When is Foreclosure

Government Mortgage Help

noreply@blogger.com (Dave Jackson) — Sat, 20 Dec 2008 01:58:00 +0000

Basically, mortgage lenders and mortgage-backed securities investors will have to learn tough lessons, no sops will handed out to extricate them from their deteriorating financial crises. Last Friday, the Fed made it its mission to navigate the economy through the rough waters of the current mortgage and housing market. HFH bases their work in building and rehabilitating simple and decent houses on volunteer work and donations of financial funds and materials. With help from selected home buyer families built houses are then sold to the receiving family for a non-profit market value. Their helping the top 15 banks so they could pay executive and year end bonuses only seems to have helped a few on wallstreet.

Tens of millions more will tighten their belts. Communities, from Cleveland to Las Vegas to much of Florida and beyond, will struggle with budget crises. Mortgage lenders are keen to help their customers sort out any payment difficulties. Also, the law says they must treat you fairly and take your circumstances into account. Eligible homeowners must live in the mortgaged property and demonstrate a financial hardship associated with their current mortgage. More specifically, the payment of the current mortgage must be greater than 31 percent of the borrower's monthly income.

A government report in June (commissioned by Kate Barker of the MPC) found that if house prices continue to rise, then in a few years time people would need 10 times their salary to buy a house. Further, if house prices go up, some 2 - 3 million people in their 20 & 30s will reach retirement living in rented accomodation. Summary: Recently, many Americans are behind in paying their mortgage loans and may want to learn ways to refinance their mortgage loans. Who can they contact to refinance the mortgage loans?

This will enable hundreds of thousands if not millions of homeowners who are either behind on their mortgage, or over-mortgaged, or both, to refinance into a resonable 30 year fixed FHA loan. The majority of credit counseling agencies are reputable and provide their services free of charge or for a small monthly administrative fee tied to a repayment plan. Beware of credit counseling agencies that offer counseling for a large upfront fee or donation. Millions of people across the United States have trouble with their mortgage every year. Since 2002, our counselors have provided advice and education to more than 300,000 homeowners.

One of the ways you can get effective mortgage foreclosure help from HUD, the federal Housing and Urban Development department, is to contact HUD from their contact information on the internet and ask to speak to a mortgage specialist. The HUD mortgage specialist will give you a lot very good mortgage foreclosure help and advice and you should take that advice to heart. It is the government?s contention that many US consumers must be educated because many don?t read or understand their loan contracts and some don?t even try. The key here is to teach people how to read the -fine print- Unlike the help the victims of natural disasters get, military personnels or their spouses on active military duty may be eligible for paying lower interest rates on their house mortgage payments. The Servicemembers Civil Relief Act of 2003 (formerly the Soldiers' and Sailors' Civil Relief Act of 1940) outlines rights of a military personnel homeowners, reservists, and guardsmen about mortgage payment relief and protection from foreclosure.

Option arms, which are negative amortizing adjustable rate mortgages may also not qualify for the rate freeze. The government earlier in the year indicated they would reform FHA mortgages, to help more people qualify and assist with the housing challenges but these measures have since stalled. Learn about your options to refinance or for FHA financing from one of our specialists. What "streamline" basically means in a nut shell is the amount of documentation and underwriting needed by your lender, it doesn't mean that you will not pay any closing costs when you refinance your FHA loan. Another option is a short payoff on your existing mortgage loan. If you already have first and second mortgage loans on your home these both can be included as long as you don?t exceed loan-to-value limits set by the FHA.

Multifamily Foreclosure

noreply@blogger.com (Dave Jackson) — Fri, 19 Dec 2008 21:54:00 +0000

Duplexes and Fourplexes can usually rent for more per unit than single family homes alone. Occasionally, multifamily properties can be purchased as short sales and in foreclosures. Each unit has a one car garage. Also according to the listing, the duplex has forced air gas, central AC, and a cathedral ceiling.

While these are multifamily examples we are actively working numberous short sale and REO (bank owned) opportunities too! Buying opportunities like the one Jim Keller found in 2002 exist right now in the city of Napa. In 2002 Yountville was depressed and forgotten much like Napa now.

Between now and the next 15 years (at least) those adults with such redundant credit histories (and with lack of sub-prime lender options) will have no choice but to move into multi-units! Hence, apartments and mobile home parks will be stunning prime real estate investments with fantastic rent rolls, NOI, GPI, and so forth. Communities may wish to adopt policies that make it easier for renters to access new housing after foreclosure. The owners still have an opportunity to make up the missing payments, or refinance with a FHA home loan. If the home owner cannot make up the missing payments, and the owners owe more than the homes market value, the home owner can often sell their house under "short sale status." Many investors step in and contact these owners directly offering to buy their house in order to prevent the foreclosure.

While in New Hampshire multi-family property foreclosures accounted for only about 8% of all foreclosures in the state in 2006 and 2007, as many as 23% of housing units affected by foreclosure may be renter occupied. Though New Hampshire's percentage of foreclosed multi-family properties is relatively low compared to many other states, this problem is likely to worsen over the next year due to the significant increases in energy costs that impact all households. Each unit has a one car garage. Also according to the listing, the duplex has forced air gas, central AC, and a cathedral ceiling. The median sale price per unit fell 24.7% in LA, and 13.9% in San Francisco, compared to the same time period of Q2 2007.

They are encouraging first-time home buyers who can do so to buy now, hoping to avoid absentee landlords who buy up the foreclosed properties. In fact, HUD sells both single family homes and multifamily properties. Check them out - one might be just what you're looking for! The key to finding great deals on foreclosure properties is knowing where and when to look. Veteran real estate agents and investment professionals have spent their entire careers perfecting their foreclosure listing search strategies, and so have we.

The new owners of foreclosed properties routinely send notices to tenants ordering them to vacate within 90 days, said lawyers involved in housing issues. Often the order is sweetened with a cash incentive for leaving quickly, known as "Cash for Keys," generally $500 to $1,500. Over the years, we have received requests for information on properties that have been sold by HUD, either at foreclosure, or from the owned inventory. In response to these requests, we have compiled basic information about these sales. This auction showcases hot properties in exotic locations. Buyers, sellers and investors can largely benefit from some of these deals.

