Posts Tagged ‘Foreclosure’
Purchasing Real Estate on a Short Sale
Jodi Funke asked:
A short sale occurs when a lender agrees to allow a homeowner to sell their home for less than the amount owed on a mortgage. Why would he do this?
How the Lender comes out a Winner
While it may seem surprising that lenders would accept less than they are owed, they do benefit from the process. The lender is going to take a loss either way. He might go through the long, costly process of foreclosure and then another long process of evicting the homeowner, fixing up the property, listing it for sale and ultimately selling it for less than he has invested. His other option is to accept a short sale now, avoid the foreclosure process and avoid being stuck with a difficult to sell property.
How the Homeowner Benefits
A foreclosure is very damaging to one’s credit report; with a short sale, the homeowner is doing their part to meet their obligation to the lender while minimizing the damage to their credit history.
Great for the Buyer
Though the process of a short sale can be frustrating, the buyer benefits by purchasing real estate at a reduced price; often for pennies on the dollar. Buyers who are looking to negotiate a short sale should work with real estate professionals who are experienced at handling these transactions.
Sometimes the buyer is one who will be fixing up the home for their primary residence. Often, the buyer is an investor who is looking to “flip” the property for a profit. Lenders who accept a short sale frown on investors who profit from the very property that they took a loss on! This is the reason for seasoning requirements; owning the property for a certain length of time before reselling.
Jodi Funke is the founder of http://www.cashforshortsales.com a company who specializes in short sale transactions. Jodi is a transactional lender who provides funding for the investor to purchase a property on a short sale and sell the property for a profit the same day. Their team of real estate professionals, attorneys and title companies are experienced at handling these transactions while working at the highest level of integrity.
La Mirada Real Estate
A short sale occurs when a lender agrees to allow a homeowner to sell their home for less than the amount owed on a mortgage. Why would he do this?
How the Lender comes out a Winner
While it may seem surprising that lenders would accept less than they are owed, they do benefit from the process. The lender is going to take a loss either way. He might go through the long, costly process of foreclosure and then another long process of evicting the homeowner, fixing up the property, listing it for sale and ultimately selling it for less than he has invested. His other option is to accept a short sale now, avoid the foreclosure process and avoid being stuck with a difficult to sell property.
How the Homeowner Benefits
A foreclosure is very damaging to one’s credit report; with a short sale, the homeowner is doing their part to meet their obligation to the lender while minimizing the damage to their credit history.
Great for the Buyer
Though the process of a short sale can be frustrating, the buyer benefits by purchasing real estate at a reduced price; often for pennies on the dollar. Buyers who are looking to negotiate a short sale should work with real estate professionals who are experienced at handling these transactions.
Sometimes the buyer is one who will be fixing up the home for their primary residence. Often, the buyer is an investor who is looking to “flip” the property for a profit. Lenders who accept a short sale frown on investors who profit from the very property that they took a loss on! This is the reason for seasoning requirements; owning the property for a certain length of time before reselling.
Jodi Funke is the founder of http://www.cashforshortsales.com a company who specializes in short sale transactions. Jodi is a transactional lender who provides funding for the investor to purchase a property on a short sale and sell the property for a profit the same day. Their team of real estate professionals, attorneys and title companies are experienced at handling these transactions while working at the highest level of integrity.
La Mirada Real Estate
A Guide to Going Bankrupt in Real Estate!
Escapeso Austin Real Estate asked:
First off, watch some late night infomercials on TV. And possibly order some real estate tapes from Carlton Sheets. This will provide you with a positive upbeat attitude and a sense of false confidence that is essential in order to go bankrupt. Believe that after listening to some tapes, you can compete with people that have done this 7 days a week for years.
Second. For your first investment, buy in a city you know little to nothing about and avoid using a buyers agent who does know the city. Go directly to the sellers agent. The best way to make a truly horrible decision is to avoid any outside advice. The best part of this is that avoiding a buyers agent usually doesn’t save you any money since the selling agent simply makes more when you deal with them directly.
Look for a discount or a distressed property over a good long term investment. Late night infomercials and Carlton Sheets talk a lot about this. Getting equity at the point of sale. One thing about distressed properties with desperate sellers is that they frequently are in crappy areas with low appreciation rates. Buying a property at under market rate in an area with low appreciation potential versus a property in a good area is the kind of short sighted thinking that will really help you reach the goal of bankruptcy and foreclosure.
