Bank Foreclosure Homes

Types of Foundations For Your New House

2009-04-02T01:42:00.000-07:00

When deciding on which type of foundation (basement, crawl space, or a slab) for your new home, there are many different factors to consider. In some parts of the country full basements will be the norm (most common in the north), while others will have slab foundations (most common in the south) and still others will have crawl spaces (most common in the central regions). Many people, because of local soil and groundwater conditions, often have only one or two options when it comes to house foundations. In certain places, constructing a full basement means blasting through solid rock. In other places, the ground water table may be lurking just a few feet below the surface limiting these folks to a simple slab on grade.
Keep in mind, that if you are planning a crawl space, and all of your neighbors have basements, your house may be more difficult to sell unless you are prepared to lower the price. This is simply a value/price perception issue since many people feel that having a full basement gives them more room even if it is used only for storage purposes. And of course, the potential is always there for someone to finish the basement and add extra living space at some time in the future.
The concrete slab choice is attractive to builders because of its relatively low cost. Excavation is kept to a minimum and the construction schedule can often be accelerated. The day after the slab is poured, wall framing can often begin. But slabs come with some negatives. Typically, plumbing drainage and water supply lines are buried beneath the slab. If something goes wrong or a leak develops, repairs can be costly. Heating or cooling ductwork buried underneath the slab (not recommended) can sometimes fill with water during wet seasons. Should this happen, fungus can form and spores might be blasted into the home each time the HVAC starts up. Thermal conduction issues are always present. Slabs poured in colder climates can conduct cold back into the house unless special precautions are taken when built. Homes built on slabs often offer little protection during tornadoes or hurricanes, unless a special masonry or concrete safe room is built within the house. These safe rooms can be designed as a large walk-in closet.
A crawl space foundation is a step or two above a slab foundation. Generally speaking, a footing needs to be poured and short foundation walls are built to support the home. Crawl space foundations allow you to install plumbing and HVAC systems so that they are accessible. The floor system over and the foundation walls inside of the crawl space almost always need to be insulated. A vapor barrier must be placed over the soil in the crawl space to control moisture, preferably one that is sealed at its seams & to the foundation walls. If this vapor barrier is missing, water vapor will readily travel up into the wood floor system and then into the house. This water vapor can cause severe mold problems. Homes built over crawl spaces offer minimal protection in severe weather unless you can install a floor access door in a closet that allows quick entry into the crawl space, assuming there is sufficient clearance.
As for basements, ask any homeowner who has a dry full height foundation and they will often tell you they would never be without one. The cost per square foot for this bonus space is often a fraction of what you pay for the living space stacked above it. If you do an actual cost analysis of a full height foundation versus a crawl space, you will find it costs very little to upgrade to the full foundation. Typically, full basements make a house more attractive to potential buyers.
A full foundation offers superb protection in the event of severe weather. It is not difficult to keep basements dry, even in extreme wet weather. The builder simply needs to install a proper drainage system around the perimeter and to apply a real waterproofing material such as synthetic rubber or liquid asphalt that has rubber additives. These materials can bridge small hairline cracks that might otherwise leak water. If you intend to finish off the basement space at a later date, be sure to install a true waterproofing material not the traditional hot asphalt damp-proofing spray.
If you can afford the extra cost, ask your builder to consider extra height foundation walls that allow you to have a clear ceiling height of eight feet or more beneath any and all beams that support floor joists, so that finishing the space at a later time will be easier and provide proper ceiling height.

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loans tips

2009-03-29T06:26:00.001-07:00

Payday loans have many names -- cash advances, signature loans and paycheck loans, etc. Payday lenders provide quick and easy short-term cash to those who need money immediately. That's the big reason why they're so popular.

However, payday loans come at exorbitant costs. This can -- and often does -- lead borrowers into a downward spiral of rapidly escalating debt. Let's look at the issue from various angles to get a complete picture.

First, the pluses. Here's why cash advances may hold enormous appeal for you.

You can have bad credit and still qualify for a payday loan. In most cases, no credit check is conducted.
The process is fast -- it takes as little as 20 minutes to complete. You can even find lenders who target approvals in 30 seconds!
There are no upfront costs -- so the buy-now-pay-later mentality can find full expression.
You can apply in person at a local outlet, over the phone or over the Internet.
You get funds deposited into your bank account in 24 hours.
Compared to some other sources for cash, payday loans are discreet -- no one else needs to know about it.
The transactions are secure -- your financial information remains private.

If you're faced with an emergency -- say, unexpected medical bills -- your only consideration might be to get money now. The speed and convenience of a cash advance comes in handy here.

So what are the disadvantages?

The most obvious one -- high costs. A payday loan can cost you say, $15 per two weeks. If you're borrowing only for two weeks, that doesn't sound like much. However, if you calculate the Annual Percentage Rate (APR), you'll see it comes to 391%!

If you don't think that's too much, let me ask you this question. If you invested money in the stock market, what would you consider a good annual rate of return? 20%? Maybe 30%? If you made a 20% return (on average) in stocks year after year, you'd be doing very well indeed. And this is for an investment that's generally considered high risk.

Now compare that with what the payday loan companies charge. You are providing them with a return on their money they likely won't get anywhere else on the planet!

There is another, less obvious reason why payday loans are dangerous. According to some estimates, over 60% of borrowers roll over a payday loan. Many take loans repeatedly, too.

How to get no fax payday loan immediatly?

Let's put in some numbers so that you can clearly see what rollovers imply.

Assume you borrow $400 for two weeks at a cost of $15 per $100 per two weeks. At the end of two weeks, you owe them a total of $460.

Let's say you don't repay the $400 at the end of two weeks. Instead, you request a rollover. So you pay them the lending fee of $60 and they agree to roll over the loan for another two weeks. The total cost of the loan at the end of 4 weeks may be as follows:

Original loan amount: $400
Fresh lending fees payable: $60
Late fees payable: $60 (assuming late fees apply at the same rate as lending fees)
Lending fees already paid: $60
Total: $580

At the end of this period (which is 4 weeks from the day you originally took the loan), you decide that you don't have $580 available and so request them to roll the loan over for another two weeks. Then this is what it can cost you in total at the end of 6 weeks:

Original loan amount: $400
Fresh lending fees payable: $60
Late fees payable: $60
Lending fees already paid: $120
Late fees already paid: $60
Total: $700

If you continue this process for six months (more specifically, for 24 weeks), this is what it may cost you in total:

Original loan amount: $400
Fresh lending fees payable: $60
Late fees payable: $60
Lending fees already paid: $660
Late fees already paid: $600
Total: $1780

For an original loan of $400, in a mere 6 months, the payday loan company will collect fees and charges of $1380 from you. That's 3.45 times the amount you borrowed. In APR terms that's 749.5%! If over 60% of borrowers roll over their loans, no wonder many payday loan companies are wildly profitable!

Snowballing costs can easily lead you into a debt trap if you get addicted to payday loans.

So what are the key points to keep in mind when dealing with payday loan companies? Two things:

First, avoid them if at all possible. The best way is, of course, to get your finances fully under control so that you always have cash and / or credit available to meet emergencies.

Second, if you do choose to borrow from payday loan companies, borrow only an amount you're 100% sure you can repay on the due date. If that amount is too low to meet your needs, get additional funding from other sources. Because rolling over cash advances is one of the worst things you can do to yourself.

Is a Car Rental Franchise a Good Idea?

2009-03-27T06:39:00.000-07:00

Whether you're operating your own rental company or looking to get into the rental business, you will always be presented with opportunities to purchase a Franchise or Agency. Whilst, on the face of it, some of these offers look just too good to be missed, the reality is quite often very different.
You must bear in mind that large rental companies only franchise areas for one reason, to make money! If you are being offered a vehicle rental franchise in a town it is almost certainly because the rental company can not make any money operating it as a corporate site; you don't see franchises being sold at the major airports or any major gateway locations.
I have been involved in the Vehicle Rental business for over 25 years and I do not know of ANY rental operations that have made money by operating a rental franchise alone. The companies that do make money are either diversifying into another line of business or are cutting corners with regards to the franchise operating procedures.
What does a franchise have to offer? The theory is that you take on a vehicle rental franchise for an established system, fleet supply, added number of customers, purchasing power etc. In reality you have to promote the franchise brand, losing your own brand in the process. Deliver vehicles on behalf of the franchisor on the franchisors terms but at your expense. Employ an adequate number of staff to ensure that you can honour the commitments made by the franchisor; regardless of whether they are profitable. Pay the franchisor a royalty or percentage of revenue on all of your business; again with no regard as to the profitability.
You are generally also required to acquire a high percentage of your vehicle fleet via the franchisor. The franchisor will undoubtedly take a profit from supplying the vehicles but you will be the one responsible for paying for these vehicles if the Franchisor should lose an account and the cars are all parked at your premises without customers.
Franchisors do not tend to treat franchisees as partners they treat them as customers, as a revenue stream that should be exploited at every opportunity and as a captive market that is committed for the period of the franchise.
At the time of writing this, the country has just slipped into recession and looks set to stay there for several years. With this in mind, I would not be surprised to suddenly find several of the large vehicle rental operations changing their franchising policy and making additional sites available for sale to budding franchisees, their rationale being one of getting somebody else to carry the costs of operating the location in these uncertain times.
As you may have gathered, I am not a great fan of franchises. The principle is good and I am sure that if you were able to find a franchisor with the required intelligence and foresight that's prepared to support his franchisees; that an exceptional business would result. The main problem in finding this ideal franchisor is that most of these large companies who offer franchises tend to employ your stereotypical "yes" men as business development managers, those who do not have either the required intellectual level or foresight required to make this system work.
I would not recommend anybody to take on a franchise from a large corporate body unless they are able to write their own terms.

