Foreclosures Questions

?Contacting Homeowners Through Pre Foreclosure Leads

Sun, 14 Mar 2010 05:17:01 +0000

If you are considering buying a home through pre foreclosure leads obtained through a listing service or a real estate provider, it is important to develop an approach to speaking with the homeowner that is both positive and supportive. It is absolutely critical to keep in mind that this is a deeply stressful time for a homeowner that is likely facing foreclosure and developing a dialogue or introduction to your interest in purchasing the property has to be done with diplomacy as well as honesty.

Many homeowners, especially those that feel they have been mislead by lenders in the past, are often very hostile and highly defensive and mistrustful of anyone approaching them with "this is the answer to your financial problem" type sales pitches. When you obtain pre foreclosure leads, keep in mind that some people will be able to get refinancing, some will work with their lenders and not all are in dire financial situations. Approaching the homeowners from an interested and supportive stance is much more effective as they are less likely to group you in the category of untrustworthy or as being an opportunist to their misfortune.

Pre foreclosure leads can be contacted by several different methods. The cheapest and least intrusive to the homeowner is to send them a registered letter, letting the owner know that you are interested in purchasing their home. Using mass mail outs can also be effective, however this can be viewed by the owner as another ploy by huge companies that only offer discount prices for the home and property. By following up on only the pre foreclosure leads you are really interested in using a personalized, registered letter you may get more responses from homeowners.

Once the pre foreclosure leads have led to a response from the buyer, the next step is to set and appointment and meet with the buyer, typically at the property. If the buyer is seriously considering a short sale on the property, he or she will be willing to allow you to look through the property at this point. You should then obtain the information needed to speak directly to the lender, should you consider making an offer. Keep in mind that the owner may be unaware of current market values, so having some comparable sales information for foreclosed homes in the same area is very important. For owners this can be tough to understand if they value their homes at the original price, so you may want to provide this information to the owner before the meeting by mail to allow them to review this material privately and gain an understanding of the market.

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?Bank Foreclosure Listing: Where Are The Homes?

Fri, 12 Mar 2010 05:17:01 +0000

Bank foreclosure listing services are widely available online. If you have not used one yet, now is the best time to get started. What do they provide you and how can you maximize their effectiveness? That is what anyone who is looking to invest in the real estate market should do. With foreclosures, the prices can be lower (remember, that is not necessarily the case, though.) Having access to these properties is the key to finding the lower prices in time to bid on them and purchase these properties. It is not always possible to be the first one in line, but with the help of a bank foreclosure listing, the process is easier.

A bank foreclosure listing works much like any other property listing for a home or other property that is for sale. Information is provided to you from the real estate agent managing the sale of the foreclosed home. Many of these properties are listed on the MLS just like and right alongside the other homes for sale. They offer opportunities and they often provide you with an exciting opportunity, but if you really want to know where they are, you have to do your homework. Here are some tips on using bank foreclosure listing services to help you get the best prices out there.

Know Your Stuff

You should know the real estate market well enough in the area you are buying in to know if the bank foreclosure listing is offering a good price or a price that is too high. It is just as helpful to know if the price is too low as that may indicate it either is a very good deal or needs a lot of work. The better you know the area in terms of house prices and home size, the better your decisions will be when you see that listing.

Use Online Services

As mentioned, many of these bank foreclosure listing services are out there and available, but they are not the only tools available to you to use on the Internet. As you consider the foreclosure properties on the market, do not forget the opportunities you have in online valuation services that can give you a good pricing on the actual value of the home based on the values of homes in the area that have recently sold.

With a bank foreclosure listing in hand, you can make a better decision about your financial future with that property. These properties are ideal investment opportunities for many people, but you have to make wise decisions when buying into them.

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?Saving Money – Buying a Fixer Upper

Wed, 10 Mar 2010 05:17:01 +0000

One of the benefits of foreclosure homes is the financial benefit. There is big money to be saved on a home that’s discounted because the previous owner defaulted on their mortgage payments. Something to consider is a fixer upper house

When a home is not in the best cosmetic condition, you can save even more money on it. If the repairs needed are merely cosmetic and related to mild neglect, you can put a bit of time and effort and really turn a huge profit. Not only are you saving money because of the foreclosure status but also you can save money because the house needs some painting, gardening and TLC.

