Feldman Law Center – April Foreclosures Make Another Record High
Banks continued to allow self imposed foreclosure moratoriums to expire in April, resulting in a new record for foreclosures for the month according to an industry report out today. It’s the highest monthly foreclosure rate ever posted since RealtyTrac, an Irvine, Ca. firm that compiles statistics on and lists foreclosed properties, began tracking foreclosure in January 2005. One in every 374 U.S. households received a foreclosure filing last month. Through April, foreclosures are up 32% from the same period last year. Many banks let their self-imposed foreclosure moratoriums expire beginning in March, after the details from the Obama administration’s “Homeowner Affordability and Stability Program” (HASP) were announced. With clarification of the guidelines of the program in hand, the lenders could accurately calculate the foreclosure risks and determine whether struggling borrowers would be able to consistently make their mortgage payments after modifying their loans according to the guidelines of the HASP initiative. It’s likely that a high percentage of the most recent foreclosures were targeted at the homeowners perceived as the highest foreclosure risks, even under best case scenarios of a potential modification or refinance. The consecutive monthly records in foreclosures come just as the implementation of the Obama administration’s foreclosure prevention program is gaining some traction. RealtyTrac estimates that foreclosures will continue into the second half of the year and show signs of slowing toward year end as the economy improves. Nevada, specifically Las Vegas and the surrounding areas, continues to post the nation’s highest state foreclosure rate. In April, an astounding one in every 68 housing units in the state received a foreclosure filing. That was more than five times the national average and 111% over the state total in April 2008. Florida, with foreclosures up 75%, and California up 42% over April 2008, posted the second and third highest foreclosure rates respectively. Continuing foreclosures will continue to keep pressure on housing prices for the next several months at least. Experts agree that any degree of improvement in the economy will help but continuing job losses as reported in the most recent unemployment report do not bode well for the near term at minimum.
The Feldman Law Center specializes in negotiating with lenders on the behalf of homeowners to make their mortgage payments affordable again. During the current housing down-turn, the loan modifications we have negotiated have helped over 500 families lower their monthly payments and avoid losing their homes to foreclosure. We understand that each family has different needs as they enter with us into their loan modification process. For that reason, we approach each loan modification as a unique opportunity to provide a solution specifically built for each homeowner’s situation.
Our attorney driven process is designed to gain optimal results on each loan modification we negotiate on behalf of our clients. Combine that with a staff that arrives each day with dedication and compassion for our clients and you have a team that is second to none. Our state of the art technology systems assure the best in customer service while also allowing us to stay ahead of the ever changing rules and guidelines that govern loan modifications.
The people at The Feldman Law Center understand that the dreams of home ownership and being part of a community must be protected one family at a time. We also understand that the threat of losing those dreams can put enormous pressure on families like yours. If you are struggling with your monthly payments and worried about the threat of foreclosure, we can help. Find out how a loan modification can help you and your family. Call The Feldman Law Center today at 800-588-0425.
Legal Disclaimer The information contained herein is provided for general information and advertising purposes only and is not intended to convey a legal option nor legal advice for any particular case or situation. Nothing in this article shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this article shall be construed to be a guarantee or prediction of result. Prior results are provided for general information purposes only and do not guaranty, warranty or predict a similar outcome with respect to any future matter. Results achieved depend on individual circumstances and not everyone will qualify or be successful in restructuring their mortgage loan.
Loan Modifications and the Race Against Foreclosures
Loan Modifications and the Race Against Foreclosures
While there have been recent signs that the economy and real estate markets may be in the early phases of stabilizing, the foreclosure crisis appears to be rolling along unimpeded. The most recent evidence comes from a new study from RealtyTrac, Inc., an Irvine, California based housing research organization which reports that foreclosure filings in the form of default notices, scheduled auctions, and bank repossessions totaled a record 360,149 in July.
The total represents a monthly increase of 7% from June and a 32% rise from July of 2008. The month’s total of foreclosure actions broke the existing record for the third time in five months.
Actual repossessions totaled more than 87,000 homes in July, up from about 79,000 homes a month earlier. The “sand states”, where speculation in the boom was at its most rampant, posted the highest numbers in the rate of foreclosures. Nevada had the nation’s highest foreclosure rate for the 31st-straight month, followed by California, Arizona, Florida and Utah. Las Vegas, Stockton and Modesto carried the highest rates among 372 metropolitan areas in the country.
According to industry watchers, the primary reason for the record setting month of foreclosures across the country is the unemployment rate, now standing at 9.4%. Another factor, separate from the recessed economy is the number of interest rate increases on adjustable rate mortgages pushing payments out of reach for already strapped homeowners.
The acceleration of foreclosure activity recently prompted the Treasury Department to summon executives of the major mortgage servicing companies to Washington to prod them into doing more Loan Modifications.
At the meeting, Treasury officials estimated that 230,000 loan modifications were in the trial phase under the guidelines of the administration’s Making Home Affordable program and set an objective of 500,000 loan modifications in process by November 1st.
With 3.5 million foreclosure actions estimated for the full year it will take much more than what the government’s plan hopes to accomplish to have any kind of meaningful effect on the crisis. Additionally, the next round of loan modifications will need to be structured closer to what the homeowner needs than what the lender is willing to grant in the form of concessions.
