Loan Secrets

By Guest Author Greg Smith

Are you having trouble making ends meet? Not paying your bills on time? Are you not able to keep up with your mortgage payments and continue to get further and further behind? How do you get yourself out of this mess and not lose your home?

Avoiding foreclosure may be possible and you should work hard to avoid it.

What is foreclosure?

Foreclosure is the legal means by which a bank or other secured creditor sells or repossesses your home or a piece of real property due to your default on its promissory note. When your house is foreclosed on, you must move out and it is usually sold at public auction. When the foreclosure process is complete, it is typically said that “the lender has foreclosed its mortgage or lien.”

In the United States, there are two sorts of foreclosure in most common law states. Under “strict foreclosure,” the bank claims the title and possession of the property back in full satisfaction of a debt, usually on contract. In the proceeding simply known as foreclosure, the property is exposed to auction by the county sheriff or some other officer of the court. Many states require this latter sort of proceeding in some or all cases of foreclosure, in order to protect any equity the debtor may have in the property, in case the value of the debt being foreclosed on is substantially less than the market value of the property. In this type of foreclosure, a deed is issued to the winning bidder at auction. Banks and other institutional lenders typically bid in the amount of the owed debt at the sale, and if no other buyers step forward they get title to the property in return.

Some states have adopted non-judicial foreclosure proceedings, in which the mortgagee, gives the homeowner a legally specified notice of the default and the mortgagee’s intent to sell the property. If the homeowner fails to cure its default, or use other lawful means, such as filing for bankruptcy to stop the sale, the mortgagee or its representative will conduct a public auction in a similar manner as the auction described above. The highest bidder at the auction becomes the owner of the property free and clear of any interest of the former homeowner.

What Should You Do To Avoid Foreclosure?

• Do not ignore letters from your lender. If you are having problems making your payments, call or write to your lender’s Loss Mitigation Department without delay. Explain your situation. This shows good faith on your part. Be prepared to provide them with financial information, such as your monthly income and expenses. Without this information, they may not be able to help.

• Stay in your home for now. You may not qualify for assistance if you abandon your property.

• Contact a HUD-approved housing counseling agency. Call (800) 569-4287 for the housing counseling agency nearest you. These agencies are valuable resources and they frequently have information on services and programs offered by Government agencies as well as private and community organizations that could help you. The housing counseling agency may also offer credit counseling. These services are usually free of charge, and they can help explain possible alternatives.

Some of the possible alternatives you may consider include the following:

Special Forbearance. Your lender may be able to arrange a repayment plan based on your financial situation and may even provide for a temporary reduction or suspension of your payments. You may qualify for this if you have recently experienced a reduction in income or an increase in living expenses. You must furnish information to your lender to show that you would be able to meet the requirements of the new payment plan.

Mortgage Modification. You may be able to refinance the debt and/or extend the term of your mortgage loan. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem and can afford the new payment amount.

Partial Claim. Your lender may be able to work with you to obtain a one-time payment from the FHA-Insurance fund to bring your mortgage current.

Pre-foreclosure sale. This will allow you to avoid foreclosure by selling your property for an amount less than the amount necessary to pay off your mortgage loan.

Keep in mind that your lender does not want to force foreclosure proceedings because it costs them a lot of money to do so. Therefore, if you are sincere and show good faith, they are more likely to work with you to find a solution. Foreclosure can seriously affect your ability to qualify for credit in the future. So get the help you need and avoid it if at all possible!
This article was found at Site Reference.

Bob Roscoe, Mortgage Marketing Associates, Minneapolis, Minnesota
Bankruptcy Info

By Guest Author Jeanette Joy Fisher

If you’re looking to get started investing in real estate by fixing and flipping houses, you’ll want to know what to type of property to buy. Many real estate investors make millions turning ugly houses into dollhouses. On the other hand, some inexperienced investors lose money buying houses that just don’t turn a profit.

