Twin Cities REO Sales

Homepath.com is Fannie’s Foreclosure Portal

Fannie Mae posts their foreclosured properties with a Realtor of their choice and also on http://www.HomePath.com.  What is cool about a Homepath property is that many times they will qualify for Homepath loans (requiring only 3% down) and no appraisal.  They also have a homepath Renovation loan.  There is a program called FirstLook, which allows certain selected developers and non profits to purchase these homes for rehabilitation first, so you might loose a home that is really a good deal. Still, don’t let this deter you.  I recently sold a home in Brooklyn Center that was a HomePath property.  It was pretty nice, just a little dirty. Because it was in very good shape, we were able to use FHA financing.  I’ve found that FHA financing is cheaper than Homepath with a minimum down payment.  We’ll have to see if that changes in the future.

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Legal Details You Need To Know About REO

By Robin Wardzala

With the housing slump, followed by the recent subprime market meltdown leaving a flood of foreclosures in its wake, lenders, brokers and agents have tried to rebound with real estate-owned (REO) properties. But breaking into the distressed property or REO market is difficult unless you know the ropes – and the competition for foreclosures, today, is fierce. Just ask Steele V. Propp, foreclosure specialist/loss mitigation consultant, for the Bank Owned Property Division of the Minneapolis-based Schatz Group, GMAC Real Estate.

“Last year, the Minneapolis-St. Paul area had an inventory of 600 foreclosed homes at any given time, and this year we will easily reach 900 homes,” Propp said.

“The days of only inner city broken down properties are over,” he said. “Some foreclosures are in gated and golf course communities. Anyone can have financial problems and a lot of people live close to the edge.”

“Being an REO agent seems to be the latest fad in real estate,” said Propp, a 26-year industry veteran who knows the ropes. “Everyone and their Dad have been asking about it.

“And recently a number of the guru real estate agent trainers out there have jumped on the bandwagon with so-called wonderful course material for becoming a foreclosure agent specialist,” he said. “I get e-mails everyday from these gurus who hawk their books and seminars about making a fortune in foreclosures.

“I am a bit leery of these ‘specialists’ since most seem more about you paying them money,” he added.

Break in with BPOs

“For the most part, the best way to get noticed is to offer to do the grunt work of the foreclosure industry — performing Broker Price Opinions or BPOs,” Propp said. “Agents who do this on a regular basis tend to get noticed.”

Harry C. Richardson, an independent broker and Realtor based in Albuquerque, said, “There is no substitute for experience.”

But prior to six years ago, Richardson had little experience in the REO market.

Although New Mexico has not experienced the housing market lows and highs of the Florida, California, Michigan and Ohio markets, Richardson read the signs and saw a bright future in the REO/foreclosure business.

To get a foot in the door, Richardson googled asset management companies and e-mailed BPO hiring managers for a chance. After six months of performing BPOs, he struck out on his own.

“It is important to accurately place a value on the asset (property) because the person (or bank) holding the REO is relying on you,” Richardson told Real Law Central.

Just like anything else, once you build a good reputation, word gets around.

FNF steps up

In August 2003, Fidelity National Financial launched its Web site dedicated to marketing bank-owned properties. BuyBankHomes.com opened with 7,000 REO listings which has grown to more than 25,000 post-foreclosure properties, thanks to Fidelity subsidiary Fidelity National Asset Management Solutions’ (FNAMS) relationships with 22 lenders and thousands of REO brokers with relationships to other lenders.

BuyBankHomes.com recently featured more than 400,000 bankruptcy listings and nearly 230,000 post-foreclosure properties. At the same time, RealtyTrac offered multi-state searches for 550,000 foreclosure properties, and reported that one out of every 886 homes in the nation are in some phase of foreclosure.

Last year, Tom Di Mercurio, a veteran specialist in defaulted properties, launched Mercury Alliance which works with lenders in 15 U.S. markets dealing with homes, condos and other properties that go south.

Any significant increase in interest rates triggers a rise in lender-owned properties for resale – and opens the doors to more foreclosed homes, Di Mercurio said.

A rose by any other name

“There are no special legal requirements except to be licensed in the state jurisdiction in which you operate,” DiMercurio told Real Law Central. “A broker is a broker is a broker. It’s the same with a buyer’s agent.”

Be an aggressive, hard-working agent, he advised, adding that by law, all listings are the property of the ‘broker.’

“The documentation in typical residential mortgages and foreclosures/REOs should be similar, but since we are involved with the removal and elimination of property rights, there is a formidable body of civil law to protect owners/borrowers from the elimination of their property rights,” he said.

“Most residential brokers/agents seldom deal with eviction and cash-for-keys or the problems associated with a ‘botched’ foreclosure – where all the regulations have not been scrupulously followed,” Di Mercurio said. “Otherwise, not much is different.”

Rather switch than fight

The switch from traditional residential properties to REO’s does demand a different mindset, and you must cater to the schedule of the lender or client, he said.

“Doing REO’s is a 24/7 job including property management which gives rise to custodial liability,” Di Mercurio said. “After two years of operating, I am just now opening a ‘regular’ side to my REO brokerage with buyer’s agents and non-REO sellers’ agents.

“Understanding the deliverables of lender clients is a must – and while 90 percent of it is the same, managing the 10 percent difference can be difficult,” he said.

Wanted: Superhero

“What asset managers want is a cross between Superman, Wonder Woman and Spider Man,” Di Mercurio said. “REO agents become the eyes and ears of their clients.

“Too often, asset managers settle for easy things like inspections and BPOs on time rather than a thoughtful analysis of what the broker’s market intelligence and experience tells us about a property or a market,” he said.

“Asset managers should encourage a healthy dialogue of marketing ideas and be open to criticism,” Di Mercurio said. “If appraisers were always correct – or even often correct on REO’s, then formulating a listing price could be a computer program. Setting a list price is more art than science.

“What REO brokers want is a seller treated as a partner,” he said. “We want to know that someone is listening to us and that we are at the end of a long continuum that ultimately results in the liquidation of the non-performing asset.”

Waiting for payday

Unfortunately, “compensation is often only a possibility,” Di Mercurio said. “If listed too high and then re-listed with another broker, our efforts are all in vain. Brokers want some acknowledgement that we work very hard and sometimes in difficult situations for discounted commissions.

“For me, (the REO business) is a labor of love,” he added.

Di Mercurio recently offered a number of tips to agents and brokers trying to break into the REO market.

First, understand the basics before deciding to focus on the REO segment, he said. Everything about this business is time sensitive. The REO broker’s responsibilities are more similar to that of a relocation broker than a traditional residential brokerage.

There are many uncompensated activities required of an REO broker, and if a home does not sell in the normal listing period, it may be reassigned, Di Mercurio said.

Volume pricing has resulted in an average five percent commissions, he said, adding there is a host of services, responsibilities and liabilities assumed for the average two percent listing commission paid to the REO broker.