There was much discussion questioning the viability of loan modifications after studies on the first rounds of loan modifications done in 2008 came out showing re-default rates at greater than 50%.
As it turned out, the biggest issue with the modifications included in the studies was that a majority of them didn’t reduce payments for the homeowners and in some cases actually increased them.
What is working now are modifications which include both lower payments and principle reductions to bring the amount owed on the home closer to its current value. When negotiated by an attorney, the modifications yield better terms for the homeowner, a factor which also works in the favor of lenders because the chances for re-defaults are lessened due to mortgage payment levels which are sustainable over the long term for the borrower.
Anthony Dean has helped hundreds of hoeowners avoid foreclosure. He can be contacted at http://www.feldmanlawcenter.com
Day 2 of 2 BattleBornBroadcast and George4title explore the economic reality of Las Vegas. From the 9 billion dollar City Center to doubling our homeless population, Las Vegas is juggling both ends of the economic coin. George4title and BattleBornBroadcast hit the streets to make sense of a real estate market gone wild, commercial real estate collapse and billion dollar bust.
What To Do Before Buying Las Vegas Home Foreclosures
Many beginning investors and first time buyers commit the mistake of plunging ahead into the real estate market even without exercising necessary precaution to avoid its pitfalls. While it is true that the foreclosures market is generally a buyers’ market, one should not take this as an excuse for laxity when it comes to protecting one’s investment. The same rule applies to avoiding any hassle when buying Las Vegas home foreclosures. While there are undoubtedly many financial opportunities to be had in the market, it still pays to remember the following
Investigate The Market
Investigating the market means gathering facts and understanding the essential things that you need to know in order to complete your transaction in a hassle-free way. This involves researching the law, the market, prices, agents, trends, neighborhoods, and many others. Since foreclosure laws vary from state to state, it would be best to work with a lawyer to acquaint you with any legal matter that might need your attention. A qualified agent can also help you in terms of providing you with useful leads to follow in the foreclosure market as well as assist you throughout the entire buying process.
Tour The Property
When buying Las Vegas home foreclosures, make sure that you set aside a considerable portion of your time for touring your prospects. A personal visit will afford you the opportunity to assess for yourself the overall condition of the property, its neighborhood, and the community surrounding it. Overall, it would give you an idea of whether to proceed with the purchase or not.
Check Your Credit
It is best that before you shop for Las Vegas home foreclosures, you have taken steps to see if your credit is in a sound state. Put off any unnecessary and large purchases prior to your foreclosure purchase to ensure that you will get a good credit rating and a healthy balance check. Banks would typically want to see if you are capable of dealing with your finances reasonably and your credit score will truly matter.
Joseph B. Smith has been educating buyers on the finer points of Las Vegas home foreclosures for over five years. Visit ForeclosureDeals.com and read more advice on finding information about Nevada home foreclosures.
Talking about foreclosure real estate can be hard enough without even entering the market. That’s because foreclosures tend to have their own language, employing many obscure words originating in govermnent housing legislation and real estate law. Without a background in these areas, prospective investors won’t be able to decipher even the simplest foreclosure contract. This article lists some of the more common foreclosure-related terms as a reference for people interested in this lucrative market.
Abandonment: Wherein a property owner has given up ownership rights without coercion, and does not want to retrieve those rights, or pass them to somebody else. A situation involving an unused property does not guarantee abandonment.
Acceleration Clause: A clause commonly written in a mortgage enabling the lender to demand full re-payment immediately, rather than at the end of the contracted term. The clause must also detail an occurance that would put it into effect, such as a default on regular payments, sale of the property, or re-assignment of property rights. In most cases the debtor must be given reasonable notice, and a chance to reverse the occurance. The debtor is also immune from acceleration if there is no such clause written into the agreement.
Chattel: Personal property, including household items.
Closing Costs: Expenses not related to the marketing and selling of the property, sure as loan fees and paperwork fees. Foreclosures might also involve extra legal and escrow fees.
Deed in Lieu of Foreclosure: Property owners may deed their property to the lender if foreclosure is imminent, rather than go through the entire process. For the deeding to be official, the lender must give approval.
Default: Failure of the borrower to make payments as required by the lender. “Default” may refer to a missed payment without any further reprecussion, or a series of missed payments resulting in a failed mortgage.
Equity Right of Redemption: The right of the borrower to remove all encumbrances related to the mortgage, in order to avoid foreclosure.
Federal Housing Administration (FHA): A part of the Housing and Urban Development Federal agency responsible for determining industry standards for mortage loans by private lenders. FHA also insures mortgages by private lenders. Forclosure investors must occasionally deal with this agency.
Federal National Mortgage Association: Also known as FNMA, or Fannie Mae, this federal agency oversees conventional residential mortgages, and will buy out loans that follow its rules. Some foreclosure investments require direct communication with this agency.
HUD1 Statement: A form mandated by the US Department of Housing and Urban Development that specifies the costs of acquiring a foreclosed home.
Loan-To-Value Ratio: A comparison of the total loan amount and the lesser of the property’s sale price or appraised value.
Notice of Rescission: A notice from the lender notifying the borrower that he or she is again in good standing with the loan, and payment deficiencies have been corrected.