When you talk to people including your realtor, try to spend time talking about all the crap you learned from your book or light night infomercial. The more you listen to other people, the more you might get different perspectives and the higher chance you might learn new things. This could really hurt your chances of going bankrupt so avoid listening to anyone. Remember you know everything even if you only got interested in real estate last week.
Be positive to the point of stupidity. Alot of investors I know always think about how their situation would be affected by a 10 or 20 percent drop in the market before making a purchase. You should avoid this kind of thinking. You need to be blinded by greed. You should only fantasize about how you are going to double your money.
When calculating your monthly cashflow, assume that you will have 100% occupancy all the time and no maintenance cost. While you are at assume that its going to rain money tomorrow.
Also, be stubborn when renting your properties. Decide upon a number say $900 a month and refuse to budge. Come up with some bizarre logic about how the property deserves $900 a month. Lose months of rent having the property sit vacant instead of going down $50 on the rent. Instead of responding to the market make statements like “Well the markets wrong then”.
As you move closer to foreclosure, don’t alter your spending habits. Don’t move into a smaller house or cut spending. Act like nothing is wrong.
Overextend, overextend, overextend. Are you approved to buy one house. Why not buy 5, heck why not 20. Instead of building up a portfolio of properties over time, gaining experience along the way, just buy alot of properties next Tuesday.
Alot of people are getting into the foreclosure game. Their is no reason you should be left behind. Throwing caution to the wind and filling your eyes with greed and you should find yourself walking down the golden path to foreclosure.
This is not a definitive guide to foreclosure. Alot of people end up in foreclosure due to many things unforeseen events like unpreventable family illness, divorce or job loss. This is simply a guide to what I call elective foreclosure.
La Mirada Real Estate
First off, watch some late night infomercials on TV. And possibly order some real estate tapes from Carlton Sheets. This will provide you with a positive upbeat attitude and a sense of false confidence that is essential in order to go bankrupt. Believe that after listening to some tapes, you can compete with people that have done this 7 days a week for years.
Second. For your first investment, buy in a city you know little to nothing about and avoid using a buyers agent who does know the city. Go directly to the sellers agent. The best way to make a truly horrible decision is to avoid any outside advice. The best part of this is that avoiding a buyers agent usually doesn’t save you any money since the selling agent simply makes more when you deal with them directly.
Look for a discount or a distressed property over a good long term investment. Late night infomercials and Carlton Sheets talk a lot about this. Getting equity at the point of sale. One thing about distressed properties with desperate sellers is that they frequently are in crappy areas with low appreciation rates. Buying a property at under market rate in an area with low appreciation potential versus a property in a good area is the kind of short sighted thinking that will really help you reach the goal of bankruptcy and foreclosure.
When you talk to people including your realtor, try to spend time talking about all the crap you learned from your book or light night infomercial. The more you listen to other people, the more you might get different perspectives and the higher chance you might learn new things. This could really hurt your chances of going bankrupt so avoid listening to anyone. Remember you know everything even if you only got interested in real estate last week.
Be positive to the point of stupidity. Alot of investors I know always think about how their situation would be affected by a 10 or 20 percent drop in the market before making a purchase. You should avoid this kind of thinking. You need to be blinded by greed. You should only fantasize about how you are going to double your money.
When calculating your monthly cashflow, assume that you will have 100% occupancy all the time and no maintenance cost. While you are at assume that its going to rain money tomorrow.
Also, be stubborn when renting your properties. Decide upon a number say $900 a month and refuse to budge. Come up with some bizarre logic about how the property deserves $900 a month. Lose months of rent having the property sit vacant instead of going down $50 on the rent. Instead of responding to the market make statements like “Well the markets wrong then”.
As you move closer to foreclosure, don’t alter your spending habits. Don’t move into a smaller house or cut spending. Act like nothing is wrong.
Overextend, overextend, overextend. Are you approved to buy one house. Why not buy 5, heck why not 20. Instead of building up a portfolio of properties over time, gaining experience along the way, just buy alot of properties next Tuesday.
