When homeowners are facing foreclosure, the mortgage lenders often become referred
to as evil, heartless people. While this anger in understandable, it could be in
the way of you keeping your home. Unless you foresee having financial problems for
years to come, you will want to make nice with your financial lender. After all,
they may be able to provide you with an alternative. This alternative can keep
your home out of foreclosure or stop the current process right in its tracks.
The first step in getting your lender to work with you, to avoid foreclosure, is
speaking with them. You will get nowhere by avoiding them. Whenever you receive a
warning or an intent of foreclosure notice or a phone call, start making plans to
contact your lender. While you may want to head straight to your local bank branch,
you may want to take a few hours or a day to reflect on the situation. This will
allow you to develop a plan of action, a plan of action that will be successful.
Before meeting with an official at your bank, it is important to know what you will
say and how you will say it. This is key to keeping your home out of foreclosure.
Although financial lenders want to avoid foreclosures at all costs, they don’t want
to keep on losing money. Lenders are usually unwilling to work with those who don’t
show true interest in rectifying the situation. That is why a plan of action is
required.
As for that plan of action, collect as much information as you can about your current
financial situation and the cause of it. For example, are you currently laid off,
but looking for a new job? Take your updated resume to with you. It can help to show
that you are actively looking for a job and trying to save your home. Let them know
of any upcoming interviews you may have scheduled as well.
If you are out of work due to an injury and that injury is only temporary, get notices
from your doctor and your place of employment. This will prove to your lender that
you still have a job waiting for you and will be able to return to work soon. Proving
that you do intend to make your mortgage payment in full and as soon is possible is
key to avoiding foreclosure or stopping it.
Next, it is important to consider your appearance and your attitude. Starting with
your appearance, it is important to walk into the bank with your head held high. You
will also want to dress professionally. Women should wear dresses or pantsuits. For
men, pantsuits are also recommended. Avoid casual clothing. For many financial
lenders, a borrower who carries himself or herself in a professional manner shows
responsibility. Responsibility is another important key to getting your lender to work
with you.
As for your attitude, make sure that you don’t have one. As previously stated,
financial lenders often become the bad guys when foreclosure is threatened or when the
process gets started. No matter how angry you are with your lender, do not let your
anger show.
If you learn that your financial lender is willing to work with you, to help you avoid
foreclosure, they may offer their own suggestions. You can take these suggestions, but
don’t get in over your head. Reduced mortgage payments are nice, even if they are only
temporary, but make sure that you can pay them. If a strict deadline is set for the
return of the originally agreed upon payments, make sure you can make those payments too.
If not, the whole foreclosure warning process will start again.
In short, always approach your financial lender if you suspect foreclosure is on the
horizon or as soon as the proceedings start. Since lenders lose money on foreclosed
properties, they want to avoid foreclosure just as much as you do.
Thursday, April 30, 2009
Foreclosures and REO's What to Look for
Have you looked into buying forclosed homes as a way to make some money or maybe
just to get yourself a nice home at a cheap price? If you have, you may be
surprised to know that it's not as easy as you may think. Foreclosed properties
are often available for sale at a steeply discounted price. With that said,
buyers need to be aware that buying and living in a foreclosed property isn’t as
easy as it sounds. That is why some buyers rather opt for properties that are
referred to as REOs. These properties are real estate owned.
As previously stated, buying and moving into a foreclosed home isn’t always as
easy as it sounds. Some states tend to draw out the process, you need to know
that just because you are the winning bidder at a foreclosure auction, doesn’t
mean that you can move in right away. In fact, you may still end up with no
home. Why? Because many states have redemption laws. These laws gives
delinquent borrowers time to get their mortgage back in good standing.
It's also important to know that many people don't want to leave their homes.
While many will do so when faced with a legal eviction notice, you may be
surprised how many occupants put up a fight. In fact, there are even cases
where lawsuits were brought against the new buyers! If you are unable to afford
the cost of legal representation, foreclosures may not be in your best interest.
Liens and back taxes also need to be examined. Depending on the state in
question, buyers of foreclosure properties may be responsible for any outstanding
liens or back taxes. Don't let this come as a surprise to you after the fact.
If you're not careful, this can significantly increase the cost of a foreclosure,
possibly making it no longer affordable. For your own personal protection,
always consult with a professional before buying a foreclosed property, especially
at a real estate auction.
The buying of foreclosures can be considered a risky business, there are many
homeowners who opt to purchase real estate owned (REO) home or property. these
properties are owned by the original lenders. During this process, the lender is
commonly referred to as the investor. Often times, the lender in question will buy
back the home at a real estate auction. This is often done when not enough
interest in generated in the auction or when the bids are anticipated to be or are
low.
Many experts state that buying a REO home is the best way to buy a property that is
in trouble. Why? Because at this stage, the home is likely cleared of all
occupants. Financial lenders often have the means and the power to evict all
occupants, even those who are against leaving. The only individuals you should have
to deal with are the investors, which would be the bank. In rare events, a bank may
turn over the sale of the home to a real estate agent. However, since real estate
agents take a percentage of each sale, the asking price of an REO home is likely to
increase. For the best price, deal with banks directly.