Most of Di Mercurio’s clients assign assets to him the day of the foreclosure sale, and these require a 24-hour occupancy check and weekly checks, thereafter, he said. Most properties are still occupied at the end of redemption, thus requiring extra work for the broker to negotiate with the tenant or former owner, attend lock-outs, obtain bids for repairs and supervise rehab, regular yard maintenance and winterizations.

Many lenders require the broker to arrange for pay and seek reimbursement within certain tight time frames, he said. The broker then becomes the “de facto” guarantor of the goods and services. Poor accounting will lead to losses in un-reimbursed legitimate expenses.

Brokers generally receive property assignment directly from the seller/lender or from a third-part outsourcing company which provides aggregated accounting, tracking, reporting, advice and evaluation to the actual lender or seller, Di Mercurio said. The actual owner of the property may have little or no say in how the REO properties are managed because of delegating those responsibilities under a servicing agreement.

Many REO properties are handled through government agencies, he said. HUD administers foreclosed homes under the FHA program; the Veterans Administration handles loans made to veterans where the mortgage has been foreclosed.

HUD and VA have different disposition models and strategies which offer equal access to licensed and certified real estate agents and brokers, Di Mercurio said. Fannie Mae and Freddie Mac handle their own foreclosed home inventory, both relying on the listing broker to provide the delivery of many of the property management services.

Many properties are handled directly by the REO Department of the bank, mortgage company or credit union and placed with the broker, he said. In this case, you need to be individually approved.

To be considered for these assignments, you must have either a sales agent or broker’s license in the state where you plan to sell these properties; have a minimum of three years experience representing one of more sellers, a minimum of $500,000 professional liability insurance and two to three client references, Di Mercurio said.

Find out how your asset manager contact is compensated, he advised. Many sellers or outsourcers skew the overall compensation package toward bonuses. A rollover closing from one month to the next may only seem like two days to you, but it may be the difference between no bonus and an outstanding bonus. Corporate sellers generally require 48 to 96 hours to execute and return closing documents.

If the property doesn’t sell while you are the listing broker, you only get reimbursed your expenses – and some lenders remove unsold inventory to a different broker — even if never priced accurately, Di Mercurio said.

REO brokers need a network of service providers from locksmiths, to yard and snow removal vendors, contractors and engineers, he said.

“On average, expect to advance approximately $600 per property depending on what specific services you provide,” Di Mercurio said. “Advances of $3,000 on a specific property, is not uncommon.”

A good, conservative, realistic estimate is to average your sales at a two percent listing commission, he said. If the typical REO asset sells for $50,000, can you make it worth your time to be on call 24/7 … to get a $1,000 check at the closing – if it closes.

“I personally know several REO brokers who professionally handle upwards of 300 REO sales a year for a net pay-out of $80,000,” Di Mercurio said.

Breaking in, hard to do

“Notwithstanding the foregoing “reality” checks, understand that prior to you opening your doors to declare your specialty, sellers/lenders had been receiving your service from some other brokers,” he said. “If just one of several brokers delivered competent service, it may be difficult to get an opportunity to show what you can do.”

It is one thing to read and understand a list of “deliverables”, another to organize a work flow which meets or exceeds the client timelines and other performance metrics, he said.

Make a complete and thorough application with whatever outsources or lender/seller has an open application process, Di Mercurio said. Think about how you can stand out in the crowd, what you can offer that no one has.

“If you are an experienced agent or broker, two or three well-written client testimonials that attest to your extraordinary handling of a difficult transaction adds credibility,” he said.

“If you serve one or more specific communities or an emerging market and speak a foreign language with sufficient competency to explain a real estate transaction, you bring additional value,” Di Mercurio said. “Highlight that value; market yourself.”

Then send a follow-up letter to the vendor manager in English and the other language you speak and add historic perspective and accuracy to a foreclosure and understand the client’s requirements, showing you will work to get the property sold, he said. If you can sell a well-priced conforming home in a demand market, the client will remember you for the substandard or condemned property.

“Ask to accept leftovers or the assets that didn’t sell with other agents – for whatever reason,” Di Mercurio said. “Ask for the problems and think and work toward a creative solution. The harder you work, the luckier you get.

“And don’t forget to own up to your own shortcomings,” he said. “Bad news travels best ahead of the catastrophe. If you could have handled something better, tell your client you blew it.”

Robin Wardzala is the editor of Real Law Central, the leading publication focused exclusively on real estate law as it applies to agents, brokers, managers and owners. Real Law Central tracks and analyzes changes in federal and state legislation, regulatory issues and compliance guidelines. Real Law Central also provides exclusive, in-depth reporting on new court cases and judicial decisions important to the industry. Real Law Central is a publication of October Research Corp, the premier national provider of real estate industry news and analysis.

Article Source: http://EzineArticles.com/?expert=Robin_Wardzala
http://EzineArticles.com/?Legal-Details-You-Need-To-Know-About-REO&id=606710

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How Do I Become an REO Agent?

By Brian Anthony

As a top producing REO agent in our marketplace, I often get asked the same REO questions repeatedly. I thought I would answer them for all of those agents looking to become a REO agent.

REO Agent FAQ

1. HELP! Where Do I Start?

The first thing you need to do is get a good, up to date REO bank list to contact. This step is crucial! If you have a bad REO bank list, all of your other marketing efforts will be wasted and you might as well market your REO services to your mom. There are several ways to obtain a good REO bank list:

* Search Google, Yellowpages.com or your local phone book for your local REO lenders, banks and asset managers. Get their phone number, mailing address and their email. * Ask your title company for a “notice of default list.” This will give you a list of all local properties currently defaulting on their mortgage with a list of the lenders being defaulted. their phone number, mailing address and their email. * Buy a REO bank list. For under $100, you can find a list of REO banks to get you started. Of all the money you will spend in starting your career as a REO agent, this will be your best purchase. These lists are well researched and contain all of the major BPO companies out there.

2. I have a REO Bank List. Now WHAT!?

Now you need to convince the REO leads on your list that they should give you their business. Create a systematic marketing program that forces you to contact each potential REO bank at least 3 times a month.

Start with a phone call. Introduce yourself as a REO agent in the ____ area. Let them know you’d love to earn their business and ask how you can get registered on their list. Once you’re on their list, Follow up! You need to hand write them a thank you note. Then set them up on a consistent email campaign to stay in contact with them.

These few steps will set you apart from most agents, but if you really want to stand out, you can use one of these REO Lead systems to skyrocket you to the top of the REO bank’s list of REO and BPO providers. While some of these can be a little pricey ($147, including the REO Bank List), the right REO Lead System can help you become a REO Listing agent much quicker than starting from scratch.

