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Foreclosure Real Estate Investment Strategies
Foreclosure real estate investing can be a profitable niche for those who take time to learn the strategies. Foreclosed realty encompasses a variety of properties including residential homes, vacant land, and commercial real estate. When buying foreclosure real estate, investors must be financially prepared to invest in property repairs or renovation. While foreclosed properties are priced below market value, homes requiring substantial repair can quickly deplete home equity. Investors must engage in due diligence by reviewing comparable sales reports and obtaining home inspections, property appraisals, and repair cost estimates to determine the true cost of buying foreclosure properties. Several options exist for locating foreclosed properties at discounted prices. The most common is to attend public foreclosure auctions. All properties presented through auction are sold in "as-is" condition. Buyers must be prepared to submit payment in full within 24 hours once their bid is accepted. Once realty is transferred, property owners are responsible for removing creditor and tax liens and making necessary repairs. Another option is to seek out foreclosure short sale homes. These properties are in the midst of the foreclosure process and purchase negotiations take place with lenders' loss mitigation department. With short sales, lenders agree to accept less than the full amount owed on the home loan. Properties are listed through realtors or sold directly through the bank. The short sale process can be complex and lengthy; taking up to four months or more to complete. Buyers must obtain prequalified financing prior to submitting an offer. It is important to note that banks rarely accept offers lower than the asking price unless property inspections reveal major problems. Short sale houses can provide investors with a good deal, but may not be the best option for investors who participate in house flipping or plan to use the home to generate rental income. Buyers willing to wait out the process can generally purchase homes at 10- to 20-percent below appraised value. One way to obtain the best price on foreclosure properties is to seek out private investors who specialize in wholesaling. Some investors and investment groups purchase entire bank portfolios consisting of dozens of bank owned foreclosure properties. Also known as real estate owned (REO) homes, these properties are houses that did not sell at auction. One of the biggest advantages of REO property is houses are sold with a clean title. When banks regain ownership of foreclosure real estate they remove attached creditor and tax liens and commence with eviction action when foreclosed homeowners refuse to leave the premises. Investors who buy homes in bulk obtain wholesale pricing and pass savings along to individual buyers. REO homes can often be purchased at 20- to 30-percent below market value and provide investors with instant home equity. It is crucial for real estate investors to become educated about all facets of buying foreclosure properties. Many newbie investors are tempted by the low price tag of foreclosures, but fail to realize the costs associated with rehabbing the property. Foreclosures, short sale and bank owned real estate nearly always require some level of repair. Investors must take time to calculate the true cost of the property before making an offer to buy. Otherwise, investors could hold title to a money pit which could take years to financially recover from. Simon Volkov is a California real estate investor who specializes in buying and selling foreclosure real estate, bank owned properties, and short sale homes. His website offers real estate investing articles and resources to help investors develop strategies to build solid investment portfolios. Learn more at www.SimonVolkov.com.
Yes, You Can Still Afford To Get Your Dream Home!
In February 2009, President Obama introduced to the nation his comprehensive Financial Stability Plan, addressing the key problems that are at the heart of our country's current housing crisis. A core and critical component of that plan is his Making Home Affordable program, a plan with the goals of stabilizing the housing market and providing immediate and necessary relief to struggling homeowners so that they may avoid foreclosure and get back on their feet again. The Home Affordable Modification Program provides all eligible homeowners with the wonderful opportunity to modify and restructure their existing mortgages in order to make them affordable and maintainable. To date, over a million homeowners received assistance and the program is well on its way to helping 3 to 4 million homeowners by the year 2012. If your family can no longer afford your current monthly loan payments, then you may be able to qualify for a loan modification that would make your monthly mortgage payment affordable. Default and late payments aside, if you are one of the millions of borrowers who happen to be current, but are having difficulties with making their payments, as well as, borrowers who have missed payments may be eligible. Don't worry about whether or not you are already in foreclosure. The program was designed especially for you. Foreclosure proceedings cease at the moment the modification process starts. The first thing you will want to do if you find yourself in this predicament is contact your loan servicer, provided they have not already contacted you. Your loan servicer is the whichevever financial institution collecting your mortgage payments and is responsible for all accounting and management of the loan. The loan servicer will provide you with all the necessary paperwork and instructions for creating your loan modification package. There is free foreclosure help available to you on the Obama Administrations "Making Home Affordable" website and you may find additional support at the HUD (Housing and Urban Development) website. If you are having problems making your mortgage payment or need assistance with a loan modification, please contact us today at http://www.unitedloanmods.com and we can help save your home! United Mortgage Solutions is a Texas Based Loan Modification company!