New Foreclosure Relief Program Lacking Property Valuation Standards - Result - More Value Declines

2009-03-24T08:27:00.000-07:00

President Obama's new foreclosure relief program has been named, appropriately vaguely enough, the Making Home Affordable plan. Which party, the lenders or the homeowners, are getting a more affordable home is debatable, but the plan is to spend another $75 billion to fix the housing crisis by covering up property values and lowering monthly mortgage payments.
Seventy-five billion dollars has been allocated to helping close to nine million homeowners fight foreclosure through either a refinancing plan or a mortgage modification. This represents an average of over $8,000 the government will directly spend for each at-risk borrower, along with another $200 billion used to support Fannie Mae and Freddie Mac.
The plan leaves out a number of homeowners and borrowers who were instrumental in keeping the housing bubble inflating. Second homes are not involved in the home. Neither are jumbo mortgages. And neither are those homeowners who own a primary residence but would be unable to document their incomes.
The final group that is left out is the most disturbing. MSNMoney describes this segment of homeowners as "Those who owe so much more than their houses are worth that a lender would do better by foreclosing." Thus, lenders are still in charge of the foreclosure process and will keep taking homes from borrowers when it is a better deal for the bank.
With close to 10% of all loans on one- to four-unit properties at least one payment behind, Obama's mortgage relief plan will leave out a significant portion of the housing market. And it is not that investors, speculators, and people who can not prove their incomes should receive help -- in fact, probably no homeowner should receive direct federal government help.
However, the point of all these government foreclosure relief plans has been to stabilize housing prices, reduce the number of properties facing foreclosure, and assist banks in working with borrowers. Each plan has helped a small number of homeowners, and most have targeted only one group or another, while leaving other groups to fend for themselves.
But the housing boom was made up of investors, speculators, jumbo loans on inflated properties, and people who did not have to document their incomes to receive a mortgage. Taking these groups out of the market (by raising lending standards and not relying on falsified appraisals) and not offering them federal government assistance will depress housing prices.
So the government is dealing with a very tricky situation in attempting to prop up housing prices and help responsible borrowers stay in their homes while simultaneously not offering assistance to the groups of borrowers most responsible for keeping the bubble inflated. If these irresponsible groups are not given help, their foreclosures will lower property values.
Unfortunately, it seems as if the government does not know what the final goal is with all of these contradictory plans. Should they encourage savings or spending? Prop up house prices or allow large numbers of borrowers to fail? Support competition and markets or bail out insolvent institutions? In trying to do all at once, the government is creating more uncertainty and the potential for more foreclosures and business failures.

Debt Consolidation Home Owner Loan

2009-03-16T23:03:00.000-07:00

A debt consolidation homeowner loan is a secured loan, finance or a sum of money (usually large) that can be possibly secured against your house or another asset,
i.e car. Because it is a secured loan it is also easier to attain with higher sums of money available, at lower rates with a higher approval rate, because it is safer for the bank to lend you the money i.e. secured.
Secured homeowner loans are generally preferred by the people seeking finance, as opposed to an unsecured lend, due to lower interest rates, so they are a lower cost to the borrower.
Debt consolidation home owner loan- how to get one?
There are many ways of getting a home owner loan for means of debt consolidation.
There are government organisations that you can speak to in every country
to help in all matters of finance, another thing worth trying is checking to see if you are absolutely 100% liable for the debt, as at times it is possible that it is not completely your responsibility to pay the money back.
One way is to just try Google, and look for the search terms "Debt consolidation" or secured finance etc or you could try some of the branded firms like firstplus, or direct line etc, other than that there will be ads in your local newspaper or yellow pages, even the national tabloids, and TV adverts.
If it was a large sum of money you want, then you could also look into remortgaging to release some capital from your existing assets, to improve credit scores, try taking out a small loan and paying it off promptly to enhance credit scores.

A 30,000 Foot Peek at Three Default Investment Opportunities

2009-03-13T07:37:00.000-07:00

There are many options available to homeowners and investors alike when a default occurs. The investor is seeking to make money and the homeowner is seeking a resolution. Working together they can cumulatively decide which exit strategy works best for each of their given situations and perspectives. There are many factors that make up this all important decision. The more information and options an investor can bring to the homeowner the more likely a positive outcome can be obtained.
Here is a short example of some questions that require answering, consideration and study prior to deciding on a helpful strategy: • How long has the homeowner been in default? • Has a foreclosure action been filed yet? If so, at what stage is the action? • What is the current market value of the subject property? • Does the homeowner enjoy any equity in the subject property? If so, how much?
Below are three examples of the many exit strategies available to homeowners in default.
Short Sale
The need for a "short sale" occurs when a property is over encumbered. Simply stated this means the homeowner owes more on their property that it is worth.
There are many ways to approach a short sale; this is simply one example of what works for me. When the situation fits, my favorite technique is to make a written offer directly to the lender as the short purchaser. This serves to bring the lenders intentions directly to the forefront. All the parties immediately learn if the lender has any intention of entertaining a short sale, and what the short price might be. I've found that this method gets a decision from the lender faster than some other methods.
Even though the decision may arrive faster, the lender will still be required to determine all the other issues sensitive to lenders in short payoffs. For example, the lender must be certain that if they are being asked to take a loss that no other party stands to monetarily benefit. (This includes any junior mortgagee and the borrower.) Additionally, the lender will schedule third party inspections and require hardship documentation be forwarded from the homeowner, including the all important hardship letter.
In any event, the homeowners can not receive any sale proceeds (I believe that this fact will be soon changed) as evidenced by the lenders review of a signed closing statement (HUD1). From an untrained perspective this can appear to be a tricky situation, making the only apparent benefit to the homeowner the elimination of the possibility of a foreclosure action appearing in their credit file.
Equity Sharing/ Subject to
The pending foreclosure action will eventually take its toll on the homeowner. They may become desperate and accept any deal that would get out from under the pressure; even if it costs them their hard-earned equity. This technique helps take the pressure off of the homeowner by reinstating their delinquent loan. The foreclosing lender is brought current and remains in place until it is paid off by the proceeds provided by the sale of the property.
In exchange for the investor provided relief, the homeowner would agree to sell the vacant property and share in the proceeds. The investor may also make necessary repairs in an effort to make the property more appealing to and end-user.
(Please notice the word "vacant" in the above paragraph. The homeowner must move out of the subject property in order to make this work. I can not state this more stringently.)
For those investors choosing to work with homeowners after the foreclosure sale there is the right of redemption.
Right of Redemption
The right of redemption is the right granted to the defendant (and in some states, any defendant, not just the homeowner) to pay the loan off in full (redeem) after a sale has taken place. The prevailing party could have been the lender (plaintiff in the foreclosure action) or a third party investor, the right of redemption survives and is identical in either event.
Investor opportunities presented by the right of redemption is most affected by two factors; how long the right of redemption exists and who has the right to redeem?
In states such as Florida, any defendant may redeem, (this includes some junior lien holders) and the defendants' right of redemption expires upon the issuance of the certificate of sale. The certificate of sale is a document prepared and issued by the clerk of the court immediately upon full payment of the amount bid at the auction. Full payment in Florida is normally required within 4 hours of the completion of the foreclosure auction. Suffice it to say there are little or no redemption opportunities available in Florida.
Not the same can be said for the state of Ohio for example. The right of redemption is a right currently reserved solely for the defendant/ property owner and expires upon the court's confirmation of the foreclosure sale. The confirmation can take up to 30 days to obtain.
Therefore it might be safe to say that the defendants' right to redeem belongs exclusively to the property owner of record and expires approximately 30 days after the foreclosure sale. The opportunity exists for Ohio investors to exploit any foreclosure sale when the resulting sales proceeds exceed the amount of money owed to the plaintiff under their final judgment.

