Buying foreclosures can be extremely profitable for real estate investors. However, most of these homeowners are mortgaged to the hilt. They have no equity, and big loan payments. In fact, many actually owe more than the property is worth!
Most investors will walk away from these deals because they see no obvious profit. However, you can “create” your own equity by negotiating a “Short Sale” with the bank or lender.
What is a Short Sale?
The concept behind the short sale is simple: your goal as a real estate investor is to convince the bank to sell for less that is owed as payment in full. Of course, this concept is easy - buy the foreclosure from the bank at a big discount, sell the real estate, and make money!
How to Negotiate the Short Sale with the Mortgage Holder
Once you have your secured a contract with the homeowner and have your paperwork in order, you'll be ready to deal with the loss mitigation department of the bank. Short Sales success relies on dealing with the loss mitigation department at the bank. Although most lenders look at short sales as a necessary evil within the lending industry, that doesn't mean that the bank will just roll over and do your bidding.
Understand the Bank's Perspective
With foreclosures at a 52-year high, the loss mitigation department at the bank is busy, if not highly overworked. Turn this disadvantage into an advantage - sell them the benefits of your short sale.
Short sales contracts help lenders unload unwanted property and spare many expenses associated with the foreclosure process. These expenses include, but are not limited to, court costs, bankruptcies, repairs and marketing. This is in addition to the $300,000 to $800,000 (or more!) normally held in reserve by lenders. Federal regulations require this reserve, which is usually many times over the actual price of the bad debt.
As the investor, keep these benefits at the top of your mind. After all, it's up to you to convince the lender that cutting their losses short is the best option.
It's time to hone your negotiating skills. Here are 3 Steps to help you out.
Step 1: Have Your Paperwork Ready
There is paperwork that all lenders will require in order for you to submit your offer for the short sale. Second, many of the larger institutional lenders have their own short sale package (their own forms to be filled out and signed).
Since many of these forms have to be signed by the homeowner(s), it's best to have them with you when you meet with the homeowner to work out a deal. At a minimum you should have the homeowner fill out and/or sign:
· Authorization to Release Information (homeowner's permission for the bank to speak to you)
· Purchase and Sale Agreement
· Hardship letter (showing why the homeowner can't make the mortgage payments)
· Financial statement (showing the assets, liabilities, incomes & expenses)
· Estimated HUD1 or Net sheet (showing the bank what they will get)
Second, find out if the lender has a package they want completed. You can do this usually by calling the lender and asking them to fax you the package. Get the lender information from the homeowner in a phone call, so you can get the package before you go out to the house.
Step 2: Approaching the Loss Mitigation Department:
One of the first challenges you'll face with the bank is getting your call to the right person. Some banks have systems set up in a way that when you call put in the homeowner's account number, the call transfers to the appropriate department.
If the bank doesn't have a system like this, call around to find the Loss Mitigation Department. Many banks have different names for this department, so you may spend some time getting bounced around. Other names to try out are “foreclosures department”, “short sale” department, or “loan modification” departments.
Make sure you introduce yourself and be nice, polite, and patient when you reach the right person. This is the person that can make or break your deal. It's helpful to have some form of a script in front of you to get the conversation.
When you speak with them, make sure you cover the following:
· Introduce yourself.
· Name the homeowner, the account number, and the fact that you represent them.
· Ask for the fax number.
· Let them know you're faxing over an “authorization to release information” so that the loss mitigator can talk to you.
· Stay on the phone as you fax this information.
· Explain to them that you're interested in a short sale.
Once they have the paperwork in front of them, the negotiations begin.
Step 3: Begin Your Negotiations
Every bank has its own personality and approach when it comes to short sales. Some teach their employees to at least show resistance up front. One reason for this is that many investors call them expressing interest in a short sale, with no clue how to do it! These loss mitigators usually have about 80 to 300 files on their desk. They just don't have the time or desire to teach you! Let them know you don't need them to!
Many new investors have been advised to not reveal that they intend to invest in a property. However, it is better to be upfront and let them know that you are an investor, and you are buying the property.
Being honest and upfront allows both parties know what is required of them, and what needs to be negotiated.
While speaking with a loss mitigator, make sure to emphasize the following points:
1. You're an investor and you know what you're doing. Although you do want to make profit, let them know you're not out to steal the property from them.
2. You understand that they are busy and appreciate the valuable time they are spending to negotiate with you. Find out what will make it easier on them.
3. Remember your selling points. The bank wants to avoid the homeowner filing bankrupty, and the bank needs to unload unwanted property without taking a huge loss. (And yes, while you are in it to make a profit, you're not trying to rip them off! You're just trying to use your expertise to do what you're good at.)
4. A short-sale is a win-win situation for everyone!
Once you have spoken to the loss mitigation department and given them your paperwork, the lender will need information about the property, the borrower and the deal that you are proposing. If the person you are speaking with tries to test your resistance, make sure you answer as many questions as thoroughly as possible to let them know you are a professional. Hang in there, answer and ask as many questions as possible, and they'll be more apt help you out along the way and walk you through what it is that you need to do.