Moving Before Foreclosure

noreply@blogger.com (Dave Jackson) — Fri, 19 Dec 2008 19:45:00 +0000

With the Federal Reserve allowing banks to borrow against their mortgage backed securities at full face value, there is no reason for some to sell. If they did, they would have to bring their losses onto their balance sheets. Some plan to send deputies to deliver reconciliation notices to homeowners whose mortgages have entered the first stages of foreclosure. A fellow named Mullen says he knows what those families are going through because, years ago, his sister had cancer and couldn't support herself. The lender must go to court and obtain a court order showing the borrower to be in default under the terms of the mortgage. At that point, title shifts to the lender.

Perhaps the trillion dollar bailout will work, perhaps not. In any case read this carefully and often. Perhaps this will take the form of some standard application with standardized supporting documentation. That would go a long way toward reducing the number of properties going into default.

In a mobile home foreclosure, if the borrower has taken out a personal property loan, which usually does not have foreclosure protection, then the bank can repossess the mobile home without notice to the borrower. See about getting legal representation, and about having the case go into judicial foreclosure, in which the lender has to go to court and obtain an action, which allows them to go into the mobile home foreclosure. California's SB1137 requires lenders to make contact with borrowers at least 30 days before filing a notice of default. North Carolina now requires lenders to provide homeowners and the state's commissioners of banks 45-day notice prior to filing a notice of default.

This period is an attractive time to purchase because the borrower is motivated to sell the property to avoid having a bank or mortgage company foreclose and damage their credit. Here's what we're hearing - We're a month late on our mortgage and my husband, who's self-employed, just had surgery and can't work for several months. We feel like our house is just more than we can afford -- we probably should never have bought it. Interest rate reductions are a moving target, nothing is set in stone until the mortgage company signs off on it. Another red flag is how a company accepts payment for their fee's.

They have partnered with the banking industry in the state to reduce monthly mortgage payments for at-risk homeowners. This proposal would cap mortgage payments at 34 percent of gross income by reducing interest rates, lengthening loan amortization or reducing the principal. Selling the home in pre-foreclosure immediately removes all of his or her mortgage debts. Freed from the pressure to make monthly mortgage payments, his or her debt load is significantly reduced and consequently his or her credit score begins to improve. As housing monetary value appreciation rates slow, more mortgages going into default. Foreclosure notices has edged up in recent months, providing yet Another sign of a cool down in the real estate market across the U.S.

Subprime Mortgage Payments Defaulted

noreply@blogger.com (Dave Jackson) — Fri, 19 Dec 2008 17:38:00 +0000

Mortgage bankers will foreclose on 8.1 million homes over the next four years, representing 16% of all outstanding residential loans in the U.S., according to a new report issued by Credit Suisse. Back in April CS forecast 6.5 million foreclosures, or 13% of outstanding mortgages. On the other hand, a lot of these mortgage-backed securities have "topping up" collateral requirements in order to keep a minimum credit rating. Are the investment banks content they can raise the billions of dollars in Treasury securities necessary as collateral? Subprime Mortgages: An alternative to a conventional mortgage, subprime mortgages allowed people with bad or no credit history to buy homes with very little or no money down. Not only are these considered high risk mortgages, but history has demonstrated that these homeowners are most likely to default when times get bad.

Subprime loans, generally issued to borrowers who cannot qualify for ordinary "prime" mortgages because of low incomes or tarnished credit, carry special risks for all involved. Lenders face a greater risk that borrowers will default -- i.e., stop making monthly payments. Worries over the tightening credit roiled global stock markets most of August and carried into September. The Dow Jones industrial average, which closed at a record 14,000.41 July 19, tumbled 8.2 percent by mid-August. How to find your kaufmanns credit card limit. This allows you to keep your current rate of interest if you substitute one security property to another.

In response, the home financing industry developed new products that allowed otherwise unqualified individuals (by income, assets, and/or credit history) to receive loans to buy or refinance a house. Homeowners who seem to be less than creditworthy might surprise lenders if they were not subject to such high interest and other types of fees. Generally people want to do better but when they are given a chance to do better it often comes with a high price. Too many foreclosures would affect a bank's credit rating making money more expensive to borrow. On the homeowners side, if you sell your house you don't default on your mortgage, which means your credit is not affected and you can get another mortgage somewhere down the line when your situation improves.

The major threat to such a plan is a prepayment penalty that runs past two years, which some do; and a lender who fails to report their payment history to the credit reporting agencies. Borrowers should be on their guard against both. People with less-than-stellar credit who had bought homes with adjustable-rate mortgages saw sharp spikes in their monthly payments as their low initial teaser rates expired. As a result, more lost their homes; data showed that 70 percent more people faced foreclosure in 2005 than the year before. The goal is to come out of the foreclosure as fast as possible and within a short time refinance with a "B/C" loan and this will improve your credit. Lenders can lend from 80 to 90 percent of a homes value once the foreclosure has been resolved.

This collaboration among counselors, servicers, investors, and other mortgage market participants aims to increase outreach efforts to contact at-risk borrowers through a national direct-mail campaign, encouraging them to either call their lender or a credit counselor. The alliance will work to expand the capacity of an existing national network to counsel, refer, and connect borrowers to servicers. Lenders increasingly use these scores to assess credit risk; they also use them to calculate how likely it is that borrowers eventually will be delinquent (late with payments) or in default. By design, the higher the score, the less likely it is that a borrower will miss payments or go into default on a loan within one or two years after the score has been calculated. You just need that year's time to boost your credit rating. Within a year, you can raise your credit score by a good deal providing you maintain regular, on-time payments.

How to Contact Pre Foreclosure Homeowners

noreply@blogger.com (Dave Jackson) — Fri, 19 Dec 2008 03:35:00 +0000

Foreclosure is the procedure for enforcing a lender rights and titles on a property used as collateral once the obligation in payment of a promissory note secured by a Deed of Trust is in default. Once the property is foreclosed, the defaulter will lose the property kept against a loan or debt as well as his credit rating to qualify for future credit. When a homeowner defaults on their home mortgage loan, it's up to the lender to schedule a repossession and subsequent sale in order to get back the money lost on the loan provided. However, the homeowner usually has a significant period of time, ranging from a few months to a year in which to raise the money in order to settle debt and avoid having their home sold off through an auction. Preforeclosures are usually considered to be properties where a Notice of Default has been filed in a Deed of Trust state, or a mortgage related Lis Pendens has been filed in a Mortgage state. You can find an outline of the common process in each state by finding Foreclosure Procedures, or an explanation of the two main processes at Foreclosure Types.