3. What Will Banks Expect of Me Once I Become a REO Agent?

Being a REO agent isn’t always a cushy job. Some of the things the banks and asset managers may ask you to do once you become a REO agent include:

* Be at all Sheriff Evictions * Pay electric / gas bills for banks and get reimbursed in 60-90 days * Ensure water systems are winterized and turned off. * Arrange for complete house cleanings and “Trash Outs” * Respond to vandalism and property complaints (Your name is on the sign. Who do you think people are going to call?)

4. Should I Process BPO’s

In one word, yes. Especially at the beginning of your REO career. Many people will tell you processing BPO’s is time consuming and does not pay well. That may be true, but at the beginning of your quest to become a REO agent, you need to get your name in front of REO leads and banks. The easiest and quickest way to become a REPO agent is by building up your name awareness through processing BPO’s. Want even more appreciation from banks and lenders? Let them know you’ll process their rush BPO’s with 24 hour notice.

I hope this article has helped you. My team lists over 100 REO properties each year. You can learn more about How to become a REO agent here.

Article Source: http://EzineArticles.com/?expert=Brian_Anthony
http://EzineArticles.com/?How-Do-I-Become-an-REO-Agent?&id=1612208

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Check Out Energy Rebates

EnergyStar.gov –  Check Out Energy Rebates

This is a government site that offers lots of energy saving tips as well as explains what energy saving grants or credits might be available.

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Foreclosure Trends Newsletter

Here is the latest issue of my foreclosure trends newsletter.  As you can see, the trend is not our friend, in the sense that the housing market has not recovered.  Until jobs come back and people are employed and feel safe in their employment, they will tend to avoid making a committment.

ForeclosureTrends.pdf

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Foreclosed Property Coupon-10% off

When you buy a foreclosed with me as your agent, I will be happy to sign you up for a coupon from Lowes.   It entitles you to 10% off, up to a predetermined purchase amount.  Currently I believe it 10% off of up to a $10,000 purchase.  Of course, this amount and the coupon’s terms and conditions are subject to change by Lowes at anytime.

Besides Lowes, RE/MAX has exclusive deals with Cambria and Pods-to name just few of the suppliers we can help you save money with.  We’ve got your back.  Consider me when choosing your team.fo

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Twin Cities Foreclosure Trends-From our MLS & Realty Trac

Besides the board of realtor sites:  http://theThing.mplsrealtor.com and market data posted elsewhere at http://www.MplsRealtor.com I have a subscription to Realty Trac.  My subscription gives me additional data about foreclosures and trends within certain zip codes.  This is in addition to my daily subscription to Finance & Commerce (a business newspaper that prints all the foreclosure information as well as very timely articles regarding the business community).  If you are looking for someone who has experience and access to information about distressed sales, we need to be working together.  Whether buyer or seller-I can help you understand the market we are in and the options and opportunities available to you.  Give me call today.

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Real Estate Information

These are a couple of my newsletters that have a ton of valuable information. Go check them out.

Foreclosure Market Trends Newsletter
http://www.realtytrac.com/MarketTrends/NewsLetter.aspx?guid=131bd355-1b69-4bd1-99cd-2f0c9a936810

Real Estate Cyber Space Tips
http://www.REcyber.com/cybertips/r11627

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Understanding HAFA-What Is It & How It Works

This explains what the HAFA is and how it might work for you. This might work for people that are in distress and would like to try and avoid a foreclosure. Here is a link for additional information http://www.CDPE.com/hafa I work with homeowners who need help at this difficult time-let me know what I can do for you.

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Owner Financing – The Foreclosure Process

By Craig Meriwether

One of the great parts of the owner finance home sale is the opportunity to work with the buyer in the case of financial problems. By creating a solution that works for both parties a home owner is more than likely to stay in the house and the loan holder will continue to receive monthly payments. If a solution cannot be created then unfortunately foreclosure might be the only option to take. This article will present a look and some of the different ways foreclosures can be handled.

In some states, the beneficiary can choose one of two methods to foreclose judicial or non-judicial. In a judicial foreclosure, the beneficiary files a lawsuit against the trustor in Superior Court to foreclose on the property. The case is then set for trial. If the court rules in favor of the beneficiary, the property will be ordered sold at a public sale. In most instances, however, it is a non-judicial foreclosure. In a non-judicial foreclosure, the court system is not involved. To foreclose non-judicially, the deed of trust or mortgage must contain a power of sale clause. The power of sale clause gives the trustee the right to begin foreclosure without going to court. To include a power of sale clause does not require a specific form or language.

If, on the other hand, the security instrument does not contain a power of sale provision, judicial foreclosure is the beneficiary’s only way to obtain the property. Most conventional deeds of trust say “with the power of sale”.

Judicial and non-judicial foreclosures differ in many ways. The foreclosure method selected by the beneficiary has significant consequences for the trustor.

Non judicial foreclosure is relatively fast, as this method does not involve the court system. In most instances, non-judicial foreclosure takes, at minimum, about four months after the trustor has failed to meet the obligation or defaulted on the loan. Judicial foreclosure, on the other hand, may take up to several years.

Non judicial foreclosure is generally less costly than judicial foreclosure. In a non-judicial foreclosure, the trustee’s and attorney’s fees are largely specified by law. In a judicial foreclosure, however, there are generally no legal limits for attorney’s fees. As a result, the trustor may be liable for significant legal expenses.

Another major difference between the two foreclosure methods is the beneficiary’s right to a deficiency judgment. A deficiency judgment is a court order stating that the trustor still owes money to the beneficiary if the proceeds from the foreclosure sale are not sufficient to pay the balance of the debt.

Some state laws do not allow a deficiency judgment in a non-judicial foreclosure on residential purchase money loans. A residential purchase money loan is one in which loan proceeds are used to purchase the property. Furthermore, state laws do not allow deficiency judgments against the residential trustor where the loan was made by the seller of the property or by a third party lender (often a financial institution) on a four-unit or less residential property that is the principal residence of the trustor. If the beneficiary judicially forecloses on a non-purchase money residential loan, a deficiency judgment may be obtained against the trustor.

Non-judicial and judicial foreclosures also differ with regard to the trustor’s right of redemption after the foreclosure sale. This is the trustor’s right to reclaim the foreclosure property. In a non-judicial foreclosure, the sale of the property at the trustee’s sale is an irrevocable final sale, and the trustor does not have the right to redeem or reclaim the property after the sale. Judicial sales, however, are subject to redemption by the trustor.

This summary of the major differences between non-judicial and judicial foreclosure shows the advantages of non-judicial foreclosure for the beneficiary. The non-judicial foreclosure is timely, economical, non subject to redemption, and may command a higher sales price. In addition, it is unlikely that the beneficiary would recover any losses through a deficiency judgment, as the trustor could not make the loan payments in the first place. Because of these advantages, beneficiaries typically prefer to foreclose non-judicially. Beneficiaries might foreclose judicially when they see an opportunity to recover any losses through a deficiency judgment.

The following two sections give detailed information on each of the foreclosure methods.

