A Long Island couple is home free after an outraged judge gave them
an amazing Thanksgiving present -- canceling their debt to ruthless
bankers trying to toss them out on the street.
Read the rest at http://loanmodsanddebtsettlement.blogspot.com
Sunday, November 29, 2009
Sunday, September 6, 2009
What the heck is Web 3.0 and theTRAFFICplan?
It's Web 1.0 + Web 2.0 = WEB 3.0
As you know, Web 1.0 was simply an acronym for eCommerce. Back then, retail stores wanted to do business on the internet rather than just using expensive retail storefronts. Many saw the power of the internet to attract an entirely new audience that may not have had the chance to visit their store in person. This would without doubt give them access to more potential customers for less cost.
Web 2.0, in its simplest definition and use today, has become an acronym for the everyday person's ability to communicate and collaborate globally using Social Networking. It has made things more user friendly to us, and as such, companies have come to embrace these new design and communication formats to engage with their customers.
Web 3.0 brings these two worlds together for the average person to be able to harness the power of the internet to begin to profit with multiple streams of income online by introducing products and services to their groups of followers (also known as their list and also as their tribe).
More info can be found at www.aTRAFFICplan.com
We have live training every Wed evening, you don't want to miss it
and remember, it FR.33
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Sunday, August 30, 2009
What the heck is Web 3.0 ?
What the heck is Web 3.0 ?
It's Web 1.0 + Web 2.0 = WEB 3.0
As you know, Web 1.0 was simply an acronym for eCommerce. Back then, retail stores wanted to do business on the internet rather than just using expensive retail storefronts. Many saw the power of the internet to attract an entirely new audience that may not have had the chance to visit their store in person. This would without doubt give them access to more potential customers for less cost.
Web 2.0, in its simplest definition and use today, has become an acronym for the everyday person's ability to communicate and collaborate globally using Social Networking. It has made things more user friendly to us, and as such, companies have come to embrace these new design and communication formats to engage with their customers.
Web 3.0 brings these two worlds together for the average person to be able to harness the power of the internet to begin to profit with multiple streams of income online by introducing products and services to their groups of followers (also known as their list and also as their tribe).
More info can be found at www.aTRAFFICplan.com
We have live training every Wed evening, you don't want to miss it
and remember, it FR.33
Get Your Free Training
Wednesday, May 6, 2009
Formula for Dealing With Tenant Upgrade Requests
By Julie Broad
My husband and I recently turned down a tenant's request for blinds in the living room of one unit of a triplex. (They were unhappy with the "dirty curtains" on the window.) At the same time, we agreed to put a new toilet in another unit.
Our tenants can easily figure out that we're bringing in nearly $4,000 in rent per month ($1,000 positive cash flow for us) from this property, so they may think we're being stingy when we refuse their requests for improvements. It's a business though, so we grant tenant requests only if spending the money will generate more revenue or reduce our costs.
We consider a few things:
What are the costs of not doing the renovation or upgrade? (Is the tenant likely to leave - and what will that cost us if they do?)
Is there another way to address the problem?
Can the expenditure be delayed?
If the expenditure seems to make sense, we do a final calculation:
Total Cost of the Upgrade or Renovation / New Money Earned (or Money Saved) each Month = Number of Months It Will Take to Recover Our Costs
As a general rule of thumb, if you can recover the cost of items under $1,000 in 12 to 18 months, the money will be well spent.
In the case of the blinds, the tenant wouldn't pay more rent to help cover the cost. And since only custom blinds would fit the large windows in that unit, it would take years and years to repay the expense... even if they did pay us more rent. Instead, we agreed to pay for dry cleaning the curtains, which cost less than $100. We'll get no direct return on this investment - but since the tenants wanted the "dirty curtains" replaced, this will keep them happy.
In the case of the toilet, we decided that getting rid of the grungy old one would not get us higher rent but it would make it easier to attract and keep good tenants in that unit. And by replacing it for the current tenant (instead of waiting until they moved out), the tenant's father (an experienced plumber) would install it for free. Plus, we'd be replacing a water guzzler with a low flush model that would qualify for a $75 water conservation rebate from the City of Toronto. The formula of benefits looked like this:
$250 minus $75 rebate = $175 Cost of the Toilet
$175 / $10/Month in Water Savings = 17 Months to Pay It Off (not including the $80 saved on installation)
This made replacing the toilet a very appealing use of our cash.
Just remember - real estate investing is a business, and you need to get a return on any money you spend... even if that return is simply in cost savings.
[Ed. Note: Real estate expert Julie Broad can show you how to create your own million-dollar real estate portfolio with her new program. Get all the details here.]
Larry Potter
http://www.youtube.com/watch?v=lkJCsIMAiNY
www.ATicketToWealth.com
My husband and I recently turned down a tenant's request for blinds in the living room of one unit of a triplex. (They were unhappy with the "dirty curtains" on the window.) At the same time, we agreed to put a new toilet in another unit.
Our tenants can easily figure out that we're bringing in nearly $4,000 in rent per month ($1,000 positive cash flow for us) from this property, so they may think we're being stingy when we refuse their requests for improvements. It's a business though, so we grant tenant requests only if spending the money will generate more revenue or reduce our costs.
We consider a few things:
What are the costs of not doing the renovation or upgrade? (Is the tenant likely to leave - and what will that cost us if they do?)
Is there another way to address the problem?
Can the expenditure be delayed?
If the expenditure seems to make sense, we do a final calculation:
Total Cost of the Upgrade or Renovation / New Money Earned (or Money Saved) each Month = Number of Months It Will Take to Recover Our Costs
As a general rule of thumb, if you can recover the cost of items under $1,000 in 12 to 18 months, the money will be well spent.
In the case of the blinds, the tenant wouldn't pay more rent to help cover the cost. And since only custom blinds would fit the large windows in that unit, it would take years and years to repay the expense... even if they did pay us more rent. Instead, we agreed to pay for dry cleaning the curtains, which cost less than $100. We'll get no direct return on this investment - but since the tenants wanted the "dirty curtains" replaced, this will keep them happy.
In the case of the toilet, we decided that getting rid of the grungy old one would not get us higher rent but it would make it easier to attract and keep good tenants in that unit. And by replacing it for the current tenant (instead of waiting until they moved out), the tenant's father (an experienced plumber) would install it for free. Plus, we'd be replacing a water guzzler with a low flush model that would qualify for a $75 water conservation rebate from the City of Toronto. The formula of benefits looked like this:
$250 minus $75 rebate = $175 Cost of the Toilet
$175 / $10/Month in Water Savings = 17 Months to Pay It Off (not including the $80 saved on installation)
This made replacing the toilet a very appealing use of our cash.
Just remember - real estate investing is a business, and you need to get a return on any money you spend... even if that return is simply in cost savings.
[Ed. Note: Real estate expert Julie Broad can show you how to create your own million-dollar real estate portfolio with her new program. Get all the details here.]
Larry Potter
http://www.youtube.com/watch?v=lkJCsIMAiNY
www.ATicketToWealth.com
Tuesday, April 28, 2009
Web 3.0 strategies coming
Larry again,
Because you are one of the special people who visit my blog,
I am giving you advanced notice about
http://www.YOURSOCIALPROFITS.COM
You are not only being invited to a strategic coaching call,
rather, you are being invited to attend what we like to call
an IMPLEMENTATION session.
What exactly is an IMPLEMENTATION session, and how will you benefit from it?
Simply put, We are not only going to teach you the newest
strategies for success, but MORE IMPORTANT, we are going to
give you the tools you will need to immediately implement
these new strategies to help you:
Convert more SALES.
Spend less TIME on prospecting activities.
Save MONEY on advertising.
Help your team DUPLICATE your success with less EFFORT on your part.
Make more MONEY by attracting the masses that you've been chasing but not converting.
Register Now At:
http://www.YOURSOCIALPROFITS.COM
Larry Potter
847-872-4047
Because you are one of the special people who visit my blog,
I am giving you advanced notice about
http://www.YOURSOCIALPROFITS.COM
You are not only being invited to a strategic coaching call,
rather, you are being invited to attend what we like to call
an IMPLEMENTATION session.
What exactly is an IMPLEMENTATION session, and how will you benefit from it?
Simply put, We are not only going to teach you the newest
strategies for success, but MORE IMPORTANT, we are going to
give you the tools you will need to immediately implement
these new strategies to help you:
Convert more SALES.
Spend less TIME on prospecting activities.
Save MONEY on advertising.
Help your team DUPLICATE your success with less EFFORT on your part.
Make more MONEY by attracting the masses that you've been chasing but not converting.
Register Now At:
http://www.YOURSOCIALPROFITS.COM
Larry Potter
847-872-4047
Friday, April 24, 2009
BOA loosening short seller policy
Bank of America (BOA) says it will relax its policy on payoffs connected with short sales. Large banks have been demanding money for home equity lines and second mortgages that would otherwise be worthless if the short sale property went to foreclosure. BOA has been among the least cooperative of all banks in agreeing to short sale payoff terms, demanding 10 percent of what the homeowners owed on the equity line balance or second mortgage before signing off on the short sale, which is necessary for the deal to go through. BOA spokesman Terry Francisco says the new policy is "less arbitrary, more rational."
BOA's new policy is to ask for five percent of the sale proceeds on the short sale, net of realty commissions, closing, and other costs. Some short sellers point to problems, though: The bank's previous 10 percent policy meant they'd demand $20,000 on a $200, 000 equity line balance, but under their new policy it will cost the short seller $15,000 if the net proceeds are $300,000" on a short sale, even though the economic value of their holding may in fact be zero. Says the Realty Times: "Bottom line for investors: If there's a Bank of America second mortgage or credit line on the house you're after in a short sale, work the new numbers. At least some of the time you might be surprised that the answer from the big bank is now 'yes.'"
Larry Potter
http://www.youtube.com/watch?v=lkJCsIMAiNY
www.ATicketToWealth.com
BOA's new policy is to ask for five percent of the sale proceeds on the short sale, net of realty commissions, closing, and other costs. Some short sellers point to problems, though: The bank's previous 10 percent policy meant they'd demand $20,000 on a $200, 000 equity line balance, but under their new policy it will cost the short seller $15,000 if the net proceeds are $300,000" on a short sale, even though the economic value of their holding may in fact be zero. Says the Realty Times: "Bottom line for investors: If there's a Bank of America second mortgage or credit line on the house you're after in a short sale, work the new numbers. At least some of the time you might be surprised that the answer from the big bank is now 'yes.'"
Larry Potter
http://www.youtube.com/watch?v=lkJCsIMAiNY
www.ATicketToWealth.com
Monday, April 20, 2009
It's Not Just About Price When Creating Great Real Estate Deals
By Julie Broad
Real estate can be an instant wealth creator... as long as you learn a critical lesson about deal making. When my husband and I purchased a duplex, we instantly added $20,000 to our net worth and $500/month positive cash flow to our pockets. And we did it simply by getting to the heart of the seller's problem and offering a perfect solution.
