Archive for real estate
Tips On How To Avoid Foreclosure
Posted by: | CommentsEspecially in today’s economy, thousands of people are struggling to pay the bills. This, unfortunately, includes dealing with the threat of foreclosure on their homes. It is possible; however, to avoid foreclosure. Follow these few guidelines to avoid having your home taken away from you.
First off, contact your mortgage company. Most, if not all, mortgage companies have a Mitigation or Loss Mitigation department. This is the department you need to contact. Let them know everything that is going on. You, likely, will need to show proof of financial stability or instability.
The mortgage industry is well backed, enough that they can help in rough situations. After all, they can still take and sell your home. One of the most common approaches that mortgage companies take is offering forbearance. Forbearance allows you to payback what you have missed over a certain period of time.
However, there are many other options available. Dependent upon your history and particular situation mortgage companies will allow you to do anything from take out another loan to adding the existing past due amount onto your existing loan. In certain situations you may find they are even willing to waive a missed payment. Remember, you do not get to pick. This is all based off of predetermined criteria.
As crazy as this may sound, some people up and leave a home that they are in fear of losing. This is one of the worst things you can do. Unless you are forced out of your home, do not leave. Your physical presence, in your house, just might save your home. It is much easier to qualify for assistance when you actually live at the property in question. Assistance is offered by different counseling agencies; look into the ones around you.
If you have gotten to the point where your mortgage company has already filed a Notice of Default you have lost some of your options. Calling them, at this point, probably will not do any good. You could consider selling your house to pay off the loan. You will have to sell at a low price, but sometimes that is what it takes to save your credit.
If your situation has gotten this far, there are a couple other options. However, other options will harm your credit just as bad as a foreclosure will. Just keep in mind that there are different roads to take. The more proactive you are with your mortgage company, the better chance you have. If you want to avoid foreclosure, call your mortgage company as soon as you see you might be facing a late payment. This proactive action will save you a ton of grief in the end.
Learn how to avoid foreclosure by using short sales. Head online today and you can learn how a short sale will help you out.
Investing In Shortsales
Posted by: | CommentsShort sales are not new. Lenders have been doing them for years. However, due to the increase in mortgage delinquency due to our current economic situation, the lenders are now inundated with request for short sales. Bank of America, Chase and Wells Fargo are lenders who have been very slow in their response to short sale request. Chase has indicated that they are still working on request made in June, 2009 and we are now closing in on November, 2009. The original timeframe of 60-90 days is now 90-180 days at minimum. The smaller lenders work more quickly.
Shortsale: What is it?
If you own real property and you owe more on your mortgage then the home would appraise for and you have a hardship, then you may be able to short sale your property. A short sale is when the lender is willing to accept less than the full amount you owe.
In order for your lender to consider this option the following must apply: Property must be listed with a realtor and must have a contract based on the comparables in the area the property is located. Owner must have a financial hardship. A financial hardship could occur from divorce, loss of job, pay cut, illness, accident. etc. Owner’s expenses exceed their income, this is considered a hardship. Expenses must be legitimate expenses. One cannot have a $400 dollar a month clothes shopping addiction. Real expenses including; electric, water, rent, insurance, car payments, gas, groceries, homeowner association dues, health insurance, etc.
Once a financial hardship has been established on behalf of the owner, These required documents that must be submitted to your lender: 1. Bank Statements – Last two months 2. Pay Stubs – Last two pay periods 3. Tax returns for 2008 and 2007 4. W’2s for 2008 and 2007 5. Financial Worksheet
Your realtor will provide the following in order to submit to the lender: 1. Listing Agreement 2. Comparables ( active/pending/sold) 3. Listing History 4. Contract offer ( The accepted sales price, should be on or around the current market value) If the contract offer is not acceptable, then the agents should leave the short sale addendum un marked on #5, to allow additional offers to be submitted. But if the original offer submitted is sufficient, this clause should be eliminated.
The following will be provided by the Title company: 1. Title search 2. Preliminary Hud 3. Complete Lien search, including: Code Enforcement, Open Permit and Water balance search.
We highly recommend that a title search and lien search be completed on the property being sold in order to make sure that there are no judgments, liens other than the existing first or second mortgage. If a title search is not completed and a Preliminary HUD -1 Closing Statement is submitted to the lender, which does not reflect other items such as: Code Enforcement liens, Outstanding Water Balances, Open Permits, HOA Liens, Certified Judgments, delinquent real estate taxes, you can get your approval. However, once you have completed your title search and lien search and they show any of the items above, at that point you have to re-negotiate with the lender. In some cases you will not be able to re-negotiate with the lender, so now you have wasted time and energy and you no longer have a deal.