The most important fact that the broker needs to know is: How much is the property worth? Banks usually hire a real estate broker or appraiser to evaluate the property. This is called a broker's price opinion or “BPO”. The BPO is one of the largest hurdles you need to clear when perfecting your short sale negotiations. In the next article, you'll learn the in's and out's of the BPO and how to negotiate the BPO down to create profit for your short sale.
Go to http://www.InvestorWealth.com for these Real Estate Profit Secrets: * Super Success Short Sale Secrets (*Best Course) * Deal Evaluation Tool * Free Teleseminars on the latest and most effective real estate profit techniques
Showing posts with label foreclosures. Show all posts
Showing posts with label foreclosures. Show all posts
Monday, September 03, 2012
Monday, July 16, 2012
Short Sale Success Secrets With Foreclosures
If you’re an active investor in real estate investing, you may already realize one of the biggest issues real estate investors face: Finding Great Deals.
FORECLOSURES AT A 52-YEAR HIGH
With foreclosures at a 52-year high, there are thousands of deals available on the market, if you know where to find them and how to secure them. The first challenge you'll face once you locate the property is that most of these homeowners are mortgaged to the hilt. They have no equity, and big loan payments. In fact, many actually owe more than the property is worth!
Most investors will walk away from these deals because they see no obvious profit. That's because they don't know about the Short Sale.
WHAT IS A SHORT SALE?
The concept behind the short sale is simple: your goal as a real estate investor is to convince the bank to sell for less that is owed as payment in full. Of course, this concept is easy – buy the foreclosure from the bank at a big discount, sell the real estate, and make money! So how does it work?
SUCCESS WITH SHORT SALES CAN BE ACCOMPLISHED IN THE FOLLOWING STEPS:
Step 1: Always Do your research.
Many new real estate investors make the mistake of waiting until some subscription service sends you the list. The disadvantage is that a ton of other investors are also getting the list. If your first contact is to send a letter, forget it. Your letter will be lost in the huge pile the homeowner is getting from all sorts of other investors, credit repair etc. 99% of the time these go directly into the trash or a big basket unread. If you go directly to their door you've got a chance.
So if you're going to mail, be the first to act when the default notices are printed in the local newspaper. Or be the first at your courthouse, if that's where they're filed first. The key to finding investment-worthy properties is to act quickly. Be disciplined and mail out the letters the very same day—in fact take them to the post office. In this business, the early bird really does catch the worm.
Tip for Success: If you don’t have a company that publishes your notices of default, check with local title companies or bankruptcy attorneys to see if they offer these services; you need somebody familiar with the subject that visits the courthouse often.
Step 2: Develop your marketing strategy.
When you have located foreclosures, make sure your timing is swift. Mail your initial letters of approach to the homeowner the same day you discover the property. Placing ads in your local papers also helps to generate leads and find homeowners eager to avoid the credit penalties involved with foreclosing.
Tip for Success: A typical advertisement strategy taught in real estate training is to get listed in real estate or credit section of the classifieds. These ads typically have a bold, to the point headline, such as “Avoid Foreclosure” or “Stop Foreclosure, Today!” If you are targeting a specific property type, or reaching for higher market values, specify this in your ad. (Instead of simply “Avoid Foreclosure,” add your target market to the bottom of the ad. Example: “Avoid Foreclosure, call 1-800-555-1212. 500K and up.” You’ll make more money in real estate by reaching for high-value properties, and an ad like this shows your prospects that you specialize in helping those with higher value homes avoid foreclosure.
Step 3: Work with the homeowner.
You can’t get anywhere without the cooperation, and often gratitude, of the homeowner. The homeowner you are working with has obviously run out of options, but you’ll need their trust and confidence if you plan to short sale mortgages. Remember, in these situations, you are often looked at as the “rescuer”. Make sure you explain the homeowner’s part in the process thoroughly. Once they deiced to allow you to work with them, there is important paperwork you need them to fill out and sign:
1. an “Authorization to Release” form that gives you permission to contact the lenders and the foreclosing attorneys.
2. a sales contract – signed but leave the purchase price blank. You may need to change the numbers as you negotiate with the bank
3. a financial statement – to show they can't afford to make the payments
4. a hardship letter – to explain in personal terms what happened.
Tip for Success: Remember that this is a stressful time for the homeowner. It’s easy to get caught in the excitement of a prospective short sale profit. You can get them to make a decision when you are able to convince them that this is the right option for them Emphasize the benefits of working with you, and then ask for them to take action. Make sure to let them know that once your contract is signed, and the bank accepts it; they’ll be free to move on with their life.
Step 4: Negotiate with the bank.