The Obama Mortgage Plan – Are You Close to Losing Your Home?
Due to the recession, there has been a long period of unemployment, which has caused many families to live in fear of losing their homes. There are many other factors that can also lead to financial distress. Many Americans have been put in a situation where they can not make their mortgage payments. What many people do not realize, is that the $75 Billion that was released from Congress can also help to keep you from foreclosure. This created a program call the Obama mortgage plan that began to give incentives to banks to help you keep your home from foreclosure. Fact: Assistance is available to save your home through the Obama mortgage plan. The government is aware of the problems that so many people are experiencing. There have been billions of dollars set aside to assist homeowners in making their mortgage payments. Fact: Banks are now getting incentives to help you from going into foreclosure with your home. Fact: After congress released stimulus money to bail American out, many people have been able to keep their homes out of foreclosure. Why do American' s have a higher chance of keep their homes after the stimulus bill was passed? After Congress released $75 Billion to bail America out in the housing industry, banks were given incentives to encourage them to help you keep your home. This means that the Obama is working to help Americans keep their residence. Hence, the name "The Obama mortgage Plan". There have been over four million families who have had success through the Obama mortgage stimulus plan. The plan helps people who are living in fear of foreclosure by restructuring loans. Families are able to make their house payments, and can stop worrying about loosing their homes. Fact: There is no reason to lose your home when $75 Billion has been spent to help you keep your residence. The Obama mortgage refinance plan is set up to make sure that mortgage payments will not exceed 38% of the homeowners income. Money is available to help reduce payments so that homeowners can also pay other bills and keep food on the table. These reductions can last for up to five years. There are private American companies that are joining the effort to help, by making legal assistance available for those who need it. If you are a financially concerned US citizen, you should take advantage the great opportunities available to help you save your home from foreclosure. You can Save Your Home They are a private company that gives free info on how to save your home. There is no charge. Just enter your email address. Click Here find out what Obama's program entails.
10 Best US States to Retire
States are wooing retirees with tax breaks. On average, retirees pay only half the state income tax levied on working-age people, according to researchers at the University of New Hampshire and Georgia State. Seven states — Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming — don't tax personal income at all. New Hampshire and Tennessee tax interest and dividends but not other income. Still, these states may not offer the best total deal for seniors because other states have crafted special programs that reduce taxes and fees across the board. Considering everything, here are the states that tax experts say offer the best deals for residents older than 65: 1. Georgia 2. Pennsylvania 3. Mississippi 4. Illinois 5. Michigan 6. Kentucky 7. New York 8. South Carolina 9. Delaware 10. Louisiana
10 Most Recession Proof US Cities
The most recession-proof cities didn’t see home prices surge in the first place, says the MetroMonitor, a quarterly report released by Brookings Institute's Metropolitan Policy Program. MetroMonitor identified 21 large metro areas that have enjoyed robust economies and stable labor and housing markets in the last few years. "Most of these cities have some general characteristics in common," says Howard Weil, author of the report and a fellow at the Metropolitan Policy Program. "They didn't experience huge housing bubbles followed by a crash, and their economies weren't rooted in the auto industry." The top 10 stable cities identified by MetroMonitor are: 1. Albany, N.Y. 2. Augusta, Ga. 3. Austin, Texas 4. Baton Rouge, La. 5. Buffalo, N.Y. 6. Columbia, S.C. 7. Dallas 8. Des Moines, Iowa 9. El Paso, Texas 10. Honolulu
Big Changes to Condo Laws
A massive condominium bill addressing everything from fire sprinkler retrofits to incentives for moving excess condo inventory is among the real estate-related legislation taking effect today. “Legislators introduced more than 50 bills this session dealing with some aspect of condominiums and condominium associations,” says John Sebree, vice president of public policy for the Florida Realtors®. “At the end of the day, there was one – SB 1196 by Sen. Mike Fasano (R-New Port Richey). We worked hard to make sure this 103-page bill contained at least two of the many changes sought by Realtors: incentives for buyers of multiple condo units and repealing the requirement that individual owners carry hazard insurance.” The “bulk buyer” provision seeks to stimulate condo sales by enabling investors to purchase condo units in bulk (seven-plus units) without incurring the legal and financial liabilities of the original developer. The hazard insurance provision repeals a 2008 law requiring unit owners to provide proof of insurance every year. If a unit owner failed to provide a certificate of insurance, the association was allowed to purchase insurance on the owner’s behalf and assess the unit owner for the cost of the insurance. SB 1196 also specifies that: • Florida law no longer requires owners to purchase individual unit owner insurance coverage, though it could still be required by lenders or through the Declaration of Condominium; • Associations