It gives a potential buyer the first chance to purchase and it gives the defaulting borrower time to sell or refinance. When looking at the same statistics (called “re-default rate”) for loans modified in the fourth quarter of 2007, the percent of loans that were delinquent by 60 days was only 30%. There are a couple of explanations for this phenomenon. It is because we provide quality resources to home buyers, real estate investors, agents, lenders and consumer credit counseling services alike that Default Research has become the national leader in foreclosure research.

These people have just defaulted but are not yet in foreclosure. Unlike the vast majority of lists, what you will have is insider information. While a foreclosure is repossessed and sold because the homeowner has failed to pay his mortgage, a pre-foreclosure indicates that the homeowner has defaulted on the loan, but the lender has not yet repossessed the home. The pre-foreclosure stage is a grace period allowing the homeowner to sell the property and repay the loan.

After all, it's not in anyone's best interest to have the homeowner default on the loan. Consequently, there is a period known as pre-foreclosure where the home is in danger of foreclosure, but there are still opportunities to reverse the situation. Bank foreclosure and Repo properties are plentiful right now but you need to be aware of the risks before you go getting loans on reo properties. Buying Foreclosures is an easy, risk free business once you understand how to do it the right way. When a homeowner defaults on their home mortgage loan, the lender often has no other option except to foreclose on the home and schedule a sale in order to regain the amount left in debt on the loan. Usually, a foreclosed home will be sold through foreclosure auction , but sometimes there is the unique opportunity to buy the foreclosure property before this happens, and that form of foreclosure buying opportunity is called pre foreclosure.

Fighting Foreclosure

noreply@blogger.com (Dave Jackson) — Fri, 12 Dec 2008 02:16:00 +0000

One tip I would give other struggling homeowners looking to modify their loan is that if a loan mod company does not have a mailing address on their contact information page, then I would not do business with them. There are so many scams going on out there that borrowers should be vigilant and not trust every company that has a website. And this seems to be the tip of the iceberg. It looks as if more foreclosures are on the rise.

Remember there is a big difference between how a bad loan is carried on a company's books and how a Bank Owned Property is carried. Many more resources on foreclosure can be gleaned from websites, debt (governmental and private) professionals and literature available at every library and bookshop. Be sure and read closely all correspondence sent from the mortgage lender, but it is also important to investigate other sources of data about your situation. From the excerpts given, the book appears to be a guide and given State of residence, may not be of great value. Some States are tolerant, others are not.

We are not real estate brokers, mortgage brokers, or lawyers, but we can recommend experienced, ethical real estate service providers thoughout the United States! If such assistance is required, the services of a competent professional person should be sought. 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.

The Sunshine State had the second-highest number of foreclosure filings among all states in August, with 44,000 default notices, auction sale notices and bank repossessions. But as Noriega describes it, "it's a race against time." Borrowers qualify for a short sale once the home is delinquent at least two months. Then they have only a month or two to sell it.

And for some homeowners, bankruptcy can actually make the problem worse! So if you have a chance to find out about your other options, you should. Her story is one I hope we can convince IndyMac Bank to listen to and work with,? Now the bank wants to sell the land and buildings out from under her.

Remember there is a big difference between how a bad loan is carried on a company's books and how a Bank Owned Property is carried. Many more resources on foreclosure can be gleaned from websites, debt (governmental and private) professionals and literature available at every library and bookshop. Be sure and read closely all correspondence sent from the mortgage lender, but it is also important to investigate other sources of data about your situation. From the excerpts given, the book appears to be a guide and given State of residence, may not be of great value. Some States are tolerant, others are not.

The banks typically lose a portion of the equity during the foreclosure sales, and so allow you to carry on the sale yourself. This can greatly reduce your foreclosure stress, as this would mean a escape without having a bad effect on your credit. The silver fringes of insulation hang from walls where aluminum siding has been stripped for resale. Home sales have continued to slow, causing real estate inventories to reach the largest inventory in 22 years. In 2005 foreclosure rates increased on a quarterly basis all 4 quarters of the year.

Once educated, you can decide to proceed on your own, or to move forward with a mortgage loan modification specialist to stop foreclosure and bankruptcy. The recently updated legislation expectedly included an update for the refinancing of foreclosures with sub-prime loans. This has been an ongoing process for helping many of the struggling homeowners.

California Foreclosures Increase

noreply@blogger.com (Dave Jackson) — Tue, 21 Oct 2008 20:51:00 +0000

ForeclosureRadar, a foreclosure listings and software company, today announced that 5,316 California foreclosures were sold at auction in March reaching nearly $2 Billion in total loan value. This represents a 27% increase from February and a 264% increase in the last 6 month. Join us today for the latest California foreclosures for sale.

California is known as atitle theory state where the property title remains in trust until payment in full occurs for the underlying loan. The document that secures the title is usually called adeed of trust but may also be referred to as amortgage . This Notice states that the lender or trustee will sell the property at auction in 21 days. This Notice is also sent certified mail to the borrower. Do you want to trust your home to someone with little to no experience?

Trustees Deeds recorded, or the actual loss of a home to foreclosure, totaled 63,061 during the second quarter. In the last real estate cycle, Trustees Deeds peaked at 15,418 in third-quarter 1996. This notice has to include the time, location and property of the foreclosure sale, the trustee's name, address, phone number and a statement that the property is being sold at an auction. The borrower then has 5 days before the foreclosure to cure the default and thus stop the process. A Trustee's Sale Guarantee Report is ordered from the title company providing all title information. The foreclosure remains dormant for the next 60 days unless the borrower makes contact to cure.

The trustee has the right to require every bidder to show evidence of ability to pay the full bid in cash, cashier's check or certain bank checks. Each bid is by law an irrevocable offer to purchase. The successful bidder receives a trustee's deed on completion of the sale. The lender usually bids in the amount of the balance due plus costs.