Although banks don’t enjoy taking a loss, it is a simple fact of the lending business that short sales are a necessary evil for lenders. Indeed owning the property (a non-performing asset) is even more expensive than selling it for a loss. Consider:
Banks use short sales to drop unwanted property quickly without having to deal with the REO office and go through the long process of putting the home back on the market. When you speak with the Loss Mitigation department, remember, this property is actually costing them money! Federal regulations require somewhere between $300,000 and $800,000 (or more!) to be held in reserve by lenders, which is many times over the actual price of the bad debt.
When you call the bank and ask for the Loss Mitigation Department (the department that handles properties that are in foreclosure) tell the person handling the account that you are trying to help Mr. X with his foreclosure and you are willing to buy the property from him, but due to the condition of the property/declining values/etc. you are only willing to pay X amount. This is where your negotiations begin.
Be firm and polite, but don’t ever make threats to not buy or be forceful in your approach. Loss mitigators are often busy and overworked, and they want to see you as somebody who is minimizing the damage – and hassle – of the bad debt.
Tip for Success: Larger banks are the easiest to deal with when working with short sales and foreclosures. This is because the larger banks have more resource, more experience, and more loans! While there are some larger banks that don’t work with short sales at all, other banks, such as Wells Fargo or Fairbanks Capital, tend to work with a much larger volume of short sales.
Once you have worked with enough short sales, you’ll find that you have inside contacts at some of the larger banks; be friendly, ask them about their day, Develop a rapport. Sometimes, they’ll open up about problems they’re facing or current trends, which of course, you’ll need to keep on top of!
You don’t have to be a real estate pro to see the potential for making money with short sales, and now you definitely have some great tools to get started. Great deals in real estate are out there, and with today’s market, your potential for profit is limitless. Just keep in mind: do your research, market your services, and treat the homeowners and lenders with respect. When you use this approach with short sales, you can make a win-win for everybody, especially the officers at your own bank when you cash in on your profit!
In the next article, we'll discuss the tricks and tips in convincing the bank to take a big discount on the short sale.
Best of Success,
Richard Odessey
About the Author:
Richard and Michelle are experienced investors and founders of the premier site on the internet - http://www.InvestorWealth.com: training real estate investors to do high profit deals. Offering Free Teleseminars by the top real estate investors, how-to tools and kits and hands-on training with personal advice from experts from the comfort of your home
FORECLOSURES AT A 52-YEAR HIGH
With foreclosures at a 52-year high, there are thousands of deals available on the market, if you know where to find them and how to secure them. The first challenge you'll face once you locate the property is that most of these homeowners are mortgaged to the hilt. They have no equity, and big loan payments. In fact, many actually owe more than the property is worth!
Most investors will walk away from these deals because they see no obvious profit. That's because they don't know about the Short Sale.
WHAT IS A SHORT SALE?
The concept behind the short sale is simple: your goal as a real estate investor is to convince the bank to sell for less that is owed as payment in full. Of course, this concept is easy – buy the foreclosure from the bank at a big discount, sell the real estate, and make money! So how does it work?
SUCCESS WITH SHORT SALES CAN BE ACCOMPLISHED IN THE FOLLOWING STEPS:
Step 1: Always Do your research.
Many new real estate investors make the mistake of waiting until some subscription service sends you the list. The disadvantage is that a ton of other investors are also getting the list. If your first contact is to send a letter, forget it. Your letter will be lost in the huge pile the homeowner is getting from all sorts of other investors, credit repair etc. 99% of the time these go directly into the trash or a big basket unread. If you go directly to their door you've got a chance.
So if you're going to mail, be the first to act when the default notices are printed in the local newspaper. Or be the first at your courthouse, if that's where they're filed first. The key to finding investment-worthy properties is to act quickly. Be disciplined and mail out the letters the very same day—in fact take them to the post office. In this business, the early bird really does catch the worm.
Tip for Success: If you don’t have a company that publishes your notices of default, check with local title companies or bankruptcy attorneys to see if they offer these services; you need somebody familiar with the subject that visits the courthouse often.
Step 2: Develop your marketing strategy.
When you have located foreclosures, make sure your timing is swift. Mail your initial letters of approach to the homeowner the same day you discover the property. Placing ads in your local papers also helps to generate leads and find homeowners eager to avoid the credit penalties involved with foreclosing.
Tip for Success: A typical advertisement strategy taught in real estate training is to get listed in real estate or credit section of the classifieds. These ads typically have a bold, to the point headline, such as “Avoid Foreclosure” or “Stop Foreclosure, Today!” If you are targeting a specific property type, or reaching for higher market values, specify this in your ad. (Instead of simply “Avoid Foreclosure,” add your target market to the bottom of the ad. Example: “Avoid Foreclosure, call 1-800-555-1212. 500K and up.” You’ll make more money in real estate by reaching for high-value properties, and an ad like this shows your prospects that you specialize in helping those with higher value homes avoid foreclosure.
