the bond or note and the part payments are endorsed thereon. It would seem that the mortgagor would normally have a Common law right to demand production or surrender of the bond or note and mortgage, as the case may be.

See Restatement, Contracts S 170(3), (4) (1932); C.J.S. Mortgages S 469, in Carnegie Bank v, Shalleck 256 N.J. Super 23 (App. Div 1992), the Appellate Division held, ?When the underlying mortgage is evidenced by an instrument meeting the criteria for negotiability set forth in N.J.S. 12A:3-104, the holder of the instrument shall be afforded all the rights and protections provided a holder in due course pursuant to N.J.S. 12A:3-302″

Since no one is able to produce the ?instrument? there is no competent evidence before the Court that any party is the holder of the alleged note or the true holder in due course. New Jersey common law dictates that the plaintiff prove the existence of the alleged note in question, prove that the party sued signed the alleged note, prove that the plaintiff is the owner and holder of the alleged note, and prove that certain balance is due and owing on any alleged note. Federal Circuit Courts have ruled that the only way to prove the perfection of any security is by actual possession of the security.

Supporting Case Law

Unequivocally the Court?s rule is that in order to prove the ?instrument?, possession is mandatory.

See Matter of Staff Mortgage. & Inv. Corp., 550 F.2d 1228 (9th Cir 1977). ?Under the Uniform Commercial Code, the only notice sufficient to inform all interested parties that a security interest in instruments has been perfected is actual possession by the secured party, his agent or bailee.? Bankruptcy Courts have followed the Uniform Commercial Code.

In Re Investors & Lenders, Ltd. 165 B.R. 389 (Bankruptcy.D.N.J.1994), ?Under the New Jersey Uniform Commercial Code (NJUCC), promissory note is ?instrument,? security interest in which must be perfected by possession.

Find out if you are a Victim of Predatory Lending Practices

Audit your mortgage closing documents to find possible Predatory Lending Practices, mortgage broker fraud and title violations.

Mortgage lenders can trick homeowners into giving up their homes. You may be able to recover TILA violation fines and possibly void the lenders security interest in the property.

In order to find predatory lending violations and lender fraud you will have to gather and assemble your loan and closing documents and put them in order.

Required Documents for your Audit

List of loan paperwork for audit

*anything that was given to you at the time of signing the loan

*Promissory Note (very important)

*Mortgage or Deed of Trust (very important)

*Application for the loan, if available

*Good Faith Estimate (very important)

*Settlement Statement (very important)

*Right to Cancel/Right to Rescission (very important)

Disclosures:

*HUD 1 Statement

*TILA Disclosures (very important)

*RESPA Servicing Disclosures

*Any and all disclosures (very important)

A copy of the current billing statement.

A copy of any notifications from the lender or other
party of a change in where the borrower is to send the
payments. This may be because the lender sold the note
(a new assignee), or sold the rights to collecting the payments (a new servicer).

A copy of any default notices, acceleration papers, or
foreclosure paperwork.

A copy of any and all court paperwork if the property is in
foreclosure or there is any court process ongoing that involves this property. If you do not have this paperwork, it must be obtained from the court files.

The Audit

What are you looking for?

Now you can audit your closing documents and look for TILA, HOEPA and RESPA violations.

If the answer to any of the following questions is “yes,”
You are most likely a victim of predatory lending practices and may be able to void the mortgage and apply 100% of your payments to principal. And, you may also be able to recover money damages.

Such violations can be used as a defense in a mortgage foreclosure.

1. Have you repeatedly refinanced your loan? Was the last refinance within the last 3 years? (A common predatory practice is “flipping,” which involves “repeatedly refinancing a mortgage loan without benefit to the borrower, in order to profit from high origination fees, closing costs, points, prepayment penalties and other charges, steadily eroding the borrower’s equity in his or her home.”).

2. Did you increase rather than lower your rate upon refinancing?

3. Are you paying an interest rate in excess of 9.5%?

4. Was the loan obtained to pay for home improvement work that was not done properly, or even at all?

5. Have you had problems with the mortgage company regarding untimely posting of monthly payments? Sudden increases in payments? Adding amounts to your balance for insurance, “property preservation,” or other “advances”? Does your principal balance never seem to go down?