With the prospect of stability returning to the financial markets, the next six months could be one of the best “Let’s Make a Deal” time periods ever seen in Danville and San Ramon. It will take several months for the government to put all the pieces of the rescue plan into play. Here is an interesting fact, during this gold rush period, 90,000 immigrants came to this country seeking fortune. This is about the time, in 1850, California entered the statehood and became the 31st state.

Anyone can learn to find great Los Angeles bank foreclosures for sale at below market prices so you can save lots of money on your next real estate purchase. Harmon Homes.com makes your search for foreclosed homes for sale in Chico, California easy. The site includes every listing from all of the Harmon Homes Magazines in a searchable online database. Foreclosure resales vary significantly by area, from 5.1 percent in San Francisco County to 66.7 percent in San Joaquin County.

These homes usually end up for al at foreclosure auctions, but this is not the only way California foreclosure sales occur. Often, the homeowner will seek to sell their home in the pre-foreclosure stage to avoid a foreclosure auction. Bank Foreclosures Sale offers a huge database of California foreclosed homes for sale including California bank foreclosures, government foreclosures, HUD and VA repo homes, preforeclosures, bankruptcies, foreclosure auctions, tax liens and distressed properties. Bank Foreclosures Sale offers America's most reliable and up-to-date listings of bank foreclosures in California.

Slowing Down Multifamily Foreclosure

noreply@blogger.com (Dave Jackson) — Mon, 15 Sep 2008 13:49:00 +0000

The real estate market is envisioned by the experts to face a further downward movement due to the increasing rate of unemployment resulting out of foreclosures. The total number of loans that were due by less than 3 months dropped from 4.72 percent to 4.58 percent. The non-recourse financing enabled the developer to recover all equity on the property and have no further cash remaining in the transaction. The facilities had a brief history of stabilized operations, but the loan moved through with a 10-year term and a 25-year amortization. Furthermore there are slightly higher interest rates than secured form.

Despite industry promises and the urging of officials in Washington, the Associated Press reports that approximately 169,000 borrowers received some form of loan workout in May, down from 177,000 a month earlier. During the same period, the volume of foreclosures escalated. For the 31st consecutive quarter, the commerical loan delinquencies in California are below one half of one percent. According to the June 30, 2006 Quarterly Delinquency Survey conducted by the California Mortgage Bankers Association (CMBA), 99.91 percent of the California commercial real estate loans serviced by seventeen mortgage banking firms were either current or only one payment delinquent. Many 401k plans now allow this "loan to yourself. Unlike using your IRA funds, you must pay back the 401k loan over five or more years through payroll deductions, so keep in mind that you won?t have the same paycheck you did before the loan.

But those models assume strong, credible financial institutions that permit the Federal Reserve to regulate the availability of loans by adjusting bank liquidity through short-term interest rates and similar levers. Additionally, Federal Reserve thinking is dominated by econometric modeling, which seeks to divine eternal economic truths from statistical relationships culled from past behavior. Housing permits were down 52.2% in Q108 from a year ago, with single family permits down 53.2% and multi-family permits down 50.9%. Housing starts were down 35.8%, with single family starts down 40.9% and multi-family starts down 26.5%. Issuance of total building permits decreased 4.3 percent in June to a seasonably adjusted annual rate of 1.862 million units, 14.9 percent below the pace of a year ago. Single-family permit issuance was down 6.3 percent on a national basis to a pace of 1.395 million units for the month, reflecting declines in all regions of the country.

Furthermore, there is no consistency from lender to lender. It may be better to use the original loan amount plus some cost factor to use as the lenders original basis. That will only come once more subprime losses have been disclosed and housing inventory declines further. In the meantime a crash is very unlikely, but many property and mortgage markets will remain anemic. Further, incomes are rising more slowly, so a growing number of people will find they can't afford to buy. Another factor is that New Jersey is no longer creating high-paying jobs.

Mortgage Hardship Relief

noreply@blogger.com (Dave Jackson) — Sat, 13 Sep 2008 01:02:00 +0000

Simply owing taxes does not make one “innocent” and is not grounds for relief. Rather, there must have been an understatement of taxes due based on an “erroneous item,” but not under the discretion of the innocent spouse. It is now 2008 and I was told by my neighbor that my tax preparer should have filled out a form to claim my PMI, is this correct? Also, I was told if my house appraises for a certain amount, I could have my PMI drop, unfortunately with the market the way it is, my house will not appraise anyone know of any other way for me eliminate my PMI? So, while you can use a mortgage calculator to figure your basic payment (with the interest), you still need to account for taxes and insurance. In many cases, these expenses can add $200 or $300 -- or more -- to your mortgage payment.

Use tax dollars to buy and demolish foreclosed, unoccupied or half-built houses in several markets (most certainly including the Inland Empire and parts of Central California). It's not as crazy as it seems - several cities already have programs to demolish foreclosed homes that are run down. If they have refinanced, then the Debt Relief Act may not apply to them and there may be tax consequences. Most mortgage payments include escrow, or taxes and insurance. An equity line of credit payment does not reduce your principal loan amount and does not include escrow.

So in a short sale, if you owe $200,000 on your mortgage and you sell if for $175,000, you will have taxable income of $25,000 because of the loss the lender has. It will be reported to you as income in the year the home is sold. Tax regulations required lenders to report the amount that was forgiven as gross income received by the seller, in effect handing sellers a tax bill on income they never actually received. Any loan must be repaid in a "reasonable amount of time," although the Tax Code doesn't define what is reasonable.

Pay stubs, unemployment check stubs or other proof of current income should be in the package, along with two years' tax returns. Get an estimate of the value of your property. If you have IRS tax problems and need IRS tax relief, click here to get started. We have to get rid of it…we can't afford to keep it, and we still owe taxes from last year. I've talked to the lender about our other options, or our next step to get out from under it…Deed in lieu.

It is hoped your state protects you from a judgment creditor (the creditor suing you) forcing you to sell your home to pay the debt. I pay the balance in full on the credit card each month and never pay any interest. One year ago we had good credit of over 750 now it is in the 560 because we can hardly pay our mortgage. Countrywide says they don’t want your house but they house but they do.