Be careful the house isn’t going to need massive repairs when looking at your budgeting for repairs. Consider how much money it will cost you to get the house in either livable or saleable condition and add that money, the time required to do the repairs and the sale price to determine if you’re getting a good deal. Chances are that you can get a great deal!

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?What To Expect At Real Estate Foreclosure Auctions

Mon, 08 Mar 2010 05:17:02 +0000

Real estate foreclosure auctions, sometimes referred to as sheriff sales, usually take place in a designated area in the county courthouse. Sometimes they can even take place on the steps of the county courthouse. There is nothing fancy about them. They are set up to be quick and business-like affairs with rules put in place to help expedite the process. You can expect some regulars to show up and new bidders sometimes too. They may be weekly or bi-weekly events, and can vary depending on the number of foreclosures in the area and the backlog. The listing for foreclosures are listed for people who attend the real estate foreclosure auctions on a list or they can also be researched beforehand in the local newspaper too.

How To Buy At Real Estate Foreclosure Auctions

Rules can differ from county to county, but you will be usually expected to pay some percentage of your bid upfront once you are declared the winning bid. Expect to pay at least 5% of the value of your bid. You will also need to pay the remainder of the the bid by the end of the business day. So, if you bid $100,000, you might have to pay $5,000 upfront at the end of your winning bid and the rest some time later, usually by the end of the business day.

Bankers Buy Back

The original bids will probably start out with the bank or lender who holds the mortgage bidding a nominal amount to get the process going. They may even bid against you to drive up the price to an acceptable loss for them. They certainly won't try to give away the property, even if they don't want it on their books. However, if they don't get the bids they want at the real estate foreclosure auctions, they will simply bid to buy back the house. This way they don't take a huge loss on the home.

Do Your Research Before You Go

Real estate foreclosure auctions are fast-paced and you will need to know ahead of time what property you are willing to bid on and the fair market value of it. You should have researched as much as you can about how much is owed, what the neighborhood is like, and what the condition of the home is like. You will also want to make sure you understand all any fees or liens associated with the property that you will be responsible for bringing current should you have the winning bid.

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?Ways to Stop Foreclosure of VA Loans

Sat, 06 Mar 2010 05:17:01 +0000

Foreclosure is a nasty word that no one likes to hear about these days. However, as unfortunate as it is, we're hearing it more and more on the news every day. Left and right homeowners are losing their homes to foreclosures. What you used to be almost a sure thing, owning your home, is now something that is difficult, at best, for many people. Interest rates are high. Cost of living is high. The cost of buying a home is very high. The rate of unemployment is also high. These factors all contribute to why so many homes are finding their way into foreclosure.

What used to be another almost sure thing, the VA Loans, are now just as shaky and tenuous. When a Veteran purchases a home, they are eligible for a VA loan, which is a government insured, VA guaranteed loan. What this means is that although they may get their financing from a bank, the VA is guaranteeing the bank that if the Veteran cannot make the payments, they will buy the loan back so the bank is not forced to foreclose on the Veterans. Even though the bank is not going to be stuck with the home, they still try to help stop foreclosure. VA loans are usually given with lower interest rates than the traditional home mortgage. However, the bank and the Department of Veterans Affairs (VA) will still do everything they can to stop foreclosure of VA loans.

At the first sign of financial difficulties, in an attempt to stop foreclosure, the VA will offer the Veteran financial assistance. Sometimes, in spite of help, the Veteran still cannot make the required payments and the home still becomes repossessed. When it becomes repossessed (usually after three or more consecutive missed payments), the VA will pay off the loan and become the new owner of the home. They will then attempt to sell the home to any interested buyers. Often, they list the home with a real estate agency that will advertise the home for a period. They may take bids on the home with the highest bidder getting the home.