Non-Judicial Foreclosure

This section describes the major procedural requirements of non-judicial foreclosure, discusses the trustor’s reinstatement and redemption rights, reviews legal provisions for trustee’s fees and summarizes special legal provisions affecting foreclosures in many states.

Many states allow the beneficiary of a deed of trust containing the power of sale provision to foreclose non-judicially after the trustor has defaulted on one or more contractual obligations. In case of default, the beneficiary may order the trustee to initiate foreclosure.

Notice of Default

Foreclosure begins when the beneficiary notifies the trustee that the trustor has defaulted on any obligations stated in the promissory note and deed of trust. The beneficiary gives the trustee information concerning the condition of the debt such as the amount of the unpaid balance and due dates. Upon receipt of this information, the trustee prepares the Notice of Default.

The Notice of Default must be recorded in the office of the recorder of the county where the property is located. If the deed of trust encumbers property located in more than one county, the Notice of Default should be recorded in the other counties as well.

The trustee must mail a copy of the Notice of Default to the trustor and to each person requesting notice within ten days of recording the notice. The law specifies additional notification requirements under certain circumstances. The Notice of Default must be published weekly for four weeks in a newspaper or personally be served on the Trustor, if the trustor has not requested to be notified of its recordation of the notice

Trustor’s should always notify the beneficiary and the trustee of any address changes to ensure prompt receipt of any correspondence from the beneficiary or trustee.

Before January 1, 1986, the trustor and beneficiaries under subordinate deeds of trust were given three months from the recordation of the Notice of Default to cure the default. An amendment to the law extended the expiration of the reinstatement period to five business days before the scheduled trustee’s sale. If the trustee’s sale is postponed, the reinstatement period is extended to five business days before the new date of the sale.

At any time during the reinstatement period, the trustor may stop the default by paying the beneficiary all sums of money due on the loan up to that point including additional costs incurred by the beneficiary, and attorney’s or trustee’s fees as specified by law. It is not necessary to repay the entire loan balance.

After reinstatement of the loan, the foreclosure proceeding is discontinued and the trustor resumes making the regular periodic payments.

Notice of Trustee’s Sale

If three months have passed since recording the Notice of Default, and the trustor has not begun to reinstate the loan; the trustee may proceed with the foreclosure by preparing a Notice of Trustee’s Sale.

The Notice of Trustee’s Sale must be recorded in the office of the recorder of the county in which the property is located at least 14 days before the date of the sale. As with the Notice of Default, the Notice of Trustee’s Sale must be mailed to the trustor’s last address actually known to the trustee.

The Notice of Trustee’s Sale also must be published in a newspaper of general circulation in the city, judicial district or county where the property is located. The notice must be published once a week over a 20-day period before the sale.

In addition to mailing and publication, the Notice of Trustee’s Sale must be posted for at least 20 days before the sale at the following locations:

o In at least one public place in the city, judicial district, or county in which the property is to be sold; and

o In a conspicuous place on the property to be sold

Improperly broadcasting the Notice of Trustee’s Sale typically will result in the cancellation and re-notice of the sale.

As mentioned before, the trustor can cure the default during the reinstatement period that runs up to five days before the schedule sale. After the reinstatement period expires, the trustor must pay the entire indebtedness plus foreclosure costs to avoid foreclosure. This is called redemption and only can be done during the five days before the sale. The trustor’s right of redemption ends once bidding at the foreclosure sale starts.

Trustee’s Sale

The trustee or the trustee’s agent must conduct the foreclosure sale at a public auction in the county where the property is located. The sale is to the highest bidder who must pay in cash, cashiers check or cash equivalent as specified in the notice and acceptable to the trustee.

The trustee may postpone the sale at any time before it is completed. The sale may be postponed at the trustee’s discretion, upon instruction by the beneficiary, or upon a written request by the trustor who has the right to request a one-day delay to obtain sufficient cash to pay the debt or bid at the sale. The trustor’s request for postponement must include a statement identifying the source of the funds. The law allows for three postponements. After three postponements, a new notice of sale must be given, except for postponements requested by the trustor or ordered by a court.

After the sale to the highest bidder, the trustee executes and delivers a trustee’s deed to the purchaser. The trustee’s deed conveys title to the purchase free and clear. The issuance of the trustee’s deed terminates the previous trustor’s legal and equitable rights in the property. It should be noted, however, that title to the property is conveyed subject to all senior liens, including liens for property taxes and assessments.

The purchaser of the foreclosed property is entitled to take immediate possession. A trustor who refuses to vacate the property may be legally forced to do so.

Rent and Rental Income

Generally, the trustor occupying the property does not have to pay rent to the beneficiary while in default. If a deed of trust should indicate a rent liability, enforcement of it would be unlikely.

The beneficiary may have a right, however, to any rental income generated by the property during the period of default. In the absence of such a provision in the deed of trust, the beneficiary is generally not entitled to any rental income.

Deficiency Judgment

In General, the law prohibits a deficiency judgment in a non-judicial foreclosure with a power of sale provision. Even if the proceeds from the foreclosure are inadequate to repay the loan, the beneficiary has no other possibility to recover.

Trustee’s Fees

The fees a trustee is entitled to charge the beneficiary or deduct from the proceeds of the sale are prescribed by law. The trustee may charge for costs incurred in recording, mailing, publishing, and posting of Notice of Default and Notice of Trustee’s Sale; the cost of postponing the sale by request of the trustor (not to exceed $50 per postponement) and the cost of a trustee’s sale guarantee. In addition to charging for these actual costs, the law provides for a fee schedule based on the amounts of the unpaid debt.

The legal limitations for trustee’s and attorney’s fees do not apply to attorney’s fees the beneficiary is entitled to recover under special provisions of the deed of trust.

Special Legal Provisions

Special federal and state laws may affect the manner in which the foreclosure is conducted. If the loan is insured or guaranteed by the U. S. Department of Housing and urban Development (HUD! EHA) or the Veterans Administration (VA), certain procedures must be followed. In the case of a VA-guaranteed loan, the trustor may be liable for any deficiency, unless the veteran obtains a release of liability from the VA. California law does not necessarily protect the trustor from liability for a deficiency on a VA guaranteed loan. Federal laws governing the VA loan program take precedence over any conflicting California law. Trustors should contact the VA for details concerning their rights and to learn about specific requirements.

Judicial Foreclosure

Judicial Foreclosure is tried in some state Superior Courts. The beneficiary, upon default of obligation by the trustor, brings a foreclosure lawsuit against the trustor. If successful, the court will issue an order to sell the property at a public sale. The beneficiary must use judicial foreclosure if the security instrument does not contain a power of sale provision. A mortgage or deed of trust containing the power of sale provision may be foreclosed judicially if the beneficiary chooses to do so.

The decision to foreclose judicially or non-judicially is not necessarily final. The beneficiary may discontinue judicial foreclosure at any time and commence non-judicial foreclosure.