Step 3: Work with the homeowner.
You can’t get anywhere without the cooperation, and often gratitude, of the homeowner. The homeowner you are working with has obviously run out of options, but you’ll need their trust and confidence if you plan to short sale mortgages. Remember, in these situations, you are often looked at as the “rescuer”. Make sure you explain the homeowner’s part in the process thoroughly. Once they deiced to allow you to work with them, there is important paperwork you need them to fill out and sign:
1. an “Authorization to Release” form that gives you permission to contact the lenders and the foreclosing attorneys.
2. a sales contract – signed but leave the purchase price blank. You may need to change the numbers as you negotiate with the bank
3. a financial statement – to show they can't afford to make the payments
4. a hardship letter – to explain in personal terms what happened.
Tip for Success: Remember that this is a stressful time for the homeowner. It’s easy to get caught in the excitement of a prospective short sale profit. You can get them to make a decision when you are able to convince them that this is the right option for them Emphasize the benefits of working with you, and then ask for them to take action. Make sure to let them know that once your contract is signed, and the bank accepts it; they’ll be free to move on with their life.
Step 4: Negotiate with the bank.
Although banks don’t enjoy taking a loss, it is a simple fact of the lending business that short sales are a necessary evil for lenders. Indeed owning the property (a non-performing asset) is even more expensive than selling it for a loss. Consider:
Banks use short sales to drop unwanted property quickly without having to deal with the REO office and go through the long process of putting the home back on the market. When you speak with the Loss Mitigation department, remember, this property is actually costing them money! Federal regulations require somewhere between $300,000 and $800,000 (or more!) to be held in reserve by lenders, which is many times over the actual price of the bad debt.
When you call the bank and ask for the Loss Mitigation Department (the department that handles properties that are in foreclosure) tell the person handling the account that you are trying to help Mr. X with his foreclosure and you are willing to buy the property from him, but due to the condition of the property/declining values/etc. you are only willing to pay X amount. This is where your negotiations begin.
Be firm and polite, but don’t ever make threats to not buy or be forceful in your approach. Loss mitigators are often busy and overworked, and they want to see you as somebody who is minimizing the damage – and hassle – of the bad debt.
Tip for Success: Larger banks are the easiest to deal with when working with short sales and foreclosures. This is because the larger banks have more resource, more experience, and more loans! While there are some larger banks that don’t work with short sales at all, other banks, such as Wells Fargo or Fairbanks Capital, tend to work with a much larger volume of short sales.
Once you have worked with enough short sales, you’ll find that you have inside contacts at some of the larger banks; be friendly, ask them about their day, Develop a rapport. Sometimes, they’ll open up about problems they’re facing or current trends, which of course, you’ll need to keep on top of!
You don’t have to be a real estate pro to see the potential for making money with short sales, and now you definitely have some great tools to get started. Great deals in real estate are out there, and with today’s market, your potential for profit is limitless. Just keep in mind: do your research, market your services, and treat the homeowners and lenders with respect. When you use this approach with short sales, you can make a win-win for everybody, especially the officers at your own bank when you cash in on your profit!
In the next article, we'll discuss the tricks and tips in convincing the bank to take a big discount on the short sale.
Best of Success,
Richard Odessey
About the Author:
Richard and Michelle are experienced investors and founders of the premier site on the internet - http://www.InvestorWealth.com: training real estate investors to do high profit deals. Offering Free Teleseminars by the top real estate investors, how-to tools and kits and hands-on training with personal advice from experts from the comfort of your home
Friday, March 16, 2012
Rich Americans Walking Away from Million Dollar Homes
Continuation from "Foreclosures : The Rich Walks Away from Homes"
Rich Americans Walking Away from Million Dollar Homes
Rich Americans Walking Away from Million Dollar Homes
But with housing market still years
away in recovery, many are finding that foreclosure to be a worthwhile solution
after all. Stuck with puffed up home mortgages following a long run up in home
values, numerous high-end homeowners have decided on to engage in a strategic
default. Although they can manage the regular monthly mortgage obligations,
they continue to decide to walk away from their property for the reason that
they will owe more on the home than it is worth.
In the more affordable housing (under
one million) you might see much more homeowners defaulting because they are
unable to pay for the payments and it's a decision between providing for their
family and having to pay the home loan on a home that's under water.
In million dollar properties, you might
be looking at folks who can manage it, but has made a business and financial
decision to just walk away.
At the very least everyone can take
your time packing up all of your belongings. It takes around 350 days for a
foreclosure to be completed (depends on how busy your area is, some states
takes longer, some shorter). You may get nearly a year of free housing out of
the deal and if you're smart, have the banks write you a check for your moving
out expense. some of my clients on average have
checks written to them on average of $4,500 - $15,000 (depending on home value). Free housing for a year and
up to $15k!!!WOOT!