Short Sale: A property sale priced at or below market value, and lower than the amount of a mortgage on the same property.
Truth-in-Lending Act: A law requiring the lender to provide the borrower with a full written explanation of the mortgage’s terms.
Find the latest on Las Vegas Nevada real estate at Welcomehomenevada.com. The site has everything you need to get started in the local market, including home listings, buyer and seller information, and information on parts of the metro area, including the Anthem real estate area.
Market Conditions Continue to Vary Widely and Foreclosures at All Time High
While there are few markets in the country that have managed to survive the current housing market without any battle scars there are some markets that have experienced more serious issues than others. Two of the worst markets in the United States at the moment are Cleveland and Detroit; however, they are definitely not alone when it comes to markets that are falling with no end in sight any time soon.
By and large, the riskiest markets at the moment are those that are experiencing the highest rates of foreclosures. Other factors that are contributing to problem areas include high rates of job loss and slow job growth. Markets in which the number of homes for sale is rapidly rising are also experiencing significant problems. Rapidly rising property values just a few short years ago is also proving to be a stumbling block for many markets.
During the housing boom these markets commonly experienced property value increases of two-fold and even three-fold in many cases. Once the boom ended; however, these markets began to fall and as of yet, they have not hit the bottom. These markets are also at greater risk for problems due to the large presence of adjustable rate mortgages.
During the housing boom, as prices were escalating quickly, buyers frequently took advantage of adjustable rate mortgages to obtain even lower interest rates to make their housing payments more affordable. This was quite common in areas where first-time home buyers were struggling to afford the rapidly rising prices of homes.
The subprime mortgage market is also more highly concentrated in these areas of the country. Lower interest rates at the time prompted many people to rush out and buy homes. Unfortunately, the credit profile of many of these buyers was less than sterling. Mortgage loans made in these markets during this time frequently involved subprime, adjustable rate mortgages. As the market began to fall, interest rates began to increase. Today, those same homeowners are finding they can no longer afford their mortgage payments. The result? Foreclosures have risen sharply in market areas where the boom once allowed housing values to double and even triple practically overnight.
Economic conditions in many areas have further fueled the crisis. As the number of layoffs increase, the number of foreclosures and homes for sale seem to increase as well.
At the moment, the ten worst housing markets in the country are Sacramento, New Orleans, Detroit, Riverside-San Bernardino, Las Vegas, Tampa, Miami, Cleveland, Phoenix and Jacksonville, Florida.
Sacramento, considered to be among the top ten of the worst housing markets, has experienced a drop in homes prices that is well above the national average. Like many other housing markets in similar situations, Sacramento fell victim to a fast paced market and subsequent plummeting pricing. Today the median home price for homes in Sacramento remains far above other markets in the country, despite the worsening situation. Given the large number of houses on the market; however, this is far from good news.
In spite of the situation in Sacramento; however, it is definitely not the worst case scenario at the moment. That honor goes to Detroit, where market prices have experienced a drop of more than 7%. The key factor in Detroit is the massive amounts of layoffs stemming from the auto industry. Matters are not much better in Cleveland where median prices have also dropped by several percent and inventory continues to rise.
While these markets are not showing any signs they will rebound in the near future; there are some markets; however, which are actually posting increases. Seattle is one such market. Median home prices in Seattle have actually risen almost 9% in the last year. Other cities on the rise include Raleigh and Charlotte in North Carolina as well as San Jose, California. San Francisco is not far behind, garnering an increase of more than 7% in the last year.
The Sunbelt states are the hardest hit by foreclosures
The top 26 cities affected by foreclosure are all in the states that make up the Sunbelt.
California
Florida
Nevada
Arizona
These four states are the very states that saw the highest increase in real estate prices and sales during the booms at the beginning of the century.
These results show that the highest amount of growth is being followed by the greatest amount of loss and while the economy experts expect these areas will see even further climbs in the number of foreclosures they also expect others cities to follow suit.
There are several factors that have contributed to this high number of foreclosures.
The biggest factor for these areas is the high number of subprime loans that were used to purchase homes in these areas during the real estate boom. These loans now have high variable interest rates and as a result the payments of these homes have escalated beyond the financial ability of the owners.
The high unemployment rates have a direct effect on the homeowner’s ability to pay their mortgages and as a result of being in default on their mortgages are now unable to refinance.
Overbuilding has placed more homes on the market then the demand for homes. This over abundance drives the prices of these homes and others down.
Double digit home price declines as a result of over building and other factors make the value of mortgaged homes decline which makes it more difficult to get a home refinanced.
As a result of the many foreclosures lenders have made it harder to get a loan. With loans hard top get less homes can be bought.
All of these factors have created a vicious downward spiral that is not showing any sign of recovering. However the lowering prices may be providing a little relief. As more and more homes are sold in foreclosure the prices continue to fall and this has allowed for a little growth in the number of homes being sold, but this is currently not enough to reverse the process.
A large portion of the homes currently in foreclosure have happened in the first three months of 2009. This is partly due to the temporary freeze that had been placed on foreclosures by creditors and the government controlled companies Fannie Mae and Freddie Mac. Many of the homes that had been affected by the freeze are now coming to foreclosure.
The foreclosure rate is so dramatic that one in every 159 U.S. households with mortgages got a foreclosure filing in the first quarter of this year.