Three Tips to Help You Find the Perfect Fixer

1. Learn Your Market

Your first task, exploring your market, helps you know a bargain house when you see one. Look at houses for sale in your area. Keep track of sales and how long the houses take to sell. Ask about the terms of these sales because this helps you understand how sellers market their property. For instance, if a seller paid closing costs for the buyer, did the price rise from the listed price accordingly? Or, did the seller come down on the price and pay the buyer’s costs, too. Examine the sales that sell quickly. What home features and financing options prompted the fast sale?

Also, look at model homes. Buyer often chose resale homes because they can’t wait for a new home to be finished. But, these buyers like the amenities found in newer homes. When you transform your fixer, you’ll know what buyers desire and you’ll make informed makeover choices.

2. Know When “Bad” Can Be Good

When you first start out in your real estate “fixer” enterprise, you’ll want to look for houses needing only cosmetic work. Look for houses that just need cleaning up, painting, and new flooring. Don’t be afraid of stinky houses that show horribly; look for fixers with peeling paint, holes in the wall, stained carpeting, and trash in the yard. Remember, these houses won’t look good to most buyers, but that other investors see them as gold mines. You need to use your imagination when viewing these homes. Try to visualize the finished product.

3. Know When “Ugly” Means “Pass”

If the house has cat urine staining the carpet, the subflooring or concrete foundation may need replacing. Dog urine cleans up easier. If the walls have too many cracks and bumps, you may need to hang new sheet rock or hire a professional plaster refinisher. Look for signs of plumbing problems such as water stains under sinks and loose flooring.

When you’re new to real estate investing, always remember your limitations. Use caution when considering houses needing structural repairs. Some rehabbers replace walls, plumbing, structural beams, sub-flooring, and electrical systems, but they acquired those skills after years of experience or pay a professional.

If you find a house with structural problems, get estimates from reliable contractors to do the work. Experience teaches you how to do more over time. Until then, rely on experienced contractors to do the repairs. Take professional estimates into account before deciding whether or not to purchase an investment property.

Why would anyone want to do this? How much does the average investor make? In Philadelphia, real estate investors only make offers on houses they expect to make $30,000 on. In Southern California, many investors make $50,000 to $100,000 on each house.

Summary: You can make a fortune fixing ugly houses. Learn your market. Know when “ugly” means bad that can be good, and when stinky means pass.

Copyright© 2005 Jeanette J. Fisher. All rights reserved.

For more information about finding, financing, fixing and flipping houses, visit Jeanette Fisher’s Doghouse to Dollhouse for Dollars. Learn about decorating to attract buyers. Professor Fisher teaches Design Psychology college courses and professional real estate seminars. She is the author of Home Staging, credit for buying real estate, and other books. http://www.doghousetodollhousefordollars.com/.

Fixing questions? Visit Dollhouse to Dollars blog: http://doghousetodollars.blogspot.com/.

Article Source: http://EzineArticles.com/?expert=Jeanette_Joy_Fisher

Bob Roscoe, Mortgage Marketing Associates, Minneapolis, Minnesota
401(k) for Down Payment

By Guest Author Brandon Cornett

What Does a Home Inspector Do?

In short, an inspector checks the safety and functionality of your potential home. Inspectors focus primarily on the structural and mechanical aspects of the home.

Get a home inspection as soon as possible after the sellers accept your offer. Make the contract contingent upon the home inspection. That way, if the inspection uncovers a major flaw that you’re unwilling to accept, you have a legal way out of the contract.

Don’t confuse the home inspection with the home appraisal. The home appraisal protects the lender’s financial interests. The home inspection protects you, the buyer. The appraisal is the bank’s way of determining whether or not the house is worth the price you’ve agreed to pay. The inspection is your way of identifying structural or mechanical problems with the house.