The advantage of a Short sale over a foreclosure is that you avoid having a foreclosure on your credit file for ten years. Also if a Short Sale is negotiated properly with your lender you can avoid a possible deficiency judgment. We will send your application to one of our loan specialists who is an expert in bad credit refinancing. Credit score is not the only factor when it comes to finding a loan, so do not lose hope simply because of your low FICO score. The loan, commonly known as HECM, is funded by a lending institution such as a mortgage lender, bank, credit union or savings and loan association. To assist the homeowner in making an informed decision of whether this program meets their needs, they are required to receive consumer education and counseling by a HUD-approved HECM counselor.

Collecting Rent During Foreclosure

noreply@blogger.com (Dave Jackson) — Tue, 02 Sep 2008 16:11:00 +0000

We often get asked how to collect rent during a foreclosure, both from parties being foreclosed and from the landlord point of view. It is not an easy proposition, however, in this economy, things can be worked out so both parties leave with something accomplished. If you find out early in the process, you may still only have a few weeks or at most a few months to find other living arrangements. How soon you'd have to leave after receiving an eviction notice would also depend on the law in your state. Data Quick Information Services reports that in the first three months of 2008, 47,171 homes were lost to foreclosure, more than four times as many as a year earlier. In that same period, 110,000 California homeowners received default notices which is a 143% increase from the same period in 2007.

If the rent is payable monthly, then the tenancy is from month to month. As a general rule, you can terminate a weekly or monthly tenant the next month. The buyer for my property went into foreclosure a few months after he bought the property.

You will discover up to months in advance if your landlord is in foreclosure. That alone can easily save you weeks of financial heartache and agony that would result from scrambling to find another place to live. Having a minimum savings of six to eight months' earnings should give you a reasonable amount of slack until you can improve your financial situation.

The form is to be sent to all owners by certified mail or personal delivery and posted in a conspicuous place within the homeowners’ association. The notice basically says that the petition for a receiver will not be filed if the sufficient vacancies are filled within 30 days and lets the owners know that if a receiver is appointed the receiver shall have all the powers of the board, be entitled to receive a salary, and be reimbursed for all costs and attorney's fees from association funds. Therefore when the bank files for foreclosure, the majority of the expenses of the homeowner are paid for by the bank. These expenses include the taxes, insurance and mortgage. With the well-publicized increase in homeowners teetering on the edge of foreclosure has come an increase in those seeking to prey upon them. Foreclosure scams and refinancing frauds are becoming more prevalent as desperate homeowners struggle to find a way to keep their homes.

Rarely to these "investors" clean up your back payments. You are still responsible for the payments as long as the mortgage is still in place. In order to claim a foreclosure you must be a real estate investor who is also the lender to the home buyer. People buy homes every day but when they are able to deal with another individual as opposed to a company they tend to feel more at ease though it isn't very common.

Depending on the amount of money owed and likelihood of collecting, this process may not be worth your effort. But, considering a judgment may be valid for as long as 10 years and you get interest on your money, why not make it a part of your business practice?

Ways to Work a Foreclosure Rental

noreply@blogger.com (Dave Jackson) — Fri, 08 Aug 2008 02:47:00 +0000

With nationwide foreclosures on the rise, many investors are looking to pick up properties for less than market value. A recent NuWire poll showed investors consider foreclosed properties a greater opportunity than any other type of alternative investment. This can mean steady income for you when turning New York bank foreclosures into rental properties. Kellman attributed that trend to significant appreciation in the housing market this decade, where homeowners bought second or third or fifth properties with hopes of renting them out.

Most often the properties are in disrepair, dirty and littered with unwanted household items. The bank has to clean, repair and then discount the home to put it on the market. I've heard anecdotal evidence that former homeowners have trouble qualifying for rental properties if a foreclosure appears on their credit reports. But if I were a lessor, I'd consider the (typically) lower rent vs. Sadly, many landlords have failed to maintain property that they know they'll soon lose; and increasingly, banks and even new, institutional owners have let foreclosed properties lapse into disrepair (bankers and offshore trusts make poor landlords). You, of course, can't guarantee how the new owner will treat the property, but you can make sure that your tenants have no legitimate reason to withhold rent now by continuing to maintain the property.

A renter may not have any warning that the property they are living in is going through foreclosure until they receive notice of eviction. The new property owner (typically the mortgage lender) can evict the occupants with as short as 3 days notice in some states. When a house is foreclosed, the renter becomes a tenant-at-will and has a right to due process for evictions. The lender has to go through the eviction process either in a housing court or district court. Your good example can help change public perception of dog-owning renters and may help prevent other families from losing their pets to foreclosure.

No renter should end up having 3 days to move out of their home because their landlord (while still collecting the rent) lost the house to foreclosure. Not to mention that if a renter gets evicted due to the house being foreclosed, the eviction can end up on the renter's credit report, making the renter look like a deadbeat, even though they got evicted through no fault of their own.

Owners of rental property are wary of an individual that has just defaulted on a mortgage - and getting credit approval for a rental home is often a challenge itself; with so many homes vacant and are unable to be placed on the rental market, homes for rent are becoming harder to find, and are often priced higher than what the individual was paying on their mortgage - and it’s very often for far less of a home and some that were once rented out to the poorest of Americans that now command prices that are equal to or higher than that of a comparable home just two or three years ago.

More on How to Rent a Foreclosure

noreply@blogger.com (Dave Jackson) — Fri, 30 May 2008 13:58:00 +0000

New owners evict existing tenants because they believe that vacant properties are easier to sell. Common sense suggests otherwise. Moreover a great many of these defaulted loans were not made to home owners, but to investors looking to flip properties in get-rich-quick schemes. Why should they be given protection when they probably lied about their income in the first place?

And the need for more rental properties can energize urban development, because higher commuting costs have translated into growing demand for rentals that are near urban employment centers rather than in outlying suburbs. Lenders, in many instances, can accomplish this by controlling the rental income stream on commercial properties. By far the best mechanism to control the rental income is through the use of a court-appointed rent receiver.