The foreclosed-upon duplex was owned by a bank. With some digging, we found the outstanding balance on the mortgage. We also researched the area thoroughly and learned that the place was worth about $20,000 more than the outstanding balance.The bank had two problems. They needed to sell the duplex quickly to get rid of the debt, and they had to sell it at a price that would allow them to recover the outstanding mortgage amount.
Focusing only on price, other bidders went in with low-ball offers and lost out on this high-quality income-generating property. But my husband and I took a different tack. We offered a quick close and a price equal to the amount of the outstanding mortgage... and we had the winning bid. When you are looking at buying a property, instead of focusing on getting it for a low price, turn your attention to finding the seller's biggest problem and figuring out how you can solve it in a way that will be profitable for both sides.
When you take a problem-solving approach to deal making, you are more likely to create an even better deal for yourself than if you had focused on price alone.[Ed. Note: This is the PERFECT time to scoop up real estate at bargain prices and set yourself up for massive wealth creation when the market recovers.
In the meantime, you could be putting money in your pocket every month! Real estate expert Julie Broad can show you just how to do it. Get hands-on coaching and step-by-step instruction to create your own million-dollar real estate portfolio with her new program. Get all the details here.]
Larry Potter
http://www.youtube.com/watch?v=lkJCsIMAiNY
www.ATicketToWealth.com
Real estate can be an instant wealth creator... as long as you learn a critical lesson about deal making. When my husband and I purchased a duplex, we instantly added $20,000 to our net worth and $500/month positive cash flow to our pockets. And we did it simply by getting to the heart of the seller's problem and offering a perfect solution.
The foreclosed-upon duplex was owned by a bank. With some digging, we found the outstanding balance on the mortgage. We also researched the area thoroughly and learned that the place was worth about $20,000 more than the outstanding balance.The bank had two problems. They needed to sell the duplex quickly to get rid of the debt, and they had to sell it at a price that would allow them to recover the outstanding mortgage amount.
Focusing only on price, other bidders went in with low-ball offers and lost out on this high-quality income-generating property. But my husband and I took a different tack. We offered a quick close and a price equal to the amount of the outstanding mortgage... and we had the winning bid. When you are looking at buying a property, instead of focusing on getting it for a low price, turn your attention to finding the seller's biggest problem and figuring out how you can solve it in a way that will be profitable for both sides.
When you take a problem-solving approach to deal making, you are more likely to create an even better deal for yourself than if you had focused on price alone.[Ed. Note: This is the PERFECT time to scoop up real estate at bargain prices and set yourself up for massive wealth creation when the market recovers.
In the meantime, you could be putting money in your pocket every month! Real estate expert Julie Broad can show you just how to do it. Get hands-on coaching and step-by-step instruction to create your own million-dollar real estate portfolio with her new program. Get all the details here.]
Larry Potter
http://www.youtube.com/watch?v=lkJCsIMAiNY
www.ATicketToWealth.com
Wednesday, April 15, 2009
Buy a home near planned amenities.
Anyone can buy a home near shopping, and pay a high price because it’s a desirable location. However, if you keep an eye out for planned amenities, by searching for areas on the verge of development, you can realize a huge profit between buying the home and selling a few years later when the development is complete.
Before development occurs, home prices are typically affordable and even inexpensive. After development begins, though, prices increase. When an area is fully developed, property values can soar. The key is to get a home near planned amenities, but not too near – no-one wants to live next to a parking lot, but five minutes away can be a great location.
Larry Potter
http://budurl.com/nn8h
www.ATicketToWealth.com
Before development occurs, home prices are typically affordable and even inexpensive. After development begins, though, prices increase. When an area is fully developed, property values can soar. The key is to get a home near planned amenities, but not too near – no-one wants to live next to a parking lot, but five minutes away can be a great location.
Larry Potter
http://budurl.com/nn8h
www.ATicketToWealth.com
Saturday, April 11, 2009
Low Risk Short Sales and Option Contracts
If you are buying foreclosure real estate for a living, a legally viable way of doing it without risking your own money is to use the option contract. In an option contact, you acquire the option to buy the property in the future. For the option to be legally binding, you will be required to pay to the seller, a non-refundable deposit from as little as $10 up to a few thousand dollars.
As an investor, you do not have to worry about the deposit since you can ask the end-buyer to also pay a non-refundable deposit equivalent to the amount stated in the option contract. This deposit goes towards the closing costs in the final HUD. If the deal does not close, you keep the deposit. Therefore, you will not be risking money out of your pocket.
You will be looking for an end-buyer soon after you acquire the equitable interest on the property made possible by the option contract and another document called the Notice of Option Contract which is recorded at the County Clerk's office.
The beauty of the option contract is you can sell the property for a profit without really buying it until you are confident that you have a qualified end-buyer. Just be sure that the time limit on the option contract is a reasonably long enough for you to acquire an end-buyer for the property. With the short sale, two transactions are happening back to back. You buy the property from the seller and then, almost immediately, the buyer buys the property from you. This should be stated and made clear in the option contract.
The seller will know that you intend to short sale the property and sell it for a profit, and the buyer will know that you are doing a short sale on the property. It is all transparent and legal when these and other details are fully disclosed in the option contract. Using an option contract is an almost foolproof way of earning a profit without using your own money.
This is the secret of combining the option contract with the short sale. Two transactions are happening, not simultaneously, but one after the other. You buy from the seller, and you sell to the end-buyer. Yes, it is double the paperwork. However, you will not have to do the paperwork yourself. A title company will be closing the two deals.
The end-buyer will most probably use a lender to pay for the property. They will need a title commitment, and the title commitment will show you as an exception on the title as the option holder. At the closing, the title is transferred from the seller to you. You then transfer the title to the end-buyer.
That is a legally viable way of doing business in home foreclosures without emptying your own pockets. And, it works!
While most people are suffering from the affects of the current real estate market there are many more that are enjoying the opportunities that the market has brought about.
Derick Sutton http://www.DiveIntoRealEstate.com
As an investor, you do not have to worry about the deposit since you can ask the end-buyer to also pay a non-refundable deposit equivalent to the amount stated in the option contract. This deposit goes towards the closing costs in the final HUD. If the deal does not close, you keep the deposit. Therefore, you will not be risking money out of your pocket.
You will be looking for an end-buyer soon after you acquire the equitable interest on the property made possible by the option contract and another document called the Notice of Option Contract which is recorded at the County Clerk's office.
The beauty of the option contract is you can sell the property for a profit without really buying it until you are confident that you have a qualified end-buyer. Just be sure that the time limit on the option contract is a reasonably long enough for you to acquire an end-buyer for the property. With the short sale, two transactions are happening back to back. You buy the property from the seller and then, almost immediately, the buyer buys the property from you. This should be stated and made clear in the option contract.
The seller will know that you intend to short sale the property and sell it for a profit, and the buyer will know that you are doing a short sale on the property. It is all transparent and legal when these and other details are fully disclosed in the option contract. Using an option contract is an almost foolproof way of earning a profit without using your own money.
This is the secret of combining the option contract with the short sale. Two transactions are happening, not simultaneously, but one after the other. You buy from the seller, and you sell to the end-buyer. Yes, it is double the paperwork. However, you will not have to do the paperwork yourself. A title company will be closing the two deals.
The end-buyer will most probably use a lender to pay for the property. They will need a title commitment, and the title commitment will show you as an exception on the title as the option holder. At the closing, the title is transferred from the seller to you. You then transfer the title to the end-buyer.
That is a legally viable way of doing business in home foreclosures without emptying your own pockets. And, it works!
While most people are suffering from the affects of the current real estate market there are many more that are enjoying the opportunities that the market has brought about.
Derick Sutton http://www.DiveIntoRealEstate.com
Larry Potter
http://budurl.com/nn8h
www.ATicketToWealth.com
Saturday, April 4, 2009
Get Sellers to Deed You Their Property
When a seller has little or no equity and good terms on their loan ask them "Would you CONSIDER selling the house for what you owe?"
By showing them what they would net after selling through an agent, paying closing costs, negotiating price, doing minor repairs, paying a commission and perhaps making continuous loan payments until it's sold, many times they see that they will net less than they think.
Larry Potter----> http://budurl.com/ngja
http://www.youtube.com/watch?v=ObVVfulxlBk
www.ATicketToWealth.com
By showing them what they would net after selling through an agent, paying closing costs, negotiating price, doing minor repairs, paying a commission and perhaps making continuous loan payments until it's sold, many times they see that they will net less than they think.
Larry Potter----> http://budurl.com/ngja
http://www.youtube.com/watch?v=ObVVfulxlBk
www.ATicketToWealth.com
Tuesday, March 24, 2009
Breaking Up Is Never Easy
By Julie Broad
The main reason my husband and I were able to build a multimillion-dollar real estate portfolio in less than eight years is because we found a few trustworthy partners.
After we made two purchases, one of our partners became preoccupied with a rapidly growing business he had recently started. It got to the point where it would take weeks to get in contact with him. After a few years of struggling to make the partnership work, we agreed to split up. We figured it would be an easy split. We owned two rental units, so we each could take one. Except we both wanted to own the same unit, and we couldn't agree on how much more that unit was worth!
So we decided to use what is known as the "I Cut, You Choose" method. In other words, to break up the partnership as though it were a chocolate bar. One partner would cut the "chocolate bar" in half, and the other partner would get to choose which half they wanted.
This is a simple yet fair way to divide up just about anything. If you're the one doing the cutting (in this case, figuring out how much it would be worth to get - or not get - the more desirable unit), you want to come up with two options that are as even as possible... because you get the one the other party doesn't choose.
We let our partner establish the terms of the deal. Meanwhile, we set a range for what we would be willing to pay to get the more desirable unit. When his number came in higher, we selected the option of selling him the unit for that price.
We didn't get the unit we wanted, but we did sell it to our partner for more than we had been willing to pay for it. Our partner bought the property he wanted for the price he'd determined to be fair. We were all happy.
Our other partnerships are strong, and we don't expect to have to split up any properties in the near term. But if we do, we have a good system to use.
[Ed. Note: For more insider strategies for getting started as a real estate investor, sign up for real estate expert Julie Broad's free monthly newsletter. Get your free report for making money with real estate here.
Real estate is a great way to make money - even in this economy. But it's just one of many strategies you can use to reel in big profits. Learn how to get your hands on over $17.3 million in money-making ideas right here.]
Larry Potter
http://www.fastbuyerloans.com
The main reason my husband and I were able to build a multimillion-dollar real estate portfolio in less than eight years is because we found a few trustworthy partners.
After we made two purchases, one of our partners became preoccupied with a rapidly growing business he had recently started. It got to the point where it would take weeks to get in contact with him. After a few years of struggling to make the partnership work, we agreed to split up. We figured it would be an easy split. We owned two rental units, so we each could take one. Except we both wanted to own the same unit, and we couldn't agree on how much more that unit was worth!