Conversely, the beneficiary may abandon non-judicial foreclosure and initiate judicial foreclosure. Beneficiaries sometimes initiate both types of foreclosure simultaneously.

Foreclosure Sale

A court-appointed commissioner or sheriff in the public place must give notice of the sale of the property for 20 days preceding in the date of the sale. This same notice must be published in a newspaper of general circulation weekly for 20 days. The notice also must be sent by certified mail to all defendants at their last known addresses.

At the foreclosure sale, the property must be sold by the auctioneer to the highest bidder who is financially qualified.

Redemption of Property

In a judicial sale, the trustor has the right to redeem or reclaim the property after the foreclosure sale. For a trustor, the right of redemption makes a judicial sale attractive. It should be remembered, however, that a judicial sale might also lead to a deficiency judgment. This possibility does not exist in a non-judicial foreclosure.

Deficiency Judgment

In a judicial foreclosure, the beneficiary has, under certain circumstances, a right to a deficiency judgment. The deficiency judgment is limited to an amount equal to either the difference between the indebtedness and the fair market value of the property, or the indebtedness and the sales price at the foreclosure sale, whichever is less.

Rent and Rental Income

The trustor occupying the disputed property does not have to pay the beneficiary rent while in default. The beneficiary may be entitled, however, to any rental income generated by the property.

After the sale, the trustor retains possession of the property and does not have to pay the beneficiary rent while in default. The beneficiary may be entitled, however, to any rental income generated by the property.

Craig Meriwether is owner of Kula Investments, a company founded you help you get top dollar for you owner financed real estate loan. [http://www.ioubuyer.com]

Article Source: http://EzineArticles.com/?expert=Craig_Meriwether
http://EzineArticles.com/?Owner-Financing—The-Foreclosure-Process&id=2140489

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What Does REO Mean When Buying Real Estate For Sale?

What Does REO Mean When Buying Real Estate For Sale?By Simon Volkov

As a property investor, I am often asked what does REO mean when buying real estate for sale? An acronym for ‘real estate owned’, REO refers to foreclosure property repossessed by mortgage lenders. When foreclosure real estate does not sell through public auction it returned to the lender, who in turn lists the property for sale through an assigned realtor.

A second question buyers ask is what does REO mean in terms of buying houses at discounted prices? Most bank owned homes are sold slightly below market value. Since properties are sold in “as-is” condition, banks consider home repair costs and adjust prices accordingly.

Although REO homes are typically more expensive than houses sold through public auctions, overall they are actually cheaper. Most foreclosure properties require multiple repairs because foreclosed homeowners are financially incapable of properly maintaining the home.

Many properties sold through auctions have liens and judgments attached. In some cases, foreclosed homeowners continue residing in the home until evicted through the court system. All of these issues are resolved once the bank takes possession of the home. Buyers are able to purchase REO homes with a clean title and quickly take possession.

Real estate owned properties are sold through each bank’s loss mitigation division or designated realtor. Since banks have incurred foreclosure legal costs and fees associated with lien, judgment or tenant removal, there is little room for negotiating the asking price.

Bank owned homes can be a great option for first time home buyers, real estate investors, or individuals looking for an affordable vacation home. REO houses are perfect for use as rental houses or lease-to-own properties. Since bank owned foreclosures are priced below market value, investors can reap profits by rehabbing and flipping the house or offering seller carry back financing.

Buying bank REO properties can save investors and home buyers time and money. There is no need to spend time attempting to remove creditor and tax liens or commence with eviction action when tenants refuse to vacate foreclosure properties.

Time-consuming details are taken care of by the bank; allowing buyers to purchase the property at a discounted rate and quickly take possession of the property. Closing on a foreclosure home can take several months, while REO purchases can be expedited in a matter of weeks.

Many resources are available for locating real estate owned properties. Countrywide, Remax, Prudential and Bank of America publish bank owned foreclosure homes for sale directly on their company websites.

Many mortgage lender and realtor websites include additional resources to help borrowers further reduce the cost of buying houses through first time house buyer programs and government grants.

These are just a few options available for buying REO homes at reduced prices. The Internet offers an abundance of information to help home buyers and investors locate distressed properties. Local realtors often offer foreclosure seminars to help buyers understand the process of buying foreclosure homes through auction or bank loss mitigators.

Take time to conduct research, attend seminars or talk with real estate professionals to learn the ins and outs of buying REO real estate. Doing so can help you obtain exceptional real estate at significantly reduced prices.

Author and investor, Simon Volkov, presents a comprehensive real estate article library to help buyers understand what does reo mean and how to obtain discounted prices. Simon offers insider-secrets to maximize profits of buying real estate owned homes. Learn how to buy REO properties at discounted rates by visiting www.SimonVolkov.com.

Article Source: http://EzineArticles.com/?expert=Simon_Volkov
http://EzineArticles.com/?What-Does-REO-Mean-When-Buying-Real-Estate-For-Sale?&id=4310324

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Outstanding Video-An Inspiration To All-Be The Best You Can Be!

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Twin Cities Home buyer book

Thinking about buying a home but don’t know where to start? Why not start by reading the home buyer hand book that we have provided below. It is a great place to start to get the information you need. When you’re ready, we would love to help you find and finance a new home.

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The Short Sale Process For A Seller

This ppt. will explain the basics involved in a short sale. Today, lenders are starting to put in place systems that will make the short sale process work smoother. This presentation covers what is generally involved.

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Grant Available In MN For Foreclosed Homeowners

I’ve just learned of a grant of up to $3500 that is available for people who have lost their home to a foreclosure and need some cash to help with the transition of moving on. This is only available to metro area residents in the Twin Cities. The Target Foundation put up most of the funds and all monies are available on a first come-first served basis and is for relocation assistance. Go to

http://www.Hocmn.org

to learn more. On a national basis, visit

http://foreclosure-response.org

for more information on options and programs.

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How A FEW Are Profiting HUGELY From A Government Sweetheart Deal

If you haven’t been getting much success with a modification and wonder why-maybe this video will help explain things.  As an agent who works really hard to keep people in their homes FIRST, I found this very upsetting.  I can tell you many many people who would have stayed in their homes, albeit at a reduced payment if they had some payment relief.  Instead, lenders foreclosed or forced a short sale and ultimately lost a lot more than the interest differential.  It is sad to think that even one family might have had to leave their home because of a profit incentive that encourages it.  Here is the video:  http://www.thinkbigworksmall.com/mypage/archive/1/29027

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What Happens When They Come For YOU

While this posts title is just a play on the TV show COPS, it is possible that if you sell a home short or have a foreclosure that results in a loss, that the lender could pursue a deficiency judgement.  In MN, they are doing this more often.  The LAST thing I am giving anyone is tax or legal advice.  Just be aware of the fact in MN, lenders can choose how they foreclosure.  A judicial foreclosure can result in pursuing a deficiency vs a foreclosure by advertisement.  There are resources like http://www.HOCM.org which provide Minnesota consumers with information and possibly assistance with trying to figure out options and repercussions.  Research the Mortgage Tax Forgiveness Act of 2007, extended in 2009 until the end of 2012.  Also call the IRS at 1800-829-1040 or visit them online at IRS.gov

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Items Necessary to Submit a Short Sale Package

Just because you owe more than your home is worth does not mean that you will be eligible to do a short sale.  The key is being able to show that you qualify based on a acceptable hardship.  The lender needs you to explain your situation in a hardship letter.  With that, there are items they will need.  These items include the following:  A financial statement showing what your current assets are and what your expenses happen to be, A couple of recent paystubs if you are employed that show your year to date income, all pages of your bank statements, your two most recent signed tax returns, asset statements like 401K & IRA’s, and a list of any other liens that encumber the property title such as back real estate taxes, second mortgages, third mortgages, and IRS tax liens that are recorded against title.