All they need to cash flow the properties is about $1,000 a month. And what they're doing is planning on holding for a few years, then selling when the market improves. Many properties around Eastern Michigan University are rental with certain neighborhoods of mixed single family and multi-unit. Sadly, many landlords have failed to maintain property that they know they'll soon lose; and increasingly, banks and even new, institutional owners have let foreclosed properties lapse into disrepair (bankers and offshore trusts make poor landlords). You, of course, can't guarantee how the new owner will treat the property, but you can make sure that your tenants have no legitimate reason to withhold rent now by continuing to maintain the property.

Make sure you understand the landlord tenant laws in your state and have your rental/lease agreements prepared by or reviewed by a good real estate attorney. If there has been a foreclosure, don’t pay rent to the old landlord. Rather, try to find out who now owns the building. I did talk to the landlord. He said the foreclosure proceedings were all news to him, that he hasn't been served with any papers.

If the tenant doesn't move within the 30 days, the landlord may file an unlawful detainer to legally oust the tenant. That is the eviction that will show up on the tenant's credit record. The landlord is only required to do whatever your lease states--so read it carefully, and keep in contact with your landlord to be kept abreast of the latest news. The offer of more money is a very powerful incentive for landlords, as they will be able to use the extra resources for current projects and investments. Extra cash in the form of a security deposit or extra rent will usually help the landlord see things from the foreclosure victims' perspective.

Housing Starts Post Unexpected Increase

noreply@blogger.com (Dave Jackson) — Fri, 16 May 2008 12:51:00 +0000

Lately, there have been great signs in the news about a slow turn around in the home market. The latest out this morning that home construction increased unexpectedly in April and showed surprising vigor - something we have not seen in the past two years. It's the biggest increase in home construction - a great indicator.

Building permits rose as well and signals optimism for the anything related to housing. Exact figures show that housing starts increased 8.2% to a seasonally adjusted 1.032 million annual rate.

But we find that these figures are from a higher by a surge in apartment building construction, the Commerce Department said. If so, maybe this is the whiplash effect from so many foreclosures. People have to live somewhere and apartment construction is going to accommodate them.

Starts plunged by a revised 13.8% in March to 954,000. Economists expected April starts to drop by 1.4% to a 934,000-unit annual rate - but they didn't and we are happy for any news of this sort.

Government Help with Foreclosures

noreply@blogger.com (Dave Jackson) — Mon, 12 May 2008 22:30:00 +0000

We all know foreclosures are devastating and costly both to property owners and lenders. And I believe that's why government should do all it can to encourage voluntary loan adjustments. Some local governments want to ensure that lending rules are broadly enforced, so they are engaging in a program with other federal and state agencies to conduct consumer compliance reviews of nondepository lenders and mortgage brokers. Now, these reviews are targeting underwriting standards, risk-management strategies, and compliance with consumer protection laws and regulations. Lenders have an obligation to ensure that their standards accurately measure whether borrowers can afford their mortgage. But read on.

The steep rise in foreclosures and subprime lenders filing for bankruptcy has had a negative impact on the once popular subprime loan. As the subprime loans are disappearing, the old FHA loan is now making a comeback. But dishonest or "predatory" lenders do exist and engage in lending practices that increase the chances that a borrower will lose a home to foreclosure. Beware especially of those who make high risk second mortgages. The savings you earn, whether you're buying bank foreclosures or lender REO homes, also represent a larger margin for profit if you're a foreclosure investor! Therefore buying a bank foreclosure means not only great initial savings, but bigger chances for profit on sales in the future!

Ben Bernanke has suggested for lenders to give a break to distressed borrowers by lowering of some portion of the loan amount. A lower remaining principal will permit more manageable monthly mortgage payments for borrowers. Under Zandi's plan, lenders would compete at auction to sell their mortgages to the government at a discount. HUD often agrees to back loans given by private lenders. When the borrowers default on these loans, the difference is paid by the government and these houses become government foreclosures.

The federal government [will] be repaid on the zero-interest, nonrecourse loans. Loans for homeownership properties would need to be repaid within two years, while loans used to create rental housing would have a maximum loan period of five years. Contributing factors such as temporary job loss, medical illness or injury, marital difficulties, forces of nature, unforeseen repairs, or even a death in the family can cause unfortunate financial hardship. Fortunately, there is help available for you to avoid foreclosure and to save your home. Lawmakers in Michigan, for example, set up two loan funds and a statewide education campaign. Maryland lawmakers extended the foreclosure process from 15 to 150 days, giving homeowners more time to work through their financial difficulties.

April foreclosures rose sharply in Denton County than any of the other 10 North Texas counties. Interesting, how the middle class (and as we have learned recently, lower class people that live with their middle class parents) complain about how the lower class get services to help them out. Keep in mind that many people (despite how much they make, black, white, Asian, etc) are one paycheck away from being on welfare. The growing market for foreclosed homes is creating some incredible deals, even if you've never considered buying foreclosed home before. Locate houses from the convenience of your own home computer with a nation-wide database of foreclosed homes and listings complete with addresses, prices, full contact information and photos.

But work with a real estate agent, broker or servicing representative to submit an offer or bid. People will lose their homes, homelessness will increase and a drag on social services will ensue. We as a society have become reckless beyond comprehension.

Getting Someone to Take over Payments on Foreclosure

noreply@blogger.com (Dave Jackson) — Mon, 12 May 2008 22:04:00 +0000

The Notice of Default usually details what you need to do in order to bring your loan current the amount of principal and interest and late fees you will now owe. As usual, people are a day late and dollar short. Late charges, fees, and penalties are tacked on to the monthly payment already past due. During this phase a lawyer or official trustee will take over the case and should contact the homeowner to resolve the problem and get the payments caught up and back on track.

The subprime mortgage crisis has been on the tip of everyone's tongue lately, and the housing market has cooled. Rather than being discouraged by this, smart investors realize that this is the time for deals to be had. Some lenders will allow you to keep your original loan if you can make up the missing payments plus any late fees and legal charges. Others will insist you refinance with another lender. If you do find that you are late in making your mortgage payments then you need to be able to stand up for your rights when it comes to dealing with your mortgage company. In many situations a foreclosure could have been avoiding but the person on the receiving end decided to go into hiding, not pick up the phone, ignore the letters coming in and so on.

