Foreclosed Homes for Sale – a Great Opportunity for Investment
Posted on March 2, 2010
Filed Under Foreclosed Properties | Leave a Comment
A lot of people involve their properties or homes in contracts with mortgage options, however, after a certain period of time, most are unable to make these mortgage payments for various reasons, and the debt keeps on increasing. But the concept of foreclosed homes these days has brought about a feeling of relief, especially for banks, for which this has proved to be the easiest way of recovering loan payments.
A foreclosed home for sale would be one which the bank has repossessed or taken over, because of non-fulfillment of loan payments by its previous owner. One can easily find a foreclosed home listing with banks, websites and real estate agents who regularly advertise about such properties. Buying a foreclosed home is one of the easiest ways to own a property and is beneficial to both investors and home buyers. One can get a foreclosed home from banks at a rate which is up to 15 percent less than its original market value.
The process is quite simple. All one has to do is contact a real estate agent or a bank, or search on websites for a foreclosed home listing depending on the area of preference. Since foreclosed homes are usually available for viewing, banks would immediately agree to show the property to the investor so that he can make a wise choice and have the deal done as fast as possible.
The advantages of a foreclosed home for sale are more as compared top other properties in the market. This is mainly because of the reduction in the costs and also because in investing in such properties, one deals with the banks directly. So negotiations can be made with regard to comfortable mode of payment, low interest rates etc. Also, it saves the buyer from the usual troubles of evicting previous tenants, taxes, repair and renovation etc. Overall, investing in a foreclosed property is a very profitable decision.
Akhila Choudhary
http://www.articlesbase.com/real-estate-articles/foreclosed-homes-for-sale-a-great-opportunity-for-investment-714763.html
Tips on How to Write a Short Sale Hardship Letter
Posted on February 28, 2010
Filed Under free foreclosure property listing | Leave a Comment
A letter of hardship is a statement written by a debtor that main goal is to convince a bank or mortgage institution to agree to a short sale of an asset or property. A short sale is the sale of an asset or property for less than the value of mortgage or loan. This sale is a settlement between the debtor and the financial institution that allows the bank to recoup some financial losses associated with bad or defaulted loans. A short sale also allows the debtor to avoid imminent foreclosure. In order to apply for these short sales, the debtor must convince the banking institution of his or her inability to repay the loan or debt. This statement is often made in a letter of hardship.
When writing a letter of hardship, it is important to remember that the primary point of the letter is to convince the financial institution that the debtor, due to certain issues, is not likely to repay the outstanding loan. If the banking institution is properly convinced that the debtor will default on the outstanding loan or mortgage, then they may decide to agree to a short sale of the property or asset. A letter of hardship should be detailed and personal. It should describe the debtorâs current financial situation, listing current income, other loan obligations, and any potential collateral available. The letter should also attempt to explain why the debtor will likely not be able to repay the loan obligation. Remember that the individuals who will decide whether or not to issue a short sale are human. They will be more likely to issue a short sale if the debtor has incurred unforeseen debt or expenses. This unforeseen debt could be related to a death in the family, personal health problems, or any other reason that has led to the unexpected financial stress. The debtor should be honest in a letter of hardship and stress the exact reasons why he or she has fallen behind on their mortgage or loan payments.
It is estimated that loan officers receive forty to fifty applications for a short sale per a day. Less than one short sale is approved for every ten applied for. Oftentimes, a letter of hardship is what separates an approved short sale application from those applications that are denied. The letter should be truthful and personal. There are many real estate companies that offer to write a letter of hardship as part of a short sale package. While these packages are often very professional and the experience of qualified real estate agents is helpful and reassuring, a letter of hardship should only be written by the debtor. This letter should be short, usually under one page. However, there are no set rules. A compelling letter of hardship can often run two or even three pages. The debtor should try to resist the urge to list a set of excuses for his or her current financial situation. Instead, the debtor should focus on concrete reasons for why they have fallen behind on their mortgage or loan payments. Acceptable reasons for falling behind may include the death of a wage earner, unexpected health costs, or the loss of a job. Try to avoid any mention of any unexpected legal fees associated with a criminal defense or personal lawsuit as a reason for the failure to repay a loan or mortgage. Â
MisUniversity
http://www.articlesbase.com/business-articles/tips-on-how-to-write-a-short-sale-hardship-letter-720417.html
How to Increase the Real Estate Value of Your Property?