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Minnesota Deficiency Judgements Due To Mortgage Defaults Appear To Be Increasing!! Be Careful!

I recently read an article about the banks pursuing judgements after a short sale or foreclosure. The Minnesota home ownership center is FANTASTIC. They have lots of great information. Here is the link to their article:
Minnesota Home Ownership Center: Sued – After A Foreclosure

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Open Source Documents-Unbelievable Resources-Find YOUR topic of Interest

If you’ve never visited http://www.Archive.org, you are missing a wonderful site.  From this site, you will find many resources that are out of copyright and you can download and use them as you wish.  You will find all the classics and some fun things as well.  Just for fun, I have the download of a book called “Little Gardens” which is a book about setting up a garden on a city lot.  This is just one of the MANY fun things you’ll find.  You can download and watch old music, movies, and cartoons as well.  Plan to spend some time on the site should you decide to visit, as it is very cool.  Click here to download the book Little Gardens

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FHA Loss Mitigation Options For Those With FHA Loans

Here is the latest FHA Mortgagee letter that explains what options are available for people in default with their FHA mortgage. There are options, you need to explore them if you are in danger of losing your home.

FHA Loss Mitigation

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Sell Your Home Faster-Learn The Home Selling Secrets Of Successful Sellers

Here is a special report that outlines over 450 ideas on how to sell your home faster.  This report is just one of the many home buyer, home seller, and investor reports that I can make available to you.  Read this report and call me to arrange a time to see how I can help.  Download Now

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Real Estate Investing in Rental Properties

There are many ways in which a person can make a living when it comes to real estate investing some of them carry more risks than others. It goes without saying that those that carry the greatest risks are often the very real estate investment methods with the highest potential profit but slow and steady, in many cases, wins the race. Flipping houses is in the news a lot because so many fortunes have been made doing this-more than a few have been lost in this venture as well but those don’t make the news nearly as often.

Working with rental properties isn’t nearly as glamorous and doesn’t provide the almost instant profits that flipping houses might but it is also a great and very valid method of real estate investing that will build a steady profit over time if you plan properly. Rental properties are in demand now more than ever with so many people going into foreclosure and losing the homes they’ve worked hard to build for their families. For this reason rental properties are a good thing to own at the moment, especially those that are family homes.

There are many reasons that people rent and while there are some risks involved when renting properties, the risks are much lower than the risks involved in flipping or pre-construction investment endeavors. There are a few things you should consider when purchasing a property for the sake of renting however in order to make a wise and long lasting decision for your real estate investment.

First, only invest in rental properties in areas that people want to live in. It may be true that you can buy property cheap in a few very run down sections of town but it is doubtful that you will turn those properties into profitable rental units. It is best to pay a little more for a more attractive address for renters. You will find that your properties are inhabited more often, which will make you more money in the long run.

Second, pay attention to the types of people in the area and buy rentals accordingly. It is quite possible to turn large homes into multiple smaller apartment units (according to local zoning laws) that are ideal for college students. You do not want to do this however in an area that is geared towards family homes and won’t be friendly or tolerant of college students. Design the rentals according to the market you are attempting to attract.

Third, don’t be greedy. The goal of owning rental properties is of course, to make money. At the same time if your price your properties too high you will find that they sit empty more often than not. Every month that your property is empty is a month that you aren’t making money on that property at best and a month that you are losing money at worst.

Fourth, know the market. Study the local market for buying real estate and renting real estate. This will help with many things, not the least of which is determining whether or not any given property will make an attractive rental unit. Another thing it will help you determine is how much rent the units you are considering can bring in month after month.

Finally, when renting properties you need to keep your eye on the long-term goals rather than shortsighted goals. Property rental is a marathon rather than a sprint with the greatest profits coming at the end. You will want to pay as little interest on the property as possible and pay the property off as quickly as possible in order to realize the maximum profit potential and acquire new properties. The real money when renting properties as a real estate investment isn’t in renting out one or two units but twenty or thirty. The more rental properties you own the more money you stand to make from owning them.

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Pros and Cons of Flipping Houses

If you have watched countless shows on television about flipping houses and making tons of money in a very short amount of time you’ve probably thought to yourself that you could do that and possibly wondered why you haven’t. If you are considering entering into the world of real estate investing through the role of one who flips houses there are a few pros and cons that you might want to carefully consider before taking the plunge.

Pros

Potential profits that are large and relatively quick. Those who flip properties as a sole source of income can make in a few months what the average worker in this country makes in an entire year. The potential profits are great in this line of work for the successful house flipping team.

Being your own boss. This is within certain limits of course are some areas have strict zoning ordinances and code requirements that must be respected and adhered to when working on a house. Even so you maintain a large degree of control over all the decisions having to do with the flip.

Getting to work with power tools. There is that little kid in most of us that really loves the idea of playing with power tools. In fact, that is the deciding factor for many who have gone into this particular field of real estate investing in the past.

It’s hands on. There are all kinds of different investments that you can put your money into but very few allow you to pour your heart, soul, blood, sweat, and tears into them the way that flipping a house does.

Cons

Risk. Real estate is a risky business in its own right. When you add the skills that are needed in order to flip a house, the wide variety of things that may go wrong during a flip, and the volatility of the market in general there is so much that can go wrong when it comes to flipping a house. You must be prepared to walk away with less than nothing in order to make the high dollar profits that a successful flip can bring to the table.

No easy out. If you invest in stocks that go bad it is possible to pull your money out of that stock and go somewhere else. It is a little more difficult to do this when it comes to a house flip. You need to be prepared to see it through to the finish if you begin flipping a house.

Expenses. It’s expensive to flip a house. You will need to come up with no small investment of your own in order to do this. It will take careful planning and diligent adherence to those plans in order to successfully flip a house but the rewards for your significant financial investment are most often well worth the effort.

Physical labor. For many first time house flippers who are accustomed to office jobs the aches and pains and inexperience of muscles and hands to certain jobs prove painful both physically and financially. Not everyone is as skilled as the next guy when it comes to physical labor, carpentry, painting, installing floors, hanging cabinetry, and countless other skills you will be called upon to perform while in the process of flipping a house. You will occasionally need the help of skilled professionals and on occasion need large doses of your favorite muscle ache ointment.