How to find a home inspector:

• Ask a friend or coworker who has recently bought a home in the area.
• Ask your agent if he or she can recommend a qualified inspector.
• Visit the American Society of Home Inspectors website: www.ashi.org.
• Visit the National Association of Home Inspectors website: www.nahi.org.

Is a Home Inspection Worth the Price?

Consider this. Home inspections usually run between $200 and $400. Weigh that small cost against the comfort of moving into a known situation, and the answer is obvious … get a home inspection!

The List

Your home inspector will go through your home with a fine-toothed comb. So be present for the inspection – you’ll learn a lot. Afterward, the inspector will make a list of discrepancies. Some items won’t be a big deal to you, but it’s still the inspector’s job to point them out. But other items will be more serious, and these are the items you should discuss with your agent.

Who’s Fixing What?

When you review the inspector’s list with your agent, you’ll have to decide which items (if any) you want the sellers to repair. Like nearly everything else in the home-buying process, the fix-it list is negotiable. When you submit your list of requested repairs to the sellers, you face one of several outcomes:

1. The seller will agree to fix all of the items.

2. The seller will agree to fix some of the items.

3. The seller won’t agree to fix any of the items.

4. The seller will reduce the price in lieu of certain repairs.

How you proceed in light of the seller’s response is up to you and your agent. A good rule of thumb—don’t ever turn a blind eye to a major repair issue just because you’re excited about getting in the house. If you’re an experienced investor and you’re buying the house specifically to fix it up, that’s one thing. But if you’re buying your first home, be conservative and carefully consider each item on the inspector’s list. It will benefit you in the long run.

Summary

Hire an inspector to review your prospective new home for potential problems. The peace of mind you’ll get is well worth the cost you’ll pay. Review the inspector’s list with your agent and carefully consider each item on the list. Consider your ability (or inability) to make the repairs yourself, vice having the sellers repair them.

About the Author

Brandon Cornett is the editor of HomeBuyingInstitute.com, one of the Internet’s largest and most respected libraries of home buying information—more than 100 expert articles in 12 different home buying categories! Put this knowledge to use by visiting http://www.HomeBuyingInstitute.com

Article Source: http://EzineArticles.com/?expert=Brandon_Cornett

Bob Roscoe, Mortgage Marketing Associates, Minneapolis, Minnesota
Home Buyer Mistakes

By Guest Author Hugh Harris-Evans

You have decided to sell your house, have engaged the services of a Real Estate Agent or decided to handle the sale yourself and are just waiting for prospective buyers to call. Someone arranges to view but, after a quick inspection, they leave never to be heard from again. What went wrong? Here are seven of the best ways to put off your buyer.

1. A house that smells of cigarette smoke or animals does not provide a welcome to visitors. Stale cooking odors are also to be avoided. While you are used to your home and may not be aware of any odors, they will be immediately obvious to any visitors.

2. Family pets should be moved outside during a visit. Many people are afraid of dogs and not everyone is keen on cats or other pets.

3. Dimly lit rooms. Buyers like a light and airy atmosphere so all curtains and blinds should be drawn back. Turn on the lights as well if the room is naturally on the dark side.

4. Dirty bathrooms and kitchens are an immediate turnoff. Make sure that these rooms are spotless and all towels freshly laundered. All cooking pots should be put away and all clutter removed. This applies to all other rooms as well.

5. Poor decorations and worn carpets will give an impression of general dingeyness. Almost as bad is loud wallpaper which can be overpowering. While buyers can imagine how a freshly decorated room would look, it is far better for them to see the fresh paint when they visit.

6. Even worse than poor decorations is mould on the walls and damp in the basement. Apart from the visual disfigurement mould can also be the cause of an unpleasant smell.

7. Owners who hover while buyers are looking round. Unless you are showing the buyers round yourself, leave it to the Agent and make sure that all members of your family are out of the way, preferably outside, while the buyers are present.

Avoid these common mistakes and your house will provide a welcoming atmosphere which will increase your chances of any early sale.