So we decided to use what is known as the "I Cut, You Choose" method. In other words, to break up the partnership as though it were a chocolate bar. One partner would cut the "chocolate bar" in half, and the other partner would get to choose which half they wanted.
This is a simple yet fair way to divide up just about anything. If you're the one doing the cutting (in this case, figuring out how much it would be worth to get - or not get - the more desirable unit), you want to come up with two options that are as even as possible... because you get the one the other party doesn't choose.
We let our partner establish the terms of the deal. Meanwhile, we set a range for what we would be willing to pay to get the more desirable unit. When his number came in higher, we selected the option of selling him the unit for that price.
We didn't get the unit we wanted, but we did sell it to our partner for more than we had been willing to pay for it. Our partner bought the property he wanted for the price he'd determined to be fair. We were all happy.
Our other partnerships are strong, and we don't expect to have to split up any properties in the near term. But if we do, we have a good system to use.
[Ed. Note: For more insider strategies for getting started as a real estate investor, sign up for real estate expert Julie Broad's free monthly newsletter. Get your free report for making money with real estate here.
Real estate is a great way to make money - even in this economy. But it's just one of many strategies you can use to reel in big profits. Learn how to get your hands on over $17.3 million in money-making ideas right here.]
Larry Potter
http://www.fastbuyerloans.com
Wednesday, March 18, 2009
Foreclosure Investing: How to Wholesale
By Jeff Adams
As a real estate investor, you can stand to make serious amounts of money. But these days, with 5.4 million Americans behind on their mortgage payments and pending home sales dropping, you might think real estate is a bad bet.
Not true.
I've made over 350 real estate deals in the past 14 years - many of them in this terrible market. And in my experience, one of the best ways to cash in on real estate is by wholesaling foreclosures.
I remember one house that had a value of $1.9 million but had been standing vacant for four years. I ended up buying it for $1.2 million and wholesaling it for $1.5 million. In just a few days, the seller was relieved of a crushing financial burden, the buyer was patting himself on the back for getting a great bargain, and I was on my way to the bank with a check for $219,797.58.
In real estate, wholesaling means entering into a contractual agreement with another party for the purpose of purchasing a property, and then assigning your interest in that contract to another investor in exchange for compensation.
The business of wholesaling is not just a trend in the real estate market. It is progressively gaining momentum and popularity with both new and experienced investors. No license is needed, so just about anyone can do it. Plus, turnaround time is quick. The basic idea is to get in, get out, and get paid.
Foreclosed property is especially attractive to wholesalers because it's owned by a bank, not an individual. The bank wants to get rid of it as soon as possible - and that gives the investor an advantage.
The foreclosure process varies depending on whether the state is judicial or non-judicial. In judicial states, foreclosure requires legal action; non-judicial states do not deem it necessary.
In non-judicial states, the borrower can grant the power of sale directly to the lender. After the borrower fails to make several payments on his loan, the lender files a Notice of Default (NOD) and the foreclosure process is put into effect. After about three months, the lender files a Notice of Sale (NOS). The property is now in control of the bank - listed on its books as Real Estate Owned (REO) - for 21 days until the actual foreclosure sale.
Depending on where the property is in the foreclosure process, you can buy it by approaching the homeowner directly, purchasing it at a public auction, or buying it from the bank.
Approaching the homeowner directly gives you the ability to negotiate terms and offers the potential for huge profit margins. But you have to deal with title, liability, and legal issues.
Public auctions, too, give you the potential for huge profit margins. But, again, there are some significant negatives. For one thing, you have to make the purchase with cash (unless you are purchasing from a real estate disposition company, such as the auctions you see put on by USHomeAuction.com and HudsonandMarshall.com). For another, the property is sold "as is." If you want to have it inspected by a professional, you have to incur that expense before you even bid on it.
The profit margin can be substantially higher when you buy from a bank. You can (usually) get the property inspected after you've made the deal and void the contract if the inspection uncovers anything seriously wrong. Plus, there is no need to worry about title assignment or other legal issues.
When you are making an offer on a bank-owned property, you can write up the offer in the name of a land trust, and then simply assign your beneficial interests in that trust to your wholesale buyer. Or you can write the offer in your own name and, at the bottom of the contract, include this clause:
"Vesting to be determined at close of escrow."
This allows you to take title in any entity, including your wholesale buyer's name. The reason you want to do that is because banks will not let you assign your contract to a specific person. If you put "and/or assigns" on your contract, your offer will not be accepted.
The deal is now complete, and you can go on to the next one that is just waiting to be found.
[Ed Note: Jeff Adams is a self-made multi-millionaire who has bought and sold more than 350 properties in the last 14 years. Over the last 10 years, he's found and sold his deals using the Internet. You can get more of his advice and his free course for a limited time by visiting www.ForeclosureProfitSystem.com.
If you can't (or don't want to) take on real estate investing full-time, Jeff's system of attracting buyers, sellers, and investors with automated websites can still help you make big profits by leveraging the power of the Internet. Get all the details at ETR's upcoming Profits in Paradise wealth-building summit. But hurry! Our Early Bird Discount ends today at 5:00 p.m. Eastern.]
Larry Potter
www.ATicketToWealth.com
As a real estate investor, you can stand to make serious amounts of money. But these days, with 5.4 million Americans behind on their mortgage payments and pending home sales dropping, you might think real estate is a bad bet.
Not true.
I've made over 350 real estate deals in the past 14 years - many of them in this terrible market. And in my experience, one of the best ways to cash in on real estate is by wholesaling foreclosures.
I remember one house that had a value of $1.9 million but had been standing vacant for four years. I ended up buying it for $1.2 million and wholesaling it for $1.5 million. In just a few days, the seller was relieved of a crushing financial burden, the buyer was patting himself on the back for getting a great bargain, and I was on my way to the bank with a check for $219,797.58.
In real estate, wholesaling means entering into a contractual agreement with another party for the purpose of purchasing a property, and then assigning your interest in that contract to another investor in exchange for compensation.
The business of wholesaling is not just a trend in the real estate market. It is progressively gaining momentum and popularity with both new and experienced investors. No license is needed, so just about anyone can do it. Plus, turnaround time is quick. The basic idea is to get in, get out, and get paid.
Foreclosed property is especially attractive to wholesalers because it's owned by a bank, not an individual. The bank wants to get rid of it as soon as possible - and that gives the investor an advantage.
The foreclosure process varies depending on whether the state is judicial or non-judicial. In judicial states, foreclosure requires legal action; non-judicial states do not deem it necessary.
In non-judicial states, the borrower can grant the power of sale directly to the lender. After the borrower fails to make several payments on his loan, the lender files a Notice of Default (NOD) and the foreclosure process is put into effect. After about three months, the lender files a Notice of Sale (NOS). The property is now in control of the bank - listed on its books as Real Estate Owned (REO) - for 21 days until the actual foreclosure sale.
Depending on where the property is in the foreclosure process, you can buy it by approaching the homeowner directly, purchasing it at a public auction, or buying it from the bank.
Approaching the homeowner directly gives you the ability to negotiate terms and offers the potential for huge profit margins. But you have to deal with title, liability, and legal issues.
Public auctions, too, give you the potential for huge profit margins. But, again, there are some significant negatives. For one thing, you have to make the purchase with cash (unless you are purchasing from a real estate disposition company, such as the auctions you see put on by USHomeAuction.com and HudsonandMarshall.com). For another, the property is sold "as is." If you want to have it inspected by a professional, you have to incur that expense before you even bid on it.
The profit margin can be substantially higher when you buy from a bank. You can (usually) get the property inspected after you've made the deal and void the contract if the inspection uncovers anything seriously wrong. Plus, there is no need to worry about title assignment or other legal issues.
When you are making an offer on a bank-owned property, you can write up the offer in the name of a land trust, and then simply assign your beneficial interests in that trust to your wholesale buyer. Or you can write the offer in your own name and, at the bottom of the contract, include this clause:
"Vesting to be determined at close of escrow."
This allows you to take title in any entity, including your wholesale buyer's name. The reason you want to do that is because banks will not let you assign your contract to a specific person. If you put "and/or assigns" on your contract, your offer will not be accepted.
The deal is now complete, and you can go on to the next one that is just waiting to be found.
[Ed Note: Jeff Adams is a self-made multi-millionaire who has bought and sold more than 350 properties in the last 14 years. Over the last 10 years, he's found and sold his deals using the Internet. You can get more of his advice and his free course for a limited time by visiting www.ForeclosureProfitSystem.com.
If you can't (or don't want to) take on real estate investing full-time, Jeff's system of attracting buyers, sellers, and investors with automated websites can still help you make big profits by leveraging the power of the Internet. Get all the details at ETR's upcoming Profits in Paradise wealth-building summit. But hurry! Our Early Bird Discount ends today at 5:00 p.m. Eastern.]
Larry Potter
www.ATicketToWealth.com
Tuesday, March 17, 2009
How to Close A Subject-To Deal
Contributed by: Jason Hanson
A lot of people ask me questions about how to properly close a subject-to deal. A subject-to deal is closed just like a traditional closing where you go to a closing attorney or settlement company. I would never advise closing a subject-to at the kitchen table. There are just too many things that can go wrong. Plus, if you ever have a problem and end up in court, you want to be able to show a judge that you went to a closing attorney and had a neutral third party take care of everything.
So here is how it breaks down: You will sign all of the paperwork with the homeowner at their house (this includes the contract and any addendums that don’t need to be notarized. Anything needing to be notarized will be taken care of at closing). Once you have all of the paperwork signed, you will fax it to your closing attorney, just like you do with every other closing. Your attorney will do a title search and prepare everything for closing. On closing day, you will meet the seller’s at the closing office, sign all of the paperwork and you will then own the house.
It’s that easy and simple. By the way, on a $250,000 house, closing costs should run about $3,000 (this is for the state of Virginia, every state is different). And, here is the “tactic” I use to get sellers to cover all of the closing costs so that I can literally buy a house for nothing down and sometimes get a few dollars back at closing. I tell sellers that we’re not Realtors and do not charge any commissions to sell their house. And that they are only responsible for the first $3,000 in closing costs. If closing costs are any more than that, our company will cover the rest.
Now, if you get a seller who really has no money, or they refuse to pay any closing costs at all, then I would certainly not lose a deal over $3,000. However, if you don’t ask for the $3,000 up front then you will never get it and it never hurts to ask.
So, when you are negotiating any deal at all, remember to ask for as much as you can, because all a seller can do is say “no”.
Larry Potter
www.ATicketToWealth.com
A lot of people ask me questions about how to properly close a subject-to deal. A subject-to deal is closed just like a traditional closing where you go to a closing attorney or settlement company. I would never advise closing a subject-to at the kitchen table. There are just too many things that can go wrong. Plus, if you ever have a problem and end up in court, you want to be able to show a judge that you went to a closing attorney and had a neutral third party take care of everything.