No one likes seeing a home go into foreclosure. Bank officials offer Veterans different tips on how to stop foreclosure. VA loans are usually given with better lending terms and interest rates as a way to help the Veteran. Therefore, it's important to keep the home if possible. One of the more important things you can do to stop foreclosure of VA loans is contact the VA and the bank if you are experiencing financial difficulties and find making the payments difficult. Banks have many options available in home loans. Perhaps they can find a different type of loan to give you so your payments are more affordable. Too many home owners make the mistake of not contacting their lenders until it's too late. Don't let this be your mistake.

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?Facing Foreclosure – Ways Out at the Last Minute

Thu, 04 Mar 2010 05:17:01 +0000

If you are worried that you’ll lose your home to foreclosure, it’s important that you act quickly. If it’s now the eleventh hour and you’re desperate to save your home, there are some things you can do to try to stop the foreclosure process.

• Talk to your lender and see if you can have an extension. Work to get the money they need to them. Chances are that they will want to work with you instead of foreclosing

• Have a short sale. Work with a realtor or sell privately with a quick closing and aggressive sales price

• Equity stripping options. Some lenders will let you have the equity in your home and will buy it at a discount. This can be costly but can save you from having to move. You could rent your home from the lender who pays off your mortgage and provides you with an agreed on fee. This is also called a reverse mortgage

• Raise funds quickly through a sale or by borrowing funds

• Talk to HUD, a government agency who can help you find out what your options are

It might not be too late to save your home. It’s important that you research your options and most importantly, act quickly!

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?Tax Arrears Sales of Property

Tue, 02 Mar 2010 05:17:01 +0000

A tax arrears sale can be a great way to pick up property on the cheap. Sadly, many people lose their property due to unfortunate circumstances and the government could sell the property for the default amount owning which could be a fraction of the worth of the property.

Flipping properties in this manner can make you a lot of money. By keeping on the lookout for foreclosure sales and tax arrears sales that are in prime areas, you could make a significant profit and build a monopoly of real estate properties which could help you secure your financial future.

How do you find out about tax arrears sales?

There are free and fee-based services dedicated to bringing information about these sales and auctions to interested parties. Look online at the available options and you could be on your way to a nice nest egg.

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?Free Real Estate Foreclosure Listings

Sun, 28 Feb 2010 05:17:01 +0000

If you are like most people, you may not quite trust the word “free” anymore. However, when it comes to foreclosure listings, there really are ways to get free real estate foreclosure listings. You might think you have to join a special real estate foreclosure club or get listings through third-party online websites that compile this information, but it's not true. You can generate free real estate foreclosure listings right from the privacy of your own home – if you now where to look.

The Newspapers

Your local newspapers will have information in the Public Notice section of upcoming foreclosure sales. You can either subscribe to multiple local newspapers or you can check them out at the local library for free. This won't give you all the information you need to bid on a property, but it will allow you to start building free real estate foreclosure listings to research for potential bids down the line.

The Public Records

Searching the public records is free. If you are trying to search multiple states, you can check online to see if their records are searchable online. In this modern age where you can find public records online, you don't even have to waste gas money to start building free real estate foreclosure listings from the privacy of your own home. Some public notices of foreclosures also include the tax lien information on the record too, making your search that much better.

Let Them Come To You

If you are an investor that has a proven track record of buying foreclosures, then you might want to get a local real estate agent to do some of the leg work for you. They end up getting 6% of the sales, but typically it's the seller that pays their commission, not the buyer. So, why not put the word out to someone who understands what you are looking for so they can help you locate foreclosed homes or REO (real estate owned) properties. It may not be free for the realtor, but it should be free for you and you get the added advantage of seeing items that may be in the MLS that don't show up elsewhere.

Being Frugal

While being frugal and getting free real estate foreclosure listings has obvious appeal, you don't want to waste too much time compiling lists that you can buy for very little through a third party. Always check the time costs versus savings benefit to see if it makes sense to get free real estate foreclosure listings by doing some upfront work yourself, or whether it pays to someone else do it for you.