6. Were you charged high closing costs (points and fees) on the mortgage?

7. Did the terms of the mortgage change to your detriment at the last minute before the closing?

8. Did the lender pay money to your mortgage broker? (Look on your HUD-1 Settlement Statement for a “premium” or yield spread premium “YSP” or Paid outside closing ?POC”)

9. If you have an adjustable rate mortgage, were any adjustments done improperly? Can you even tell if the adjustments were correct or not?

10. Does your loan contain a prepayment penalty?

11. Do you believe you were treated unfairly by your mortgage company? Has correspondence with the mortgage company gone unanswered? (Mortgage companies have a statutory obligation to respond to complaints and requests for explanations of accounts. Often, they don’t. Each failure may entitle you to $1,000. If your claim against the mortgage company may exceed the number of monthly payments you allegedly missed, the mortgage company may not be able to prove that you are in default.)

12. Did all collection letters sent to you by debt collectors comply with the Fair Debt Collection Practices Act? (Up to $1,000 more if they did not.)

13. Did you (or anyone else who has an ownership interest in and lives in the house) receive a “notice of right to cancel” that was not completely filled out?

14. Did you receive your copy of the loan documents at the closing (as opposed to being sent to you later)?

15. Did you sign a document at the closing stating that you were not canceling?

16. Did the closing occur by mail, or at your home, or in another city?

The following is an example of some other TILA violations you may find in your closing documents.

Over-escrowing

Junk charges
(i.e. yield spread premiums and service release fees)

Payment of compensation to mortgage brokers and originators by lenders

Unauthorized servicing charges
(i.e. the imposition of payoff and recording charges)

Improper adjustments of interest on adjustable rate mortgages

Upselling

Overages

Referral fees to mortgage originators.
(i.e. a lender who pays a mortgage broker secret compensation may face liability for inducing the broker to breach his fiduciary or contractual duties, fraud, or commercial bribery)

Failure to disclose the circumstances under which private mortgage insurance (”PMI”) may be terminated.

Underdisclosure of the cost of credit

Excessive escrow deposits

Breach of Fiduciary Duty

You may also find breach of contract claims.

Lenders Profit by Foreclosure

There is a common assumption (among judges, borrowers, and the public) that mortgage companies do not desire to foreclose and acquire real estate. This assumption is no longer well founded.

There are an increasing number of “scavengers” that buy bad debts, including mortgages, for a fraction of face value and attempt to enforce them. Such entities profit by foreclosure. “Mortgage sources confide that some unscrupulous lenders are purposely allowing certain borrowers to fall deeper into a financial hole from which they can?t escape. Why? Because it pushes these consumers into foreclosure, whereupon the lender grabs the house and sells it at a profit.

Kenneth M. DeLashmutt
“Predatory Lending Defense Specialist”

email: educationcenter2000@cox.net

website: http://www.educationcenter2000.com

You have permission to publish this article electronically or in print, free of charge, as long as the bylines are included. A courtesy copy of your publication would be appreciated.

? Kenneth M DeLashmutt

Share This

Jarad Severe

Short sales are becoming more and more popular as more and more
investors learn this creative technique which can create huge profits.

A short sale is when a lender accepts a discount on a mortgage to avoid a
possible foreclosure auction or bankruptcy. Instead of buying from a seller, you are
purchasing the property directly from the lender for a discount. For example: A
homeowner, who is facing foreclosure, has an existing first mortgage of $300,000.
You write an offer to the lender for $220,000, which is accepted as full payment for
the loan. This is a short sale. Why are they willing to take such a discount? Several
reasons. First of all, banks do not like excess inventory and bad loans on their
books; therefore, if they see an opportunity where they can sell the property without
a huge loss, they will do it. Secondly, lenders know they could lose a lot more
money if the property goes to auction. There are so many fees involved if the
property goes to auction, that they would be better off taking the discount
beforehand and be finished with the headache of it all.

Foreclosures are spreading all over the country, which means there are
opportunities everywhere. Lenders are being overwhelmed with properties they
inherit because of bad loans. It is safe to say that most lenders will accept a short
sale, however, you may come across one or two who will not discount. If the
numbers work out for the lender they will do it.