So here is how it breaks down: You will sign all of the paperwork with the homeowner at their house (this includes the contract and any addendums that don’t need to be notarized. Anything needing to be notarized will be taken care of at closing). Once you have all of the paperwork signed, you will fax it to your closing attorney, just like you do with every other closing. Your attorney will do a title search and prepare everything for closing. On closing day, you will meet the seller’s at the closing office, sign all of the paperwork and you will then own the house.
It’s that easy and simple. By the way, on a $250,000 house, closing costs should run about $3,000 (this is for the state of Virginia, every state is different). And, here is the “tactic” I use to get sellers to cover all of the closing costs so that I can literally buy a house for nothing down and sometimes get a few dollars back at closing. I tell sellers that we’re not Realtors and do not charge any commissions to sell their house. And that they are only responsible for the first $3,000 in closing costs. If closing costs are any more than that, our company will cover the rest.
Now, if you get a seller who really has no money, or they refuse to pay any closing costs at all, then I would certainly not lose a deal over $3,000. However, if you don’t ask for the $3,000 up front then you will never get it and it never hurts to ask.
So, when you are negotiating any deal at all, remember to ask for as much as you can, because all a seller can do is say “no”.
Larry Potter
www.ATicketToWealth.com
Thursday, March 12, 2009
Invest in Your Education
You've heard it from Michael Masterson: You can increase your income by expanding your expertise.
Take courses that maintain or improve your employment qualifications. It's not only a good self-investment, it can help lock in job security - which is more important than ever these days. And the cost of this education and training is tax deductible.
The deduction can be taken as an optional deduction or as an Education Tax Credit. Choose the one that gives you the greatest tax benefit.
Larry Potter
www.ATicketToWealth.com
Take courses that maintain or improve your employment qualifications. It's not only a good self-investment, it can help lock in job security - which is more important than ever these days. And the cost of this education and training is tax deductible.
The deduction can be taken as an optional deduction or as an Education Tax Credit. Choose the one that gives you the greatest tax benefit.
Larry Potter
www.ATicketToWealth.com
Saturday, February 28, 2009
Friday, February 27, 2009
Messer Law Group information
I'd like for you to know what sets us apart as it is a significant difference.
We are a law firm, therefore we are regulated by the Arizona State Bar (Steve Messer, attorney at law, license #019542). Our attorney would not be able to keep any money from the client should he be unable to perform.
Loan modification companies are popping up everywhere, and since this is a new service, it is largely unregulated. I've seen many of these companies charge the client anywhere from $800 to $3,500, and I've seen so many ways they scam them out of money. For example they will charge the client whatever their fee is, then call the client a month later letting them know the lender would not work with them and the fee is not refundable. Unless the client is getting legal representation, loan modification is either not possible, or the results are insignificant. This is because the only department in the bank a person can get in touch with and negotiate with, unless they are an attorney, is the loss mitigation department.
The loss mitigation department has no decision-making authority whatsoever. They are, in essence, bill collectors. Their job is to get as much money from the customers as possible. They are told how much they are allowed to offer borrowers should they be unable to get any money out of them. This offer is not to the borrower's benefit (ie: one of my clients with an ARM loan currently at 7.1% was offered a fixed rate of 7.4%). These "negotiating companies" basically ask borrowers to write a hardship letter, then they go to loss mitigation and play a game of "mother-may-I" and try to get this offer out of them.
They even tell the borrower they MUST be late on their payments before they will even work with them. This is because that is a loss mitigation requirement. Steve Messer goes straight to the bank's legal department and negotiates with their attorneys. He will create leverage in many different forms and basically force the bank to lower the borrower's terms significantly. Our clients do not have to be late in order to get this done.
Here is an overview of our process:
Who qualifies to get the terms on their mortgage reduced permanently?
· anyone who owes more than their home is worth
· who would like lower monthly payments
· has a high interest rate
· has an unfixed interest rate (Adjustable Rate Mortgage or Negative Amortization Loan)
· is unable to or forseeably may be unable to make their mortgage payments
*borrower does NOT have to be late on mortgage payments
According to Housing Bill 3221 which Congress passed in July, 2008, lenders MUST work with their customers to lower the terms of their mortgage, as well as give them up to 80% of the potential loss on their home. The banks are not complying or willing to lower their customers' terms by a significant amount unless they are forced to. We are here to enforce HR 3221.
Here is our aggressive and successful method to force the bank to follow the law and dramatically reduce monthly payments: 1) send the lender a Qualified Written Request and letter of representation
· this will notify the bank our client is now being represented by an attorney
· the bank is no longer allowed to contact our client (if they are behind on their payments, this stops the harassing bill collectors' phone calls)
· the bank is no longer allowed to contact the credit bureaus to report our clients late on their credit
· we can stop the bank from proceeding with the foreclosure process
2) We subpoena original loan documents and do a full forensic audit to search for
· federal violations, each of which is a mandatory minimum $2000 fine for the bank (90% of loans have an average of 10 or more violations)
· evidence of predatory lending (there are currently thousands of class action lawsuits against
lenders for this)
· human error/mathematical errors
*we also use other forms of leverage such as the law and hardship
3) We demand a low, fixed interest rate and principle reduction.
The results are on a case-by-case basis. Here is what we TYPICALLY get:
- first mortgage: fixed interest rate between 4-5% for the remainder of the loan
- second mortgage: $.5-$.10 on the dollar payoff OR if client does not have the funds available, a 1-2% interest rate for the remainder of the loan
We guarantee our clients they will SAVE A MINIMUM OF 5 TIMES OUR FEE or we will give you a FULL refund. Please forward this information to anyone you know who may be in risk of losing their home. This would truly be a blessing for them.
For anyone who is not in risk of foreclosure, but is simply upside down on their mortgage, it is a great opportunity that won't be around forever.
Sincerely,
Sabrina Collette, Paralegal
Messer Law Group Direct: (800) 584-1498 ext 101
Email: MortgageRescue.Sabrina@live.com
We are a law firm, therefore we are regulated by the Arizona State Bar (Steve Messer, attorney at law, license #019542). Our attorney would not be able to keep any money from the client should he be unable to perform.
Loan modification companies are popping up everywhere, and since this is a new service, it is largely unregulated. I've seen many of these companies charge the client anywhere from $800 to $3,500, and I've seen so many ways they scam them out of money. For example they will charge the client whatever their fee is, then call the client a month later letting them know the lender would not work with them and the fee is not refundable. Unless the client is getting legal representation, loan modification is either not possible, or the results are insignificant. This is because the only department in the bank a person can get in touch with and negotiate with, unless they are an attorney, is the loss mitigation department.
The loss mitigation department has no decision-making authority whatsoever. They are, in essence, bill collectors. Their job is to get as much money from the customers as possible. They are told how much they are allowed to offer borrowers should they be unable to get any money out of them. This offer is not to the borrower's benefit (ie: one of my clients with an ARM loan currently at 7.1% was offered a fixed rate of 7.4%). These "negotiating companies" basically ask borrowers to write a hardship letter, then they go to loss mitigation and play a game of "mother-may-I" and try to get this offer out of them.
They even tell the borrower they MUST be late on their payments before they will even work with them. This is because that is a loss mitigation requirement. Steve Messer goes straight to the bank's legal department and negotiates with their attorneys. He will create leverage in many different forms and basically force the bank to lower the borrower's terms significantly. Our clients do not have to be late in order to get this done.
Here is an overview of our process:
Who qualifies to get the terms on their mortgage reduced permanently?
· anyone who owes more than their home is worth
· who would like lower monthly payments
· has a high interest rate
· has an unfixed interest rate (Adjustable Rate Mortgage or Negative Amortization Loan)
· is unable to or forseeably may be unable to make their mortgage payments
*borrower does NOT have to be late on mortgage payments
According to Housing Bill 3221 which Congress passed in July, 2008, lenders MUST work with their customers to lower the terms of their mortgage, as well as give them up to 80% of the potential loss on their home. The banks are not complying or willing to lower their customers' terms by a significant amount unless they are forced to. We are here to enforce HR 3221.
Here is our aggressive and successful method to force the bank to follow the law and dramatically reduce monthly payments: 1) send the lender a Qualified Written Request and letter of representation
· this will notify the bank our client is now being represented by an attorney
· the bank is no longer allowed to contact our client (if they are behind on their payments, this stops the harassing bill collectors' phone calls)
· the bank is no longer allowed to contact the credit bureaus to report our clients late on their credit
· we can stop the bank from proceeding with the foreclosure process
2) We subpoena original loan documents and do a full forensic audit to search for
· federal violations, each of which is a mandatory minimum $2000 fine for the bank (90% of loans have an average of 10 or more violations)
· evidence of predatory lending (there are currently thousands of class action lawsuits against
lenders for this)
· human error/mathematical errors
*we also use other forms of leverage such as the law and hardship
3) We demand a low, fixed interest rate and principle reduction.
The results are on a case-by-case basis. Here is what we TYPICALLY get:
- first mortgage: fixed interest rate between 4-5% for the remainder of the loan
- second mortgage: $.5-$.10 on the dollar payoff OR if client does not have the funds available, a 1-2% interest rate for the remainder of the loan
We guarantee our clients they will SAVE A MINIMUM OF 5 TIMES OUR FEE or we will give you a FULL refund. Please forward this information to anyone you know who may be in risk of losing their home. This would truly be a blessing for them.
For anyone who is not in risk of foreclosure, but is simply upside down on their mortgage, it is a great opportunity that won't be around forever.
Sincerely,
Sabrina Collette, Paralegal
Messer Law Group Direct: (800) 584-1498 ext 101
Email: MortgageRescue.Sabrina@live.com
Monday, February 23, 2009
How to Buy Foreclosures For Sale
by Kevin Simpson
Home foreclosures or foreclosed homes are homes that have been ceased by banks or financial institutions when home owners make defaults on their home mortgage loans. There has been a huge increase in the number of home foreclosures for sale over the past few years due to some important reasons. One of the most vital reasons is that home owners prefer to buy their home by taking home mortgage loans from banks and financial lenders. When a home owner take adjustable rate home mortgage loan he is offered with lucrative terms and condition like easy initial repayment by the financial lenders. When the home owner starts his repayment he is offered to make low monthly payment. However, with the maturity of the loan period the principal amount and the interest rate become so big that the home owner fails to make his repayment. In such a case, the bank and the financial lender will foreclosed his home and later sell it to make up their loss. Depending upon the type of lender home foreclosures may be bank foreclosure or government foreclosure.
Today, foreclosed home for sale offers a great deal for you if you are a buyer or an investor looking to invest your money. As the banks and the financial lenders want to make up their loss as soon as possible, they sell the foreclosed homes at a reduced rate. Bank foreclosures for sale are available at a discounted rate of about 40%-50% less than the original market price. It means that you would be able to save a considerable amount of money by buying a foreclosed home. Moreover, it is also very safe to purchase foreclosed home as the bank or the financial institute hold the clear title of the property. When you buy a foreclosure home you are also free to do whatever you wish with the home. You can either sell it to earn some profit or keep renters in it. By buying foreclosed home you may get the home that you actually could not afford. However, in order to get the best deal on foreclosures for sale you will require some extensive research. Dealing with foreclosure home is not as easy as it seems.