Thursday, March 08, 2012
Freedie and Mae owes more than 2,000 Foreclosed Homes in the Bay Area
Fannie Mae and Freddie Mac have turn out to be a significant residential owners in the Bay Area’s toughest Foreclosure hit neighborhoods, many thanks to the mortgage disaster.
Based on information supplied by local bay area experts, the two government controlled loan organizations now own over 2,230 foreclosed properties in the Bay Area, value believed to be around $500 million. Numerous homes covered in junk, are blighted, unkept lawns, junk cars, damaged paint and shattered windows.
In between the two, Fannie Mae and Freddie Mac, own the majority of California home mortgages in excess of over 60% and compared with most of the biggest banking institutions — will not agree to lower the balances on mortgages for debtors who owes far more on their houses than they are worth.
The East Bay of the Bay Area CA accounted for almost 60 percent of all of the homes possessed by the disorganized Freddie Mac and Fannie Mae. Most of these homes are in hard hit cities such as Oakland (371), the bankrupted city of Vallejo (160), San Jose (137), and Richmond (110).
Tuesday, March 06, 2012
It's a typical annoyance talked about by struggling property owners: They submit an application for a mortgage modification and at the exact same time their lender proceeds the actions for a foreclosure. Often, while homeowners awaits for a decision on mortgage modifications or make trial mortgage payments, the lender goes through with the foreclosure process.
Seriously to late for millions of homeowners, Federal regulators stepped in, demanding lenders to stop the "dual track" process, stating foreclosure process must halt once a property owners are accepted for a trial or permanent mortgage modification.
But don't expect things to happen instantly. Lenders have 120 days from the April 13 order date to put into practice the new method.
SB729, a pending California bill, will require lenders to stop foreclosure proceedings as soon as a people submit an application for a mortgage modification. It also necessitates lenders to fulfill numerous notice requirements and compose clear denial correspondence when needed. The Bills author intent is to prevent pointless and avoidable foreclosures.
Friday, March 02, 2012
Short Sales numbers are up 15%
Short sales are beginning to develop into the chosen procedure for banks to get rid of homes who are delinquent. In short sale, debtors who owes more on their mortgage loans than their properties are value agree with their lender to market their house at the lower market value. In return, the financial institution agrees to take up the loss.
There were far more than 88,000 short sales throughout the last quarter of 2011, an increased of more than 15% in comparison with a year earlier. Short sales amounted to ten percent of all properties sold for the duration of the quarter. At the same time, sales of real estate owned by bank or REO decrease twelve percent year-over-year to 116,000, amounting 13% of all sales during the quarter.
Tuesday, February 21, 2012
Signs of improvement in the default rate good news for banks!
Reduce consumer credit defaults last month, such as the improvements of mortgage default rates, are one of the latest positive signs for top mortgage lenders like Wells Fargo and Bank of America.
The overall credit score standard amount lowered to 2.16% in Jan from 2.24% in Dec, led by first-mortgage fails dropping to 2.08% from 2.19%, according to a study from Standard & Poor's Spiders and Experian.
The decreasing standard amount was wide based, S&P said. Second-mortgage fails surrounded lower to 1.3% from 1.33%, and bank bank card fails reduced to 4.57% from 4.6%. Auto-loan fails were the same at 1.27%.
Improving prices come as banking organizations have started ramping up home property mortgage foreclosures filings, after a stop due to probes into "robo-signing" of home property mortgage foreclosures information.
In Jan, home property mortgage foreclosures filings, including bank repo's, improved 3% from December, when filings was lowered to 9% to hit the smallest amount since since 2007. For the year 2011, filings was reduce down to 34% from the before year.
Filings will begin to increase further in the wake of the $25 billion dollars settlement between most states and top banking institutions over how they handled foreclosure methods, raising more concern from bank income.
In 2008, bank of America became the top mortgage originator when the financial giant bought Countrywide Financial under government pressure to do so. Since the Real Estate bubble, Bank of America has been cutting down of mortgage origination business.
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Monday, February 20, 2012
Find Foreclosures in your area
If you want to get pre-foreclosed qualities, then you need trusted pre-foreclosure results. Get them and a simple pre-foreclosure purchase can be your chance to create the deal of a life-time.
In property business everyone wants to create a healthy revenue. Either individuals looking to buy a home with a serious funds, or deal home seeker, all client s’ objective is to spend as little as possible. The serious issue is that many individuals simply do not know how or where to actually discover those hard to pin down purchases. It can be really challenging to come across extraordinarily discounted prices when selecting on the open industry. For anyone really looking for personal savings that will create lots of preliminary stocks and highest possible potential investment value, then you have to consider a pre-foreclosure purchase as your best choice.