Timeline For Foreclosure - How You Can Extend It

2009-03-12T02:49:00.000-07:00

The exact timeline for foreclosure depends on your lender and the state you are located in. Lenders may be very aggressive and try and speed up the process, armed with the knowledge of the timeline for foreclosure you will be able to stop them and extend the timeline!
Some Basics about the Timeline:
When you have defaulted on only one mortgage payment you will have a grace period in which you can submit your late payment, typically 15 days, and stop any attempts at foreclosure. The length and charges associated with the grace period vary from lender to lender and can be altered upon request. Some lenders will try and initiate the foreclosure process immediately following the grace period while others will be more patient.
Key Tip #1
As soon as you miss, or know you are going to miss, a mortgage payment, contact your lender and request an extension of the grace period.
Key Tip #2
Avoiding lenders phone calls only makes the situation worse. If you have missed a mortgage payment and avoid speaking to your lender they will try and begin the process quickly. However, if they feel you are trying to resolve the situation then likely they will be more patient.
Step 1: Mortgage Payment Missed (Day 0)
Not everyone who misses a mortgage payment will end up in foreclosure but this is always the first step. Immediately following the first missed payment is the absolute best time to contact your lender and work towards avoiding foreclosure. I cannot stress this enough, if you missed a payment call your lender.
Similarly, if you anticipate that you will be late on a payment inform your lender before hand and you will likely be able to negotiate the dismissal of any late fees.
Step 2: Your Lender Attempts to Contact You (Day 15 typically)
If you did not contact the lender following the missed payment then your lender will begin trying to contact you. The timing of this lender-borrower contact is typically immediately following the grace period, around 15 days late. The usual contact method is a phone call and a notice in the mail. It is still easy to avoid losing your home at this point, if you cannot make 1 full mortgage payment then your best chance is to get a loan modification.
Step 3: Your Lender Becomes Impatient (1-3 months)
At this stage in the timeline for foreclosure if no payment has been received, even after several communication attempts, then your lender will contact an attorney to begin the foreclosure process.
KEY TIP #3
When your case is filed by an attorney it becomes public record and loan modification companies will swarm in and promise you the world. It is critical, if you have not already done so, to become knowledgeable about the foreclosure process and the many home saving scams currently in operation.
In stage 3 you can still stop the foreclosure proceedings by bringing the loan up to date or getting a loan modification. A loan modification is the most effective and least financially demanding method of stopping the proceedings, besides paying the full amount you owe.
In this stage of the timeline for foreclosure the process moves slowly since it is far more costly for your lender to proceed with a foreclosure than it is to work with you to become current.
Step 4 Your House is Sold (3-10 months)
If after step 3 you are still behind and have not worked out a loan modification then your family's home will be sold at an auction.
KEY TIP #4
The last hail marry attempt at remaining in your home is to either buy your house at auction or work out a rent-to-own plan with the auction winner.
Step 5: After the Auction (3-10 months + a few days)
The laws vary from state to state but the timeline for moving out of your home is typically less than 20 days. If you get to this point you still cannot simply walk away. Under the terms of your mortgage you will likely owe the difference between what your house is sold for and your mortgage.

Understanding Interior Basement Waterproofing - Sump Pump Basin

2009-03-11T00:34:00.000-07:00

There are many different names given by many different companies to the Sump Pump Basin. The simple fact is that it is the object that holds the sump pump under your basement floor.
Specially designed holes along a few sides will allow water into the basin. This helps to remove water under the floor slab and keep the pump actively touching moist soil. It's your first line of defense against water rising from under your basement floor.
The sump pump basin is also the center of the system. All drainage pipes and tiles will be connected to this area. It is the final stop for the water before being removed through the sump pump discharge line that runs out of your home.
Things to be aware of about your sump pump basin:
1.) The total height of the basin cannot be dug further than 2 Feet under your basement floor. This is because digging further can interrupt and remove soil that supports the foundation called the Zone of Influence. Installing a basin this deep can cause water to carry with it the dirt needed in this area for support as well as to physically interrupt the soil.
2.) There should only be drain holes built into the basin on the inward facing sides of the basin. This, again, is to limit the amount of soil that gets moved from underneath your foundation. It also helps to specifically target any water seepage or build up under your basement floor that might have been causing floor cracks.
3.) The basin should have a sealed solid lid. This is a simple request, but many designs do not have this in mind. It closes off the unit, quiets the sump pump, limits the amount of water that can evaporate into your basement, and makes the unit safe to have. Having a cover keeps people from falling in, objects in your basement from falling and logging your pump, hurting children and if the pump ever has a cord issue, electrocution.
4.) There should be options to where and how to connect the drain system to the sump pump basin. This allows you to have more options on how and in what directions to pitch the drain to allow for the best water flow through the pipes.
5.) The pump stand which supports the sump pump should be built into the basin. If there is an option to get a stand installed into the basin it means 2 things: A.) They're trying to sell you something else, and B.) The basin is too deep in the first place to be installed in the foundation. Newly designed sump pump basins will have the pump stand built into the unit.

Why to Consider Waterproofing Your Basement

2009-03-06T23:32:00.000-08:00

Those who own a home that has a subsoil basement needs to waterproof their basement. Why? Basements that are wet will spread humidity to all parts of the house causing it to trap in musty air that you will be living in. Naturally this is a condition that no one wants to live in or should have to.
When you waterproof your basement you are giving yourself a new investment for your home and making it a healthier place for you and your family to live in. Not to mention that when you go to sell the house this new and improve dry basement will add value to the home than when you first bought it.
Waterproofing your basement is not something that you can jump into lightly. It is a competitive business - which means that you will have extra choices available to you. Learn what is causing your basement to leak and what you will need to do to repair it. Most certified waterproofing dealers will give out free wet basement inspections and will give an estimate on what it will take to fix it.
Those who live parts of the country that will receive heavy downpours will also need someone to waterproof their basements in order to stop leaks. Most dealers will be able to repair these basements professionally.
Over the many years contractors and engineers for basement waterproofing have created several ways to keep basements dry. One of the most common options it to use a concrete water proofer or the other more popular option to use crystalline basement waterproofing.
Other methods will use liquid membrane that is applied to the interior of the space or even a sheeting membrane that s connected to the exterior of the space. A qualified professional contractor will sit down with you and tell you all of the options available to you and the costs of waterproofing.

Organizing Home Shows to Boost Contractor Business

2009-03-06T01:24:00.000-08:00

Contractors would be able to succeed only by reaching more and more customers. Even after getting to prospective customers, converting them as permanent clients is another huge task. There are several ways to approach customers. One very effective method available to contractors is organizing home shows for canvassing and marketing their business. The do's and don'ts are very important and it would be advisable to know them perfectly to reap success in your business of building contractors. Let us consider the most important of them in running home shows.
Provide a Welcome Atmosphere
The visitors to the home shows must feel that the entire environment is conducive to their leisurely inspection and thorough questioning. They should not be pressurized in any way. Small gifts like bouquets or wrapped candies could be kept at the entrance to make them feel very much at home and relaxed. The temperature inside the home shows venue should be controlled to maintain it at optimum levels. The floor carpeting should be soft and clean. Soft piped music would be a great idea to calm the guests.
Play Up Visual Effects
The lighting of the displayed homes is a very critical factor in highlighting the best features of each home. Try to create the real effect as far as possible. Apart from small models of homes, you could display several photos of each house, covering all the rooms inside and the outdoor facilities. By this, the visitors would be able to feel that they are physically going through the house and inspecting it. One easy way to achieve this is to have a few personal computers installed at strategic places with walk-through software. This would enhance the conversion rate enormously.
Allow Visitors to Interact
Create opportunities for the visitors to ask questions, touch the models, and interact with you and your representatives. The more questions they ask, the better the chances of the customers getting convinced. Make it clearly known that the homes offered on your home shows are subject to remodeling as per the specific preferences of the prospects. Let them ask about home costs and remodeling expenses in a frank manner. This would give them confidence in selecting a home that suits their budgets.
Keep feedback forms at several points, so that you get all the details about your visitors to contact them individually after the home shows are over. It would be a good idea to have your personal cards within easy reach of visitors, to facilitate the prospects to call you back whenever they want. The main factor is to play on the good side of the emotions of the visitors and engage them positively.
The Don'ts in Home Shows
Do not try to hurry or pressurize the prospective visitors in any manner. Even subtle hints could spoil the entire effort, if they perceive that they are being forced to take immediate decisions. Advice them openly to think over things carefully, taking their own time. This would give them the impression that you are not out to thrust anything on them.
Never reveal the negative aspects or drawbacks of the houses displayed in your home shows. Even when the visitors specifically ask about something, just tell them that they could visit the house or building in person and find out everything there is to know.
These are just a few fundamental points in organizing home shows. At contractorblab.com, we have several more ideas to make your home shows a great success. Register with us now and get all the benefits of our expert knowledge and experience in business canvassing and marketing for contractors.