If you have finally decided to buy foreclosed home, the first thing that you should do is find foreclosure listing. Only by studying a foreclosure listing you will be able learn the types of homes available on foreclosures for sale. You can get an idea of foreclosed home that you can afford from a foreclosure listing. Moreover, the location, price and the current condition of the foreclosed home will be mentioned in the foreclosed home listing. Now, you could plan out how much you will need to make the necessary renovation and repairs. However, it is not so easy to go buying foreclosed homes all by your own. You should seek the help of a professional real estate agent or a foreclosure specialist who has in-depth knowledge in dealing with foreclosed homes. Buying foreclosed home require some complicated paperwork and documentation which are time consuming. So, by hiring a real estate agent you could save our time as well as he will perform all your essential paperwork in making your purchase.
Search foreclosures by state or get more information on foreclosures for sale at ForeclosureRepos.
Kevin Simpson, GM Sales & Marketing
Article Source: http://EzineArticles.com/?expert=Kevin_Simpson
Home foreclosures or foreclosed homes are homes that have been ceased by banks or financial institutions when home owners make defaults on their home mortgage loans. There has been a huge increase in the number of home foreclosures for sale over the past few years due to some important reasons. One of the most vital reasons is that home owners prefer to buy their home by taking home mortgage loans from banks and financial lenders. When a home owner take adjustable rate home mortgage loan he is offered with lucrative terms and condition like easy initial repayment by the financial lenders. When the home owner starts his repayment he is offered to make low monthly payment. However, with the maturity of the loan period the principal amount and the interest rate become so big that the home owner fails to make his repayment. In such a case, the bank and the financial lender will foreclosed his home and later sell it to make up their loss. Depending upon the type of lender home foreclosures may be bank foreclosure or government foreclosure.
Today, foreclosed home for sale offers a great deal for you if you are a buyer or an investor looking to invest your money. As the banks and the financial lenders want to make up their loss as soon as possible, they sell the foreclosed homes at a reduced rate. Bank foreclosures for sale are available at a discounted rate of about 40%-50% less than the original market price. It means that you would be able to save a considerable amount of money by buying a foreclosed home. Moreover, it is also very safe to purchase foreclosed home as the bank or the financial institute hold the clear title of the property. When you buy a foreclosure home you are also free to do whatever you wish with the home. You can either sell it to earn some profit or keep renters in it. By buying foreclosed home you may get the home that you actually could not afford. However, in order to get the best deal on foreclosures for sale you will require some extensive research. Dealing with foreclosure home is not as easy as it seems.
If you have finally decided to buy foreclosed home, the first thing that you should do is find foreclosure listing. Only by studying a foreclosure listing you will be able learn the types of homes available on foreclosures for sale. You can get an idea of foreclosed home that you can afford from a foreclosure listing. Moreover, the location, price and the current condition of the foreclosed home will be mentioned in the foreclosed home listing. Now, you could plan out how much you will need to make the necessary renovation and repairs. However, it is not so easy to go buying foreclosed homes all by your own. You should seek the help of a professional real estate agent or a foreclosure specialist who has in-depth knowledge in dealing with foreclosed homes. Buying foreclosed home require some complicated paperwork and documentation which are time consuming. So, by hiring a real estate agent you could save our time as well as he will perform all your essential paperwork in making your purchase.
Search foreclosures by state or get more information on foreclosures for sale at ForeclosureRepos.
Kevin Simpson, GM Sales & Marketing
Article Source: http://EzineArticles.com/?expert=Kevin_Simpson
Sunday, February 22, 2009
Bank-owned homes not always best option
With heavily discounted prices, bank-owned homes often represent attractive options for buyers, but industry experts said the financially distressed properties often present difficulties, although the Home Seller Assist program will provide 100% funding for these REOs and will also do the same for short sales.
Jeremy Larkin, a St. George real estate agent for Keller Williams Realty, said bank-owned properties represent more than 50 percent of his total business, but navigating the foreclosure market is a difficult task in many cases.
Drawing upon his experience with foreclosures, Larkin said approximately 75 percent of the bank-owned homes are physically distressed.
"There are a lot of houses on the market, but a lot of them are garbage," he said.
Disgruntled former homeowners often vandalize the structures before they are forced to vacate, he said, leaving a giant mess behind.
"Whatever their plans were in life, they didn't work out," he said of the former owners. "You will see people take all of the appliances and fixtures."
Facing a pervasive housing crisis, Larkin said short sales have also grown in prevalence, as many seek to quickly unload their homes, selling for less than they owe.
The short sale process requires approval from the lender, often leading to frustration for the prospective buyer as they wait for a decision.
"Most buyers I talk to end up in frustration trying to pick up a short sale because of the long length of time it takes to get approval from the bank," he said. "The seller can't really make a move without the lender's approval."
Vardell Curtis, CEO of the Washington County Board of Realtors, said banks are sometimes slow to react, and some buyers are forced to wait as long as six months for approval.
"I've heard horror stories," he said of the short-sale market. "One of the greatest challenges in dealing with bank-owned properties is that the wheels don't move as quickly as the buyer would like."
Curtis said it is especially important to seek the assistance of a qualified Realtor when dealing in short sales, as they can sometimes expedite the lengthy process.
"Certain agents know how to make it happen in a much quicker timeline," he said.
Jeremy Larkin, a St. George real estate agent for Keller Williams Realty, said bank-owned properties represent more than 50 percent of his total business, but navigating the foreclosure market is a difficult task in many cases.
Drawing upon his experience with foreclosures, Larkin said approximately 75 percent of the bank-owned homes are physically distressed.
"There are a lot of houses on the market, but a lot of them are garbage," he said.
Disgruntled former homeowners often vandalize the structures before they are forced to vacate, he said, leaving a giant mess behind.
"Whatever their plans were in life, they didn't work out," he said of the former owners. "You will see people take all of the appliances and fixtures."
Facing a pervasive housing crisis, Larkin said short sales have also grown in prevalence, as many seek to quickly unload their homes, selling for less than they owe.
The short sale process requires approval from the lender, often leading to frustration for the prospective buyer as they wait for a decision.
"Most buyers I talk to end up in frustration trying to pick up a short sale because of the long length of time it takes to get approval from the bank," he said. "The seller can't really make a move without the lender's approval."
Vardell Curtis, CEO of the Washington County Board of Realtors, said banks are sometimes slow to react, and some buyers are forced to wait as long as six months for approval.
"I've heard horror stories," he said of the short-sale market. "One of the greatest challenges in dealing with bank-owned properties is that the wheels don't move as quickly as the buyer would like."
Curtis said it is especially important to seek the assistance of a qualified Realtor when dealing in short sales, as they can sometimes expedite the lengthy process.
"Certain agents know how to make it happen in a much quicker timeline," he said.
Saturday, February 21, 2009
What is the "entrepreneur's mindset"
Your mindset IS your business.
It denotes where you will go and how quickly you will get there.
The entrepreneur's mindset begins with their excitement about the success to come. The entrepreneur sees the opportunity put before them and he spends countless hours daydreaming thinking about the success and how it will FEEL when it comes to him.
It fuels the fire. Without this the gas in the tank of any entrepreneurial effort quickly empties. They don't think about failure. You see an entrepreneur by definition is a person who offers a solution to a problem at a cost.
At first, the problem that an entrepreneur faces in network marketing is how to solve their own immediate problems. How get a lead? How to get a new team member? How to help that new team member duplicate their success quicker than he or she did it?
When they get these issues solved he benefits monetarily for the growth in his team, but metaphysically he profits for knowing he has added overall value to the task and process at hand for many many to follow. The entrepreneur is not done at this point. There's more to be done. The entrepreneur sees the opportunity before him and sees that there is more value to be added. The people directly associated with him aren't the only people to have the problems they began with so he devises a way to help more than his immediate circle. The entrepreneur sees no failure.
The entrepreneur detaches his emotions from all outcomes be they positive or negative. He sees the results of his actions as merely observable data to improve upon.
The entrepreneur always asks himself "How can I do better next time?" And then sets out to improve upon their most immediate results for their personal growth and the benefit of all those associated with him. The entrepreneur realizes that there is no such thing as "enough" he knows that just like an apple tree grows as large as it possibly can and then bares seeds that he to must ALWAYS grow.
If there is any one quality that the entrepreneur has that sets him apart from the average person is their confidence exceeds their competency. The entrepreneur sees the opportunity before him and he know he most grow into it regardless of whether or not he knows HOW to do it.
He just has confidence that he will. The entrepreneur asks everyday what it is that he wants and then sets out to get it with excitement. Step into this mindset and step into success.
It denotes where you will go and how quickly you will get there.
The entrepreneur's mindset begins with their excitement about the success to come. The entrepreneur sees the opportunity put before them and he spends countless hours daydreaming thinking about the success and how it will FEEL when it comes to him.
It fuels the fire. Without this the gas in the tank of any entrepreneurial effort quickly empties. They don't think about failure. You see an entrepreneur by definition is a person who offers a solution to a problem at a cost.
At first, the problem that an entrepreneur faces in network marketing is how to solve their own immediate problems. How get a lead? How to get a new team member? How to help that new team member duplicate their success quicker than he or she did it?
When they get these issues solved he benefits monetarily for the growth in his team, but metaphysically he profits for knowing he has added overall value to the task and process at hand for many many to follow. The entrepreneur is not done at this point. There's more to be done. The entrepreneur sees the opportunity before him and sees that there is more value to be added. The people directly associated with him aren't the only people to have the problems they began with so he devises a way to help more than his immediate circle. The entrepreneur sees no failure.
The entrepreneur detaches his emotions from all outcomes be they positive or negative. He sees the results of his actions as merely observable data to improve upon.
The entrepreneur always asks himself "How can I do better next time?" And then sets out to improve upon their most immediate results for their personal growth and the benefit of all those associated with him. The entrepreneur realizes that there is no such thing as "enough" he knows that just like an apple tree grows as large as it possibly can and then bares seeds that he to must ALWAYS grow.
If there is any one quality that the entrepreneur has that sets him apart from the average person is their confidence exceeds their competency. The entrepreneur sees the opportunity before him and he know he most grow into it regardless of whether or not he knows HOW to do it.
He just has confidence that he will. The entrepreneur asks everyday what it is that he wants and then sets out to get it with excitement. Step into this mindset and step into success.
Monday, February 16, 2009
Time cannot be replenished once it is gone.
Take a second and remind yourself of this important fact:
Time cannot be replenished once it is gone.
If you're not including time with friends and family (and time with yourself!) in
your schedule, you're losing that time for good.
Time cannot be replenished once it is gone.
If you're not including time with friends and family (and time with yourself!) in
your schedule, you're losing that time for good.