It is best to do a short sale when the property is in the pre-foreclosure
state. Yes, you can perform a short sale when the bank owns the property, however
your profits will more than likely be smaller. There are two stages within pre-
foreclosure. The first stage being those individuals who are behind on payments and
the second stage are those who are behind on payments with a notice of default. In
order for this to work properly and for you to successfully get a short sale, you must
find the homeowners who are in the second stage of pre-foreclosure or more than 3
payments behind on their mortgage. Once the notice of default has been recorded,
banks become motivated as well, so you are more likely to get a discount. Until that
time, very rarely will a bank ever discount a mortgage that soon. Why would they?
The homeowners still have time to cure the loan and make up the back payments.

It does not matter what type of house or condition it’s in, all mortgages can be
discounted. Because of this, short sales are one of the most effective
techniques for discounting loans in real estate. Short sales create huge
investment opportunities and are a must if you want to be competitive in this
market.

One of the most important steps in the short sale process is getting the
deed. Too many times, beginning investors will skip this vital step. Why do we want
to get the deed from the homeowner(s)? Because all too often, homeowners change
their minds, or want to back out of deals because they are scared, or they want to
re-negotiate. Without the deed, they can back out of the potential short sale even
after you have spent hours working on their property. When the homeowner signs
the deed over to you, now you control the property (subject to) and you can go to
work by calling the bank.

There is a certain process for calling the bank when you’re doing short sales. Banks
can usually tell if you’ve never done this before. When you call the bank, you
never want to tell them you are an investor. This one of the biggest mistakes
rookies make and sometimes will result in the lender not accepting a short sale.
Therefore, when you call the lender to request the short sales packet, you want to
tell them you either represent the homeowner or you are the buyer. Sometimes they
may ask if you are an attorney. Again, just tell them who you are - do not use
“investor”. Then you’ll want to request the “short sales packet” or “workout packet”.
When the packet arrives it will explain exactly what you need to make this short
sales deal successful.

The lender will usually request a hardship letter, a HUD-1, and a financial statement
from the homeowner. A hardship letter is telling the lender why the homeowners are
not making their mortgage payments. Sometimes they will request bank statements,
pay stubs, income statements, and so on. Be prepared to send them
everything they ask for because if you don’t, your short sale will not be
accepted. Do not waste any time! Send everything the lender asks for back ASAP. It
usually takes at least 3 weeks or more to get an answer back from the lender, so
you can’t afford to wait. If the auction is approaching, you can ask to extend or
postpone the auction which in most cases they will, if they know it is a legitimate
offer.

Next in the short sales process is the BPO. This stands for Brokers Price
Opinion. This is by far one of the most important steps in the whole process.
Basically a real estate agent will come out and give their opinion on what the house
is worth. The key to short sales is the BPO. You want to try everything you can to
influence the BPO to come in as low as you can. The lower the better. You can
influence the BPO by creating a list of (low) comps in the area, a list of repairs, and
showing up at the property to point out every little item that needs replaced. When
the BPO comes in low, the banks will usually accept your offer.

Copyright 2005, Foreclosures and Flippers Inc. - All Rights Reserved.

Jarad Severe is a leading authority and expert in Foreclosures. He is
President and CEO of Foreclosures and Flippers Inc. Jarad can be reached by email
at:

href=”mailto:info@foreclosuresandflippers.com”>info@foreclosuresandflippers.com
or you can visit his website at:
http://www.foreclosuresandflippers.com to receive more information on foreclosures,
short
sales and more.

Share This

Ernani Uchoa

It?s not an easy situation. If you find your home in foreclosure, you are likely very stressed. If you are like most owners who find their home in foreclosure, you have not paid your mortgage for a few months, most likely because of a financial problem. Worse, if you find your home in foreclosure, you may find that your lender is sending you threatening letters and that collection agencies are harassing you via phone. If you are in a situation where you find your home in foreclosure, though, there are still things you can do to improve the situation.

Take Steps to Avoid Finding Your Home in Foreclosure

As soon as you buy a home, you should shop around for a mortgage that you can afford even if your financial situation changes a bit. Look for the most affordable rates and the most affordable monthly payments you can find. Your research will be well worth it. You should also put aside some money each month ? even if it is only $50 ? for emergencies. This can help ensure that you are not living paycheck to paycheck.