Pre-foreclosure revenue can turn into deal promotions on great residences, which can sometimes offer personal savings of as much as 50% off your preliminary purchase. How can this happen? Easily, offering it is dome properly. A pre-foreclosure purchase requires the immediate contact between the house owner, sometimes the lending company, and the client, and that is a win-win situation. On one side, the home owners win because they create a pre-foreclosure purchase, get the cash and pay back the loan, so they are no longer in default; however, the client is also a victorious one, buying the property at a considerable lower price and under a versatile revenue contract, based on a person's discussing capabilities.
As a concept, the first thing in look at enterprise is the most essential and the most challenging, as well. When buying pre-foreclosures, the most essential is to get your hands on at a pre-foreclosure list. Not just any list, but a trusted, complete and frequently modified pre-foreclosure list. You do not discover these types of results every day, still there are various method that offer related details, namely regional paper, loan companies, and on the internet services.
Local magazines carry paper, which are useful but they are not modified on a regular time frame and they offer details only for the regional industry. Lenders or financial institutions can also be a source of details, offered you are fortunate and get through the right authorities willing to help you with a pre-foreclosure listing; otherwise, it is a pointless.
Probate and separation and divorce lawyers can also come up with long details of home owners willing to offer their residences very fast. It may sound uncomfortable for some of us, but this is a day-to-day actuality. And if you have any considerable concerns, that you take advantage from another person's accident, think of it this way: they need to offer instantly and you offer to help them. You give them the cash and they get rid of another serious issue. These unofficial pre-foreclosure results can lead to pre-foreclosure revenue even before the qualities hit the industry.
Last but not the least, the internet establishes to be a practical location when it comes to pre-foreclosure results. There are many websites that will create profitable offers like no cost results, which are attractive for many individuals. What individuals do not recognize is that, most of the times, no cost results are aged and have invisible expenditures linked. So, the best choice is to discover a specific, complete and day-to-day modified pre-foreclosure list with no invisible expenditures linked, that can be properly and properly used. A nice beginning point is foreclosureconnections.com, a trusted home property mortgage foreclosures results on the internet service, where you can also explore for useful pre-foreclosure purchase tips.
No matter how you get the details, always remember that pre-foreclosure results are the most considerable phase in your property venture
Friday, February 23, 2007
Foreclosures swamp staff
Flood of cases and new software put city office in a hole
Hundreds of foreclosures in Denver are on hold because of a massive backlog in the Clerk and Recorder's Office, putting lenders in a "precarious position" and forcing the city to hire more help.
On Wednesday, 661 foreclosure packets, which are supposed to be recorded within 10 days, were more than two weeks past due, according to an internal report obtained by the Rocky Mountain News.
The problem is so bad that employees are working weekends to catch up and fielding urgent pleas from law firms handling foreclosures.
"I'm desperate!" starts off one e-mail to the clerk and recorder. "I have a (Department of Housing and Urban Development) title package that has to be sent out tomorrow."
Interim Clerk and Recorder Stephanie O'Malley said she inherited the problem when she was appointed to the post Jan. 9 by Mayor John Hickenlooper.
"The only thing I could do was say, 'I need to get more people in here to help move this process along,' and that is what I've done," she said.
The city's Career Service Authority is in the process of hiring the three on-call employees that she has requested, she said.
O'Malley, who is running for the seat in May, said there are two factors contributing to the backlog.
First, foreclosures in Denver have tripled since 2002.
The other factor delaying Denver foreclosures points to former Clerk and Recorder Wayne Vaden, who resigned in the wake of the disastrous Nov. 7 election.
While in office, Vaden approved the purchase of a $143,500 software program that requires employees to manually transfer data from about 2,500 older but active foreclosures into the new system.
"My staff has been held captive in having to migrate data physically from that old system to the new system and be attentive to new packets," O'Malley said. "It is a lot of work."
The program is designed to make the processing of foreclosures more efficient. That should happen once employees get caught up, O'Malley said.
Vaden, who negotiated a $150- an-hour consulting contract with the city two months after his resignation, did not return a message left on his cell phone.
In addition to inputting data from older files, employees at the Clerk and Recorder's Office said the new software also requires them to type in more information on new foreclosures.
They also said that Vaden never asked for their advice.
Rhonda Stewart, a deputy public trustee, said it used to take 10 minutes to process a foreclosure.
With the new software, it now takes about 30 minutes, she said.
"We're doing a lot of work, but we're not stressing out," Stewart said. "You can't stress out about it. You have to stay focused."
Metro-area law firms that handle foreclosures and do business with the city either declined to comment or did not return calls.
But in e-mails obtained by the Rocky, it is clear the backlog has put them under pressure.
"I know HUD could refuse title if we don't get it to them," states another e-mail.
HUD requires that all documentation, including the original or certified copy of a deed, be submitted within 45 days of the request for deed recording.
O'Malley said the backlog "doesn't bode well for the community."
"When you just have these properties sitting there dormant, from a community standpoint, that's not a good thing," she said.
The delay also hurts business.
"If you have a piece of property out there that's (on hold), the lender is put in precarious position because now they're sitting on a piece of property of which they're not getting any revenues," O'Malley said.