Saturday, February 7, 2009
Short sales: 5.2 percent of transactions that took place in 2008 were short sales...
...which means the proceeds of the sale is less
than the amount due on the seller's loan; the
U.S. average was 10.9 percent.
than the amount due on the seller's loan; the
U.S. average was 10.9 percent.
Thursday, February 5, 2009
Start Making Money Next Week
Interested in getting a nice little side-business going on the Internet?
But maybe you don't have too much money, you don't have too much time, and you're not exactly Bill Gates when it comes to technology. Sound familiar?
A lot of people are in the same boat. The good news is that ETR has heard you. And now we've done something about it...
One fellow I know turned $10 into over $500,000 using the techniques revealed in our Internet entrepreneur's quick-start program.
Let me show you how you could get a similar Home Seller Assist income stream up and running for almost nothing.
But maybe you don't have too much money, you don't have too much time, and you're not exactly Bill Gates when it comes to technology. Sound familiar?
A lot of people are in the same boat. The good news is that ETR has heard you. And now we've done something about it...
One fellow I know turned $10 into over $500,000 using the techniques revealed in our Internet entrepreneur's quick-start program.
Let me show you how you could get a similar Home Seller Assist income stream up and running for almost nothing.
Tuesday, February 3, 2009
Foreclosures, short sales push home prices lower
With foreclosure sales dominating the market, the median price of Coachella Valley real estate fell to $194,900 in December, its lowest level since 2001.
The 47 percent drop in median price compared to December 2007 happened even as five homes bearing sticker prices of $1.6 million to $3.2 million were sold in Indian Wells, La Quinta, Palm Springs and Rancho Mirage, figures released Monday by La Jolla-based MDA DataQuick show.
The December sales, while reflecting an 8.3 percent gain compared to 2007, also tracked at low levels not seen since 1996.
“We beat a crummy December 2007 in sales,'' said Andrew LePage, a DataQuick analyst.
The number of sales — 746 — was the second lowest since 1996. “That was not a great year. It was the peak of the last wave of foreclosures” in the state, he said.
The median price also was lower than the $410,000 peak reached in February 2006. “The last time the median was lower was in December 2001,'' LePage said.
Patrick Veling, president of Real Data Strategies in Orange County, said the falling median is a much larger factor of the mix of properties selling in today's market than is an indication of actual values.
Because there had been so many bank-influenced sales of lower-priced properties, Veling said the market is seeing much more “radical erosion” in the statistics than is occurring in the actual marketplace.
“Depreciation has swept through the region and the state,'' LePage said, so the greater share of the sales are in the low-cost areas, where housing prices are affordable and foreclosure activity has been occurring. “That's driving the median down.”
Case-in-point:
Real estate sales rose 8.3 percent, but that was largely because of the 50 percent hike in single-family sales. The same month, condo sales fell 32 percent, while new home sales dropped 44 percent.
Before the credit crunch, property listed under $500,000 accounted for 43 percent of the sales. That percentage now stands at 82 percent.
Sales are strongest where prices are lowest.
The city of Coachella posted a 700 percent gain, with 32 sales occurring with a $135,000 median. Indian Wells, which had the highest median for the month at $554,000, measured a 30 percent drop with nine transactions. Its largest was a $3.4 million sale.
Price drives sales
Greg Berkemer, executive director of California Desert Association of Realtors, said price is the driving factor.
“Home-sellers are still under significant price pressure,'' Berkemer said.
The quicker the inventory of distressed property is taken off the books, reserves are re-established and new loans written for qualified buyers, the sooner things will turn to a more normal real estate market, Berkemer said.
“The person who is most disadvantaged now is the home-seller who has to sell,” he said.
Berkemer said the Multiple Listing Service inventory has fallen from 9,186 properties in December 2007 to 8,250 properties. “It indicates that the desert market continues to absorb the properties that individual home-sellers and banks must sell,'' he said.
Sam Schenkl, executive director of the Palm Springs Regional Association of Realtors, said the pattern has developed over the past four to five months.
“What we're not seeing is the higher-priced end of the market moving,'' he said. “It's still dominated by short sales and foreclosures. As bank-owned properties still make up a large part of the inventory, it drags down the median price.”
He said he was surprised about the condo sale count, and surmised that the drop occurred because buyers recognize they can get single-family homes for similar prices. All of this is causing program like the Home Seller Assist to rocket their sales and helping investors make a ton of money flipping these properties.
The 47 percent drop in median price compared to December 2007 happened even as five homes bearing sticker prices of $1.6 million to $3.2 million were sold in Indian Wells, La Quinta, Palm Springs and Rancho Mirage, figures released Monday by La Jolla-based MDA DataQuick show.
The December sales, while reflecting an 8.3 percent gain compared to 2007, also tracked at low levels not seen since 1996.
“We beat a crummy December 2007 in sales,'' said Andrew LePage, a DataQuick analyst.
The number of sales — 746 — was the second lowest since 1996. “That was not a great year. It was the peak of the last wave of foreclosures” in the state, he said.
The median price also was lower than the $410,000 peak reached in February 2006. “The last time the median was lower was in December 2001,'' LePage said.
Patrick Veling, president of Real Data Strategies in Orange County, said the falling median is a much larger factor of the mix of properties selling in today's market than is an indication of actual values.
Because there had been so many bank-influenced sales of lower-priced properties, Veling said the market is seeing much more “radical erosion” in the statistics than is occurring in the actual marketplace.
“Depreciation has swept through the region and the state,'' LePage said, so the greater share of the sales are in the low-cost areas, where housing prices are affordable and foreclosure activity has been occurring. “That's driving the median down.”
Case-in-point:
Real estate sales rose 8.3 percent, but that was largely because of the 50 percent hike in single-family sales. The same month, condo sales fell 32 percent, while new home sales dropped 44 percent.
Before the credit crunch, property listed under $500,000 accounted for 43 percent of the sales. That percentage now stands at 82 percent.
Sales are strongest where prices are lowest.
The city of Coachella posted a 700 percent gain, with 32 sales occurring with a $135,000 median. Indian Wells, which had the highest median for the month at $554,000, measured a 30 percent drop with nine transactions. Its largest was a $3.4 million sale.
Price drives sales
Greg Berkemer, executive director of California Desert Association of Realtors, said price is the driving factor.
“Home-sellers are still under significant price pressure,'' Berkemer said.
The quicker the inventory of distressed property is taken off the books, reserves are re-established and new loans written for qualified buyers, the sooner things will turn to a more normal real estate market, Berkemer said.
“The person who is most disadvantaged now is the home-seller who has to sell,” he said.
Berkemer said the Multiple Listing Service inventory has fallen from 9,186 properties in December 2007 to 8,250 properties. “It indicates that the desert market continues to absorb the properties that individual home-sellers and banks must sell,'' he said.
Sam Schenkl, executive director of the Palm Springs Regional Association of Realtors, said the pattern has developed over the past four to five months.
“What we're not seeing is the higher-priced end of the market moving,'' he said. “It's still dominated by short sales and foreclosures. As bank-owned properties still make up a large part of the inventory, it drags down the median price.”
He said he was surprised about the condo sale count, and surmised that the drop occurred because buyers recognize they can get single-family homes for similar prices. All of this is causing program like the Home Seller Assist to rocket their sales and helping investors make a ton of money flipping these properties.
Saturday, January 31, 2009
Stacking Order of Short Sale Package:
a. Seller's hardship letter
b. Seller's financial statement
c. Supporting documentation for hardship (latest 2 paystubs, latest 2 bank statements, latest 2 tax returns, doctor's verification of disability, lay-off or termination letter...etc.)
d. Authorization/release forms
e. BPO (Brokers Price Opinion) click link for more info
f. Option Purchase Agreement
g. Proof of Funds Letter thru Home Seller Assist program
h. Estimated HUD-1
b. Seller's financial statement
c. Supporting documentation for hardship (latest 2 paystubs, latest 2 bank statements, latest 2 tax returns, doctor's verification of disability, lay-off or termination letter...etc.)
d. Authorization/release forms
e. BPO (Brokers Price Opinion) click link for more info
f. Option Purchase Agreement
g. Proof of Funds Letter thru Home Seller Assist program
h. Estimated HUD-1
Tuesday, January 27, 2009
Claims of Illegal Foreclosures
It appears that different companies besides legal aid groups and public interest law firms are trying to uncover what they call illegal foreclosures. In more and more instances, they are claiming that the lender cannot prove it has legal standing to execute a foreclosure and is not the legal owner of the note. If the lender doesn’t own the note, it can’t foreclose on it.
Because some companies charge to do title reports, there is debate over whether these companies really want to help defaulted borrowers and foreclosed homeowners or simply profit from today’s growing foreclosure problem.
As a result, lenders have to step up their performance, even if they are 90% comfortable that they own the loan. More than anything, these cases focus most on the procedural aspects of the business and at what point during the process, the lender has to prove ownership of a loan and by what paper trail.
According to industry insiders, it used to be that about 90% of foreclosures were completely unopposed. As a result of that, a lot of foreclosure professionals did business in bulk and fairly quickly. No one really asked anyone to show a detailed chain of title. It was not necessary nor was it required.
Because some companies charge to do title reports, there is debate over whether these companies really want to help defaulted borrowers and foreclosed homeowners or simply profit from today’s growing foreclosure problem.
As a result, lenders have to step up their performance, even if they are 90% comfortable that they own the loan. More than anything, these cases focus most on the procedural aspects of the business and at what point during the process, the lender has to prove ownership of a loan and by what paper trail.
According to industry insiders, it used to be that about 90% of foreclosures were completely unopposed. As a result of that, a lot of foreclosure professionals did business in bulk and fairly quickly. No one really asked anyone to show a detailed chain of title. It was not necessary nor was it required.
Wednesday, January 21, 2009
News broke today that...
... Foreclosures are up 81% this year and it's only going to grow.
Join me on a Webcast as we take you through our Asset Finder Program, step by step.
Banks are over-run with REO's and we have a Hedge Fund that wants to buy these assets.
You get paid for making the introduction.
Watch it now
Saturday, January 17, 2009
Horton to hold 'short' sale
D.R. Horton of Las Vegas has gone Hollywood with its new Builder Short Sale promotion, featuring the 2-foot, 8-inch actor Verne Troyer. The 40 year old is famous for his portrayal of Mini-Me in the Austin Powers films.
The sales event is planned for Jan. 24 and 25. D.R. Horton will not publish new pricing prior to the event, however, sales agents are promising something special, according to director of sales for the company, Jeff Ward.
"Throughout the holiday season we have been very busy realigning our business for the new year," he said.
"We have thoroughly examined and renegotiated our construction costs. These refinements in conjunction with our commitment to remain the valley's best-selling home builder, have allowed an emergence of fabulous new prices and incentives for 2009."
Ward said the promotion will include price reductions in all 30 of D.R. Horton's Las Vegas Valley neighborhoods, as well as five subdivisions in Laughlin.