Despite all the pros and cons many people around the world embark on their first house flipping adventure each and every day. The allure of quick rewards often outweigh the need for cautious prudence. But for many of these people their efforts will pay off. Are you ready to take the plunge or have you decided that a safer difference between you and the power tools just might be the best bet? If you decide to go the distance and flip your first house I wish you the best of luck.

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Pre-Construction Real Estate Investing

If you have the heart and soul of a gambler or love extreme sports and activities such as skydiving or bungee jumping then you may be the ideal candidate for pre-construction real estate investing. Pre-construction profits are often among the highest in the industry.

At the same time so are the risks. You will find the greatest highs and lows that can be found in the field of real estate investing lie beneath the umbrella of pre-construction profits and many of the big names we know so well in the real estate investing field have made much of their fortunes through speculation and pre-construction sales.

Before I go any further, one word of caution should be spoken. While the potential for profits in this particular corner of the real estate market are unconventionally high the risks are also abundant. This is speculative real estate at its very best and as we have all learned in the past, when the bubble bursts in a specific market those who have the most invested are the ones who often loose most heavily.

As far as what pre-construction real estate is there are a few interpretations. The first is also the most obvious. You are buying real estate at some point before construction is complete. In hot markets you will often need to purchase the units before ground has broken on the project in order to get the lowest price for your investment and highest potential pay off for your pockets. Once you’ve purchased the unit or units you plan to sell you then begin seeking buyers for those units.

In markets that are on fire like some Vegas suburbs and big retirement and vacation cities along the Florida coastline the same property is not exactly uncommon for a property to change hands and have several owners before the unit is complete. Each one will take a little something home from the table for their efforts with those who get in earliest often taking the largest piece of the pie home with them.

You may be wondering why this occurs and the answer really is simple. When the contractors attempt to get funding for their buildings in these large complexes they often need to have a certain percentage of the units “pre sold” in order to convince the banks that there is an adequate market and to garner some of the revenue that is needed to get the venture up and running, so to speak. So real estate investors buy these units at rock bottom prices because essentially they are paying for the idea of the unit (which hasn’t at this time been built and isn’t yet approved to be built in many cases) rather than a brick and mortar property.
As the project draws closer to completion, particularly in markets where real estate is in high demand, the value of the property rises dramatically ending in ridiculous profits for those who have managed to hang on.

The risks however are many. There are any number of things that can go wrong on a project such as this not the least of which is that the demand for housing will be met before the unit is actually built. This has happened and continues to happen. Also recessions, business closings, economies collapsing, and tragedies in the vicinity can occur before the property is complete leaving everyone who has invested heavily in the project holding a little bit of the bag and loosing their profits and, quite possibly, their investment.

These projects generally take a great deal of time to complete which makes the risks that much greater and the anticipation of these events a little more difficult to map out ahead of time. If you can manage to make it through however many investors see more than a one hundred per cent return on their investment making it a popular type of investment among many despite the rather large risks involved.

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Multiple Streams of Income in Real Estate Investments

It doesn’t really matter what kind of investing you are participating in, it’s almost always a wise idea to have multiple streams of income in order to maximize your profits while spreading your risks. Even within the confines of real estate investing there are different types of investing that can help you spread your risks when markets meet turbulent times and this is a very good safety net for those who do not want to feel as though they are gambling away their investments on a real estate market that is fickle on its best days.

You really have two course of action when it comes to bringing in multiple streams of income when building your financial portfolio. The first is to spread your real estate wealth and investments across several different types of real estate investments. There are a few types that come immediately to mind. First there are rental properties. You have two options even with these. You can either choose to rent properties outright to families, students, singles, and the elderly in your town or you can offer a lease or rent to own situation for those who have struggled in the past but still have the dream of home ownership.

Other options for bringing in multiple streams of income through real estate is to have a few rental properties and couple those with a few flips in the works, perhaps a commercial property or two, and a pre-construction deal or vacation condo in the pipelines. One thing is certain you should always be on the lookout for your next real estate investment if you really want to make good money in this business while having a little added security. Rentals are passive income for the most part, especially if you have a solid property manager taking care of the details and the other investments are often icing on the cake.

If you want a truly diversified portfolio however, it is a good plan to include a few investments that aren’t related to real estate investing. While I firmly believe that real estate investing is the way to go for most people there is much money that can be made in other fields and it would be pointless to discuss multiple streams of income without mentioning a few that were unrelated to real estate investing. Retirement plans are a great option and you can now invest in a retirement plan of your own even if you are self-employed. It is definitely worth considering as yet another stream of income, even if it is income that you will need to wait a while to receive. Franchise businesses are often great money makers for those who need more immediate results from their investments efforts, and stocks and bonds are also great long term investment strategies.

The truth is that there are many things you can do to create even more streams of income to add to your real estate investments. From making money online through affiliate marketing, blogs, and direct sales you can also tackle brick and mortar businesses, though these tend to be just as time consuming as real estate. The point is that you want to bring in money from different avenues and real estate investing is one of many different routes to explore when deciding on your investment future and establishing those multiple streams of income.

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Managing Money During a Flip

Money management during any real estate investment venture is an essential skill. If this is your first time flipping a property it is probably more important on the first flip than any other as you need to fully realize how much things cost and how quickly those expenses can up. It is so simple for the budget on a house flip to get completely out of control. For this reason you need to take control of the financial situation from the very beginning.

Begin by establishing a realistic budget for the entire project. If you find yourself spending more money in one area than you had originally planned you need to either revisit the initial budget and plan for adding more money to the pot or you need to make cost lowering adjustments elsewhere along the way to recover the excess. You will need to have a firm idea of the projects you are going to tackle, big and small, as well as the costs involved in each project. Take a walk through a hardware store and get a firm grasp of today’s prices on the hardware, equipment, and supplies you will need to complete the job.

Use contractors when necessary but sparingly. There are times when it will cost much less to use a contractor on a project than to muddle through on your own. There are also times when local laws require a contractor. You need to use contractors for these times but you need to avoid paying the princely labor costs contractors charge for things that you could easily do yourself. You never want to spend a penny on a flip that you don’t need to spend and labor costs are a huge budget buster.

Get permits first and up front. Time is money when you are flipping a house and once you start the work that time is precious. Make sure you have all the permits you need and that they are paid for before you begin the project in order to save time and money after the project has commenced.

Then create a habit of accounting for every penny spent throughout the day at the end of every day. This becomes a good habit to have for your first and all subsequent flips. By doing this you will have a solid grasp of how much money you are spending as well as how quickly you are spending it. You will need money to spend on little things throughout the course of the project so if you are spending money too fast up front you may not have the money needed to take care of the small details that mean a lot when all is said and done.