"There's no payment on the mortgage," she said.
"And so their goal, of course, is to move the property so that they can get a return on their investment."
Source :
chacond@RockyMountainNews.com or 303-954-5099
By Daniel J. Chacon, Rocky Mountain News February 22, 2007
Hundreds of foreclosures in Denver are on hold because of a massive backlog in the Clerk and Recorder's Office, putting lenders in a "precarious position" and forcing the city to hire more help.
On Wednesday, 661 foreclosure packets, which are supposed to be recorded within 10 days, were more than two weeks past due, according to an internal report obtained by the Rocky Mountain News.
The problem is so bad that employees are working weekends to catch up and fielding urgent pleas from law firms handling foreclosures.
"I'm desperate!" starts off one e-mail to the clerk and recorder. "I have a (Department of Housing and Urban Development) title package that has to be sent out tomorrow."
Interim Clerk and Recorder Stephanie O'Malley said she inherited the problem when she was appointed to the post Jan. 9 by Mayor John Hickenlooper.
"The only thing I could do was say, 'I need to get more people in here to help move this process along,' and that is what I've done," she said.
The city's Career Service Authority is in the process of hiring the three on-call employees that she has requested, she said.
O'Malley, who is running for the seat in May, said there are two factors contributing to the backlog.
First, foreclosures in Denver have tripled since 2002.
The other factor delaying Denver foreclosures points to former Clerk and Recorder Wayne Vaden, who resigned in the wake of the disastrous Nov. 7 election.
While in office, Vaden approved the purchase of a $143,500 software program that requires employees to manually transfer data from about 2,500 older but active foreclosures into the new system.
"My staff has been held captive in having to migrate data physically from that old system to the new system and be attentive to new packets," O'Malley said. "It is a lot of work."
The program is designed to make the processing of foreclosures more efficient. That should happen once employees get caught up, O'Malley said.
Vaden, who negotiated a $150- an-hour consulting contract with the city two months after his resignation, did not return a message left on his cell phone.
In addition to inputting data from older files, employees at the Clerk and Recorder's Office said the new software also requires them to type in more information on new foreclosures.
They also said that Vaden never asked for their advice.
Rhonda Stewart, a deputy public trustee, said it used to take 10 minutes to process a foreclosure.
With the new software, it now takes about 30 minutes, she said.
"We're doing a lot of work, but we're not stressing out," Stewart said. "You can't stress out about it. You have to stay focused."
Metro-area law firms that handle foreclosures and do business with the city either declined to comment or did not return calls.
But in e-mails obtained by the Rocky, it is clear the backlog has put them under pressure.
"I know HUD could refuse title if we don't get it to them," states another e-mail.
HUD requires that all documentation, including the original or certified copy of a deed, be submitted within 45 days of the request for deed recording.
O'Malley said the backlog "doesn't bode well for the community."
"When you just have these properties sitting there dormant, from a community standpoint, that's not a good thing," she said.
The delay also hurts business.
"If you have a piece of property out there that's (on hold), the lender is put in precarious position because now they're sitting on a piece of property of which they're not getting any revenues," O'Malley said.
"There's no payment on the mortgage," she said.
"And so their goal, of course, is to move the property so that they can get a return on their investment."
Source :
chacond@RockyMountainNews.com or 303-954-5099
By Daniel J. Chacon, Rocky Mountain News February 22, 2007
Thursday, May 25, 2006
“5 General Trends in the California Real Estate Market to Watch -- 2006”
“5 General Trends in the California Real Estate Market to Watch -- 2006”
Historically, the real estate trends of California have always been the precursors for the rest of the country. Which is why leading players of the real estate market keep a close watch on the Golden State’s real estate market conditions.
And whether you are a first time homebuyer, debating the viability of building your dream house in San Bernardino, or a real estate investor looking to sell condominium units in Los Angeles, you certainly want to know: When is it the optimum time to buy or sell?
Purchasing a house is a major investment. With judicious planning, this valuable asset will appreciate with each year.
But how do you get the big picture? Fortunately, real estate trends are predictable because these develop over a long period, unlike the stock market, which is rather volatile.
The first thing you will need to do is to read and track real estate articles: the market reports of the California Association of Realtors or the California Building Industry Association, and the briefs created by housing analyst companies.
Once you have identified the following key indicators you will have a better grasp of the general trends in California’s real estate market.
THE FIVE KEY INDICATORS TO WATCH
Interest Rates
When interest rates rise, buyers shy away. Conversely, lowered interest rates attract more buyers.
This year, interest rates in California are on an upswing. For example, thirty-year fixed mortgage rates, which averaged 5.71 percent in 2005, has risen to 6 percent levels in January 2006. And adjustable mortgage interest rates have moved up to 5 percent levels compared to 4.12 percent in 2005.
Building Permits
The higher the number of building permits issued, the higher the demand for houses.