While President Obama has implemented a bailout program and is now working with major creditors to make mortgage modifications available to the homeowner the success of this plan will probably not be seen till the end of 2009.
The 10 hardest hit cities were:
Las Vegas, Nevada – Las Vegas posted the highest metro rate of foreclosure activity in the quarter, with 4.48 percent of its housing units receiving a filing. That was one in every 22 households with loans, or more than seven times the national average.
Merced, California – Filings were received in one of every 24 housing units in Merced, California,
Cape Coral – Fort Meyers, Florida – one of every 26 households saw foreclosure filings.
Stockton, California
Riverside - San Bernardino, California
Modesto, California
Bakersfield, California
Vallejo, California
Phoenix, Arizona
10. Port St Lucie, Florida
Thirteen of the top 26 metro foreclosure rates were in California, nine were in Florida, and Nevada and Arizona each added two metro areas.
Discover how you can ethically modify your home mortgage loan and save as much as 47% off your current mortgage payment in as little as 60 days without refinancing? For your FREE CD, FREE e-book, and FREE coaching call with Mortgage Modification Expert and Business Man of the Year Billy Alvaro visit our website Saint Jude’s Mortgage Rescue
Discover how you can ethically modify your home mortgage loan and save as much as 47% off your current mortgage payment in as little as 60 days without refinancing? For your FREE CD, FREE e-book, and FREE coaching call with Mortgage Modification Expert and Business Man of the Year Billy Alvaro visit www.RescuedBySaintJude.com Saint Jude’s Mortgage Rescue
With 1 in every 483 households in the U.S. facing foreclosure, it only stands to reason that us common folk aren’t the only ones affected by the housing crisis. It’s just as easy to create a mountain of debt by borrowing against a multi-million dollar estate, as it is for a moderately priced home. Here are some of the celebrities added to the country’s growing list of foreclosures.
Sadly Ed McMahon, former Tonight Show announcer, is facing foreclosure for .8 million dollars of mortgage loans on his Beverly Hills estate. Plagued with bad press, this luxury home overlooking Coldwater Canyon and Mulholland Drive has been up for sale for .25 million for the last two years. Initially McMahon faced problems due to mold infestation which he claimed killed his dog and affected the health of both him and his wife. Then he fell and broke his neck and was out of work for 18 months. How would any of us deal with a back mortgage and loans totaling .8 million after being unemployed that long? Ed, take this as a sign, maybe it’s time to down size and retire.
Evander Holyfield, former heavyweight boxing champion is facing foreclosure on his Atlanta, Georgia estate. This 104-room, 54,000 square-foot home worth approximately million, goes up for auction on July 1.
Jose Canseco, former major league baseball player recently lost his 7,300 square foot home in Encino to foreclosure. As he stated, “It didn’t make financial sense for me to keep paying a mortgage on a home that was basically owned by someone else.” He didn’t mention how much the home was actually worth, but he owed the bank .5 million on the house.
Michael Jackson – In 2007 after borrowing against it, to the tune of million, the ranch valued at only million faced foreclosure. Recently, however, a private equity group bought the loan on Neverland Ranch and is discussing the option of a Las Vegas casino gig as repayment.
In May of 2008, the 0,000 home of NBA star Latrell Sprewell went into foreclosure. This came only months after his 70-foot yacht, “Milwaukee’s Best” was also repossessed. Sorry Latrell, maybe you shouldn’t have turned down the million contract extension Minnesota offered you.
Grammy Award-winning Aretha Franklin received a notice of foreclosure against her Detroit mansion after failing to pay a 2.14 tax bill dating back to 2005. Last we heard, the bill was cleared up.
Veronica Hearst, step mother of SLA hostage Patty Hearst, faced foreclosure on her 28,000 square foot, 52-room villa in Palm Beach. Her defaulted mortgage payments totaled about ,000,000. It’s hard to believe the deficit was allowed to get that high before the bank stepped in.
Nicole Murphy was unable to make payments on the 11,158 square foot mansion she was awarded in her 2006 divorce settlement from Eddie Murphy. Last October the house was put on the market for the bargain price of ,500,000.
Learn more about For Sale By Owner Spokane homes at HomesByLender.com, a website with regularly updated For Sale By Owner listings in every state in the nation – buyers and sellers interested in FSBO can use this site as their primary resource.
With the current chaos in the real estate market, it seems that there are foreclosures everywhere. If you’re interested in buying a new home or an investment property, foreclosures offer a great way to get a rock bottom price on a property. Buying a foreclosure property, however, can also have some inherent risk. The risks associated with buying a foreclosure stem from the lack of normal protections you would get from buying a conventional house.
Property Listings
You don’t always have to pay a fee to find listings of foreclosed properties. Find a local real estate agent with foreclosure experience. An agent can often give you free information on foreclosures in your area. You can also find listings by going to the local courthouse. The tax office will often having postings of foreclosed properties. For more information on finding local foreclosure listings, visit GreatForeclosureListings.com.
Home Inspection
Be sure to invest in a home inspection. Foreclosed homes are often poorly maintained and in disarray. The property may be vandalized or appliances may be missing. Also, do not be surprised if the utilities have been discontinued. This can particularly be in colder climates when the heat has been shut off. Try to have the utilities turned on before your inspection. An inspection can cost anywhere from 0 to 0 but will save you money in the long run.