The neighborhoods will be identified by eye-catching signage showcasing Troyer's likeness.
D.R. Horton also has recently published a Single Story Portfolio of their homes and a Las Vegas home-finding map, which have become a resource for valley Realtors.
Home shoppers may request these items through the Builder's Concierge by calling 501-6301, or online at DRHorton.com/lasvegas.
"Pricing for this event may very well signal the bottom of the market," Ward said. And investors can take advantage of the new 1% financing from Home Seller Assist to purchase these short sales.
"We have started construction on hundreds of homes in the past months to satisfy home shoppers who have grown weary of viewing and bidding on abandoned, foreclosed and bank-owned properties."
f
Dave Reid, a broker for CH Realty, agreed. "It doesn't take long for home shoppers to realize that purchasing a distressed property is a difficult, time-intensive and frustrating experience.
"There are some great deals out there, but the majority of them are best suited for investors that have the experience and cash reserves to bring a home back to living standards," he said. "Many of our recent clients have done the 'value equation' for themselves and have recognized the merit in purchasing a spotless new home which is warranted, and includes living landscaping and isn't burdened with hidden costs."
In mid-December, a new report from Massachusetts' forecasting company, IHS Global Insight, and Ohio bank holder National City Corp. showed substantial undervaluation in local housing prices. Specifically, that report indicated that home values in Las Vegas fell 18.8 percent below what market fundamentals would justify.
"For consumers, undervaluation should signal purchasing opportunities, said Richard DeKaser, chief economist of National City.
"History shows that markets experiencing significant undervaluation provide a strong likelihood that buyers will be rewarded over the longer term. ... Real estate is now a good buy in Las Vegas."
Prospective homebuyers and Realtors who are interested in attending the Builder Short Sale may obtain information at any D.R. Horton neighborhood in Las Vegas and Laughlin, or online at BuilderShortSale.com, or by contacting the D.R. Horton Concierge.
The sales event is planned for Jan. 24 and 25. D.R. Horton will not publish new pricing prior to the event, however, sales agents are promising something special, according to director of sales for the company, Jeff Ward.
"Throughout the holiday season we have been very busy realigning our business for the new year," he said.
"We have thoroughly examined and renegotiated our construction costs. These refinements in conjunction with our commitment to remain the valley's best-selling home builder, have allowed an emergence of fabulous new prices and incentives for 2009."
Ward said the promotion will include price reductions in all 30 of D.R. Horton's Las Vegas Valley neighborhoods, as well as five subdivisions in Laughlin.
The neighborhoods will be identified by eye-catching signage showcasing Troyer's likeness.
D.R. Horton also has recently published a Single Story Portfolio of their homes and a Las Vegas home-finding map, which have become a resource for valley Realtors.
Home shoppers may request these items through the Builder's Concierge by calling 501-6301, or online at DRHorton.com/lasvegas.
"Pricing for this event may very well signal the bottom of the market," Ward said. And investors can take advantage of the new 1% financing from Home Seller Assist to purchase these short sales.
"We have started construction on hundreds of homes in the past months to satisfy home shoppers who have grown weary of viewing and bidding on abandoned, foreclosed and bank-owned properties."
f
Dave Reid, a broker for CH Realty, agreed. "It doesn't take long for home shoppers to realize that purchasing a distressed property is a difficult, time-intensive and frustrating experience.
"There are some great deals out there, but the majority of them are best suited for investors that have the experience and cash reserves to bring a home back to living standards," he said. "Many of our recent clients have done the 'value equation' for themselves and have recognized the merit in purchasing a spotless new home which is warranted, and includes living landscaping and isn't burdened with hidden costs."
In mid-December, a new report from Massachusetts' forecasting company, IHS Global Insight, and Ohio bank holder National City Corp. showed substantial undervaluation in local housing prices. Specifically, that report indicated that home values in Las Vegas fell 18.8 percent below what market fundamentals would justify.
"For consumers, undervaluation should signal purchasing opportunities, said Richard DeKaser, chief economist of National City.
"History shows that markets experiencing significant undervaluation provide a strong likelihood that buyers will be rewarded over the longer term. ... Real estate is now a good buy in Las Vegas."
Prospective homebuyers and Realtors who are interested in attending the Builder Short Sale may obtain information at any D.R. Horton neighborhood in Las Vegas and Laughlin, or online at BuilderShortSale.com, or by contacting the D.R. Horton Concierge.
Wednesday, January 14, 2009
Negative Equity the Driving Force Behind Subprime Defaults
In the past, payment shocks such as job loss, health catastrophes or divorce have historically been identified as the primary drivers of default, CreditSights says in US Mortgage Outlook Part 1: State of Subprime. This lack of negative-equity-induced defaults is usually explained by ‘transaction costs’ - which encompass the greater difficulty of gaining credit in future, sentimental attachment to one’s property, moral qualms and moving costs.
“However, most subprime borrowers are already financially stretched even without higher monthly payments. This financial overburdening may mean that the continuing falls in house prices prompts borrowers to wonder whether the sacrifices of paying towards a depreciating investment is economically sensible. Given that it is almost certainly cheaper to rent an equivalent property and that subprime borrowers are unlikely to be losing much in the way of credit score from a default, it is increasingly difficult to see how ‘transaction costs’ can provide much of an argument against defaulting.”
As a result we believe negative equity is playing a progressively more important roll in determining whether borrowers are defaulting. And is the driving force behind the ever increasing Home Seller Assist program created by John Alexander which enables investors to buy properties using 1% funding.
“In fact, evidence that negative equity is playing a more important roll in borrowers’ default decisions may be suggested by a dramatic rise in realized losses. In September 2007, realised losses on first-lien loans in the ABX indices were roughly 25%.”
“However, most subprime borrowers are already financially stretched even without higher monthly payments. This financial overburdening may mean that the continuing falls in house prices prompts borrowers to wonder whether the sacrifices of paying towards a depreciating investment is economically sensible. Given that it is almost certainly cheaper to rent an equivalent property and that subprime borrowers are unlikely to be losing much in the way of credit score from a default, it is increasingly difficult to see how ‘transaction costs’ can provide much of an argument against defaulting.”
As a result we believe negative equity is playing a progressively more important roll in determining whether borrowers are defaulting. And is the driving force behind the ever increasing Home Seller Assist program created by John Alexander which enables investors to buy properties using 1% funding.
“In fact, evidence that negative equity is playing a more important roll in borrowers’ default decisions may be suggested by a dramatic rise in realized losses. In September 2007, realised losses on first-lien loans in the ABX indices were roughly 25%.”
Sunday, January 11, 2009
Where Short Sales Stumble
By Elizabeth Razzi
Here's what's really happening with short sales: All too often, they fall short of the finish line.
A short sale means a sale that falls short of the amount owed on the mortgage. They happen only when the seller can't come up with the cash to pay off the difference. Most important, though, is that they can happen only when the lender agrees to accept the shrunken payoff. There are now sources that offer 1% funding to buy short sales like the Home Seller Assist program created by John Alexander.
Desperate sellers pursue them to avoid a foreclosure, which would be even more damaging to their credit history. Buyers pursue them in hope of snagging a home at a deep discount.
Before you waste your time, and possibly your money, on a short sale that stands little chance of getting the bank's approval, gather some intelligence about the sellers, their financial situation and the real estate agent they have hired. You will save a lot of frustration by focusing only on deals the bank is willing to make.
Lenders aren't in the business of accepting less than they are owed, and their paperwork machinery isn't even set up to work that way efficiently. Their approval of a short sale is always slow in coming -- if it ever comes at all. You need to find out if the bank even has a clue that the seller is trying for such a deal.
Too often, sellers and their agents are calling a listing a "short sale" or saying that "offers are subject to third-party review" without even having talked with the lender. They plan to get a live fish on the hook before they try to tempt the lender.
Do you want to be that fish?
It's important to distinguish between "upside-down" sellers and short sales. If sellers are upside-down on their loan, owing more than the home is worth, they are still expected to make monthly payments. Even if they would like to move, most upside-down owners are stuck until prices recover enough to make a sale profitable.
If an upside-down owner must sell, even at the reduced price, he's expected to take money out of savings, cash in the 401(k), borrow from the in-laws or otherwise pay off the mortgage.
But what happens when the homeowner simply cannot come up with the cash? At this point, the homeowner's pain becomes the lender's problem. The lender's options are either to agree to a short sale and forgive the unpaid debt, or to foreclose on the home and re-sell it. Remember, the lender gets to make that choice, not the seller.
There are lots of things that can derail a short sale. For example, although lenders lose a lot of money when they foreclose, the payout from private mortgage insurance could reduce that loss enough to make the lender choose foreclosure.
Lenders holding second mortgages, such as home-equity lines of credit, can also kill the sale. Second-mortgage lenders are supposed to be at the back of the line to collect loan payoffs, but they can nix a proposed short sale if they don't think they're getting enough out of it.
Frank Borges LLosawho owns the FranklyRealty.com brokerage in Arlington, has analyzed multiple-listing service data for Northern Virginia and estimates that of every 20 short-sale listings that draw a contract from a buyer, only one actually makes it to closing. "I call them fake listings," he said.
Before he will submit a buyer's purchase offer, LLosa sends the listing agent an e-mail questionnaire to measure the prospects for a successful deal. Mostly, he wants to know whether the sellers and their agent have already started the approval process with the lender.
LLosa asks whether the sellers and their agent have submitted a "short-sale package" to the bank. That includes a letter explaining why the sellers face a financial hardship, such as a job loss, and cannot pay what is owed. It also includes details of their finances to demonstrate that they don't have savings or investments that could be liquidated to pay the debt.
Glenn Kelman, chief executive of Redfin, an Internet-based brokerage, cited a number of indicators that a listing advertised as a short sale will really make it to closing. You might be a wasting your time unless you see these signs:
· Only one bank has to approve the sale. "If two banks have to approve the deal, one will get the short end of it, and approval is unlikely," Kelman said. You also don't want to see that there are other lien holders, such as unpaid contractors.
· The seller has stopped paying the mortgage and has already received a notice of default. If the lender is still collecting monthly payments, that lender has no incentive to approve a short sale.
· The bank is ready to deal. Someone at the bank has already approved a short sale, or has at least confirmed receipt of that short-sale package, including a document showing the lender what it would net after taxes and fees, and a market analysis or appraisal that demonstrates that the home is being sold for a reasonable price. "Ask the listing agent who his contact at the bank is, by name and title, and confirm that the paperwork is complete," Kelman said. "Many won't even know what you are talking about."
· The listing agent has experience completing short sales and responds to your inquiries. "To make a deal happen, you need a listing agent pounding on the table with the bank," Kelman said. "But many banks pay the listing agent peanuts, so the agent may be busy with better-paying work."
· And, finally, foreclosure is at least six weeks away. Kelman said it takes at least that long to get a short sale approved, so a foreclosure any time sooner could sweep your deal away. Plenty of time to line up your 1% funding for short sales.