Posted on February 28, 2010
Filed Under foreclosure real estate property | 2 Comments
If you invest in real estate you can earn good enough cash and equity. It can be good prospect in terms of short and long-term investments. This mainly includes of investments like real estate investment trusts, real estate mutual funds and homebuilder stocks. The appraisal of real estate property today is a very expensive proposition. This can however prove handy when you sell your real estate investment. This can also add value to your investment when you remodel your dwelling. These renovations give that added impetus for selling your property.
But are real estate appraisals worth it? The answer to this is yes. Since a good analysis of your real estate can fetch you good profit in the near future. This whole procedure can be divided into three distinct parts. The first stage involves purchasing of the property below the current market rate. Then comes the part when you consult an expert in property management for renovation. At this juncture you have to think in terms of capitalization value that should be more than the purchase value. This is an effective plan during selling the real estate property. This evaluation procedure includes the ratio involving the difference between the buying price and the total operating income.
But the increase in the value of real estate investment has its own positive and negative aspects. While on the positive front it is beneficial for people like you who may be from a non-business background, the easy selling of such properties can be useful for purchasing a single family estate. It can also offer tax benefits and act as a long-term break tool. Yet there are some negative factors that can depreciate the value of your property. This investment usually requires hands-on involvement at a good rate. So, when you go for such long-term plans you will face a lot of difficulties in this regard. Well, moreover, time and huge amount of money are two other things that require careful planning with regards to repairs and maintenance.
Go ahead for an immediate real estate appraisal, for the proper evaluation of your property. This will help you quote the right price for your real estate. So, any structural changes implemented in the form of bathroom or kitchen re-modeling will definitely ensure value addition to your existing property.
Jason Sands
http://www.articlesbase.com/real-estate-articles/how-to-increase-the-real-estate-value-of-your-property-712755.html
Always be Selling, Everything is for Sale
Posted on February 28, 2010
Filed Under foreclosure properties for sale | 4 Comments
Always Be Selling
Everything Is for Sale
By: Hassan Omar
Atlanta Investing
If investors really want to be profitable in the real estate game, theyâll need to know a couple of extremely important rules before they can truly be successful. This means unlearning one of the most harmful beliefs that many possess towards real estate investing; the idea that solely having a long-term Buy & Hold real estate investing plan will automatically protect them from long-term changes in the market. It also means embracing the fact that property owners should always have the mindset that everything, including their newest or favorite purchases, is for sale.
Relying solely on a long-term real estate buying & holding plan is not a solid strategy; itâs a bad theory, a rumor, a myth. At its core, the idea is based on the premise that if you buy a property and hang onto it for long enough, youâll eventually be able to weather all of lifeâs storms and still make money. This myth is the security blanket that many investors cling to for the times when property values drop or when they donât know what to do. During these uncertain times, many have been conditioned by the media and more experienced investors (usually the ones that sold them a raw deal) to think something like âI know that property values are down right now, but because of my buy and hold plan, I know that the market will eventually bounce back and the property will be worth far more than what it was when I originally bought it⦠if I can just hold on a little longerâ¦â Bad idea; usually, they wonât.
In my opinion, unless a person has buckets of money just sitting around waiting to be thrown away, relying solely on a long term buy & hold real estate investing plan is one of the worst things any investor can do; hereâs why.
Yes, on a historical basis and on average property values do rise. Unfortunately for many long-term buy & hold properties those values usually donât rise fast enough to recoup the expenses and losses in value that affect single-family homes over the long run. This is due to the fact that as houses wear out and become obsolete, they become increasingly less desirable and unmarketable. Just ask your self how much demand there is right now in your market for 800 square foot, 2 bedroom - 1bath homes, built in the year 1910? Not much, if any. Yes there are plenty of them still hanging around out there and many that may look like a deal. But do you really want to go through the expense and headache to owning and maintaining one of them? Hopefully your answer to that question is an emphatic âNoâ!