Title Insurance
Be sure to purchase title insurance. Title insurance will protect you from any unforeseen liens against the property. It will also protect you in case a previous owner makes a claim against the house after you purchase it.
Get a Lawyer
A good real estate lawyer is essential in any foreclosure deal. You will need a lawyer to draw up a contract with escape clauses in case something goes wrong at the last minute. You can find a real estate lawyer at BestPropertyLawyer.com
Final Sale?
Don’t assume that the sale is final. In some states, the homeowner has up to six months after the foreclosure to pay any outstanding debts and reclaim the house.
Location, Location, Location
Be careful of where you buy a foreclosed property. In cities like Las Vegas and Tampa, widespread foreclosures are plummeting an already weak real estate market. Thus, although there may be more foreclosures available, it may be harder to turn a profit. It may be wiser to buy a foreclosed home in markets that are already showing signs of stabilization. According to Forbes Magazine, the top ten markets for buying a foreclosed home are:
Charlotte, NC
Raleigh, NC
Nashville, TN
Oklahoma City, OK
San Antonio, TX
Albuquerque, NM
Knoxville, TN
Seattle, WA
Indianapolis, IN
Washington-Arlington-Alexandria
Buying a foreclosed property can be risky. But with the proper protection, it can also be very rewarding. To learn more about buying foreclosed homes, visit GreatForeclosureListings.com
Greg Chan is a business and finance expert. He has authored many articles on buying foreclosures. For more information, visit GreatForeclosureListings.com
Good Chicken Soup for Foreclosures and Exposing Revelations of Truth
Good Chicken Soup For Foreclosures and Exposing Revelations of Truth. These posted ads are indeed untruthful and very misleading…No one can stop it, no, really…. It’s all a scam disguised as help designed to steal your home. Wolves acting like sheep. Stand up to the bank and keep your Home! Know the Real Truth about Foreclosures and what the banks, lenders, loss mitigators, attorneys and investors don’t really want you to know. Dispel all the myths and lies. Most ads are not what the reader is lead to believe. Please read on….
Understanding all terms.
Pre-foreclosure, foreclosure, stopping, helping, avoiding, assisting, rescue, preventing, process, laws or whether they are an attorney, loss mitigators, real estate agents, real estate investors, auctions, government help, we or I buy cash, listed, unlisted, conventional loan, mortgage, sub prime, bank or lender, refinance, FHA, HUD, REO or VA or the property is in Florida, California, Texas, Las Vegas, Any Metro City USA.
It really doesn’t matter; it’s just a clever display of words coupled with the intent of playing on the emotions, ignorance, fears and confusion of the homeowner. Don’t be fooled by any it. All “for me” motives and opportunities.
Learn the truth and keep your home.
A nationally renowned expert spills his guts as he uncovers and exposes what has been closely guarded secrets for far too long, and he reveals the honest truth of how to successfully work with the lenders by winning over the foreclosure action every time. He pulls back the curtain to expose some very top secrets and eye opening tricks of the banks, but ironically this is the same information the banks hoped that all homeowners really knew! He hits the nail on the head and guarantees to level the playing field for every homeowner.
You will also learn many valuable tricks and tips from a secret and expert underground guru that works magic every time and for every challenging real estate situation. Most of these have never been revealed publicly before. He has cracked the mysterious foreclosure code and for a limited time any homeowner that is facing foreclosure will have all the answers and be able to solve this mystery and successfully be able to save their family’s home.
The truth of the matter…
For whatever reasons, you got behind, defaulted on keeping your promises with the bank and have received serious legal paperwork from the lender and it now has your attention, loud and clear. Want to know your options?
You really want to keep your home and want to make believe that someone can actually stop this action after you have avoided making payments? May I be brutally honest with the real truth? Only you can stop the foreclosure.
Some rescue promises are even asking you for money so they can help. If you would have all this money that everyone is asking for now to help, you would have made your mortgage payments and avoided all this. Soooo…would you really like some Free and Easy Foreclosure Tips now of your many available options?
Trust me on this…
No matter what your family or friends say to you…Trust me, I am taking all the confusion and mystery out of foreclosures. I will explain every inch of it at a level that a seventh grader will be able to understand.
You will know what paperwork to use, who to call and what to say. All the required forms will have simple step-by-step directions needed to fill in and complete. You will have all the answers and ammunition that is needed to get the job done with detailed instructions. Surely you will spend an hour to save your home with our Free and Easy Foreclosure Tips? Know will Not regret it.
You have options…
Being brutally honest, you will have two decisions to make now… Remember that once the foreclosure action is filed, time is quickly ticking away. You can decide to do nothing for fear of doing something wrong and conclude that it’s just too hard. Just throw in the towel now and forget about it.
If that is the case then you might as well call one of the wholesalers and at least let one of them make a few dollars and minimize your losses and they can get you a few bucks to move and you can start packing. But remember…you will regret it in years to come because you had all that you needed to get it done now…but you decided to…?