Important Items to consider regarding a short sale: Most lenders are not paying the entire amount owed fpr HOA assesments. They are comparing a short sale to a foreclosure in these cases. If a lender proceeds to the foreclosure sale, the lender is, under law, only required to pay a certain portion of the back assessments. This is the rule of thumb to go by, if the property is a condominium, the lender will pay up to 6 months in back assessments, if the property is a single family home, then the lender will pay up to 1 % of the original balance of their mortgage or 12 months of back assessments. Attorney fees are not considered, nor paid for by the lender. In most cases, the HOA will reduce the amount owed to them. However, some HOA’s are taking a stance that they will not accept what the lender is offering and they will kill the deal. Most lenders will only accept individual buyers. Most lenders do not allow; Corporations, LLC, LLP, Land Trust, Trust etc. The property must be purchased by an individual person(s). Not all companies who say they can negotiate a short sale are qualified to do so. Negotiating a short sale or even a loan modification requires a background and experience in mortgage, title and real estate. Most short sale negotiators who have a background in title insurance, mortgage, or even real estate have a better idea of the entire process and what is involved in all areas of the short sale transaction. Lenders do not have to approve a short sale, even if there is a hardship; however, most lenders are trying to accommodate the owner to some degree. Lenders will definitely deny owners short sale if they feel there is not a legitimate hardship. Second Mortgage Lenders are asking for 10% of the principal balance.
GETTING THE SHORT SALE APPROVAL LETTER FROM THE LENDER IS NOT HARD. PUTTING ALL THE PIECES OF THE PUZZLE TOGETHER: PRICELESS!
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Everything You Need To Know About The Eviction Process
Posted by: | CommentsPast week I received a question from one person worried to receive an Eviction Notice:
“If you live in a house and are losing it , have been living in it for 6 months paying no mortgage, will they just show up at our door and say ok you have to leave? or will we get some kind of 30 notice to leave?”
Response: An EVICTION NOTICE SIGNED BY A JUDGE FROM COURT must be shown in order to legally take you out from your home. Nobody can do this without this notice. Check your Eviction Laws, though, because every state is different, so you need to understand it very well. You can go to foreclosurelaw.org to find the legal rules for your case. Check also if your state is a JUDICIAL or NON-JUDICIAL system as this is very important to know.
To understand the EVICTION PROCESS, you need to learn the following common points (although every state is different, and using different names for every point):
1.- DEFAULT: This period is between the first 30 days to 90 days being late in the payment of your mortgage.
2. Notice of Default (NOD).- At 90 days late, you will receive a Notice of Default from the lender, asking for the payment or your house will be foreclosed.
3.- NOTICE OF SALE: Generally at 120 days late on your mortgage, a Notice of Sale will arrive at your home from a lawyer or a trustee telling you what day and what place will be the auction of your home. You still have the option to negotiate your situation.
4. Foreclosure (FC).- After (generally) 2 months of the NOS, the foreclosure sale will be made. Some states take more months for this. (you can stay free at the property)
5. Reinstatement.- After the FC sale, there is a period of REINSTATEMENT, where you can apply to stay more in your property with the reason to find a mortgage that qualifies you to repurchase the property. (It is in around 50% of the states)
6.- EVICTION.- MUST BE AN OFFICIAL NOTICE FOR THIS. When the property is already sold, or the Reinstatement Period is over, you will be contacted by the new owner or a representative. They may offer you CASH FOR KEY if you leave the property the next couple of weeks (or more) in good conditions. If you didn?t leave after 30 or 45 days, the new owner MUST FILE A COMPLAINT IN COURT, to start the Eviction Process and get you out from the property under the eviction laws. Then, you will receive an EVICTION NOTICE from a Judge, stating that if you dont leave on a DETERMINED DATE, the sheriff will go to the property to take you and your family out of the property and lock the doors. You will not be able to take out your belongings after that.
Don’t forget you have legal rights. Homeowners can stay rent free into their home until receiving an official notice from court. See your eviction laws.
NOT EVEN A SHERIFF CAN TAKE ANY HOMEOWNER OUT FROM HIS HOME WITHOUT THIS NOTICE FROM COURT.
Many states allow homeowners to stay legally free at least six months without making mortgage payments. Other states allow up 18 months. See your state laws.
My suggestion is that YOU NEED TO LEARN HOW TO AVOID FORECLOSURE. You definitely can do it by yourself. Don?t be scammed by companies doing this for you.
Specifications: You have to understand I?m not an accountant, or a lawyer, or a tax analyst giving you tax, financial or legal advice. These suggestions are not a substitution for the outlook of a knowledgeable attorney. Nevertheless I?m a Financial Instructor in Arizona doing Business Coaching, Marketing Coaching, Real Estate investments, Credit Repair, Foreclosure Prevention, Residential and Commercial Loans, Mortgage Training and Origination since 2002, I dont declare Im giving legal guidance in this piece of writing to your exact circumstances. This writing was created to inform homeowners in mortgage stress. This writing should be not interpreted to be legal advice for your own conditions. This writing is only for individual information. Under no conditions this article should be understood as a legal advice to market, purchase or keep any house.