If you owned one of those functionally obsolete properties, not only would you have to deal with the fact that its probably in one of the least desirable parts of town, but also with the fact that as time marches on, personal housing tastes and expectations roll right along with it. This being the case, do you really think that it makes any sense to solely have a long term buy & hold strategy for old real estate? Hereâs a hint;
No, it doesnât………..You have to evaluate, sell and replace your property on a regular basis or you will quickly be done!
The fallacy and risk relying solely on a long-term buy-and-hold real estate investing strategy lies in the fact that it pacifies many investors, encouraging them to be lazy and unresponsive to changes in their markets. This is an extremely dangerous way of doing business, which lulls many investors into the false sense of knowing that they donât have to do any more buying or market research, severely impairing their ability to react to changes in housing demands. In many cases it is not until well after the market has take a turn for the worst that investors realize how bad the extent of their situations are and how limited the options for recovery really are. It is only when they come to this realization that the flop around trying to figure out what to do.
Please note that I am not advocating that any real estate investor dump all of their holdings, nor I am suggesting that none of your properties be long term holds. All I am saying is that to be a successful real estate investor you have to have the mentality of a professional stock trader, to always be selling, and know that everything is for sell!
The best way that you can do this is to continuously do your research and homework so that you are never caught off guard. Professional stock traders take everything into consideration when buying, holding and selling publicly traded stocks, as should the serious real estate investor. They are always looking one, five or ten years down the road for signs of any threats to the companies that they invest in; and at the slightest hint that there is a major issue that the company canât overcome, they unload the stock. That is how you have to view your real estate investments, like stocks, always for sale.
Donât feel bad if youâve been practicing a buy-and-hold plan and it hasnât been working. Itâs not your fault â unfortunately many of us have been misinformed. When I first got started investing in real estate, I too believed in the conventional long-term buy & hold model as well. Everybody whoâs new to the game (including a lot of old folks) believes in this theory. And why wouldnât they? All their lives theyâve been taught this model and for some people it works; unfortunately for most investors it wonât.
When times get tough, many seasoned investors tell other less experienced ones this myth as a ruse to get them to buy the properties that they want to dump, providing a logical reason not to complain when things donât work out as expected (they really buy into it too). This is how most first time investors get caught up with lemons and ruined credit; in the end wondering why and how they ended up going broke. Donât fall for it.
You must be in the mindset that you should always be selling and that everything is for sale. Having this mindset should also direct your approach to buying houses. This means that you donât go in looking solely for long-term appreciation, but also for equity, cash flow and the most desired amenities that consumers want that are already there. Donât buy any property for more than 80 percent of its market value, donât buy one thatâs too small or unmarketable; and for Godâs sake donât buy any that wonât give positive cash flow.
This means that you will have to become and stay aware of all of the trends and conditions in your market; ensuring that youâll always be in the position to dump properties that are no longer in demand. Those trends include changes in the local job market, the school systems and in crime rates, as well as the amenities that buyers and renters in your market expect to see when it comes to their housing, such as number of bed rooms and baths.
Staying aware of your market and the trends in it of course means that you will always have to do your own research and homework. This includes analyzing the financials on a property before and after you buy with TBD Investing company’s real estate investing tools, reading all the information available about your market, frequently comparing amenities that consumers in your market expect to what you have, and constantly adjusting your property inventory mix. So if you see a trend where the majority of the buyers and renters in your market prefer or want 4 bedroom - 3 bath homes in areas with great schools, then those are the types of houses that you must provide; selling those that donât provide that, fast! Only in this way will you be assured of not having $1 million dollars worth of obsolete homes that you couldnât pay anybody to take off your hands.