of condos over 75 feet high aren’t required to retrofit sprinkler systems; • Lenders must pay more of past-due assessments on foreclosed properties; • Associations may deny owners or occupants the use of common areas and recreational amenities when the owner is more than 90 days delinquent in paying financial obligations due to the association; and • Associations may divert tenant rents to pay for delinquent assessments owed by unit owners. Other laws taking effect today that impact real estate transactions or real estate practitioners provide that: • Documentary stamp taxes on short sales are based on the purchase price, not on the amount of the outstanding mortgage balance. HB 109 by Rep. Evan Jenne (D-Fort Lauderdale) codifies into law a similar ruling in 2008 by the Florida Department of Revenue. • Real estate and appraiser instructors and real estate school permit holders may serve on the Florida Real Estate Commission and the Florida Real Estate Appraisal Board under HB 713 by Rep. Ritch Workman (R-Melbourne). • Home inspectors, mold assessors and mold remediators must be licensed by the state effective July 1, 2010. All applicants are required to complete a 120-hour course. But the Department of Business and Professional Regulation (DBPR) lacked authority to approve the course until July 1. Consequently, the DBPR says it won’t enforce the licensing requirements until July 1, 2011. Visit the department website for details. On a related note, HB 663 by Rep. Gary Aubuchon (R-Coral Springs) allows these inspectors, as well as appraisers and real estate brokers and sales associates, to take distance learning courses to satisfy pre-license and post-license requirements. A grandfather clause allows some inspectors to get a license without taking the course, providing they’ve conducted at least 120 previous inspections over the past three years. • More housing choices for individuals with disabilities. SB 1166 by Sen. Thad Altman (R-Melbourne) removes, among other things, a requirement that community residential homes for disabled persons be located 1,000 feet from each other within planned residential communities. © 2010 Florida Realtors®
Congress extends homebuyer tax credit and flood insurance
The U.S. Senate passed two bills last evening previously passed by the House. Both bills still need President Obama's signature to become law, but that's expected to happen quickly. Homebuyer tax credit The Senate passed HR 5623, which extends the mandatory closing date to qualify for the homebuyer tax credit. The contract deadline does not change - homebuyers must have a contract signed by April 30, 2010 (an exception for active duty military) - but the previous closing deadline of June 30, 2010, has been extended to Sept. 30, 2010. The National Association of Realtors estimates that the approved bill will benefit more than 14,000 deals in Florida. National Flood Insurance Program Congress once again reauthorized a short-term extension for the National Flood Insurance Program to Sept. 30, 2010. The bill, HR 5569, makes the program retroactive to May 31, 2010, the date the program went on hiatus.
When to Hire an Attorney to Fight Your Foreclosure
Both the economy in general and housing market in particular have experienced major upheavals. This combined with a several additional negative economic factors has resulted in a record number of foreclosures throughout the United States, causing untold devastation for American families. Innumerable homeowners and renters facing foreclosure have no idea where to turn to for help. Despite all the lawyer jokes, an attorney can actually be your best asset in the fight against foreclosure. Renters Can Be Foreclosure Victims Too Homeowners far outnumber renders in terms of the percentage of people affected by foreclosures. However, renters can certainly be foreclosure victims as well - and in no small measure - if their landlords lose their homes or apartments to the foreclosure process. Being a renter in a property pending foreclosure can be extremely confusing, so contacting an attorney early on would be prudent - unless you are already prepared to leave anyway. You will want an attorney who specializes in real estate and foreclosures. What is the Foreclosure Process for Renters Renters must be provided advance notice of the foreclosure and impending eviction well ahead of the day they are required to move out. This is mandated by law in most U.S. states. Even if you have a new landlord, that person still must give you at least several weeks notice if they need to evict you. Depending on the laws in your geography, they may even be required to honor your lease to its expiration. This would allow you to remain in your house or apartment until your lease is up, buying you much more time to locate an alternative living arrangement. The Foreclosure Process for Homeowners Homeowners should still consider seeking the assistance of a qualified attorney to help push back on the foreclosure. A real estate attorney - primarily one specializing in foreclosures - will certainly know the ins and outs of the foreclosure process, helping you take advantage of legitimate loopholes and small windows of opportunities available to you. Why Hire an Attorney Attorneys are familiar with foreclosure procedures and possible means of stopping one. They can provide you expert advice on prudent actions to take and can also assist in dealing directly with your lender, thus preventing you from making costly mistakes that would normally decrease your chances of holding onto your home. The foreclosure process is a grim reality, but you almost certainly do not know the specifics of all the laws and procedures involved. This is why tapping into the expertise of a real estate attorney can be your best opportunity to fight foreclosure.