One huge way to better manage your money during a house flip is to make a conscious decision and consistent effort to work according to your tastes. Chances are quite good, especially for a first flip that you will be working on a house for those who have less financial means than you may have. For this reason you need to keep your project within the budget of your buyers. This will save tons of money. In other words a lower income community cannot absorb the costs of granite, marble, and hardwoods in most situations so don’t go to that expense.

In order to turn a solid profit when flipping a house or doing any type of real estate investment you absolutely must have a firm grip on your money, where it is going, and what your plans are for the money. The less money you spend the more money, in many cases you stand to bring home in profit. Spend the money you need to spend in order to improve the value of the home but avoid luxury expenditures that aren’t necessary for the neighborhood or the home in question in order to maximize the potential profits you can bring home.

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Real Estate Investing-Everything You Need To Know!

I came across this e-book and I wanted to share it with you.  I thought the information was useful, the rolodex link in the back of the book with investor resources was incredible.  I think you will enjoy it-it is a pretty light read.  If you get all fired up and want to start looking for property, just give me a call.

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Avoiding HUD Home Headaches: Tips On Buying HUD Foreclosures!

Bidding & Buying on Minnesota HUD homes—it seems to be the hot ticket in town.

However – Remember these key points to avoid problems and advise buyers:

•    Only primary residence buyers allowed in the first round of bidding.
•    Determine if the home is being offered as eligible for Minnesota FHA financing:

o    Has an existing FHA appraisal that must be used (unless expired)
AND
o    The sales price has usually been based on the existing appraised value.  Bidding above the sales price may result in them paying the difference out-of-pocket between their bid and appraised value.

•    HUD does not automatically provide title insurance.  Make sure that the lender has disclosed this additional     expense to avoid surprises at closing.  Only if HUD has agreed to pay closing costs, could the insurance be provided at HUD’s expense.

•    If HUD is offering a repair escrow, that this amount can be ADDED to the MN FHA loan, but HUD doesn’t pay for it.

•    Lender documents must be to the title company up to 10 days prior to closing date in some states.

•    HUD signs closing packages first.  Then once the loan proceeds and the title company receives buyer down payment and closing costs, the buyer is allowed to sign.  Make sure that the lender is aware and has the ability to fund the loan BEFORE they have a completed loan package.

•    Closing delays are common due to “title clearing” issues. Foreclosed homes can have several liens due to utilities, taxes; etc that must be dealt with before closing can take place.  Minneapolis HUD Homes are a great investment when the buyer is prepared from the beginning for all potential challenges, such as rescheduling of moving trucks, and possible rate lock extension fees.

When you work with experienced professionals like John Mazzara with RE/Max Associates Plus in Edina Minnesota and Patti Mazzara with Venture Development Inc, a MN Mortgage Broker, you will get the guidance and straight-forward answers that make the process easy to understand. Let our experience help you through your home purchase.  Visit http://www.minneapolisstpaulhomes.com and http://www.ventureloanapp.com/

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Introduction of Home Affordable Foreclosure Alternatives – Short Sale and Deed-in-Lieu of Foreclosure

This is FANTASTIC NEWS!!!  FINALLY, they are establishing minimum requirements on resolving the short sale procedural process.  Here is the link to the government news release:

https://www.hmpadmin.com/portal/docs/hamp_servicer/sd0909.pdf

Short Sales have been difficult to close, and these new measures are a huge step in the right direction. One major highlight: A lender must give a yes or no answer to an offer within 10 days. Also included: a moving allowance, incentives for sellers and lenders, commission rules, and a stipulation that releases sellers from debt liabilities.

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RECENT News Release: Legal Service Plans Can Benefit Homeowners Facing Foreclosure

Pre-paid legal recently had a news release that explains how their service may benefit homeowners who are in distress and facing a foreclosure. We sell the PPD Pre-Paid Legal service plan at our website https://www.prepaidlegal.com/Multisite/Multisite?site=hub&assoc=mazzara You probably want to look at the family plans unless you are a small business. You can visit the site, watch the video, and learn more. I not only sell the plan, I am also a user of the plan. I think PPD is great based on my own personal experience. I have called upon them to answer questions and they have been of assistance over the years. If you have questions that aren’t answered online, call me.

Read the news release here:
http://www.prnewswire.com/news-releases/legal-service-plans-can-benefit-homeowners-facing-foreclosure-70452157.html

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Extension And Expansion Of Home Buyer Credit-4/30/2010

A Big WOW!!  The credit has been expanded to include homeowners who have owned their home for the past 5 years. No longer do you need to be a first time buyer.  The dollar limit is $8000 for first time buyers and $6500 for move up buyers.  This GREAT news.  Combine this with 50 year lows in interest rates, and you’d be crazy not to consider making a move.  If you feel secure in your job, think hard about buying  home at this time.  We can help you make the right move. Visit this site-which is from the National Association Of Home Builders  http://www.federalhousingtaxcredit.com/faq2.php This site give you all the rules and regulations as they now apply.

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Why Foreclosure Is Often Preferred By The Loan Servicer Instead Of Offering A Loan Modification

Have you ever wondered why a foreclosure occurs when a better solution might have been a modification?  Would you like to read the facts and figures and see how mortgages are bundled, sold and serviced?  You will soon see it is isn’t pretty, we are in the midst of a crisis, and it is likely to get worse before it gets better.  That being said, you can probably guess why-it’s about the money.  It is a little more complex than that-the report is 60 pages-but is explains the incentive and disincentives that are at conflict within the mortgage market today.  Once you understand how all the pieces go together, you can see that something “different” needs to be done.  I am a strong free market believer, but in this case, the government needs to have a mandate and rule that is guided towards keeping people in their homes.  Left to current industry solutions, the mortgage mess will continue to play out and get worse.  If you click on the link below, you will find the free report from the National Consumer Law Center.

http://www.consumerlaw.org/issues/mortgage_servicing/content/Servicer-Report1009.pdf

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Home Buyer Tax Credit Information Update

It’s now official!! The tax credit has been extended and expanded. YOU NEED TO HURRY! You now have until the end of April 2010. The following summary of the credit is provided by the National Association Of Realtors. The following two documents cover the changes in the new law. Now get out there and buy a home!!

NAR FAQ: Homebuyer Tax Credit Changes
NAR Issue Brief: Homebuyer Tax Credit Changes

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Minnesota Real Estate Newsletter Gives Access To Great Computer & Life Tips

I maintain a number of real estate sites, blogs, and newsletters. One newsletter that provides a number of computer tips to help you function better with a computer is http://www.REcyber.com/cybertips/r11627 The site is full of cyber space tricks and great places to visit. We have link to this site on the list of MN Real Estate links, but I wanted to highlight this particular newsletter because it different from what most agents provide. From this newsletter, you can also access all the back issues-from 2001 and beyond. It is really quite a useful resource-spend some time there if you have a chance.

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