Foreclosure Home Sales Up

Housing market conditions have still not recovered and it is only expected that existing home sales remain to be sluggish. But surprisingly, most of the properties being sold are foreclosure homes.

Before, buying foreclosed properties is considered to be risky for many reasons. Among these reasons are the difficulties encountered looking for these foreclosure homes, the physical condition of the property and dealing with the fact that they are benefiting from another person’s misfortune.

But with the current crisis in the housing industry, these beliefs are considered to be antiquated. Considering that most listings nationwide are owned by a bank, investors and home buyers are no longer wary of taking the risks of buying these repossessed properties.

In California, buyers will even enjoy a very large selection of foreclosed properties. With the state coming in at second place in terms of highest foreclosure rate, home prices are tumbling like crazy. For buyers who are looking to enjoy instant equity and huge discounts, the state is a veritable paradise of real estate opportunities.

Although declining home prices have dragged home values of nearby properties, local experts consider the foreclosure sale activity as a good thing. In a way, it will certainly help in the boosting of home prices nationwide and reducing of inventory.

Buyers interested in these foreclosure homes should make sure that they know what they are getting into. Even if these repossessed homes offer greater return potential, you must understand that they do possess certain risks. If you are not careful and neglect to take necessary precautions, you might find yourself in over your head.

The best thing is to have the property inspected and learn how to negotiate asking prices. You can always ask foreclosure brokers for expert advice. With market conditions favoring buyers, you certainly have the upper hand.

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Foreclosure Scams Claim Another Victim

Distressed homeowners facing the possibility of foreclosure are being targeted by unscrupulous individuals and companies under the guise of offering foreclosure help. Another couple in California has actually fallen victim to a foreclosure scam that involved paying a small fee in exchange for stopping foreclosure.

The said foreclosure company contacted the couple via a letter and promised the couple a way to stop foreclosure. Out of desperation, the Californian couple decided to accept the offer and paid the foreclosure rescue company $1800. This fee is supposed to pay for the mediation services that the company will provide. The couple was lead to believe that a short sale negotiation with the lender was in the works.

Of course after paying the fee, the couple was unable to contact the foreclosure rescue company and the short sale arrangement never materialized. For them, being taken advantage of by these individuals is worse than losing the $1800. They could not believe that there are actually people who try to profit from unfortunate situations.

Foreclosure scams have actually been on the rise in the past year ever since the mortgage mess erupted. One of the reasons why many distressed homeowners have fallen victims to these scams is that they believed that their mortgage problems can be remedied that easily. Other are simply too ignorant of their rights and the foreclosure process to make an informed decision.

It is very important for troubled borrowers to know that working out a deal with their lender is the first option they should explore if they really want to avoid foreclosure. Negotiating repayment terms does not really require the involvement of a third party as long as you are honest and straightforward with your financial capability. You should try to prepare for the meeting with your lender by sorting out your financial documents and working out a realistic budget.

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Michigan Foreclosure Rate Affected by Local Economy

Most cities and towns in Michigan are feeling the impact of the enduring foreclosure crisis. In fact, the jump in the state’s foreclosure rate is now being tied to the local economy.

It would seem that the increasing number of homes entering some stage of foreclosure correspond to the increase in unemployment rate. For the month of June, the unemployment rate has reached 8.5 percent. This percentage is considered to be the highest in the country, considering that the national average is at 5.5 percent.

Of course, this correlation is not surprising. When a person loses a job, the savings and other extra income goes to the purchase of food and payment of utilities. Mortgage payments are often delayed if not missed entirely.

In addition to this, the foreclosure crisis in Michigan can also be blamed on relaxed underwriting guidelines and predatory lending practices. Combining all these factors together has resulted to a recipe for a housing market disaster.

The local governments are not only worried about the impact of the growing inventory of foreclosure homes in home market values. There is also concern about increasing crime rates and accidents. In order to address this concern, some banks hire professionals to maintain the properties. This includes the cutting of the lawn and shoveling of the sidewalk during the winter months.

Of course, the impact on home market values can not be ignored. So called fire sales generally mean unbelievably low asking prices. Foreclosure buyers and investors are often on the lookout for these sales and would not consider buying other real estate properties. As a result, competition in the housing market has become tougher and sellers are forced to drop prices further.