No Regrets Later…
The second and best decision is to heed this free advice now, roll up you sleeves and jump in immediately. Visit my website and get your Free and Easy Foreclosure Tips now by pushing the button on your computer. Get committed, read what the National Expert is sharing with you and beat this foreclosure situation now. See amazing results now and keep your home.
This is the biggest investment of your life, your family’s home. All that you need to slay Goliath is ready and available for you immediately. It’s a once in a lifetime opportunity to be the hero. Do it now…and you will absolutely have NO regrets later?
Educate the homeowner with all the available options that may honestly guide and enable them to make a rational decision without any pressures or fears. Today many homeowners are being faced with a foreclosure situation and really have no idea of what steps or actions to take, or who to even contact that may give them any kind of unbiased answers. Ready for the truth now?
What does all this mean?
After the many callers, visitors, post cards, door hangers and letters, most homeowners have had it and basically cut all ties with the world and go underground. Enough is enough I’m sure, but wait a minute…don’t give up just yet. No pressure here, I offer some timely Free and Easy Foreclosure Tips?
A few half-truths from unknowledgeable and unreliable sources coupled with confusion and fear have created a sense of desperation forcing many honest homeowners to just give up and leave their homes. When in reality they could have actually resolved the issues themselves stayed in their homes and avoided foreclosure.
Believe that you can do it…
Learn the truth of what a foreclosure action really means and the many available options that homeowners may have if they are proactive and don’t procrastinate. Most homeowners can actually resolve the foreclosure action themselves without an attorney and keep their homes, it’s that easy.
The homeowner may have just had a streak of bad luck that had forced them to get behind temporarily, but now that they have managed to get back on track, they just need some solid direction without being taken advantage of and some honest guidance that will get them reinstated with the lender.
Be honest with yourself…
For many other homeowners that are facing the reality that without the second income they cannot afford to stay, they will have to make a decision. With our valuable Free and Easy Foreclosure Tips, it offers valuable guidance that can assist the homeowner on how to buy more free time and stay until they are able to make some unhurried decisions. They may also be able to save some additional money needed for a future rental home. Understand why the lenders and banks will not take partial payments and will return any partial payments to the borrowers.
Bankruptcy creates more problems…
Why filing for bankruptcy may generally not work and will actually cost you more money in monthly payments. It is an expensive band-aid. Who can and cannot stop a foreclosure? Actually you will be surprised. Why none of the letters and post cards can do what they claim!
Learn what the lenders and bankers really want you to know but can’t tell and the many lies and myths that you believe about them.
Understand all the workings behind the scenes with your lender and the various departments and steps that they must go through. Know the various lender paperwork and agreements that you can use to help get reinstated. What steps to take to save your credit that will help you later?
Public information…
What do all the callers, post cards, door hangers and yellow letters really mean and the truth of what’s in it for you? Which are the best to use in certain situations, what to look out for and what to ask them. Know the terminology of what they are talking about. Learn the Truth of Foreclosures with our Free and Easy Foreclosure Tips.
Why would the lender do this?
How to get your lender to willingly accept substantially less than what is owed without any recourse to you. Quit fighting it and just allow the guided process to work to your advantage. How to get the lender to pay a full commission to your real estate agent, cover all your back taxes and all your closing costs. Short sale process explained in a simple and understandable interpretation.
Lower monthly payments…
If the homeowner has an adjustable rate mortgage that is to reset thus leading the way for increased monthly mortgage payments, then learn how to get the lenders to postpone the reset for several years. Yea…really! In fact, there are cases where the lenders actually lowered the monthly mortgage payments. Know and understand if you qualify for refinancing and the best time to apply.
Money to pay your agent…
If you have decided to sell your home, then I can show you several proven ways to sell it very quickly yourself in record time. How to correctly engage a real estate agent that will perform miracles for a very fast sell that will cost you nothing and… have the agent smiling. Discover all the unknown secrets that get super results, many that the real estate agents may not even be aware of?
How to properly get the property ready to sell including the absolute strategies that are a must. Techniques that are magic and will create multiple offers for your property. Have buyers begging you to sell to them for more money.
Learn what a short sale is…
Know how to deal with wholesale buyers and not be insulted with their “low-ball” offers. Learn to understand their offers and how that it may benefit you. Understand what the short sale term really is and how it effectively works to everyone’s best interest.
You can negotiate a short sale yourself without any experience and without a law degree. Know how it affects the sale and any potential obligations. Why it may not work on some properties. What forms to use, instructions to complete and when to send and what to tell your lenders. Proven techniques.
Protect your credit…
If your property is part of an estate or in probate, some very valuable tips will guide you to do it quickly, legally and profitably. Discover how to effectively repair your credit quickly and easily so that you may qualify for a refinance and or a new loan within twelve months. There are so many items that affect a credit score. Know which are a must and which ones have no effect. Understand exactly how bad credit effects all your accounts.
Options and Flipping…
Have a complete and overall understanding of the creative real estate industry. Learn more about rent to owns, lease purchase transactions and more. Discover why options are the most powerful agreement to have and know. Know what “flipping” means and why it’s on the realtors suggested reading list.
Have the right paperwork…
Be able to access and use all the appropriate legal forms that effectively work with every lender and in most every situation. All forms have been time tested, legally created and have helped to save thousands of homeowners in foreclosure situations and used in many other real estate transactions.