Figures show that number of building permits issued for the year 2006, have fallen by 10 percent in comparison to last year’s figures. In terms of houses, that’s a decrease of 1,430 building permits compared to January 2005 figures, according to California Building Industry Association report.
Home Sales
This key indicator refers to the total number of homes sold. In the law of supply and demand, when there are few buyers, real estate prices fall.
The January 2006 figures of the California Association of Realtors reveal that the number of existing single-family detached homes sold, has gone down by 24.1 percent in comparison to sales for the entire year 2005.
Another factor to consider is the growing inventory of available houses in certain counties in California, which is changing the market dynamics. What was once a sellers market is slowly turning into a buyers market.
Loan Defaults
This refers to the failure of homeowners to pay their monthly mortgage fees. One downside to this is that many Californian homeowners are choosing to have a bad credit report, rather than to keep paying fees for a home whose value has been inflated by as much as 20 percent more.
Foreclosure Sales
Figures presented by DataQuick Information Systems, a housing analyst company, indicate that foreclosure activities in California have gone up by 19 percent in the last quarter of 2005. This is an increase of 3 percent compared to the third quarter of 2005, and is 4.6 percent higher when compared to 2004’s last quarter figures.
When foreclosure sales are on an upswing, consumer spending is down and consumer debt levels have risen. In the real estate market, this has meant that many financially strapped homeowners are selling their homes at lower prices. The other contributable factors are inflation, the rising prices of gasoline, federal budget deficit, and interest rates.
Concurrently, these key indicators confirm that although home sales levels in California are falling, the demand for houses remains strong and steady. Always do your due diligence before undertaking a purchase of property in California.
Author : John Nazareno
@copyrighted 2006 all right reserve
you may used this article providing that you provide a live link back to this blog
Foreclosure Information
Historically, the real estate trends of California have always been the precursors for the rest of the country. Which is why leading players of the real estate market keep a close watch on the Golden State’s real estate market conditions.
And whether you are a first time homebuyer, debating the viability of building your dream house in San Bernardino, or a real estate investor looking to sell condominium units in Los Angeles, you certainly want to know: When is it the optimum time to buy or sell?
Purchasing a house is a major investment. With judicious planning, this valuable asset will appreciate with each year.
But how do you get the big picture? Fortunately, real estate trends are predictable because these develop over a long period, unlike the stock market, which is rather volatile.
The first thing you will need to do is to read and track real estate articles: the market reports of the California Association of Realtors or the California Building Industry Association, and the briefs created by housing analyst companies.
Once you have identified the following key indicators you will have a better grasp of the general trends in California’s real estate market.
THE FIVE KEY INDICATORS TO WATCH
Interest Rates
When interest rates rise, buyers shy away. Conversely, lowered interest rates attract more buyers.
This year, interest rates in California are on an upswing. For example, thirty-year fixed mortgage rates, which averaged 5.71 percent in 2005, has risen to 6 percent levels in January 2006. And adjustable mortgage interest rates have moved up to 5 percent levels compared to 4.12 percent in 2005.
Building Permits
The higher the number of building permits issued, the higher the demand for houses.
Figures show that number of building permits issued for the year 2006, have fallen by 10 percent in comparison to last year’s figures. In terms of houses, that’s a decrease of 1,430 building permits compared to January 2005 figures, according to California Building Industry Association report.
Home Sales
This key indicator refers to the total number of homes sold. In the law of supply and demand, when there are few buyers, real estate prices fall.
The January 2006 figures of the California Association of Realtors reveal that the number of existing single-family detached homes sold, has gone down by 24.1 percent in comparison to sales for the entire year 2005.
Another factor to consider is the growing inventory of available houses in certain counties in California, which is changing the market dynamics. What was once a sellers market is slowly turning into a buyers market.
Loan Defaults
This refers to the failure of homeowners to pay their monthly mortgage fees. One downside to this is that many Californian homeowners are choosing to have a bad credit report, rather than to keep paying fees for a home whose value has been inflated by as much as 20 percent more.
Foreclosure Sales
Figures presented by DataQuick Information Systems, a housing analyst company, indicate that foreclosure activities in California have gone up by 19 percent in the last quarter of 2005. This is an increase of 3 percent compared to the third quarter of 2005, and is 4.6 percent higher when compared to 2004’s last quarter figures.
When foreclosure sales are on an upswing, consumer spending is down and consumer debt levels have risen. In the real estate market, this has meant that many financially strapped homeowners are selling their homes at lower prices. The other contributable factors are inflation, the rising prices of gasoline, federal budget deficit, and interest rates.
Concurrently, these key indicators confirm that although home sales levels in California are falling, the demand for houses remains strong and steady. Always do your due diligence before undertaking a purchase of property in California.
Author : John Nazareno
@copyrighted 2006 all right reserve
you may used this article providing that you provide a live link back to this blog
Foreclosure Information
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