Average sale price in neighborhoods such as Lansing has fallen by 23 percent in just one year, from $145,555. Such decline does not bode well for the local housing market.

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Jennifer Tweed

Finding the right buy to let mortgage is crucial to your success as a property investor. Unlike other forms of investment, a lot of the money you put into a buy-to-let property is likely to be borrowed. Over the last few years, the buy to let mortgage market has boomed, and borrowing money to invest in this way has become easier than ever. There are a number of different buy to let mortgage products available from fixed rates, discounted variable rates, discounted rates and so on. Different products may be suitable for different investment properties.

However it is very important that you get the correct guidance with your finance. Questions that are worth considering when finding a suitable buy to let mortgage:

1. Do they have access to lots of different products in the market place?

2. Do they have the ability to create a long term property development strategy for you?

3. Are they able to secure Exclusive Products?

4. Are they able to arrange mortgages within 10 working days?

Most lenders will offer a maximum loan of 85% requiring you to fund at least a 15% deposit. The buy to let mortgage industry is very competitive with new products being launched on a very regular basis.
Some brokers may charge a brokerage fee up to 2% to arrange the finance for you but don?t let this put you off because if they do have the ability to secure exclusive products for you, it could be very beneficial to your cashflow as a landlord. Plus, if they are able to reach formal mortgage offer stage in a very short space of time, this could result in you being able to secure property at very competitive prices if you have the ability to tell the vendor that you can have the deal completed within a matter of a few weeks.

As an experienced property investor for more than a decade, it becomes clearer all the time for the importance of finding a good buy to let mortgage provider. Learn how to find the best buy to let mortgage products as they can result in the make or break of your profit margins when dealing in property investment. Learn more at http://www.buytolet4sale.com

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Mark Barnes

If you want to purchase a new home or refinance your current mortgage, be sure to check out the wide array of loan programs available. If you have less than excellent or even poor credit, you can still qualify for a loan. If you have outstanding credit, though, you are in the proverbial driver’s seat, when it comes to selecting your loan program. Be sure to find a good mortgage consultant, and carefully explain exactly what you need. Here are just a couple of “outside-the-box” programs that come in handy for some people but require excellent credit ratings.

Stated loan programs are designed for a person whose income or assets fluctuate from month to month and year to year. Not many banks offer stated programs. Many people who need stated programs get turned down by not only banks but by inexperienced mortgage brokers who don?t understand the breadth of the programs at their fingertips. So, you may have to enlighten them with your own insight by telling them this is the program you need.

Stated programs are for people who may not qualify for a conventional loan, because they do not meet income requirements a lender has. A prime example is someone who does not show all of her income on a W-2 tax return, for one reason or another. This person may make enough money to cover the mortgage payment, but she can?t prove she makes it on paper. Lenders like to see two years of W-2 income. This proves to them that you consistently make enough money to pay back the loan. Now, it?s important to note that this is a good credit program, and a lender will want someone with at least A-minus credit for approval. Here is where all that work to maintain your spartan credit record is going to pay off.

What the stated loan requires is all standard documents, except income verification. In other words, the loan officer is going to state your income on the application, and no proof is required. Please note that this program is not intended for someone who works at McDonalds to try to state that he makes $200,000 yearly, so he can get approved for a $400,000 loan. It is intended for people, like salesmen, whose income varies or for businessmen, who work on bonuses, which they may not receive until the next year. As long as the income is reasonable for the profession, no underwriter will ever question it. So, if you needed to make 60,000 yearly for approval, but you only show $54,000 on last year?s W-2, your mortgage broker can get you a stated income program, and he will simply write $60,00 on the application. Don?t worry, the lender won?t ask for pay stubs or tax returns. Your credit rating speaks for itself. In other words, the lender sees that you have an excellent payment history on your other debts, so he is willing to take on a bit more risk.

A stated asset program works the same way, and good credit is required for approval in this program, too. Lenders require cash reserves, in order to cover several months of mortgage payments, in the event something goes wrong after the loan closes, like you lose your job or get hurt. This can be a problem for people who have no savings, stocks, or retirement accounts, which are all acceptable forms of reserves. If you fall into this category, you simply ask for a stated asset loan, and the mortgage broker will state enough assets on your loan application to appease the lender.