Alot of people are getting into the foreclosure game. Their is no reason you should be left behind. Throwing caution to the wind and filling your eyes with greed and you should find yourself walking down the golden path to foreclosure.
This is not a definitive guide to foreclosure. Alot of people end up in foreclosure due to many things unforeseen events like unpreventable family illness, divorce or job loss. This is simply a guide to what I call elective foreclosure.
La Mirada Real Estate
Prime Time to Purchase Real Estate in Phoenix Arizona
Maureen Karpinski asked:
Prime Time to Purchase Real Estate in Phoenix Arizona
Although foreclosure isn’t desired by anyone, the state of the economy has recently made it much easier for people all over the country to purchase real estate at enormously discounted prices, including Phoenix Arizona. There are many bargains now available, so contact your Phoenix realtor now to learn what is available if you are looking to purchase a home.
Prices for Phoenix real estate are lower than many have seen in over a decade. This makes it the perfect time for home buyers to get a house at deep discounts. Foreclosures have made the properties available plentiful, and they are priced to sell.
Homes that are almost new as well as older homes in historic neighborhoods can be bought at a deal. While it is the perfect opportunity to purchase a home in the Phoenix Arizona area, there are still a few pitfalls. These include repair costs on older homes and bidding wars.. However, if you plan on purchasing a home to stay in, the time has never been better.
If you are an investor or first time buyer, now is the perfect time to contact a Phoenix real estate agent to learn what is available to you. Most of the deals that are available are properties that are on the brink of going in to foreclosure or have been taken back by lenders.
There are some details you will want to consider when purchasing real estate. If your intention is to purchase for resale, check to see if there are other foreclosures that may threaten your desired resale price, or if there are numerous empty homes that may become foreclosures. Your Phoenix realtor can help you determine what properties are the most desirous if your intent is to resell.
For those whose interest lies in fixing up older or damaged homes, there is a huge market available. In fact, homes that are priced under $100,000 and have the most physical damage are where you will find the real deals. Homes that have extensive damage offer better discounts to buyers.
The economy isn’t good for anyone, but it can be the perfect time to buy if you are in the market for a family home or invest in real estate for resale purposes. The time has never been better to get the most for your money where real estate is concerned. If you are interested in learning more about the housing market, contact your Phoenix realtor.
La Mirada Real Estate
Prime Time to Purchase Real Estate in Phoenix Arizona
Although foreclosure isn’t desired by anyone, the state of the economy has recently made it much easier for people all over the country to purchase real estate at enormously discounted prices, including Phoenix Arizona. There are many bargains now available, so contact your Phoenix realtor now to learn what is available if you are looking to purchase a home.
Prices for Phoenix real estate are lower than many have seen in over a decade. This makes it the perfect time for home buyers to get a house at deep discounts. Foreclosures have made the properties available plentiful, and they are priced to sell.
Homes that are almost new as well as older homes in historic neighborhoods can be bought at a deal. While it is the perfect opportunity to purchase a home in the Phoenix Arizona area, there are still a few pitfalls. These include repair costs on older homes and bidding wars.. However, if you plan on purchasing a home to stay in, the time has never been better.
If you are an investor or first time buyer, now is the perfect time to contact a Phoenix real estate agent to learn what is available to you. Most of the deals that are available are properties that are on the brink of going in to foreclosure or have been taken back by lenders.
There are some details you will want to consider when purchasing real estate. If your intention is to purchase for resale, check to see if there are other foreclosures that may threaten your desired resale price, or if there are numerous empty homes that may become foreclosures. Your Phoenix realtor can help you determine what properties are the most desirous if your intent is to resell.
For those whose interest lies in fixing up older or damaged homes, there is a huge market available. In fact, homes that are priced under $100,000 and have the most physical damage are where you will find the real deals. Homes that have extensive damage offer better discounts to buyers.
The economy isn’t good for anyone, but it can be the perfect time to buy if you are in the market for a family home or invest in real estate for resale purposes. The time has never been better to get the most for your money where real estate is concerned. If you are interested in learning more about the housing market, contact your Phoenix realtor.