Having the always be selling mindset also means that you really must learn to master the art of how to sell homes, not houses. You have to learn and become an expert on each and every step of the marketing process. This includes knowing what it takes to create and broadcast messages that catches buyerâs attention, how to visually touch their emotions by professionally remodeling and staging your homes, how to qualify those people that fall in love with your homes and finally, how to close the deal. A great set of tools to use in learning this process is available online on the products page at  TBD Investing.
Many investors donât take the time to perfect or understand these concepts, and as a result set themselves up to lose tons of money over the long run. Professional investors âget thisâ and are always looking for new ways to make money and to close deals. Historically, it has been proven time and time again that they will earn significantly more profits than lazy investors that sit tight holding on to their properties ever will.
Yes, people have always needed a place to call home and forever will. However properties that made sense 70 years ago usually donât make sense to place in a buy and hold model now, and probably never will. That being the case, for the serious real estate investor to succeed in this business, he or she must act like a professional; to always be on the hunt for newer properties, to constantly update their information; to never get emotionally attached to any property, to buy right, and to know that everything is always for sale.
 ——————————————————————-
Hassan Omar is a seasoned real estate investor that has personally been involved in commercial and residential real estate investing since 2000. Over that period he has successfully analyzed, purchased, remodeled, marketed, managed and sold several million dollars worth of properties nationwide and in the Atlanta market. He is the President and General Manager of the Atlanta based real estate wholesaling company known as TBD Investing Company  and itâs retail home selling alter ego, Our Home Is Calling, Ltd, and the mortgage lending site at vpfc.Â
For more information on our investor training products, coaching, houses for sale and other services, please visit TBD Investing company today.Â
Like this article? Learn more on the real estate investing forum at www.atlantainvesting.net/forum/index.phpÂ
hassan omar
http://www.articlesbase.com/real-estate-articles/always-be-selling-everything-is-for-sale-693572.html
Buy Foreclosure Properties at Auction!
Posted on February 28, 2010
Filed Under foreclosure property | 4 Comments
One of the best known, but least understood, ways of buying foreclosure properties is to buy them at a live foreclosure auction. Depending upon where you live, a foreclosure auction will generally be held either at your county courthouse or in some other public place. Sometimes the auction will be conducted by the county sheriff and sometimes by a proxy appointed by the court. Regardless of who is chosen to conduct the auction, for more details visit to www.auction-professional.com the result is the same: the property is sold to the highest bidder.
The first bid is typically made for the foreclosing lender by whoever is representing that company. The bid will generally be for the amount that’s owed, although there doesn’t have to be any actual exchange of money involved. If no one else puts in a higher bid, property ownership reverts to the lender.
In the majority of cases, no one shows up for the foreclosure sale except the proxies for the lender and whoever may be running the auction. That’s especially true if there’s no room for profit between what’s owed and the market value of a property.
Make no mistake: foreclosure auctions aren’t generally places for beginning investors, because you’ll need access to either significant amounts of cash or a large line of credit that you can tap into quickly. If you have either of those resources at your disposal, you can sometimes find great buys at foreclosure auctions, for more details visit to www.auction-o-matics.com but you have to be careful, because most of the time the amount owed doesn’t leave much room for profit, if any. The properties that do contain a significant amount of room for a profit are most likely to be attended by a bigger group of investors. The key is to do your homework well, because a mistake can be very costly.
If you want to check into auctions yourself, the first thing you have to do is find out which publication is used to list them. Often it’s the legal section of your local newspaper, although some larger cities use specialized business papers to advertise foreclosure sales. There are also various services that will notify you of foreclosures in your target area if you subscribe. If you happen to be interested in a particular property, you can contact the firm in charge of the auction for information about the time and place of the auction. Call the day before the auction to see if the defect has been cured or the sale has been delayed for some reason.