This seems fraudulent, you might say. It isn?t, as long as you follow the guidelines set forth by the lenders. Remember, they created these programs, so they could loan more money. You?ll pay, of course, because the lender will hit you with a premium on your rate, because the loan is more of a risk. So, instead of getting a 6% rate, you might get as high as 6.75%, but at least you?ll get your loan.

There are many other loan programs that allow you to borrow more of the equity in the house, let’s say up to 95% or even 100%, due to a great credit rating. Some programs allow for an improvement on your interest rate.

It’s always important to ask your mortgage broker if there is some kind of incentive because you have A or A+ credit. Most lenders allow the mortgage broker to either give you the break in rate, or they’ll give it to the broker in a cash commission. Many unscrupulous brokers will never mention the credit bonus to you, and they’ll make up to .25% of the loan amount for themselves.

So, if you had a $200,000 loan, and the lender allowed a .25% interest reduction or commission to the broker, and the broker takes it, instead of giving it to you, that mortgage broker would make $500.00 extra dollars, which would be paid by the lender. Of course, if you had received the .25% better rate, your payment would decrease by about $30.00 each month and $360.00 each year. That’s nearly $2,000 if you have the loan for five years that you would lose to a greedy mortgage broker. So, always ask for something, due to your excellent credit.

And always remember, with good credit, you are king. And kings always make the rules. Learn more at www.winningthemortgagegame.com

Mark Barnes is author of the wealth-building system, Winning the Mortgage Game and other investment real estate books. He is also a suspense novelist, and his new novel, The League, will thrill both suspense and sports fans. Learn about Mark’s wealth-building system and get his free home loan course at http://www.winningthemortgagegame.com. Learn more about The League and read an excerpt at http://www.sportsnovels.com

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Dennis Estrada

The Mortgage Interest that you paid to acquire your first and second home can be deducted in your income tax. As you read on, you will learn how to deduct and calculate Mortgage Interest for your income tax return. Plus, you will learn how Mortgage Interest works.

How it works

The Lender sends you form 1098. The form 1098 shows how much mortgage interest was paid. Using the values from form 1098, you transfer the values to Schedule A Form 1040 of your income tax form.

Requirements for Tax Deductions

There are three conditions to meet to be able to deduct mortgage interest. First, you must fill out the Schedule A Form 1040. Second, you must be liable for the loan. Basically, the homeowner pays the mortgage payment. And, he owns the home. Lastly, the home must be a secured debt of a qualified home.

Mortgage, Deed of Trust, or Land Contract instrument secures a debt. The instrument provides a way to satisfy debt in case of default, makes the owner liable to pay debt, and records under the local state of law.

Qualified Home means house, condominium, cooperative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities. And, the home is first and second home of the homeowner.

Qualified Mortgages

The three categories are Grandfathered Debt, Home Acquisition Debt, and Home Equity Debt. Grandfathered Debt is acquired mortgage prior October 13, 1987. If the Homeowner refinanced the mortgage, the mortgage remains as Grandfathered Debt. Home Acquisition Debt is acquired mortgage after October 13, 1987 to buy, build, or improve a home. The total mortgage must not exceed $1 million. Home Equity Debt is acquired mortgage after October 13, 1987 not to buy, build, or improve a home. The mortgage must not exceed $100,000 of the fair market value.

IRS yearly update

This article may or not contain the most current tax regulations, and laws. You may want to consider checking with your trusted Tax Advisor or IRS.

Dennis Estrada is a webmaster of mortgage calculators website which calculate the monthly payment, bi-weekly payment, affordability, refinance, annual percentage rate, discount points, and more.

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Adam Smith

So you want to be a Player?

The real movers and shakers of America are always looking to move up the ladder of success. They also have a particular penchant for desiring to display their success through their purchasing power. You may have noted that some of the powerhouses of your city buy fancy cars, a flashy Rolex or two, and build the biggest, most expansive mansions money can buy. Upon asking such individuals why they purchase such luxurious items, you might be surprised by their answer. Many will submit that their purchase is not a purchase at all, but an investment in themselves. They argue that part of their success depends on how they present themselves, the image they project, and the prestige they bring to the table.