If a borrower is later than 16 days with the mortgage payment from the day it is due, the lender is required to send the borrower a notice in writing. The notice must be mailed by the 20th day and clearly state how much the borrower owes (to include late fees). Under no circumstances should you attempt collection on a late payment yourself. Compliance with all state and federal laws while attempting to collect a delinquent loan is not trivial. Once you are in trouble, however, it is probably too late to invoke this solution.

If you ever want to buy the home back, the opportunist will only sell it back at an inflated price. Many times we have had homeowners call days before the auction saying their financing did not go through, and then it's too late! Otherwise, there is a very real possibility that they might move out too soon or find out about the eviction too late. If they move out too soon, they will lose valuable time to save money for an emergency fund and repair your credit.

Foreclosure and Multi-family Homes

noreply@blogger.com (Dave Jackson) — Sat, 05 Apr 2008 02:08:00 +0000

Many people have created great long-term wealth and cash flow today by investing in multifamily properties. Are you thinking big apartment complexes? There are so many foreclosed properties that you are sure to get the right tools to start your investing. Most people think that buying foreclosed properties will leave you disappointed. Featuring really fantastic homes sold at very affordable prices, it is said Illinois foreclosure homes will exceed all your expectations.

All in all, buyers stand to gain considerable profit from these properties whether they purchase them for personal or investment purposes. With positive home appreciation values and low interest rates, buyers will never lose. Following the priority period for owner occupants, unsold properties are available to all buyers, including investors.

The largest listing of Illinois foreclosures can be found at NewForeclosureListings.com, as well as the most accurate information on the subject. Whether you are an investor, a first time buyer, in search of a cheap retirement home or any other type of buyer, you can find the Illinois foreclosures to make this goal a reality at NewForeclosureListings.com. An excellent Omaha foreclosure listings service provider can be found at www.foreclosureconnection.com. Here you will find current inventory with detailed property descriptions and full contact information. The remaining estimated 7.3 percent of foreclosure activity was comprised of commercial; land, mobile home, multi-family and miscellaneous listings.

Illinois, California, North Dakota and Colorado each reduced the number of foreclosure filings by more than 20 percent overall in April 2007. Hawaii topped the list at 29.2%, followed by Florida at 13.9% and California at 10.4%. Rounding off the top five were Massachusetts (10.2%) and Alaska (7.8%). Browse from 285 real estate listings to view residential and commercial foreclosure properties in Chico, California.

Foreclosure and Renting

noreply@blogger.com (Dave Jackson) — Fri, 04 Apr 2008 03:42:00 +0000

Can you rent out your home when it is in foreclosure? A ten to twenty percent gain on that over a few months, then resell is a better investment right now. Some live off and depend on our profits, it is our livelihood. They convince you to sign a quitclaim deed by telling you that they'll let you pay a reduced monthly "rent" payment. This seems like a perfect solution because it supposedly frees up more funds for your other bills. Not only do these folks have to move out, if they paid first and last month's rent, plus a security fee, they likely won't get that money back.

One of those responsibilities is to pay your monthly maintenance expenses, real estate taxes and other fees associated with the timeshare. Homes in Detroit's "better neighborhoods" garner $850 a month, she writes. Many hope to later sell the homes and are betting that the local market will improve within the next five to 10 years. Thus, in this case, the thirty day notice starts to run from the 10th of the month. A private landlord is not required to give a reason for refusing to renew a lease unless the lease so requires.

Because the courts are not involved in foreclosures it is relatively easy to go through the whole process in a few months. Since the Lessee does not actually own title to the property it is not very difficult for the Lessor (owner) to continue to collect payments from the tenant while not making mortgage payments at the same time. Right now, payment "caps" are keeping payments in check each month, but this will change when these loans fully reset. Either way, the situation is not what some wanted, since they just moved a few months ago, and weren't expecting to go through another move so soon.

Which is fine. A party bought two properties in the past 3 months and are renting them out. The folks walking away in Foreclosure need a place to live and they have jobs and income they just need lower payments and they had their rentals. In the first six months of 2007, San Diego County had a record 2,896 foreclosures, compared to 445 during the first half of 2006, representing an increase of 551 percent. Unfortunately, San Diego is not the only county experiencing a high rate of mortgage foreclosures. These include a monthly cost less than a mortgage. You can usually move more easily should you decide to or need to change locations.

Upside Down in an Upside Down Market

noreply@blogger.com (Dave Jackson) — Mon, 31 Mar 2008 19:46:00 +0000

You see the statistics for real estate delinquencies and foreclosures are growing on a weekly/monthly basis. Most communities, counties, and states now find themselves having more of both than at any time since the Great Depression of the 1930s. Foreclosures are high and could still beat last year's numbers. Harris County, for example, racked up 2,219 foreclosures during the first two months of the year.

Organizers with the Michigan campaign for a moratorium on foreclosures, evictions and utility shut-offs demonstrated on March 20 at the McNamara Federal Building in downtown Detroit. Jennifer Granholm to declare a state of economic emergency and impose a moratorium on home foreclosures. Grassroots people’s struggles against the mortgage lenders, bankers and bosses, such as those being waged by organizations like MECAWI in Detroit, can and must be replicated in cities and towns across the country. The capitalist bankers and bosses are pushing us from our homes.

Whether it's because homeowners were stuck in a negative equity situation, or took out a bad loan, there are plenty of luxury homes on the market ripe for the picking. Listings were gathered from RealtyTrac and REOTrans, two firms specializing in foreclosure and real estate owned properties. Also many homeowners continually tapped into their equity and overextended themselves into not being able to pay their mortgage, coupled with an interest only 1st and 2nd - but they have 2 nice BMWs in the driveway. It is a personal option to live within means, but to live beyond a reasonable budget is grossly ignorant and I have no empathy. Both support more counseling services for at-risk homeowners and stronger truth-in-lending rules.

Not to mention that declining property values are wiping out any equity, often even leaving homeowners of many years suddenly owing more than their property is worth.