Picking Out the Best Option From Lists of Home Foreclosures
When looking at lists of home foreclosures, a homebuyer should not only pay attention to the cheapest houses included in the list but should also consider the potential of these properties to provide future benefits. A buyer might enjoy the immediate advantage of buying a cheap dwelling, but in the long run might have to take losses due to decreasing home values and lack of equity. Location Considerations It is highly possible that the cheapest homes found in listings are those that are located in poorly developed and blighted areas. The question is; should a home buyer take advantage of these low prices and purchase a home from these locations? He probably should not. Regardless of whether he plans to use the home as a residence or as a form of future investment, the decision might not be justified. Houses located in areas suffering from blight are not highly recommended as places of residence since crime rates will likely be high. The future might not also offer too many opportunities for a sell-off since it might take these areas some years to recover and the property might already be deteriorating by then. Best Places to Buy Among the residential properties included in lists of home foreclosures, those that are located in metro areas that have the most stable economic conditions are buyers' best options. These include Texas, Indiana, South Carolina and North Carolina. These states have enjoyed a steady employment rate and economic condition and their housing markets are relatively in good conditions compared with other metro areas. These states also did not suffer from sudden upswings in home prices prior to the foreclosure crisis, so values of homes have not declined too drastically either. Such market characteristics can offer home buyers the possibility of increased property value in the not too distant future. They will be able to explore the option of selling their properties in a few years time without fear of getting a selling price that is less than the amount they paid to purchase their homes. Lists of home foreclosures should not only be evaluated through home prices but also in terms of location and potential future benefits. Home buyers would be better off buying at a slightly higher price if the future offers a surer benefit. Joseph B. Smith has been educating buyers on the finer points of Lists of home foreclosures at ForeclosureListingsNationWide.com for over five years. Contact Joseph B. Smith through ForeclosureListingsNationWide.com if you need help finding information about Lists of home foreclosures.
Things That Buyers Might Not Know About Bank REO Properties
Homes become bank REO properties once they fail to sell at auction. The good thing about REOs is that buyers can deal directly with the bank if they want to buy one of these properties. Most real estate owned homes are also free of existing liens and have a legitimate title which sometimes can be a problem with other types of foreclosed dwellings. Longer Time to Close A buyer of an REO home might not get hold of the property until after a month or two. Closing the deal is not as fast as purchasing a house from an auction or directly from the homeowner. In evaluating buyers' offers, several officials of the bank are involved and if one of them rejected the deal or found something missing, the buyer needs to start all over again. For people who are looking for an immediate place to live in, REOs might not be the best choice. If buyers expect to occupy the home right after the agreement is signed, then they are mistaken. The process can drag on for weeks and even months and buyers will not be able to take over the property until all areas of the transaction have been worked out. Repair Needs Might Be More There is a general perception that bank REO properties are cheap and are easy to acquire because banks are eager to sell them off. The primary danger for a buyer lies in the potential to spend more than they expect on repairing the property to make it habitable. Buyers should remember that bank foreclosures are sold in an "as is" condition and that banks will not willingly let buyers in on the secret of how much repair is needed for the property. Buyers who do not hire a licensed home inspector and who do not have the necessary skill to evaluate the structural condition of a residential property might find themselves spending a lot of money on repairs that they did not expect or planned for. If a buyer is considering buying bank REO properties, he should seek the help of professionals like home inspectors, real estate agents and even a real estate lawyer. The fees that would be paid to them will be worth it if the buyer is able to avoid purchasing a home in a poor condition. Joseph B. Smith has been educating buyers on the finer points of bank REO properties at BankOwnedHome.net for over five years. Contact Joseph B. Smith through BankOwnedHome.net if you need help finding information about bank REO properties.