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?Stop Foreclosure: Understand The Process

Thu, 25 Feb 2010 05:17:02 +0000

Can you stop foreclosure? The process of foreclosure is one that many people are going through right now. The good news is that there are several ways that you can do just that: stop foreclosure from going forward. The process is long and that allows the homeowner to be caught up on their mortgage to get out of the foreclosure process. Yet, the one thing that the homeowner has to do that they often do not like to do the most is to talk with the lenders. In the current housing market, though, time is of the essence.

What Happens?

The foreclosure process starts when you miss your first mortgage payment. At this point, the easiest way to stop foreclosure is to pay the loan to your lender. You need to get caught up in these first months on the payment if you will overcome foreclosure. Getting caught up after missing just one payment or even just being a bit late is a lot easier than trying to work through months of fees and costs to get back on track. Therefore, as you consider the various methods available to you to stop foreclosure, make sure that one of them is simply paying what you owe.

Once you stop making payments on your mortgage, the bank has no choice but to reach out to the legal sector to get the loan foreclosed on. Remember, they are willing to work with their homeowners to get them into more affordable loans (many times) and they are willing to do this throughout the process because these banks are not in place because they want to own property but they want to profit from the loans on it. To stop foreclosure, even after there has been a legal filing, simply get caught up. Work with your attorney to do this after the initial time though.

There comes a point when you can no longer stop foreclosure from happening. Generally, the entire process from missing your first mortgage payment to the home transferring ownership to the bank will take four to six months, sometimes longer. After a few months when the process has gotten to the hands of the court, and you have still not make amends, chances are good you will no longer be able to stop foreclosure from happening.

If you want to stop foreclosure, hire an attorney to help you. On the other hand, simply talk to your lender directly and find out what can be done to keep you in your home. Many times, there are opportunities out there to allow this to happen.

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?Considerations For A Pre Foreclosure Sale

Tue, 23 Feb 2010 05:17:01 +0000

A pre foreclosure sale is most commonly referred to as a "short sale" since the seller is going to have to sell their house or property "short" of the actual market value. Since the seller already knows that they will be getting less out of the house than they put in, maximizing their return on the pre foreclosure sale is key as this decreased the amount they will need to borrow or continue to pay on the balance of the mortgage. In cases where the owner is not able to sell the home prior to the foreclosure, they will lose the house and property and will take a significant hit to their credit score as well as there ability to obtain a home loan, or any other type of loan, well into the future.

Since a foreclosure is so negative, most homeowners that cannot refinance or work with their lender to catch up on defaulted payments and set up an appropriate program of repayment for the future often choose the option of a pre foreclosure sale. As an investor it is critical to consider all option of the pre foreclosure sale as there can be hidden costs, fees and significant upgrades required to the property before it can be resold. Even if a house is purchased for thousands of dollars below market value if it needs thousands of dollars of upgrades it is not a bargain.

Unfortunately many first time investors get caught up in the hype and marketing that many pre foreclosure sale companies and marketing agencies promote. Buying a house in a depressed housing market, even at a bargain price, doesn't make sense if you can't rent it out or sell it for more than you bought it for. In cases where there is a depressed real estate market, buying only makes sense if you have the ability to pay the mortgage yourself or if you intend to live in the house and make the payment. Buying a house assuming that the pre foreclosure sale low price will mean that you can somehow sell it for more in the same market is not realistic, although many agents and marketing companies will not present this information.

If you are considering a pre foreclosure sale property, first start by seriously looking at your financial status. If you can afford to purchase the house without putting yourself at risk, then answer the following questions:

• Could you afford the mortgage payment if the property did not rent or sell?
• How much money would be needed to complete the upgrades to make the house more attractive on the market?
• Does the location warrant the upgrades in your return? Older neighborhoods or neighborhoods in transaction are often poor investments.
• What are the overal comparable sales figures for similar houses in the area?

Knowing the pros and cons of purchasing a pre foreclosure sale property are important for your financial future.