Use our Free and Easy Foreclosure Tips and you will know the Truth of Real Estate. Understand the many new and daily buzzwords that have so dominated our news lately. Have a complete knowledge so that you may make a wise and informed decision. Know the Truth of Foreclosures now and have no regrets later. If only I had known…?
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Please visit my website now and you can learn the Truth of Real Estate and the many available options that will enable you to make the very best decision for you and your family and for the biggest investment of a lifetime, your home.
Please visit my website today to receive your Free and Easy Foreclosure Tips and know the Truth of Foreclosures. When you know the Truth, the Truth will set you free. Try it now and see the magic. Keep your home?
Clint Cohen name is synonymous with success. Recognized as a nationally renowned expert, innovator and guru mastering in creative real estate, building, and construction, remodeling and home improvements. Clint is also a national award-winning builder and remodeling contractor and real estate developer with over forty years of successful business operations. Has been listed in the “who’s who” of builders and was listed as the 100th largest remodeling contractor in the United States.
Has earned much recognition for his many award winning homes and other projects. Created a unique “design build” concept for luxury homes and upscale remodeling projects featuring a step-by-step video and detailed procedural manual that the clients could readily visualize and understand the daunting task of construction. Simplified the process and provided education.
Was a relentless innovator on the cutting edge of all the latest, newest products and services, implementing and using many years in advance of his competitors. Has successfully completed more than 0M in construction projects. After thirty years, retired in 1999.
Short Sales, Foreclosures and Bank-Owned Properties
There are many properties in some stage of foreclosure or taken back by lenders at this time and a lot of buyers ask about these because they’ve heard that this is where you can get an incredible deal. After more experience with these types of properties I’ve found that there is a lot of false information and hype out there and want to provide you with some more information that can help you understand this whole subject a little better.
During the boom years there were tons of seminars and books on how to make a fortune in real estate by buying and flipping houses. Though some people were able to make good money quickly that way during the period of about 2003 to mid-2005, many others are now part of the foreclosure statistics.
Similarly, there are now lots of websites, seminars, books, etc. on how to make your fortune buying foreclosure properties. They present stories of exceptionally good situations that make it sound like this is how every foreclosure situation goes even though it is really more of a rare occurrence for the average person. Maybe these are the same people who promoted the seminars and books on “flipping” (and maybe they are also the ones who email you about winning the UK lottery or about the Million they want to send you from Nigeria:).
That’s not to say that there aren’t good deals available in properties that are in some stage of foreclosure, there are. BUT – there are some things you’ll need to understand because the process can be quite different from the normal.
First of all there are some different types of ‘foreclosure’ properties and I want to start off by clearing this up for you.
There is a ‘pre-foreclosure’. This is a property where the owner has fallen behind on their payments to a point where the bank has begun the foreclosure proceedings (usually by filing a notice of pending legal action).
There is a ‘short sale’. This generally means a pre-foreclosure property where the property is being listed at a price that is less than what is owed on the outstanding loans. You can recognize these in listings as it will either say “short sale” or “3rd party approval needed” or “list price may not be sufficient to cover all encumbrances” (meaning that the bank will have to approve it in addition to the seller accepting the offer).
One word of caution though, some realtors will list a property as a short sale or “possible” short sale without even having their client complete a “short sale package” (the paperwork that will have to be submitted to the bank with any contract) – avoid these as in most cases they end up going nowhere or take months to hear anything back.
There are also “bank-owned” properties. Bank-owned means the bank has completed the foreclosure proceedings and now owns the property fully. These are usually the easiest and quickest of the different types of foreclosure properties to deal with although they are often (not always) in pretty bad condition.
That gives you a basic overview of the types of “foreclosure” properties you may run into. Now let’s look at what you need to know about them if you’re thinking about venturing into this area.
The most difficult type of these to deal with at this point in time (in most cases) is a short sale. With a short sale, you will have to be prepared to wait weeks or even months to hear anything back on an offer. If your offer is at the asking price and 100% cash, then that may shorten the time period. But even in that situation there is no guarantee that it won’t take weeks or months.
As an example, I spoke with another realtor a few months ago whose client not only put in a full list price offer but also offered to pay for the title insurance that would normally be paid by the seller. It still took 3 weeks to get an answer and what came back from the bank was that they wouldn’t consider the offer until they had a special disclosure signed by the buyer that is required on houses built before 1978. Only problem is that the house was built in the last 5 years and this disclosure isn’t required. But the bank doesn’t care and wants the disclosure before considering the offer. And it took 3 weeks to get even this ridiculous reply back!
One other case is a realtor that listed a short sale and got a very low offer which she submitted to the bank in November (this was even after the house was listed for 0,000 less than the current owner paid for it 2 years ago). As of February she still hadn’t gotten a reply back from the bank. So that was 3 months with no reply.
Recently I had a client put in an offer on a short sale that just came back on the market after the lender rejected the offer that had been submitted to them nearly 6 months ago. The offer was lower than they wanted but they rejected even doing a short sale because the owner had been continuing to pay their monthly loan payment – and it took them 6 months to let the owner’s realtor know this.
So with short sale properties, you first need to find out if it is actually a good deal. I had one client recently looking at a townhouse that is a short sale and based on recent sales in the complex and comparing the condition of the properties this townhouse was priced at least ,000 too high for even its market value.