As Soon As You Find Your Home in Foreclosure, Take Steps to Control the Situation

As soon as you get a notice from your lender stating that you are late with a loan payment, you may find your home in foreclosure unless you take steps to stop the process. As soon as you realize you won?t be able to pay or as soon as you are sent a notice of late payment, contact your lender. To avoid finding your home in foreclosure, work with your lender to work out a repayment plan that lets you pay off your arrears. You lender would much rather go through negotiations with you than face foreclosing your home. If your situation is more serious, you may be able to prevent seeing your home in foreclosure by getting refinancing from your lender that makes your monthly payments smaller.

If You Can?t Work Something Out With Your Lender, You Can Still Avoid Seeing Your Home in Foreclosure

Even if you and your lender can?t come to an agreement, you still have options. To avoid seeing your home in foreclosure, take steps right away to find someone who can help. An investor or other lender is your best bet. An investor can buy your home from you, leaving you with equity, cash, and a decent credit rating. A lender can help you by offering you refinancing that can make your home affordable again.

If you want to avoid seeing your home in foreclosure but find yourself in financial difficulties for the long term, don?t hesitate too long. If you have equity in your home, especially, you may want to sell your home and find more affordable housing. You can do so by looking for a home in foreclosure through the ForeclosureDeals.com listing. ForeclosureDeals.com gives you all the tools you need to find an affordable home in foreclosure fast, so that you can get back on track financially. ForeclosureDeals.com even offers you a 24/7 phone support service that lets you speak to foreclosure specialists who can get results for you. Why wait? Join ForeclosureDeals.com today and avoid seeing your home in foreclosure.

Ernani Uchoa is the writter of Foreclosuredeals.com - Leading source of foreclosures information. Find More information on homes in foreclosure at http://www.foreclosuredeals.com.

Share This

John Waller

The cast of characters. Everyone knows what a bank is. Most of us understand what a lender is ? an institution from whom money is borrowed. Adding the word ?commercial? to describe a lender simply means that the financial entity deals with businesses as opposed to individuals. Black?s Law Dictionary defines ?commercial loans? as: ?loans made to businesses as distinguished from personal-consumer credit loans.? Although a lender could make both commercial and consumer loans, this blog is dedicated primarily to commercial matters.

The field of law. To me, commercial foreclosure law refers to the rules and procedures applicable when a business defaults on a loan secured by some kind of collateral. So, if you work for an institution that loaned money to a business, and if the borrower defaulted under the terms of the loan agreement, then commercial foreclosure law provides the judicial framework for the protection of your rights. Typically, those rights involve the ability to collect money owed by the borrower through the sale of the loan collateral.

Collateral. Black?s states that collateral is property pledged as security for the satisfaction of a debt. If a business defaults on a loan, the lender can initiate a foreclosure action to compel the sale of the loan collateral and therefore collect the amounts owed by the borrower through proceeds from the sale. There are all kinds of business-related collateral. Perhaps the most recognizable is real estate ? the land a business owns. Some of the most interesting cases, however, deal with personal property collateral, which can be any property imaginable that is owned by a business ? a fleet of cars, office furniture or intangibles such as accounts receivable.

Lien. A lien is a description of an encumbrance on property: ?a claim . . . on property for payment of some debt.? Black?s. In the context of my blog, a lien arises by written contract between a lender and a borrower ? either a real estate mortgage agreement or a personal property security agreement. The lien granted by a borrower to a lender gives a lender the right to foreclose upon the subject property (collateral) for payment of the debt in the event of a default.

Commercial foreclosure. Turning again to Black?s, a foreclosure is defined, in part, as the ?enforcement of a lien . . . or mortgage . . ..? Paraphrasing Black?s, foreclosure is the legal process by which real or personal property subject to a lien is sold in satisfaction of a debt. To foreclose means to terminate a borrower?s rights in the subject property. A foreclosure that is commercial merely refers to the termination of a business borrower?s rights in its property.

A form of collection. Commercial foreclosure law is a special kind of collection law. It?s a body of rules governing how banks and financial institutions recover money by asserting rights in, and selling, collateral that a business granted to secure the loan. It?s the set of legal principles applicable to a lender needing to collect money owed by a business, which failed to make its loan payments or otherwise defaulted under the terms of the loan documents. If any of these matters are relevant to what you do for a living, I welcome your visits to my blog and hope that you will e-mail me with your questions or comments.

Share This