Always remember, if you bid, you must follow through with the purchase. There’s no turning back once you’ve committed to buy a foreclosure property at an auction. So do your homework. It would be wise for you to choose a few target neighborhoods and specialize in those areas, so you’ll know how much profit is available even before you consider bidding on a certain property.
www.auction-words.com
www.auctions-profits.com
rockey lal jack
http://www.articlesbase.com/business-articles/buy-foreclosure-properties-at-auction-730746.html
Property Managers: Buy Your First Rental Property
Posted on February 28, 2010
Filed Under Foreclosed Real Property | 2 Comments
As a professional property manager, we are experts in our field and speak to prospective investors every day about our local rental market, vacancy levels, and rental price trends. We are highly knowledgeable and successfully sell our services every day. Yet many of us don’t take the opportunity to practice what we are already experts in: leasing and managing rental property.
Have any of you had properties you manage go into foreclosure, because the owner was delinquent in making their mortgage payment? Have you received a call from a tenant who just had a Realtor knock on their door informing them the home they are renting is scheduled to be foreclosed next month? Has an investor contacted you about selling his home only to find out he can only sell to an investor, because they are obligated to lease the property and cannot breach the lease agreement?
My personal favorite is the investor who purchased a rental property on speculation of appreciation with an ARM mortgage. The owner had a $200 monthly negative cash flow year one. Now, he has a $400 monthly negative cash flow and cannot afford to cover the shortage. Secondly, the new house they purchased is worth less than what they paid for it three years ago. Worse, they tried unsuccessfully to sell the home with the tenant occupying the property only to find out now they can’t even refinance the mortgage. Many lenders will not refinance a home that was recently listed for sale in the MLS system.
Rents are increasing in some markets, because many tenants can no longer qualify for a mortgage to purchase a home. I can’t think of a better opportunity to purchase a property than from your own client. The investor is highly motivated, needs to sell asap, and cannot afford to have a home stay vacant on the market without collecting rent.
As a licensed real estate professional, you must disclose fair market value to the owner. You cannot take advantage of a consumer or owner. Interest rates are still very low even for investors. Most lenders require proof of down payment, closing costs, and six months reserves (monthly mortgage payment x 6) to qualify for a non-owner occupant mortgage. Lenders will allow the seller to pay a 2% seller concession towards your closing costs, and all commissions are negotiable.
Sound too difficult to qualify? Not at all. You can still purchase your property with little to no money down, but most have the down payment and reserve funds in the bank to qualify for the mortgage. A retirement or IRA account can be considered for the six months reserves.
Here’s how to do it. In my last transaction, I negotiated a 4% commission and a 2% seller concession to pay the majority of my closing costs. I walked away at closing with a 4% commission and used my business line of credit to pay back my actual out of pocket expenses. I even received the tenant’s pro-rated rent and security deposit after closing. It was better than playing Monopoly!
I purchased the property just below market. My investor received his sales proceeds within 30 days and avoided thousands of dollars in vacancy and repair costs. He is very happy to get rid of the property without paying thousands of dollars, and I now have a rental property with a paying tenant!
In my next article, I will discuss how you can leverage your rental property to generate additional business and tax savings.
Kris Colquette
http://www.articlesbase.com/real-estate-articles/property-managers-buy-your-first-rental-property-699410.html
How to Find a Suitable Foreclosed Home for Sale
Posted on February 28, 2010
Filed Under Foreclosed Properties | 4 Comments
Foreclosed homes are basically the real estate options that are seized by the mortgage or loan lenders for the non payment of the amount. It is important to know a few points before buying the foreclosed home for sale. The most crucial point that needs wise consideration when knowing how to buy foreclosed home for sale is to make sure that the rate offered by the lenders is reasonable and as per the value of the real estate. This can be done by inquiring about the rates of other properties in the neighborhood in order to negotiate the best amount for the foreclosed home.
Also, how to buy foreclosed properties for sale advices can be taken from the real estate assessors or inspectors in order to know about the rate, infrastructural details and property history. This can help in finalizing the best deal of the foreclosed homes. The interested buyers can even ensure that they scrutinize the foreclosed home for sale in the best manner so that they can own a property of their dreams.