Think of the last time you saw Donald Trump on television. Did you notice the luxurious penthouse he lives in, with its insanely expensive decorations? Did you make note of the beautiful woman at his side, conspicuously showing offer her golf ball sized diamond ring? This is a man that exudes confidence and swagger. He uses the spoils of success to secure future success.

Exuding Supreme Confidence

When you are building your own business, you need to make sure your business gives off such a level of confidence. Perspective is reality. Your company, like the Donald, must demand respect. If clients view your business as a professional, high quality operation they will be more inclined to turn to your business for the services or goods they require. Creating this impression that your business is a force to be reckoned with is important, but just exactly how can you go about developing this perception?

There are many strategies that can be employed in this instance. Perhaps the most impressive, and lasting strategy one can employ is by improving the physical face of your business. Build a new building. Move to a brand new prestigious business park. Completely remodel your existing office space. To make this change, your firm can apply for a business mortgage. Such an investment only paves the path to success. Indeed the initial outlay and commitment to a commercial or business mortgage can seem intimidating, but consider the future of the business. Growth comes at a price, and to take your business to the next level you must at some point take drastic, even risky measures to realize success.

Growth through Reinvention

The advantages of taking on a business mortgage, and with it a beautiful structure that really defines what your business is today and where it is headed tomorrow, can far outweigh the costs. Growing your company will never be easy, but if you lay the right foundation and stepping stones now by giving your business that feel of superiority and respect, the growth and success that you desire will follow.

Before you refinance your business mortgage, take this suggestion into consideration. If you are not headed forward then where are you headed? Backward? I certainly hope not! Don?t remain complacent and think that you can continue to grow in your old office space. Take a look around you. Where are the high revenue companies moving to? They are not staying put in the same old business parks any more. Rather, these firms continue to move up the food chain, relocating their offices to fresher, more respected new business parks or centers that provide cutting edge technology and support. In addition to those advantages, the move offers your company the chance to be among elite company and gain growing respect from your colleagues, competitors, and most importantly your clients. In this fashion, taking out that business mortgage and moving to the new center of activity and prestige can offer your company the growth it has always dreamed of.

Adam Smith is a client account specialist with http://www.10xMarketing.com ? More Visitors. More Buyers. More Revenue. For more information about a business mortgage, please visit http://www.sncloans.com/business-mortgage.html

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Mary Stasiewicz

A 125% Second Mortgage is a 2nd mortgage in which the face amount of the loan exceeds the value of the property by 25%. A Property valued at $200,000 would have a loan for $250,000. This is a perfect type mortgage for individuals with little or no equity in their home. The loan offers 125% of value minus the first mortgage.

This loan could be used for debt consolidation or to combine first and second mortgages where the fixed mortgage rates or the adjustable rate mortgages or a combination of the two produce a higher monthly cost then the new fixed rate on the 125% second mortgage. The new mortgage payments will yield lower monthly payments and therefore save money that may be used on higher interest monthly payments. The extra funds could be used for bill consolidation, home equity loans and revolving credit lines with adjustable rates of interest when interest rates are on the rise.

Another reason to acquire a 125% second mortgage is to save money by paying off high interest credit card debt. 125% second mortgages usually are simple interest fixed rate mortgages. While credit card rates may be as high as 21% and can be adjusted up in the future, the typical fixed rate today is between 6% and 7%. Another advantage of the fixed rate mortgage is that the payments are always the same which makes monthly budgeting easier.

How can my credit card score affect my securing a loan and the interest rate on the loan? The interest rates on loans that exceed the maximum value of the property are based on your credit score. The ability to refinance high interest mortgages with a low fixed rate 125% second mortgage will depend on a high credit card score. A score of over 750 will be needed to get approval for a 125% mortgage. A good credit rating is necessary since the lender is providing more cash then there is equity in the property. A score of over 800 will get the borrower a favorable rate. Individuals with credit scores of 620 or less will have a hard time finding lenders for maximum mortgages. If a lender is found, the interest rate may exceed 9%.

Should first time homebuyers consider a maximum mortgage or choose a conventional fixed rate mortgage with 20% down? First time home buyers should only consider a fixed interest mortgage. If things go well and interest rates stay the same or drop the borrower can always consider mortgage refinancing to a more sophisticate type of mortgage.