Building an Email Opt in List For Network Marketers Using Aweber

2009-03-04T22:37:00.000-08:00

Learning new marketing techniques on the internet will help you succeed in the long run. But you must remember that your e-mail opt in list is one of the most important things that you can have. Your list is sort of like the blood of your business, because it is a list of prospects who will eventually buy from you. When will they buy from you? When you have built a solid enough relationship with them that they trust you.
The service that I use to build my list Aweber. They are probably the most highly respected company out there. So let's get to work.
If you want to build your e-mail opt in list you have to have something called a lead capture page. A lead capture page entices prospects to enter their name and e-mail address in order to learn more about are you offering. If you want to make more prospects interested you to always offer something for free for them give you their information. It can be a book, an audio, free training video, anything. You don't want to leave them empty handed.
The next part is crucial, you must build a strong relationship them. Network marketers are usually trying to recruit everyone but you must remember that you have to give your prospect value. Any marketing techniques that I personally use I tell them in my e-mails. I am not afraid to let my secrets out. Why? This way they see I'm able to help them and it will entice them to join what ever I am a part of.
I also believe strictly in constant contact and email my prospects around every day. This builds a solid relationship and also allows me to see the people who are really keyed into what I am saying and the people who are not serious we call the "tire kickers". You definitely want to separate the tire kickers for the people who are really serious about building a business.
Given enough time, you will see that your email opt in list will come on board if they truly like what you're about and if you have built a solid relationship with them.

Children of Foreclosure

2009-03-03T00:17:00.000-08:00

Losing your home is a stressful and disheartening experience, especially if you feel you were duped into a sub prime mortgage by a shady lender. For children however, a foreclosure will take an emotional toll that can have a lasting impact on all areas of their lives. According to the report, "The Impact of the Mortgage Crisis on Children," more than two million children around the country are being directly affected by a foreclosure, while thousands more are affected indirectly via foreclosures of rental properties. With so many of our young people experiencing foreclosures firsthand, it's important to consider what impact this sudden upheaval and financial trouble has on our nation's children.The main consequence of a foreclosure is the loss of the family home. Not only is the loss of the home itself difficult for children, but they're also forced to leave the familiar sanctuary of the neighborhood, say goodbye to friends, and in some cases, leave behind their schools. This loss of peer relationships and important teachers can leave a child heartbroken, anxious, and scared. Often a foreclosure proceeding and its immediate aftermath happens so quickly that there's no time to really prepare the child for the swift changes about to occur. The entire family is swept up in the current of monetary concerns, grief, and overwhelming stress. With parents preoccupied with finding an affordable place to live, the children's emotional state is often brushed aside. Dealing with the logistics of a foreclosure is more than enough for parents to worry about, and the children usually know it.When parents are dealing with stress and depression, kids can feel it. They see you sad, irritable, and under pressure.

Children aren't equipped to understand what's causing your stress, so they internalize it as being their fault. Even if they understand that you're losing the house because you've run out of money, they will likely still see the situation as being their fault. They feel like a burden on you; that if you didn't have to feed and clothe them, you'd be able to keep the house. In you think your children are dealing with feelings like these, it's imperative that you explain that the foreclosure is not their fault, and that everything will work out all right. Since a child's stability is being threatened, you need to reiterate the fact that no matter where you end up, you'll always be there for them. Try to maintain routine as much as possible, and if you can, keep them enrolled in their current school so that they have something familiar to turn to every day. For a child, their teachers, parents, and friends will be much needed touchstones in this difficult time.

Even if you have children who are old enough to know that they're not responsible for the situation, a feeling of powerlessness and frustration can develop. They see that you're upset and struggling, but as they're only children, they can do little to remedy the situation. Teenagers can take care of their younger siblings, or get a part-time job to help out the household, but younger kids' hands are tied. This kind of self-imposed emotional responsibility is a heavy burden for a child. Kids need to know that they're living in a safe, stable environment. A consistent environment, and strong connections are vital to proper development, and a foreclosure can take those away. Many children of foreclosure are forced to live in temporary quarters like motel rooms, emergency shelters, or even vehicles. Homelessness in children has risen by leaps and bounds this past year, as foreclosures and high rents have pushed families out of their homes. Regardless of the cause of the foreclosure crisis, it's clear that the ones losing out are the children. If you're a parent facing foreclosure, remember to pay attention to your child's emotions. You can ease the transition simply by being there for them, and by maintaining as much normality as possible.

StacyNeirHomes.com is your online Denver real estate source. Stacy and Alex Neir are top-producing agents, whose dedication to first class customer service and love for Denver make them an ideal choice for your real estate needs. To search Washington Park CO real estate, visit Stacy and Alex online today!

Articles Source : http://www.212articles.com/articles/30481/1/Children-of-Foreclosure/Page1.html

Foreclosure Timelines

2008-05-14T06:26:00.000-07:00

In order to stop foreclosure one must understand the foreclosure process. Foreclosure process differs in every state, and it is best that you as a homeowner understands and know the foreclosure process, as well as, the timeline. You, as the borrower, would be able to make a good or perhaps better decision for you to stop foreclosure based on what you have learned. There is the foreclosure timeline which starts when the borrower misses the first mortgage loan payment by a day; there are no penalties yet at this time. When the borrower still fails to pay within 16-30 days, there would now be a late charge and the lender will contact the borrower for an explanation why he or she missed the monthly payment.

On the 16th day of the missed payment, there will be an additional debt which is commonly known as mortgage late fee. On the 30th day of the missed payment, the borrower will be in default, meaning the borrower is behind in the mortgage payments, and if he or she still fails to pay then the lender will take his or her home.

Some lenders will allow the borrower to pay the late payment partially; while other lenders would demand that the late payment should be paid. In California foreclosure process, the lender typically files a Notice of Default when the lender is at least 60 days behind in terms of the mortgage payment. Then on the 45th to 60th day, a "breach" letter will be sent to the borrower which states the mortgage terms and the borrower is only allowed 30 days to find a solution for the unpaid amount.

In this period, phone calls from the mortgage collector will come frequently. Then, the borrower will offer options to the borrower to resolve his or her predicament and those options are repayment plan and loan modification.

Then, on the 60th to 90th days, a notice of default will be sent to the borrower and collection costs will be probably added to the late fees. Furthermore, the loan will be turned over to the lender's legal department which will send the documents to a local attorney who will begin the foreclosure proceedings.

Then on day 150 to 415, Notice of Trustee Sale will be filed, and then the borrower's home will be scheduled to be sold at a foreclosure auction or a foreclosure sale. There are benchmarks that must be met during a foreclosure process, since, a foreclosure proceedings is a legal event. Advertising of the impending foreclosure in the local papers should be done, once the case is being handled by the local attorneys.

The homeowner or the borrower have every right to stop the process leading to foreclosure, since, most states have laws regarding that. During this period, there are states that give chance to the borrower to purchase the property they have the ability, but, most homeowners or borrowers will be forced out from their homes by the department of the local sheriff.

Facing Foreclosure?

2008-05-14T06:25:00.000-07:00

If you are facing foreclosure, you might be tempted to just pack your things and leave your home. At this point you know there is little to no equity in the home, no money to pay the mortgage, and you're better off just saving money to rent an apartment or pay for necessities such as food and medicine. However, there is a danger that you can be held to a deficiency judgment and be responsible for paying any debt that remains after the bank has sold your home.

If you owe $250,000, and the bank sells your home at an auction for $175,000, you will then be responsible for $75,000 in debt. The bank can file a law suit against you to collect the balance and this is perfectly legal in many states.

However, should you be a resident in state that has a long redemption period, you can legally remain in your home without making payments until the redemption period is over. In places like Michigan, this is usually six months. During this time, you can save money in a nest egg that you can use to rebuild your finances.

Walking away from your home may be a viable solution because it is the only collateral securing your loan. When you signed the papers for your mortgage, you promised the bank that they can take possession of your home if you stop making payments per the agreement. A smarter way to walk away without having the bank come after you with a deficiency judgment is to negotiate a deed-in-lieu of foreclosure. This agreement basically stipulates that in exchange for the deed (right of ownership) for your home, the bank will forgive all of your debt.

Make sure to get any negotiated deal with your lender in writing, a signed letter from the bank's representative stating that you are free and clear of any obligation to them. You should also have an attorney look over anything the bank asks you to sign. You want to be certain there is no way the bank can come after you to collect unpaid debt after you give up ownership.