Hugh Harris-Evans is a writer and webmaster of Sell House Tips.com where you will find further articles and tips on How to Sell Your House http://www.sellhousetips.com/

Article Source: http://EzineArticles.com/?expert=Hugh_Harris-Evans

Bob Roscoe, Mortgage Marketing Associates, Minneapolis, Minnesota
The Perfect Mortgage

By Guest Author Scott Ames

Let’s call him John. A bright and hard worker just trading time for dollars at his regular job. His first house flipping experience could have been a lot better.

John was watching “Property Ladder” on the A&E network one day and got the bright idea to flip a house himself. After all, those people were making money. A complimentary show “Flip This House” confirmed that money could be made, lots of money.

If you haven’t seen Property Ladder, it’s a television show that features first time home flippers. Usually in that show the inexperienced flipper, egged on by Kirsten Kemp, make almost a year’s salary or more by fixing up an old house and selling it. Kirsten Kemp is a veteran of flipping houses and is a bit too pretty to be mistaken for Bob Vila.

John figures that the people featured in these shows are not all that bright and certainly he could do as well. With a bit of nervousness John put a 10% down payment on a home that needed repairs and begin the repair process. Or did he?

The first thing John did was to ponder what really needed to be fixed and if he needed a contractor to do it. Two weeks went by.

After getting several bids, John chose a contractor to come in and totally renovate the property for $11,000. That included paint, carpet, appliances, and a new wall to turn an open area into another bedroom. Once it was agreed, the contactor was to start working. As luck would have it, the contractor had some unfinished jobs and couldn’t start for another two weeks. John was patient, after all it was going to be a great flip and he was going to make money. It was just another $800 for an extra month, no big deal.

Once the contractor started, he started with a bang. Just like on the show “Flip this House” a big yellow dumpster was deposited on the lawn and a crew started ripping out wall paper and junk from the house. That demolition lasted about two days.

The next thing this “go getter” contractor did was to disappear for another two weeks. The excuse: Men had quit and another job was pushing them behind.

To make a long story short, the contract took 8 months to get nearly complete, and then John pulled the plug and fired the contractor.

John paid others to come in and finish what was started. He now had 9 months of house payments into the project, 10% down, and construction costs.

After the house was ready, John listed it with an agent, and it sat another month. John lowered the price a bit with the prompting of the agent, but got cold feet after two weeks and wanted to raise it again. Too late! The house had a full price offer. Good news, sort of.

All said and done John made a little money and got a whole lot of experience. It was a flop, but at least he didn’t lose money.

Let’s review what John, now wiser, could have done differently on his first flip.

Firstly, putting 10% down is ok, but not ideal. John should have used private money or have financed the property at 100%. That money could have been used for fix up rather than being tied up in the property.

Secondly. John waited too long to decide what he was going to do. He should have known before he bought the property what his plan was. This would have saved two weeks at least.

Thirdly. While John got a referral for the contractor, he should have gotten more bids. A deadline for the completion of the job, with penalties, should have been written in the contract.

Fourth. John waited too long to fire the contractor once he knew there was a problem. He was afraid that he would still owe the full amount if he terminated the contractor before the work was done. A proper contract would have prevented that fear.

Fifth. John listed with a realtor too early. The property should have been for sale by owner from day one and John should have tried to market the property himself.

Sixth. The price was set, and then changed too quickly. Better marketing would have netted John with a nicer profit. John should have known the selling price even before buying the property.

A lot of mistakes were made, but John still made a slim profit. All is well that ends well, but you don’t need to make these same mistakes. Learn from John.

Scott Ames is publisher of BirdDogCity.com a website dedicated to those interested in flipping houses for profit, either retail or wholesale. You may visit the site at http://www.birddogcity.com

Article Source: http://EzineArticles.com/?expert=Scott_Ames

Bob Roscoe, Mortgage Marketing Associates, Minneapolis, Minnesota
Will Flippers Fade Away?