The most important points that need to be considered when one is going to buy foreclosed properties for sale include:
The special addendums available
Type of finances available for the real estate
In case of cash payments, knowing if any appraisals are paid
How the repairs of the property will be handled
These assessors can also let the buyers know about the overall costs of repairs and maintenance so that the investors can decide accordingly whether to buy foreclosed properties for sale or not. In case the expenses required mending the repairs is too high, the buyers can always move on some other foreclosed property option for sale. In order to know how to buy foreclosed properties for sale, the buyers can also have a look at the online foreclosure listings available at the portals that help in letting the interested investors know about the location, neighborhood area, infrastructural details, pictures and approximate rates of the latest foreclosed homes for sale. This helps in saving the time, money and efforts of the buyers as they can select a particular real estate option and then accordingly visit the site for further investigation and scrutiny while knowing how to buy foreclosed properties.
Akhila Choudhary
http://www.articlesbase.com/real-estate-articles/how-to-find-a-suitable-foreclosed-home-for-sale-687278.html
Posted on February 27, 2010
Filed Under Foreclosed Properties | Leave a Comment
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Posted on February 27, 2010
Filed Under Foreclosed Real Property | Leave a Comment
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How to Purchase Your Home at a Cheaper Price
Posted on February 26, 2010
Filed Under free foreclosure property listing | 6 Comments
First-time home buyers facing financial constraints sometimes abandon their plans to buy a home. By identifying a foreclosed property, you can often buy a house at below market prices and with little initial cash down payment. Foreclosures homes are simply homes that have been repossessed by the bank or by a government agency due to default in mortgage payment by the original owner. Because the bank or agency is usually eager to unload the property, there’s a real opportunity to buy the home at a cheap price. But you have to do a lot of pre-study and some hard work to succeed in buying a home at foreclosure.
Where can you find foreclosures? The Internet has made things easy. Several web sites offer complete lists of properties at all stages of foreclosure. Properties offered by the Department of Housing and Urban Development are also available on-line. Many lender web sites now include lists of foreclosed properties.
How do you buy one? HUD homes (Housing and Urban Development) require a written bid, and except for those homes offered through exclusive listing contracts, HUD sells homes only through sealed offers. You can use any HUD approved real estate agent to help you submit one. For bank foreclosures, the procedures may vary. Auctions are usually advertised in the newspaper with specifics as to how much of a deposit will be required by bank check to secure the bid the day of the auction.
Please bear in mind that foreclosures homes are usually sold in âas is” condition. It is therefore critically important that you thoroughly inspect the home before deciding to buy. Do not fail to calculate what repairs on the foreclosure may cost by obtaining a bid from a contractor. Strangely, in quite a few cases, when you add the cost of the repairs to the purchase price, you may end up paying much more than you originally envisaged.Â
Now let us examine buying pre-foreclosure homes which are lot cheaper then even foreclosure homes. The basic advantage in buying pre-foreclosure is buying the home at under market value price. If you are an investor in real estate, then buying pre-foreclosure is a windfall income. However, no matter investors or home buyers, you should first understand pre-foreclosure in order to avail the benefit.
Pre-foreclosure is the first stage of a home being foreclosed. This happens when the home owner has missed at least one payment and is now considered delinquent on the loan. The home owner receives a formal warning sent to the homeowner. The homeowner will be given a certain period to respond to the borrower. In this state, home owners are somewhat desperate and look for prospective home buyers to bail them out.
It should be understood that the home owner is passing through a bad patch in his life that has caused him to fall behind in his mortgage payments. Therefore, foreclosure home owners are very distressed when borrowers send in the warning of foreclosure. Remember, you as a home buyer can always help these foreclosure homeowners. If you are able to buy the foreclosure home with some amount above their mortgage balance, homeowners would settle part of their financial problem. Thus, buying pre-foreclosure is a win-win situation for both buyer and existing homeowner. You can get a under market value foreclosure home while homeowners could settle their unpaid home loan. However, the biggest challenge of buying pre-foreclosure is getting the attention of homeowner. Thus, acting fast and effectively will help you to reach pre-foreclosure homeowners.
Sarah Jose
http://www.articlesbase.com/investing-articles/how-to-purchase-your-home-at-a-cheaper-price-690903.html