La Mirada Real Estate
Purchasing Real Estate With Zero Down
john asked:
You can buy real estate with minimal funds or zero money down! The key is learning how to leverage your resources to control a lot of properties. In this article, I am going to explain how you can make money simply by applying a few techniques I’ve used over the years. Interested?
One of the techniques I like to use is “Subject to Financing” aka “Owner Financing”. With this technique, you purchase the property from the seller by simply taking over their existing mortgage. The mortgage stays in the seller’s name and without obtaining financing you own the home. Not a bad deal from my view point.
State to state the rules to “Owner Financing” differ. In fact, several states are attempting to pass legislation to ban this practice. So it would be wise to consult with a local attorney to verify if the laws have been passed that prohibit you from this practice. Regardless, this is still the best method of easily financing a purchase.
What about the “due-on-sale’ clause that most mortgages contain today?
Although it is true that the lender does have the right to call the loan due, but not the obligation to do so; it makes absolutely no sense in today’s poor economical times. It makes more sense for a bank to settle for receiving the monthly mortgage on time rather than force it into foreclosure.
Why would the seller agree to place their credit at risk?
A motivated seller is desperate to eliminate the responsibility for payments. You are offering them the opportunity to remove the burden of trying to make the payments when it is impossible; thereby removing them of the pain and stress they’ve had to endure. Even though the seller remains financially responsible, your financial contribution actually improves their credit. You are making payments that they just could not afford.
By far “Subject to Financing” is the best offer if your state does not prohibit it. This option should be the first one considered. It is a situation where all parties win. The bank benefits by receiving timely payments. The seller benefits from debt relief. And best of all, you benefit by leveraging a small amount of money to finance your real estate transactions.
Over the years, I’ve encountered several couples that were desperate to sell. Had their state permitted the “Subject To Financing” option, I may have been able to help. There is a down side though to buying property that is still financed by a bank. Like the seller/owner, you are sitting on property hoping to sell it. With this economy, it is impossible to move property fast enough for it to be beneficial to me. I would in fact become just as much a nervous mess as the seller I got the home from. The best option in my professional opinion is using “Owner Financing”. It is more profitable for the real estate investor, and isn’t that what this is truly about.
La Mirada Real Estate
You can buy real estate with minimal funds or zero money down! The key is learning how to leverage your resources to control a lot of properties. In this article, I am going to explain how you can make money simply by applying a few techniques I’ve used over the years. Interested?
One of the techniques I like to use is “Subject to Financing” aka “Owner Financing”. With this technique, you purchase the property from the seller by simply taking over their existing mortgage. The mortgage stays in the seller’s name and without obtaining financing you own the home. Not a bad deal from my view point.
State to state the rules to “Owner Financing” differ. In fact, several states are attempting to pass legislation to ban this practice. So it would be wise to consult with a local attorney to verify if the laws have been passed that prohibit you from this practice. Regardless, this is still the best method of easily financing a purchase.
What about the “due-on-sale’ clause that most mortgages contain today?
Although it is true that the lender does have the right to call the loan due, but not the obligation to do so; it makes absolutely no sense in today’s poor economical times. It makes more sense for a bank to settle for receiving the monthly mortgage on time rather than force it into foreclosure.
Why would the seller agree to place their credit at risk?
A motivated seller is desperate to eliminate the responsibility for payments. You are offering them the opportunity to remove the burden of trying to make the payments when it is impossible; thereby removing them of the pain and stress they’ve had to endure. Even though the seller remains financially responsible, your financial contribution actually improves their credit. You are making payments that they just could not afford.
By far “Subject to Financing” is the best offer if your state does not prohibit it. This option should be the first one considered. It is a situation where all parties win. The bank benefits by receiving timely payments. The seller benefits from debt relief. And best of all, you benefit by leveraging a small amount of money to finance your real estate transactions.
Over the years, I’ve encountered several couples that were desperate to sell. Had their state permitted the “Subject To Financing” option, I may have been able to help. There is a down side though to buying property that is still financed by a bank. Like the seller/owner, you are sitting on property hoping to sell it. With this economy, it is impossible to move property fast enough for it to be beneficial to me. I would in fact become just as much a nervous mess as the seller I got the home from. The best option in my professional opinion is using “Owner Financing”. It is more profitable for the real estate investor, and isn’t that what this is truly about.
La Mirada Real Estate