Tips to Avoid Foreclosure

2008-05-14T06:24:00.000-07:00

Few, if any, homeowners plan to go into foreclosure. Should you be facing foreclosure then you are probably feeling a great deal of anxiety and confusion regarding your situation. Before you pay anyone claiming to stop your foreclosure thousands of dollars be sure that you have investigated all the possible ways to stop foreclosure and save your home. Foreclosure scams are on the rise and many homeowners (just like you) are desperate for a fast solution and are having their homes stolen from them by con artists. The following passages will tell how you can take charge of your situation, avoid scams and get out of foreclosure now.

Once your lender has filed a Notice of Default (NOD), you are in the process of foreclosure and your options become very limited. You will be given a short amount of time to stop foreclosure by bringing payments current and paying the cost of foreclosure filing. This is commonly referred to as reinstating the loan. Obviously if you had the money, you would be out of foreclosure. If the lender is not willing to work out an agreement with you, then you should consider the following: sign a deed-in-lieu; consider a short sale; or sell your home. At first glance none of these seem like they will keep you in your home, but two of these solutions may actually do just that.

Deed-In-Lieu

Under this solution you sign a notarized deed and hand your home over to the lender. This will stop foreclosure; however, deeds-in-lieu of foreclosure will affect your credit the same as a foreclosure. Your lender may also be willing to let you stay in your home until you find a new place to live. You should explain to the lender that if they were to continue with foreclosure you would still retain the right of possession of the home during the proceedings.

Sell Your Home or A Fraction Of It

Depending on the real estate market in your area, you may be able to sell your home and payback the lender. Ask real estate agents their opinion of the value of your home and how fast they think it will sell in your market. Carefully select your real estate agent, because they will greatly determine your ability to sell your home fast. You should probably look to hire the most prominent real estate agent for your neighborhood. Check with a local realtor association chapter to find out who that person is.

If your hardship is temporary, consider selling a fraction of your home to an investor or family member for the amount that will bring you current. This process will require the a real estate attorney, who can inform you and the investor of your rights and how to work out the future sale of the property. Keep in mind that the investor will be free to sell their fraction of the home to anyone anytime they wish. However, the sale of the home will have to be a mutual decision between you and the other party. If you are in a rising home market, this may be an excellent way to keep your home until your hardship passes. To find a eligible investor check with local business owners, doctors, lawyers, and local real estate investment clubs for individuals who have access to lots of cash.

Consider A Short Sale

Also called a pre-foreclosure redeemed, you and a real estate agent negotiate with the lender to sell the house to a buyer for less than what is owed on the mortgage. Many reputable real estate investors will do this for you and are experienced with the entire process. However, you should be cautious and before you sign any documents have a real estate attorney look over them.

Before you proceed with any of the solutions suggested above, you should fully investigate any realtor or investor that you are doing business with. Ask for at least three past clients and call them. You want to make sure you are dealing with someone who can help you and is comfortable dealing with the lender during this process. Have a real estate attorney look over any document before you sign it, and if anyone asks you to sign a "Quit Claim Deed" chances are it is a scam. Never sign over ownership of your home to anyone without having the lender paid in full first. Otherwise, you'll be on the hook for the full amount of your mortgage and you won't even own the house!

Which One Is The Best Way Out If You Cannot Afford Your Mortgage?

2008-05-14T06:21:00.000-07:00

There are no easy decisions when facing foreclosure. If you are trying to decide between bankruptcy and foreclosure there are several considerations that you should keep in mind. Both bankruptcy and foreclosure will significantly lower your credit score by 200 to 300 points.

A foreclosure will stay on your credit report for 7 years, Chapter 7 bankruptcy will remain for 10 years, and Chapter 13 for 7 years if you follow the agreed upon repayment plan, 10 years if you do not. You cannot file a Chapter 7 bankruptcy for your home loan. Chapter 7 is reserved strictly for unsecured debt such as credit cards, personal loans, and store cards.

You may use a Chapter 7 bankruptcy to free up money so that you may repay back payments on your home or establish a repayment plan with your mortgage company. If you allow your home to be foreclosed on, the lender may still come after you for a "deficiency balance". This balance is what is owed to lender after your home is auctioned at the courthouse. But, following the auction, a Chapter 7 bankruptcy can be filed to clear you of this obligation. However, you will have both a foreclosure and bankruptcy on your credit history, which will make life very ugly for the first four years after filing.

Chapter 13 bankruptcy will stop foreclosure dead in its tracks. Under Chapter 13, you reorganized your debt and consent to a reasonable repayment plan mandated by the courts. You cannot file Chapter 13 unless your income is great enough to pay all priority and secured debts, and 25% of your unsecured debt over a 5 year period. Additionally, your mortgage may rise because you will have to continue to pay the lender in addition to any amount that you missed during the proceedings or leading up to the proceedings.

If you fall behind on your mortgage payments after securing a Chapter 13, then the mortgage company will ask the court to lift the stay and proceed with a foreclosure and you may find your home on the auction block in a matter of weeks. A homeowner can file an individual bankruptcy in only their name and it will not affect their spouse's credit so long as their spouse did not sign the mortgage.

Should you decide to proceed with a foreclosure, keep in mind that it will leave you with a deficiency balance that you must repay unless you have a non-recourse loan. Furthermore, the forgiven debt is considered taxable income by the IRS. If you have a FHA or VA loan, a foreclosure will prevent you from obtaining another government backed loan, even if it is just a refinance.

Before you make any decision you should seek the advice of an experience bankruptcy attorney and consult with a fee-based financial advisor. There are other options to foreclosure and bankruptcy such as a deed-in-lieu of foreclosure, short sale, lender workout, fractional sale of your home, entering into a subject-to with an investor, and renting.

10 Most Common Mistakes Made By Homeowners Facing Foreclosure

2008-05-14T06:19:00.000-07:00

As a real estate investor in Central Florida, I've come across many homeowners who are facing foreclosure for the very first time and they all seem to make the same mistakes. When you have fallen on hard times due to a job loss or a mortgage reset, it is easy to feel depressed, helpless, and think "I'll just let them take the house". But you must realize that there are many solutions available to avoid foreclosure and save your home! The following are common mistakes you should avoid in order to prevent foreclosing on your home:

1. Paying For Foreclosure Prevention Services

Search the Internet for "foreclosure help" and you are bound to encounter countless foreclosure agencies that, for an upfront fee, will stop your foreclosure. Their fees will cost you thousands and many of these agencies just take your money and let your home fall into foreclosure. What these agencies do is contact your lender on your behalf and ask for a lender workout. A lender workout is a relatively simple process that you can do yourself and save thousands in costly fees.

If you are interested in learning more about doing a lender workout yourself, complete with letter templates, you should consider this lender workout foreclosure solution.

There are numerous foreclosure scams being run through direct mail and the Internet. Before you sign any documents or send a check to anyone, you should look the company up through the Better Business Bureau, Yahoo, and Google for complaints. If you are asked to sign a "Quit Claim Deed" or any other documents that transfers ownership of your home, you are most likely being scammed. Should the company or person ask for a large upfront fee with no guarantee or contract agreement that outlines the details of his or her services that should also signal a red flag. Hang up the phone and walk away. You should always see everything in writing and have written guarantees from anyone claiming to stop a foreclosure for you.

2. Ignoring The Lender

Believe it or not your lender is your best friend during foreclosure. If you are facing foreclosure, the lender has every right to your home. After all you did grant them a mortgage on your home. The good news is that your lender does not want your home; it simply wants you to make payments on time so they can get their money back. You should maintain contact with your lender and explain to them the reasons why you have missed payments. Your lender may consent to a forbearance agreement, loan modification, or a delayed repayment plan.
Your lender will want to work with you because if you do foreclosure it will cost the lender between $30,000 - $40,000, the lender is not in the business of owning real estate, and foreclosures on lenders' books makes it harder for them to obtain low-interest capital for future loan portfolios. Do not stick your head in the sand by ignoring your lender, educate yourself on your options and then contact your lender.

3. Feeling Overwhelmed And Not Seeking A Solution

More often than not homeowners in foreclosure have pressing day-to-day life issues, and are simply too overwhelmed to adequately find solutions to their foreclosure. Many then succumb to fraudulent foreclosure agencies or unscrupulous real estate investors who cost them their home. If you have no equity, no savings, and are one or multiple payments behind on your mortgage they are simple ways you can stop foreclosure or relieve yourself of that hefty mortgage payment and find something more affordable.

You do not necessarily have to sell your home or if you must vacate it, you don't have to go through the trouble of waiting for a buyer and you can still save your credit for a more affordable home purchase in the future. The multitude of solutions are too numerous to list in this short report.

4. Not Taking Advantage of Government Programs And Resources

The Federal Housing Administration has designed a program just for homeowners who can no longer afford their mortgage because of an adjustable-rate mortgage reset, or homeowners who are in "interest-only" loans are may now have to begin to make principal payments. You can learn more about the FHASecure Refinancing program at www.fha.gov or search for FHA-approved lenders at http://locator.fha.gov. You may also seek the counsel of a HUD-approved counseling agency at 1-800-CALL-FHA.