BlackRock, Highfields, and PennyMac - Hope

noreply@blogger.com (Dave Jackson) — Tue, 25 Mar 2008 00:49:00 +0000

It's funny, but BlackRock Inc and hedge fund Highfields Capital Management and putting some muscle behind a company named Private National Mortgage Acceptance Company - call it PennyMac.

These plan to get money from private investors. I just wonder who? Who right now believes that buying distressed mortgages, which is what they plan to do, is a good thing?

Why this is good for you?

PennyMac, worth following, will also help borrowers restructure their loans so that they can avoid foreclosure. What is of interest is that PennyMac is coming together at a time when mortgage default rates - say foreclosures - are at an all-time high.

Also interesting is that the credit problems citizens are facing in America are affecting other markets in the world. I still am not calling it a recession, yet.

Hang in there. These moves are going to make it better... for you.

How Far Have Home Sales Fallen?

noreply@blogger.com (Dave Jackson) — Thu, 24 Jan 2008 15:33:00 +0000

Existing-home sales fell 2.2% to a 4.89 million annual rate in December, according to the National Association of Realtors. The median home price also declined to $208,400 in December, down 6% from $221,600 in December 2006. Inventories of homes fell 7.4% at the end of last month to 3.91 million available for sale, which represented a 9.6-month supply at the current sales pace. Sales of single-family existing homes fell by 13% in 2007, the biggest drop in 25 years.

Earlier Thursday, the Labor Department said the number of U.S. workers filing new claims for unemployment benefits fell last week for a fourth-straight week, suggesting that a resilient labor market at the start of the year might keep the economy from sliding into recession.

From the Wall Street Journal

Bush Plans to Freeze Subprimes

noreply@blogger.com (Dave Jackson) — Wed, 05 Dec 2007 21:29:00 +0000

Have you been praying for relief? Finally, the Bush administration should announce Thursday an arrangement of sorts with the mortgage industry.

The plan is to freeze interest rates for some subprime mortgages for 5 years. The plan includes a provision to fast track some borrowers toward refinanced loans.

The Bush agreement also will allow state and local governments to use more tax-exempt bond programs in order to assist with funding re-financings.

Many have been praying and it appears there is some relief in site. Tomorrow's plan comes amid concerns about rising home-foreclosure rates.

Is Fannie Mae Going Broke?

noreply@blogger.com (Dave Jackson) — Wed, 05 Dec 2007 04:17:00 +0000

We've reported on the stance of Fannie Mae before and how the slippery slope of the credit market really is. And to know someone cares out there, about your Fannie Mae mortgage - well, that's downright nice.

Now, if you're an investor in Fannie Mae; you won't like this post.

But if you're like the majority, this comes are great news. Fannie Mae today announced that they are going to raise capital so that they will have more money to remain solvent.

They are also going to cut dividends. That hurts their shareholders, but these are desperate times, no?

Chief Executive Daniel H. Mudd said that selling off stock to raise some $6 billion is a step in the right direction.

Is the end in sight?

Freddie Mac Takes a Dent from Mortgage Credit Woes

noreply@blogger.com (Dave Jackson) — Tue, 20 Nov 2007 13:39:00 +0000

Just announced, Freddie Mac's net loss for the 3rd quarter more than doubled to $2.03 billion, this based on higher credit-loss provisions and the marking to market of securities. Why? The housing-market weakness and the deterioration of mortgage credit is to blame. The Freddie Mac said the fair market value of its net assets dropped by $8.1 billion in the quarter.

And now, Freddie Mac hired an adviser to study its capital-raising options. They say they are considering cutting its dividend by half. Accordingly, shares fell 6% in premarket trading.

When Will the Subprime Foreclosure Housing Recession End?

noreply@blogger.com (Dave Jackson) — Fri, 26 Oct 2007 03:03:00 +0000

Did you know they would plunge so far? The home sales numbers for September, that is. And October home sales are going to be worse. There are a few home sales, but nothing like the fury before the subprime mortgage collapse. The home sales for September 2007 were the lowest since the National Association of Realtors started keeping track back in 1999. And giant Re/Max International tells us that it will indeed get worse.

When is the Housing Market Supposed to Get Better?

It's called a housing recession. But Re/Max says it will get worse before it gets better. Wednesday they released figures that show October 2007 home sales are down sharply from where they were last year - at least in cities it monitored - Seattle and Baltimore. Re/Max International claims they're down 44 percent from 2006.

What Areas Are Hardest Hit by the Subprime Foreclosure Recession?

September showed to be the worst month in eight years and off by 19 percent from 2006. According to the NAR, they haven't seen anything this bad but know that it won't get better anytime soon. Areas hit worst are California, Florida, and the Carolinas. Foreclosures are happening to everyone, but classified ad sections show announcement of foreclosures by mainly Spanish surnames, followed by anglo saxon.

Where is the Best Place to Get Foreclosure Information?

Scott Anderson of Wells Fargo says since states such as California and Florida had such booms, it is natural to see the reverse happen now that the market has basically imploded. He claims we will have price declines similar to the Great Depression - through 2008. Some say the Feds will cut the prime rate next week when they meet. Another Fed rate cut is expected in December.

The best place for foreclosure information is the Internet, followed by classified ads in local papers. Court houses carry foreclosure lists as well, but you may have to wait in line to see them as many are finding ways to make money on foreclosures.

How Much Did Mozilo Know? Countrywide SEC Investigation

noreply@blogger.com (Dave Jackson) — Wed, 17 Oct 2007 21:21:00 +0000

Countrywide Mortgage, you know, the ones on TV that have those commercials in nice fall colors that sometimes play twice with the same old guy making you feel all cozy - well they're in trouble. We reported on Greenpoint Mortgage going under back in August. Now Countrywide doesn't appear to be biting the bullet, but the CEO is in deep water because he traded some stock with insider knowledge.

The Securities and Exchange Commission opened an informal investigation this afternoon because Mr. Angelo Mozilo, the Chief Executive Officer sold at least $130.6 million in stock during the first half of the year. What do you suppose he knew?

A deputy director of the SEC, Walter Ricciardi, wouldn't comment on Countrywide, but said the agency will be looking deep into practices there. The SEC has already formed a "Subprime Working Group" back in January - so the word on the street is that Mozilo knew that the stock would tank and sold with that information.