Unfortunately, foreclosure dates aren't always easy to nail down. Several troubled borrowers I have spoken with over the years have told me they couldn't find out exactly when the foreclosure would happen. And buyers who have succeeded at a short sale have told me they could only guess at the looming foreclosure date.
If you try to buy a home through a short sale, be prepared for the deal to fall apart. Don't spend money on appraisals or inspections until you have received some sort of commitment from the bank. You certainly don't want to give notice to your landlord too early. And keep looking for other, easier deals, just in case.
And if you want to make money tellin others about the new 1% funding to buy short sales, you should visit http://homesellerassist.synthasite.com now and make 2009 your best year ever.
Here's what's really happening with short sales: All too often, they fall short of the finish line.
A short sale means a sale that falls short of the amount owed on the mortgage. They happen only when the seller can't come up with the cash to pay off the difference. Most important, though, is that they can happen only when the lender agrees to accept the shrunken payoff. There are now sources that offer 1% funding to buy short sales like the Home Seller Assist program created by John Alexander.
Desperate sellers pursue them to avoid a foreclosure, which would be even more damaging to their credit history. Buyers pursue them in hope of snagging a home at a deep discount.
Before you waste your time, and possibly your money, on a short sale that stands little chance of getting the bank's approval, gather some intelligence about the sellers, their financial situation and the real estate agent they have hired. You will save a lot of frustration by focusing only on deals the bank is willing to make.
Lenders aren't in the business of accepting less than they are owed, and their paperwork machinery isn't even set up to work that way efficiently. Their approval of a short sale is always slow in coming -- if it ever comes at all. You need to find out if the bank even has a clue that the seller is trying for such a deal.
Too often, sellers and their agents are calling a listing a "short sale" or saying that "offers are subject to third-party review" without even having talked with the lender. They plan to get a live fish on the hook before they try to tempt the lender.
Do you want to be that fish?
It's important to distinguish between "upside-down" sellers and short sales. If sellers are upside-down on their loan, owing more than the home is worth, they are still expected to make monthly payments. Even if they would like to move, most upside-down owners are stuck until prices recover enough to make a sale profitable.
If an upside-down owner must sell, even at the reduced price, he's expected to take money out of savings, cash in the 401(k), borrow from the in-laws or otherwise pay off the mortgage.
But what happens when the homeowner simply cannot come up with the cash? At this point, the homeowner's pain becomes the lender's problem. The lender's options are either to agree to a short sale and forgive the unpaid debt, or to foreclose on the home and re-sell it. Remember, the lender gets to make that choice, not the seller.
There are lots of things that can derail a short sale. For example, although lenders lose a lot of money when they foreclose, the payout from private mortgage insurance could reduce that loss enough to make the lender choose foreclosure.
Lenders holding second mortgages, such as home-equity lines of credit, can also kill the sale. Second-mortgage lenders are supposed to be at the back of the line to collect loan payoffs, but they can nix a proposed short sale if they don't think they're getting enough out of it.
Frank Borges LLosawho owns the FranklyRealty.com brokerage in Arlington, has analyzed multiple-listing service data for Northern Virginia and estimates that of every 20 short-sale listings that draw a contract from a buyer, only one actually makes it to closing. "I call them fake listings," he said.
Before he will submit a buyer's purchase offer, LLosa sends the listing agent an e-mail questionnaire to measure the prospects for a successful deal. Mostly, he wants to know whether the sellers and their agent have already started the approval process with the lender.
LLosa asks whether the sellers and their agent have submitted a "short-sale package" to the bank. That includes a letter explaining why the sellers face a financial hardship, such as a job loss, and cannot pay what is owed. It also includes details of their finances to demonstrate that they don't have savings or investments that could be liquidated to pay the debt.
Glenn Kelman, chief executive of Redfin, an Internet-based brokerage, cited a number of indicators that a listing advertised as a short sale will really make it to closing. You might be a wasting your time unless you see these signs:
· Only one bank has to approve the sale. "If two banks have to approve the deal, one will get the short end of it, and approval is unlikely," Kelman said. You also don't want to see that there are other lien holders, such as unpaid contractors.
· The seller has stopped paying the mortgage and has already received a notice of default. If the lender is still collecting monthly payments, that lender has no incentive to approve a short sale.
· The bank is ready to deal. Someone at the bank has already approved a short sale, or has at least confirmed receipt of that short-sale package, including a document showing the lender what it would net after taxes and fees, and a market analysis or appraisal that demonstrates that the home is being sold for a reasonable price. "Ask the listing agent who his contact at the bank is, by name and title, and confirm that the paperwork is complete," Kelman said. "Many won't even know what you are talking about."
· The listing agent has experience completing short sales and responds to your inquiries. "To make a deal happen, you need a listing agent pounding on the table with the bank," Kelman said. "But many banks pay the listing agent peanuts, so the agent may be busy with better-paying work."
· And, finally, foreclosure is at least six weeks away. Kelman said it takes at least that long to get a short sale approved, so a foreclosure any time sooner could sweep your deal away. Plenty of time to line up your 1% funding for short sales.
Unfortunately, foreclosure dates aren't always easy to nail down. Several troubled borrowers I have spoken with over the years have told me they couldn't find out exactly when the foreclosure would happen. And buyers who have succeeded at a short sale have told me they could only guess at the looming foreclosure date.
If you try to buy a home through a short sale, be prepared for the deal to fall apart. Don't spend money on appraisals or inspections until you have received some sort of commitment from the bank. You certainly don't want to give notice to your landlord too early. And keep looking for other, easier deals, just in case.
And if you want to make money tellin others about the new 1% funding to buy short sales, you should visit http://homesellerassist.synthasite.com now and make 2009 your best year ever.
Wednesday, January 7, 2009
New Mortgage Bankruptcy Bill Does Not Address Real Problem
The plight of homeowners delinquent on their mortgages has been the focus of much debate lately and proven extremely profitable for the Home Seller Assist program created by John Alexander and also known as We Provide The Cash
There have generally been two major lines of thinking:
The best course is to let free market principles apply. If homeowners cannot afford the mortgage payment, the old fashioned remedy of foreclose should take place, turning an overburdened homeowner into a renter.
Those more inclined to assess the loss of a home in terms of human suffering rather than as an economic equation have sought to provide relief to struggling homeowners by modifying the terms of the original mortgage.
As the number of mortgages in default grew, the situation attracted the attention of politicians. Their viewpoint seemed to focus on helping the homeowner stay in the home, regardless of cost.
The governments’ efforts to encourage the banking industry to cure the foreclosure problem through voluntary participation in loan modifications was a failure. For a variety of reasons the loan mods were not working. Data from the Comptroller of the Currency shows that over 50% of modified loans re-defaulted within 6 months. With many loan mods, payments went up for the borrowers and principal was hardly ever reduced. The loan mods actually left many borrowers in a worse position than when they started. In addition, most of them had negative equity before and after the loan mod. The negative equity position locked them into the house, unable to sell or refinance.
Today, from Washington, a new solution - giving bankruptcy courts the power to alter the terms of the original mortgage.
Lawmakers Set New Mortgage Bankruptcy Bill
WASHINGTON (Reuters) - Legislation designed to stem foreclosures by allowing bankruptcy judges to erase some mortgage debt will be introduced by Congressional Democrats on Tuesday, and hopes are high that it will pass after a similar plan failed last year.
“Economic conditions have only worsened since we last debated this plan,” said Rep. Brad Miller, a member of the House Financial Services Committee who plans to introduce a bankruptcy reform bill on Tuesday. “Until we stop the slide in foreclosures and falling home prices, the economy will get worse still.”
The legislation change would allow bankruptcy judges to modify home loans in the same way that they currently may modify other unsettled obligations, such as credit card debt.
The lending industry has said that allowing bankruptcy judges to modify mortgage obligations would change how they weigh risk. Currently a lender knows that it has recourse to foreclosure if a borrower fails to meet mortgage payments, but the lender does not have to factor in the possibility that the payments it receives could be decreased by a judge.
What will be the impact of allowing bankruptcy judges to discharge (cram-down) mortgage debts? Some of the issues and questions to be considered include the following.
Interest rates are correlated to risk - that’s the way things work in a free market. If a mortgage loan is made with the risk of principal impairment by bankruptcy, this risk has to be priced into the loan rate. Reducing mortgage principal by legislative fiat may bring unintended adverse consequences.
According to The Mortgage Bankers Association:
It is our position that if this proposal were to become law, mortgage rates would increase by at least one and a half points. In addition, lenders will be forced to require higher down payments and charge higher costs at closing. All these increased costs would be necessary to account for the new risks that lenders will face when judges decide to change how much borrowers owe on their mortgages.
Since total mortgage delinquencies are less than 10% and not all of these cases will wind up in bankruptcy, cram downs might help less than 5% of mortgaged homeowners. If the MBA is correct and mortgage rates rise significantly due to cram downs, expect a significant backlash from the other 95% of mortgaged homeowners who will wind up paying for the losses through higher interest rates.
According to The Housing Wire, 50% of Americans oppose bailing out troubled homeowners. “These findings indicate that there are significant political barriers to proposals now being drafted in Congress.”
The bankruptcy discharge of a mortgage balance will be viewed by many as the ultimate bailout. The final compromised bill may result in contorted regulations that ultimately benefit few homeowners.
The free market has a solution for “troubled homeowners” which is known as foreclosure. Does the free market solution lose all merit merely because the number of foreclosures increased dramatically due to imprudent borrowing and lending?
According to Rep. Brad Miller, “Until we stop the slide in foreclosures and falling home prices, the economy will get worse still.” Rep. Miller is confusing a symptom of the disease as the cause. Falling home prices did not cause our economy to weaken. The housing asset bubble that burst was due to reckless lending, fueled by a government providing easy credit and obsessed with making everyone a homeowner. Political interference in economic matters usually delays a solution by impeding the free market forces that will ultimately prevail anyways.
If the mortgage cram down bill is passed, it will drive many homeowners to bankruptcy, lured by the promise of wiping out mortgage debt. The loan modification program allowed the banks to pretend that the amount they were owed would still be repaid over time. When the loan gets reduced in bankruptcy, this illusion will be gone. More write offs by the banks could lead to a self defeating cycle of tighter credit, stricter mortgage underwriting, weaker housing prices and further bailouts.
How many homeowners that are incapable of handling the burden of home ownership will be allowed to remain in their homes, only to face foreclosure again at a later date?
Continued massive government support of the mortgage market will be necessary since investor demand for mortgage securities is likely to remain low due to collapsing housing prices and the risk of mortgage debt being discharged by bankruptcy. How does an investor properly price a mortgage security where the asset value underlying the security is declining and also face the risk that the principal investment may be impaired by court decree?
The Fed is now expected to absorb virtually all of the new mortgage backed securities this year. With the Fed extending its purchases into virtually every asset class, a question comes to mind. As the Fed assumes the losses of all failing economic entities in the country, at what point does the US Government begin to share the credit quality of those being bailed out?
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