5. Not Having A Home Equity Line of Credit (HELOC)

A foreclosure stands a good chance of being prevented or delayed if a HELOC was established before the homeowner ever missed a first payment. Unforeseen events such as job loss or medical problems will make it difficult, if not impossible, to obtain access to low-interest lines of credit , so it is important to have a HELOC ready for emergencies. A HELOC should not be used for frivolous expenses, but for real emergencies such as medical expenses or fees associated with getting yourself out of foreclosure. In the event that you lose your job, you can use the HELOC to pay for necessities until you are back on your feet and can repay the loan. Most HELOCs do not have a monthly fee if you do not access the line, so if you are in a position to set-up a HELOC you should do so as soon as possible.

6. Spending What Money You Have On Other Bills

Though it may seem easier to pay your utility, credit card, and cell phone bills before you make payments towards your mortgage the reality couldn't be further from this notion. After 3 or 4 missed payments the lender has the right to "accelerate" or "call" your home loan and insist on getting all back payments at once. If you plan to keep your home you should cut all of you unnecessary expenses such as cable and cell phones so that you can devote what little money you have to pay for your house. There are many methods to prevent foreclosure, and will you need to have cash available to cover expenses. Keep in mind that in order to get the mortgage company's consent to a forbearance agreement or delayed repayment plan you need to prove to that you made every reasonable attempt to make mortgage payments.

7. Missing Bankruptcy Filing Deadlines

A Chapter 13 bankruptcy filing will stop foreclosure dead in its tracks. However, you should explore all other foreclosure solutions and consider bankruptcy a last resort. If you decide that Chapter 13 is the right answer to your situation, then you should be sure to meet all filing deadlines and make all payments outlined under the plan or may end up losing your home.

8. Not Moving Quickly Enough

Time is of the essence when you are facing foreclosure. Once you begin to miss payments the bank can accelerate or call the loan, and you will then have to come up with all of the back payments at once. Or, if you are in states such as Texas, it can be only a matter of three weeks before you are forced out of your home. You should be diligently seeking solutions for your foreclosure

9. Not Being Persistent

If you decide to do a lender workout you will have to put a considerable amount of effort into gathering your financial information, writing letters of hardship, finding the right numbers to dial, and having the patience to sit on hold for HOURS while you await your chance to speak with a representative from the mortgage company. This will be a very trying experience and there is no guarantee that the lender will consent to anything you may suggest. Before contacting your lender you should have everything you need in order, including the numbers to dial, to ease the stress of this entire process and you must be persistent with the representative you are assigned (if you even are assigned one).

10. Not thinking creatively

Many homeowners assume that if they cannot make payments on their home their only options are to foreclosure or file bankruptcy. And even still, many individuals are not even sure how to go about those options. Before you jump the gun and quickly go down the wrong path be sure you have explore all avenues to get yourself out of your situation. Have you considered renting? Selling a fraction of your home for the amount in arrears? Have you spoken with a reputable real estate investor who may be willing to negotiate a deal so you may keep your house?

Holding Real Estate in the Tough Times

2008-05-14T06:18:00.000-07:00

Holding real estate is a long term strategy for building wealth. Yet those who are facing mortgage foreclosure often fail to consider options that include holding on to their homes. They see their only option as being to sell their home, or worse to allow it to go into the mortgage foreclosure process.

When distressed homeowners are unable to sell their homes, many allow themselves to slip into the mortgage foreclosure process. Yet for many in this situation taking quick action can make a difference. In the right circumstances, renting, leasing or lease optioning your home might be the best choice to make.

There are some fundamental truths in all real estate markets, and even for those who are facing mortgage foreclosure. There is the fundamental truth that people must have shelter. There is also the fundamental truth that real estate is a massive asset that has consistently grown in value over the long term. While there are likely to be downturns and market corrections, real estate has consistently been one of the best, if not the best, growth asset to own.

As the value of real estate grows it is possible to take the new, increased value out in the form of cash for use as you wish. For most there can also be favorable tax consequences to owning and holding real estate as well. Those advantages may be the furthest thing from the mind of someone who is facing the prospect of mortgage foreclosure today. However, given time circumstances will change.

If you are facing the prospect of mortgage foreclosure consider holding on to your real estate. While this will not work for every home owner, there are some who can take advantage of this option. Examine your current mortgage to see if this might be the right option for you.

Getting Enough Time to Move Out after Foreclosure

2008-05-14T06:16:00.000-07:00

Having to face the inevitability of moving out after facing foreclosure can be one of the most disappointing and nerve-wracking experiences for homeowners. Especially in states where the time to leave the property is very short, there is a real possibility that foreclosure victims may feel as though they will not have enough time to leave their house before the sheriff shows up to evict them. But the eviction process is entirely set by state law and the courts, and homeowners can receive more time to move out, if necessary.

The actual time frame to eviction will depend on the state foreclosure laws to determine how soon the new owner can start the eviction process. If the laws allow for a redemption period after the sheriff sale, then the homeowners are guaranteed some extra time (from a few days to a year) to stay in the house under state law and not worry about eviction. They can use this time to save money for a security deposit on a new rental, pay down other debt, or find a way to save the current home by paying the redemption amount.

But if the state has no redemption period after the auction, then the eviction process will usually take about 2-4 weeks from the date of the sheriff sale. The high bidder at auction will have to have the sale confirmed with the court, which can take a few days to more than a week. Then, the owner requests that the court order the sheriff to conduct the eviction, which can take another week or two.

Finally, the sheriff will schedule the eviction, give the foreclosure victims notice of the coming date, and then remove all of the people and personal items a few days later.

This entire process can take as little as two weeks or as long as a couple of months, depending on the speed with which the new owner and government act in concert.

After the eviction is conducted by the county sheriff, the personal property is usually just put in the front lawn, or moved to a county warehouse and put in storage never to be seen again. Good luck getting it back, either way, as it will be almost impossible to regain the personal items.

The most likely possibilities that will happen is that neighbors or members of the community will take whatever they want from the pile of items sitting in the front lawn, or the items will go into storage, never to be seen again and no bureaucrat will be able to track them down, despite numerous requests from the former homeowners.

Even suing the county to get the property back will usually not work, as the former owners will have to sue the county in county court, where a hearing will be conducted before a county judge.
The best way to avoid either of these scenarios is for the homeowners to move out before the eviction, or request more time to stay in the property.

They should call the sheriff's office or the new owner before the eviction is scheduled and ask for a extra few days to move everything out. The government and new owner can usually hold off on the eviction if the foreclosure victims are in the process of moving, as long as they are not asking for an extra month or longer to live there rent-free. It is easier to give the former owners a few extra days to move out all of their personal items and give up possession of the property peacefully. Otherwise, homes have been known to be severely damaged by foreclosure victims, with stoves and furnaces removed, copper piping sold, or windows broken and doors removed.
In any case, though, the new owner would not be able to charge homeowners a fine directly for moving their old stuff out of the house.

We have occasionally witnessed new third-party owners attempting to charge rent or moving expenses to the former homeowners, despite redemption periods or the legal eviction process. But removing all of the people and property from a foreclosed house is the responsibility of the county sheriffs department, which is the one actually evicting the homeowners.

They already get paid through property taxes to deal with evictions. Likewise, they would not be able to charge a driver more just because it was a lot of work pulling him over to give him a speeding ticket -- they need some justification for charging more, and "too much heavy lifting" isn't good enough to add more fees on top of the eviction process.

For many former homeowners, finally moving out of a house may feel like admitting a humiliating defeat to the world. Especially if they are forced to move into a smaller house, apartment, or in with family and friends for a while. But getting out of a bad situation with a mortgage company and leaving an expensive house can actually be much more liberating than staying.

The lender may not have wanted to work with the owners, and the mortgage may have been tens of thousands of dollars more than the property was worth with an astronomical interest rate. Getting a fresh start and moving on from such a situation can often help homeowners learn some of the most important lessons about credit and living within their means from now on.

Helping Owners Create the Perfect Letter of Hardship

2008-05-14T06:14:00.000-07:00

After assembling over a hundred short sale packages I have found that more than any other document the hardship letter can help make or break a short sale. While banks care most about dollars and cents, it is important to remember that the package will be reviewed by an individual loss mitigator. Like the rest of us, this loss mitigator is a real person with real emotions who cannot help but be influenced by a sincere story of hardship.

As a real estate short sale investor working with pre-foreclosure clients your job is to coach the homeowner to create a compelling letter that is both accurate and moving. While a distressed homeowner can be sensitive to their embarrassing situation, you will find that if you proceed delicately and make your intentions clear, that they will be very open to your help. Make it certain to the homeowner that more than anything else the hardship letter is the piece of "evidence" that can make or break the short sale deal, and therefore be the difference for them between a fresh start and credit shambles.