If you do determine it is a good deal (especially when it is below market value) then it is best to offer a price that the bank will consider. This is especially true when the lender has already dropped the list price once or more. If you go too low, you may never hear back. And keep in mind that in some cases during the waiting period for a reply, other buyers can submit an offer and if the bank feels the other offer is better than yours – they can then accept it and reject yours. You can also miss out on a really good deal by playing the negotiating game – trying to get the price down even more when it is already priced really well.
I saw an example of this with a client who put in an offer on a townhouse directly on Tampa Bay. We found out they already had another offer in and I told my client to offer full list price (which was still a great deal). We found out after the deal closed that the other offer was ,000 less – suggested to the buyer by his realtor. My client’s offer was the one submitted to the bank with the other offer held as a backup. As we got closer to the closing we ran into some problems with my client’s lender and the other buyer offered ,000 more than my client and then ,000 more than my client, both full cash offers. Fortunately we got the problems worked out quickly enough and closed the deal but the other buyer definitely regretted missing out on a great deal by trying to get the price down a little further.
It is also fairly well known that short sale deals are often more difficult. An April 18, 2008 article said “The success rate for short-sale offers is low…20 percent of short-sale offers in the area [Las Vegas] lead to completed sales, compared with 85 percent for more traditional sales. Redfin, an online real-estate brokerage based in Seattle, says it represented buyers on 65 short sale offers in the first quarter but expects only two or three to result in a completed sale.”
And the final insult with short sales is that even if the bank accepts your offer and things are proceeding along well, they can decide in the 11th hour to cancel the deal. This info was given to me by an attorney who works for our state Realtor association.
I’ve found that the best short sales to work with are the ones that have already gone through the approval process and have just come back on the market. Usually this happens when the buyer just doesn’t want to wait any longer and cancel their offer right before the lender comes back with an answer. The advantage here is that the lender has already done all of their work in processing the short sale and has approved it as a short sale and has normally stated what they will accept for a price. In addition, they often give a time period of about 30 days that this approval is good for so if you jump in at that point you will usually get a fast reply and can have the whole process take a much shorter time.
Other than recently approved short sales, the easiest of all foreclosure properties to work with are bank-owned properties. This is where the bank has completed the foreclosure proceedings and now owns the property. In these cases the time frame for getting an answer back on an offer will be much quicker. However, in a high percentage of cases the property can be in very bad condition.
One of my clients put in an offer on a foreclosed property after checking it out pretty thoroughly and providing a list of the problems they found (including mold and termite damage). The bank rejected the offer. Months later they came down in price and we looked at it again. The hole in the ceiling over the dining room where my client found some of the mold and termite damage was repaired and with no attic there would be no way for anyone to know what we had seen up there and I have found that some banks do not disclose these things (even when provided the information) and try to get away with that by stating they “never occupied the property”. By the way, even if they did not occupy the property, if they are made aware of any problems or their realtor is they do need to disclose it.
Another client put in an offer on a foreclosed house but after we had an inspection done and found the house needed a new roof, new A/C system, new ducting, new appliances and there were settlement issues (possible sinkhole) she cancelled the contract. This was with Fannie Mae and it took 2 months to get them to send her deposit back. We checked the listing after she cancelled and noticed that nothing about the settlement issues was noted. So with foreclosed properties you must have a thorough inspection done because that is your only way to find out the true condition of the property.
Bank-owned properties can be a good deal for you if they are in decent condition or if you are willing to do the work necessary to bring it up to the standard you want. But keep in mind that you will get very little or no information about the property from the bank so the risk of hidden problems is higher.
A very important point with any of these type of properties – you must have your financial arrangements taken care of before even bothering to look at any. In all cases that I have seen so far, an offer won’t even be accepted in a short sale or bank-owned situation unless you submit a preapproval letter for financing or proof that you have the cash to buy it.
I only recommend short sales at this time for investors who are cash buyers and will have no problem with waiting an average of 60-90 days for the whole process, or if they have been recently been approved by the lender.
In most cases, your best bet is finding a property that suits your needs and is a good value where the owner can sell for a good price without being in a short sale situation. Many of my clients have found this to be the best thing for them (and the least stressful and frustrating).
So there’s a brief rundown of some information on foreclosure properties and how buying them differs from buying other properties. Please make sure you understand this if you plan to try to purchase any as if you aren’t properly prepared or try to ignore the way these go, you’ll just be wasting everyone’s time and may end up getting unnecessarily frustrated.
Ron Nedd has attained the Accredited Buyer’s Representative status through the National Assoc. of Realtors and is a Licensed Realtor in Florida. He services Belleair, Clearwater, Dunedin, Palm Harbor, Clearwater Beach, Tarpon Springs and the surrounding areas and beach communities as a buyer’s agent and goes the extra mile to protect his clients’ interest when they are purchasing a house, condo or townhouse through him. Nearly all of his clients come from referrals or through his Specially Designed Buyer’s Website. This website gives registered vistors access to the local MLS to allow buyers to search all local MLS listings and also provides a monthly email newsletter with updates on what is happening in the local real estate market. For buyers that are interested in other areas of Florida, Ron is able to assist by referring them to qualified agents in those areas of interest.