Mary is published web author for many mortgage and real estate articles. She writes articles for people all across the country in an effort to increase their awareness for home finances. You can read more of her home equity lending articles online at BD Second Mortgage Loans. To get more equity loan advice & finance tips, please contact the loan team to learn more about program updates and the approval process for 125% second mortgage and home equity loans.

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Patti Porter

What is the easiest way to learn how to buy commercial properties? By becoming a Commercial Mortgage Broker! Most people ask me what should I do, so that I can buy my first commercial property? It seems so simple to me?learn the rules of the game!

So you ask, what benefit do I gain by becoming a commercial mortgage broker?

Benefit #1 ? Develop Relationships With Lenders

Unless you have a ton of money, you will have to borrow money in order to buy commercial properties. Well what if you have a good working relationship with a lender? Do you think you will have a better chance of getting your loan approved? Yes! And not because you?re breaking some rule or getting special treatment. It is because you would have worked with that lender. You will know exactly what property types they will lend on and at what terms. You will know what criteria they are looking for and what will ?kill a deal?. Because your clients will have different needs, you will need to know different programs. For instance, I have a lender that specializes in loans for apartments. I know that this lender has a program that will loan 90% LTV for borrowers with good credit on loan amounts less than $1,000,000. This same program allows unlimited cash out apartment refinances. Now I learned about this program to help a client obtain a Dallas apartment building. But do you think I could use this same program for my personal acquisitions? Do you think I have a good idea of the time involved in closing a loan with this particular lender?

Also, as a result of working with borrowers, you will learn what properties you DON?T want to own! You are learning through the school of hard knocks but you aren?t the one getting knocked!

Benefit #2 ? Develop Relationships With Other Professionals

Just imagine if you have contacts in the commercial appraisal industry, contacts with commercial realtors and contacts with commercial property managers. Do you think this will help or hurt you when acquiring your own portfolio? If you don?t know the answer, then let me tell you, that it will help you tremendously. It helps you learn how to judge the good ones from the bad ones. And these relationships are not restricted to your home town! You will develop a network across the country. The real ?players? in the game of commercial property ownership (think Donald Trump) own properties across the U.S. Why? Because you go where the income property is?not waiting for the property to come to your home town.

Benefit #3 ? Earn The Money To Buy Commercial Properties

Of course, nobody works for free. If you?re providing a valuable service to clients by getting the best financing for their projects, then you deserve a fee. Commercial Mortgage Brokers can earn anywhere from 0.5 points to 3 points. Your fee is based on the complexity of the loan and the level of services you are providing. As an example, let?s say you are helping a client obtain a loan for $1,000,000 for a 20 unit Atlanta apartment building. With your help, your client is able to get 90% financing. Your fee for this service is 2 points. At closing, you will be paid $20,000. Not bad. Now let?s raise the bar. You have a client that wants to purchase a Phoenix shopping center for $10,000,000. He has poor credit but you?re able to overcome this with your lender. Your fee for your services is 2 points. At closing, you will be paid $200,000! That is a nice payday! Now you?re able to build your own portfolio of commercial properties with your earnings!

Visit http://www.all-about-commercial-mortgages.com/become-commercial-mortgage-broker.html to learn more about becoming a Commercial Mortgage Broker or financing of commercial properties. Educate yourself before buying that commercial property!

Patti Porter is a Commercial Mortgage Broker specializing in income producing properties.

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James Olivero

This is what a mortgage can do for you!

AND Why you shouldn’t get hung up on the interest rate!

Let me show you the bottom line or the total dollar amount you will pay
when paying a mortgage and paying rent and what the benefits of a mortgage are:

Let’s say John bought a home and has a $75,000 mortgage @ 10% interest for 30 years on his home with a payment of $750.00 per month. John’s friend Bill is renting a house, but he is paying $750.00 per month in rent with no interest (I am using these numbers for illustration purposes). Now, it’s a funny thing, but both men live in their homes for the full 30 years and guess how much money both paid out in that 30 years?

Do you think John would have paid more money in the 30 years then Bill did because John was paying a mortgage? The answer is no! Thirty years equal 360 months of payments and if you multiply 360 X $750.00 you get $270,000.00. That means both men paid the same amount of money over the 30 years with one BIG difference! John now OWNS his home but Bill is still paying rent and does not own the home. In fact Bill’s rent more then likely paid the mortgage off for the owner of the house he is renting from.