The short sale hardship letter can be typed or handwritten, but we have found that handwritten is most effective. It should contain some standard elements at the top of the letter including the name of the borrower(s), the date, the lender and the loan number. The end of the document should have the borrower's signature with the date, as well as the signature of any co-borrower. The length is not important so make it as long as needed to have the desired impact.

Tell the homeowner that the short sale hardship letter should contain no b.s. excuses, complaining about the lender or finger pointing. This is a time to be bluntly honest and ask for forgiveness (without begging). I always suggest that they open the letter with a declaration of their situation. "I regret having to write this letter, but unfortunately due to our financial hardship we are no longer able to pay on our mortgage. We ask that based on our current inability to make payments that you consider working with us to find a better solution with a short sale."

The bulk of the hardship letter will tell the story of why the homeowner is unable to make pay the lender. Only include details that would influence the lender to have mercy on the homeowner and to work out a short sale. Before meeting the homeowner to collect their documents give the distressed homeowners some brainstorm ideas on what are reasons that would motivate the bank to negotiate. Reasons such as illness or death in the family are best, while reasoning such as poor financial management is all but worthless. I always tell homeowners that the "drama is in the details" and that the hardship letter is successful when the loss mitigator sheds a tear on it.

When you meet with the homeowner I strongly suggest that you review their short sale hardship letter with them. Nine times out of ten you will find that they have included details that hurt their case and miss out on a lot of details that will be helpful. One short sale tip is to bring standard notebook paper have them write a new hardship letter if there is any improvement that can be made. While the hardship letter needs to be readable, it does not need to be a perfectly typed and formatted letter. Neat and orderly does not send the message of "I am in distress".

While my partner and I invested significant money into our pre foreclosure and short sale education, we found we learned the most from interacting with other investors who learned these types of tips and tricks through their experience.

This is the reason that we created RealEstateInvestor.com so that investors around the country can learn what it takes to do more deals and make more money. We also partnered up with industry leaders to establish a short sale negotiation company to help investors outsource the most difficult and time consuming aspect of the business. See the links below to learn more and also to get our free short sale investing eBook and videos absolutely free.

Losing Family House in Foreclosure

2008-05-14T06:12:00.000-07:00

Foreclosure is a big headache for the consumer and the lender. Unfortunately it is an "all to common" problem these days. So many homeowners thought they would never be in that position. Consumers feel like there is no way around foreclosure.

There is a seven step system available that will help to save a house from foreclosure. It is like having your own personal counselor telling you what to do from start to finish. This system was created by experienced financial experts. You can get the information you need that will make you and your lender happy without telling the world your problem. All the while keeping your foreclosure problem very private.

Stop your foreclosure and stop worrying about losing your home and avoid those embarrassing phone calls. Constant nagging phone calls can really raise your stress level beyond belief. Having good information and being prepared on how to avoid foreclosure is key to keeping your home. Preparing yourself on what to do first when you know your home is about to slip away from you. Vital important information needed for the consumer and not the lender. You will save money and your home with this system.

So many people automatically give up their home because they think they can't do anything. But, that is wrong, you can stop foreclosure. Fight back with this system and keep your investment safe from money-hungry financial institutions. You will be happy that you prepared yourself to know what to expect and how to act quickly.

Buying foreclosed properties

2008-05-14T06:10:00.000-07:00

Buying foreclosed properties is a good way of buying properties at below market value.

Homes become foreclosed upon because property owners cannot pay their mortgage. Once the owner of the property misses a payment, the lender will begin the foreclosure process on the property.

Now that the lender has foreclosed on the property, the lender interest at this stage is to recoup their investment. The property will be placed up for sale via an auction or with a Real Estate Agent. Opportunity now exists to purchase a home for less than the market would demand.
Things To Know

Taking the time to do a bit of research means no nasty surprises after you buy a property.

Research how much work will be required to bring the property up to date. Foreclosure properties are often in varying states of disrepair and will need a little work to make then livable before resale or rental. If you buy a property and it needs a lot of work you can end up with a lot unknown expenses. Get a professional to look at the property. This will cost you a fee but may save you a fortune in the long run. This professional can tell you what needs to be fixed or replace and how much it will cost to bring it up to date.

Research the final state of the property. Foreclosed properties sometimes have loans taken out on them or overdue utility bills. You will have to pay these. Do some research into the public records to establish the financial state of the property before you buy it.

Research the value of the property. This way, you will know how much money you can invest and still make a profit. The best way to find out how much a property may be worth is by looking at similar properties in the same area.

Finding Foreclosed Properties

Finding foreclosed properties may be difficult if you don't know where to find them. Foreclosed properties are sold at public auctions. The person with the highest bid gets the property. Finding public auctions to buy foreclosed properties dose take a bit of work. You can find public auctions by looking in the local newspaper, usually in the real estate section.

Alternatively, you can call or write your county court house. In many cases, the county court house will be in charge of the public auction. This is also a good way to find out about the procedures you will need to follow to participate in the auction. Another way to find public auctions is via the Internet. Some websites provide lists of foreclosed properties categorized by area.

Pros and Cons of buying a foreclosed property

The main advantage of buying a foreclosed property through auctions is the profitability - the difference between the highly discounted price and the estimated value you can sell it. Normal foreclosure property auctions have a six-week notice enabling the interested buyers to inspect the property, assess its total cost (including fix ups and other issues) and research the market price at which it can be disposed of.

On average, expect to save about 30% when buying a foreclosed property. This is perfect for investors looking for rental properties or first time homebuyers.

Because most properties are in good condition, the home may only need minor cosmetic improvements. This may include a coat of paint, new carpet, etc.

The main disadvantage to buying a foreclosed property from a court auction is that it requires a lot of capital investment. Another major disadvantage would be the transfer of title that involves a great risk.

If your research is not correct or incomplete it could lead to major losses in the process of buying and selling foreclosed property. Higher the risk, higher the gain, therefore one should be doubly careful and do significant research before bidding on an interesting property.

Foreclosure Selling Tips

2008-05-14T06:09:00.000-07:00

Once a home reaches pre-foreclosure or foreclosure status it is in the best interest of the lender, and the homeowner to ensure that the property sells quickly, and the balance accrued on the property is promptly taken care of with the profit gained in the sale of the home to the highest bidder. The lending company is given what it is owed, and the remainder to the homeowner. Often, the homeowner gets very little - and thus, reason why a homeowner should not let the home to go into foreclosure.

The key to a successful pre-foreclosure or foreclosure sale is to sell quickly. This will increase the profits made while decreasing the interest and other charges that are being accrued by the lender. Here are some techniques to promote the quick sale of the home:

Home Staging has been referred to as the secret weapon real estate. Research has shown that staged homes are on the market for an average of thirteen days, compared to the average of thirty-one days for homes that have not been staged.

During the process of staging the home there are five aspects that should be considered. A diagnostic report should be completed of the home entailing what needs to be changed, renovated, etc. to make the home more attractive to potential buyers. Second, the home should be removed of all clutter, and personal effects. Third, colors in the home should be muted, and neutral. When a buyer walks into the home they should be able to see their life within the walls, not the present residents. Fourth, the home should be clean - and move in ready with new paint, trim and details. Lastly, the home should have curb appeal. A new door, or fresh coat of paint on the door, a manicured lawn and some plants can go a long way in bringing potential buyers into the home.

Staged homes have been shown to sell more than six-percent over the listing price, compared to homes that have not been staged. Staging can cost as little as two-hundred dollars and the profits yielded are well worth the investment.

Pricing is crucial. Once a home reaches foreclosure the lending company is more than likely taking a loss on the property. Asking too high above the balance that is owed on the home, which will go to the homeowner - may deter buyers because it is public record once a home reaches foreclosure. Pricing too little could arouse suspicion in some buyers.

Who is the balance of the mortgage owed to? It is important to consolidate the mortgages with one lender, rather than have two lenders that are owed money because this makes the process more complex.

Prepare the buyers to exit the property and ensure that all paperwork is in order. This way, the new owners are able to move in. A key selling point within the sale is going to be the low price. Entice buyers further with fast closing times, and quick possession dates.

Using these tips should ensure a quick sale - which will not only benefit the seller, but the lender as well.

How to Avoid Foreclosure?

2008-05-14T06:07:00.000-07:00

Foreclosures have been rising because of the lenders generosity. Many people hope that they can afford to pay of their debts at ease when a lender makes no hassle in lending and end up with the unfortunate situations and face foreclosure failing to make payments to the lender.

In most of the situations it is possible to stop foreclosure. If you don't even try to do anything about it how will you ever know that you can be successful? You should understand the ill-effects of foreclosure and never ignore to act immediately such that you will never face the terrible reality. If you ignore this it is sure that you will face foreclosure.

If you lose your house or property in the foreclosure, then there are some things that you need to do in order to keep your home out of foreclosure. You can contact your lender and discuss options with him. There are several counseling agencies approved by the governments that may offer you up-to-date information on the various programs that are designed specially for the individuals facing foreclosures.

There are also some books about foreclosure which contain vital information about the facts of foreclosure dealings which may be of great help in preventing you from losing your home or property. Reading these books will increase your confidence and give you the ability to avoid foreclosure.

You can also find many websites that aid you to overcome foreclosure in addition to these books. Having a thorough knowledge of how to deal with foreclosure will help you to a great extent.

Foreclosure can happen to anybody, sometimes without any fault of their own, and if you are in this position make sure that you take initiative at an early stage. Taking immediate action and doing these things can make a huge difference as to whether foreclosure becomes a reality for you or you manage to prevent it?

Don't predict your future make use of the right foreclosure tactics that will save your home and property.

Buying Foreclosure for new investor

2008-05-14T06:05:00.000-07:00

National home sales rose 2.9% in February giving hope to the nationwide slump in house sales. Savvy home buyers are beginning to realize that one man's misfortune can be another man's fortune. Foreclosed homes are the main force driving this welcome birth in new home sales. Some markets like Las Vegas are reporting that foreclosed homes make up as much as 40% of reported sales in the real estate market.

Many of these purchases are being made by investors large and small. If the housing market were a blue chip stock analyst would be screaming buy, buy, buy. House prices and property values are almost certain to come up in the future leaving those who bought homes today in very good financial shape. This being said, there are a few pitfalls that would-be investors need to look out for when attempting to buy foreclosures in today's market.

1) Location, Location, Location - We have all heard this before but it has never rang truer than it does today. Whether you are buying your home to "flip" or buying your home to keep as a rental property location is your first key consideration. With foreclosures looming in almost every neighborhood you need to look for neighborhoods with the least amount of foreclosures in them. These are the properties that will "heal" first as the market begins to turn around.

These homes will tend to be in the middle to upper priced neighborhoods. You should choose your price range according to your intended use of the property. If your goal is to rent the property, be careful not to buy too much home because most people that can afford to rent higher priced homes can also afford to buy them. Look for lower priced homes in good neighborhoods and close to schools. Transversely, if your goal is to flip the house and you have the capital to hold the home for an extended amount of time larger houses will bring larger profits.

2) Buying "Fixer uppers" - Most would-be new investors that I speak with are looking for this type of property to purchase. It is true that these properties offer a much higher reward when purchased correctly, but they also represent the largest reasons new investors fail. Unless you have "deep" pockets, meaning you can purchase the home out-right or put a substantial amount down new investors should stay away from homes that need a lot of repairs.

Buying a home to fix-up and flip or rent can open up a can of worms that even the savviest investors have problems with. Contractors, inspectors and weather delays are all intangibles that you cannot foresee. Not to mention, if you have this home on a high interest ARM or hard money loan and you hit delays in repairs or renting the property you could lose planned profits for years to come. My advice is to begin with a home in good shape that you can get at a bargain price to get your "feet wet" and move on to distressed property as you build your reserves and experience.

3) Hard Money Lenders - If I had a nickel for every time a new investor asked me for a hard money loan I would be rich. Hard money loans are analogous to commodities in the stock market. Even the most experienced traders get burned with commodities every once in a while, and the inexperienced are almost certain to be burnt. So it goes in the housing market, hard money loans are one step above a loan shark. They loan money on low loan to value homes and wait eagerly for the investor to fail. They follow the foreclosure laws in each state step by step and are extremely efficient at taking properties should the investor "slip".

However, in the defense of hard money lenders they do play an important role in the careers of many investors. If you have ample capital, good prospects for selling or renting the home they can be an indispensable asset to experienced investors. Experienced investors are prepared for and can even anticipate delays in construction, renovations and slow rental markets. For new investors we suggest buying a home through traditional channels to begin with. Once you have ample reserves and some experience you can move to the bridge loans and hard money loans.

There are many other pitfalls to look out for but these three seem to be the top three I see new investors making.

How Much Time You Have To Save Your Home Depends on Your State Laws

2008-05-14T06:00:00.000-07:00

The timeline for foreclosure depends on the laws of your individual state. For instance, foreclosures can occur as quickly as 30 days in Alabama and take up to 10 months in Deleware. This article gives you the approximate timeline for foreclosure in each state.

Alabama - 30-60 days

Alaska - 90 days

Arizona - 90 days

Arkansas - 120 days

California - 120 days

Colorado - 60 -180 days

Connecticut - 60-150 days

Delaware - 90-300 days

Florida - 180 days

Georgia - 90 days

Hawaii - 60 days

Idaho - 150 days

Iowa - 150 days

Illinois - 210 days

Indiana - 150 days

Kansas - 120 days

Kentucky -- Varies greatly because individual Judges set time rather than having a statutory timeline for foreclosure.

Louisiana - 60 days

Maine - 90 days

Maryland - 60 days

Massachusetts - 90 days

Michigan - 60 days

Minnesota - 60 days

Mississippi - 60 days

Missouri - 60 days

Montana - 150 days

Nebraska - 180 days

Nevada - 120 days

New Hampshire - 60 days

New Jersey - 90 days

New Mexico - 120 days

New York - 120 days

North Carolina - 60 days

North Dakota - 90 days

Ohio - 150 days

Oklahoma - 90 days

Oregon - 120-180 days

Pennsylvania - 90 days

Rhode Island - 60 days

South Carolina -- Varies greatly because individual Judges set time rather than having a statutory timeline for foreclosure.

South Dakota - 90 days

Tennessee - 60 days

Texas - 60 days

Utah - Varies greatly because individual Judges set time rather than having a statutory timeline for foreclosure.

Vermont - 210 days

Virginia - 60 days

Washington - 120 days

Washington, D.C. - 60 days

West Virginia - 60 days

Wisconsin - 90 days

Wyoming - 90 days

These time periods are general guidelines from the date the Notice of Default is entered to the time of the auction of the property. The timeline for foreclosure listed above does not include any Redemption Period.

A Redemption Period is a time when homeowners can buy back their property at the auction price. Only about half of states have them and they range in time from 10 days in New Jersey to a full year in Ohio.

During the timeframe listed above, the homeowner can take a number of steps to stop foreclosure. They can bring the payments current, sell the property either through traditional means or a short sale, get refinancing, or turn the home over to the lender in a Deed in Lieu of Foreclosure.

Banks Foreclosure Easiest way to Handle ....

2008-04-30T13:35:00.000-07:00

Recently, my significant other and I found ourselves facing bank foreclosure on our home. We knew it was coming. We had missed several mortgage payments while we were laid off from our jobs at the mine. Stupidly, we decided not to communicate our problems to the bank. We tried to make do with part time jobs at fast food restaurants, but trying to make all of our payments on time and still have money to buy diapers and food for the kids was very difficult.

It was a scary situation to be in.The first step in bank foreclosure is missing a payment. It does not matter why you miss that first payment, but the foreclosure ball starts rolling at that point. Once fifteen days have passed from your missed payment, the bank usually tries to contact you. If you do not talk to the bank, more problems are in store.

Forty-five days later, the next step is taken. At this point, you are usually warned, in writing, that you are facing foreclosure if you do not take action immediately. If you allow another thirty days to pass with nothing, the formal paperwork will begin.

There are several steps you can take before the formal foreclosure process begins. All of these, though vary from state to state. In some states, you can file for bankruptcy. Most will allow you to keep your home as a protected asset. There are two types of bankruptcy you can file for. You can have your debts wiped out, or you can have your debts reorganized so you can continue to pay lenders as much as you can while still having money to survive on.

Either way, the ability to file for bankruptcy and keep your home will depend entirely upon the laws in your state. Another thing you can do before the formal bank foreclosure process starts is talk to your lender.Most lenders are willing to work with customers to lower payments temporarily, suspend payments for a few months until you get back on your feet, or make some other arrangements. Banks do not want to foreclose on people.

There isn't some guy sitting in an office giggling manically thinking, "Hmm, whose house can I take today?" Foreclosures are just as much hassle for the bank as they are heartache for you. The final thing you can do before the formal bank foreclosure process begins is look for resources to help you within your state. Many states have foreclosure prevention associations that will provide you with the resources you need in this difficult time.

Even with the best resources in the world, you may still be unable to prevent the sheriff from showing up on your doorstep with a foreclosure notice and giving you a few minutes to get any belongings you can grab and head for the streets where you may be spending a very long time. The important thing to remember is to try to prevent this nasty process before it starts.