As you can see, even though John was paying a mortgage payment of $750.00 per month, the total amount of dollars paid in the same time period of 30 years is the same. Now Bill has nothing to show for all the rent payments he made except for 360 rent receipts. So you can see how the interest rate does not change the total amount paid over the time period because $750.00 per month is $750.00 per month. No matter what you call it a mortgage payment or rent payment, the bottom line is the same.

So whatever type of mortgage you can qualify for has to suit the payment you can afford and are comfortable with. Of course; the amount of money borrowed, the interest rate, and the term or years the money is borrowed is what will determine your payment.

So the bottom line is: if you get a mortgage that is comfortable for you payment wise… let’s say equal to what you were paying for rent, the major thing you changed is the fact that you own the home now and you are not just paying rent or paying off someone else’s mortgage.

You know the bottom line is we all have to live somewhere and we have to pay for that living space, so why not own what we have to pay for anyway. And don’t get hung up on the interest rate to where it stops you from buying your home… just make the payment amount work for you.

Now let me show you what you can do with a mortgage payment
that you can’t do with a rent payment.

Stay with me now because it is going to get really good! As you have seen from our example above, the total amount of money paid over the 30 years or 360 payments for the mortgage and rent came out to be the same dollar amount in the end.
However, did you know you could change the bottom line or the dollar amount paid when you are making a mortgage payment as well as the amount of time it will take to pay the money back?

A mortgage is calculated by the amount of money borrowed, the interest rate, and the amount of time it will take to pay it back.
This calculation is called an amortization schedule.
I am going to show you an amortization schedule for a mortgage now and show you how to change the total amount of money you will pay and the amount of time it will take to pay it back!
Lets say you get a mortgage for $75,000@12% for 30yrs
This is what the amortization schedule will look like:

Date -- Payment -- Interest -- Principle
 -Balance
 1-2/21/04 $771.46 $750.00 $21.46 $74,978.54
 2-3/21/04 $771.46 $749.79 $21.67 $74,956.87
 3-4/21/04 $771.46 $749.57 $21.89 $74,934.98
 4-5/21/04 $771.46 $749.35 $22.11 $74,912.87
 5-6/21/04 $771.46 $749.13 $22.33 $74,890.54
 6-7/21/04 $771.46 $748.91 $22.55 $74,867.99
 7-8/21/04 $771.46 $748.68 $22.78 $74,845.21
 8-9/21/04 $771.46 $748.45 $23.01 $74,822.20
 9-10/21/04 $771.46 $748.22 $23.24 $74,798.96
 10-11/21/04 $771.46 $747.99 $23.47 $74,775.49
 11-12/21/04 $771.46 $747.75 $23.71 $74,751.78
 Totals $8,486.06 $8,237.84 $248.22

As you can see, when you make a payment on a mortgage a large part of the money goes to interest with a small part of the money going to principle. You will notice the principle balance increases with each payment and the interest balance decreases with each payment, but this happens very slow.

Now, let me show you what control you have over a mortgage:

As you can see; in the 11 months of payments we made on this mortgage, we paid $8,237.84 in interest and $248.22 in principle! This is what YOU can do. When you looked at this schedule after your closing, you noticed the figures. If you were to add the total of the principle for the 11 months of payments ($248.22) to your first mortgage payment and told the lender you wanted the extra money to go towards the principle this is what would happen for you: you would reduce your mortgage by 11 months and save $8,237.84 in interest payments! This happens whenever you make extra payments on a mortgage, no matter how much or little you pay. You always have to specify that this extra payment is designated to go towards the principle and this works best if you start right away in the very beginning of the mortgage!

This means that in your first month you have already changed the total amount of money and time it will take to pay back your loan. The more you can do this, the less money you pay in interest and less time it takes to pay the money back.

The mortgage has to have no pre-payment penalties. That happens to be the majority of mortgages that we see today. However, ask and make sure so that you have no surprises later. This is just one simple thing you can do with a mortgage which gives you control of the bottom line as far as money paid back and the time it takes to pay it back.

Let us help you get what you want and need to purchase that first new home or investment property.
We look forward to helping you and working with you to help you meet your goals!

Visit us today at: http://www.easymoney-123.com

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