How you can find real estate own properties? Visit all local banks in your area,
ask if there are any real estate owned properties currently available for sale. If
so, request information on those properties. The online websites of nationally
owned, but locally operated banks can be examined as well. Many times, REO
properties are listed for sale online. Remember, the same information can be
acquired by scheduling an in person meeting with the bank’s loan officer or real
estate advisor.
An important warning, whenever you are interested in buying a home, whether it be
through a traditional real estate agent sale, an REO, or a foreclosed property, never
enter into any agreements without the proper legal knowledge. Always hire or
consultant with an attorney who specializes in real estate or foreclosures.
just to get yourself a nice home at a cheap price? If you have, you may be
surprised to know that it's not as easy as you may think. Foreclosed properties
are often available for sale at a steeply discounted price. With that said,
buyers need to be aware that buying and living in a foreclosed property isn’t as
easy as it sounds. That is why some buyers rather opt for properties that are
referred to as REOs. These properties are real estate owned.
As previously stated, buying and moving into a foreclosed home isn’t always as
easy as it sounds. Some states tend to draw out the process, you need to know
that just because you are the winning bidder at a foreclosure auction, doesn’t
mean that you can move in right away. In fact, you may still end up with no
home. Why? Because many states have redemption laws. These laws gives
delinquent borrowers time to get their mortgage back in good standing.
It's also important to know that many people don't want to leave their homes.
While many will do so when faced with a legal eviction notice, you may be
surprised how many occupants put up a fight. In fact, there are even cases
where lawsuits were brought against the new buyers! If you are unable to afford
the cost of legal representation, foreclosures may not be in your best interest.
Liens and back taxes also need to be examined. Depending on the state in
question, buyers of foreclosure properties may be responsible for any outstanding
liens or back taxes. Don't let this come as a surprise to you after the fact.
If you're not careful, this can significantly increase the cost of a foreclosure,
possibly making it no longer affordable. For your own personal protection,
always consult with a professional before buying a foreclosed property, especially
at a real estate auction.
The buying of foreclosures can be considered a risky business, there are many
homeowners who opt to purchase real estate owned (REO) home or property. these
properties are owned by the original lenders. During this process, the lender is
commonly referred to as the investor. Often times, the lender in question will buy
back the home at a real estate auction. This is often done when not enough
interest in generated in the auction or when the bids are anticipated to be or are
low.
Many experts state that buying a REO home is the best way to buy a property that is
in trouble. Why? Because at this stage, the home is likely cleared of all
occupants. Financial lenders often have the means and the power to evict all
occupants, even those who are against leaving. The only individuals you should have
to deal with are the investors, which would be the bank. In rare events, a bank may
turn over the sale of the home to a real estate agent. However, since real estate
agents take a percentage of each sale, the asking price of an REO home is likely to
increase. For the best price, deal with banks directly.
How you can find real estate own properties? Visit all local banks in your area,
ask if there are any real estate owned properties currently available for sale. If
so, request information on those properties. The online websites of nationally
owned, but locally operated banks can be examined as well. Many times, REO
properties are listed for sale online. Remember, the same information can be
acquired by scheduling an in person meeting with the bank’s loan officer or real
estate advisor.
An important warning, whenever you are interested in buying a home, whether it be
through a traditional real estate agent sale, an REO, or a foreclosed property, never
enter into any agreements without the proper legal knowledge. Always hire or
consultant with an attorney who specializes in real estate or foreclosures.
Foreclosures and What you NEED to Know
Even if you aren’t facing foreclosure yet, are you suffering from financial
difficulties that may result in it? If so, now is the time to familiarize yourself with the process. Foreclosure can be scary for homeowners, but
you can protect yourself by knowing what'll happen, what you can do, and
what your rights are.
Mortgage lenders are often banks, and they must and will provide you with
proper notice. In fact, you will receive multiple written notices and
telephone calls. Foreclosure should not come as a surprise to you.
Neither should the eviction notice that may later arrive. As soon as you
start receiving calls or letters from your financial lender, it is important
to take action. As for what action you should take, that leads to another
important fact.
Banks want to avoid foreclosure just as much as you do, many homeowners are
actually surprised to learn this. Many times, financial lenders lose money when selling a foreclosed property, for that reason, you should speak
directly with your financial lender. When doing so, have this meeting in
person and meet with a high-ranking official, such as the chief loan offer
or the branch’s president.
Since banks want to avoid foreclosure whenever possible, it's important to
go into detail about your financial situation. Are you only experiencing temporary problems? For example, did you suffer an injury that will put you
out of work for a few months? Were you laid off, but are you actively
looking for a job now? If so, your financial lender may be willing to work
with you. If you can prove that you have intent to get your mortgage back in
good standing, your lender may temporarily accept smaller payments.
As for the foreclosure proceedings themselves, the process will all depend on
the state in which you reside. Unfortunately, this is a fact that many facing
foreclosure do not know or do not take into consideration. If you intend to
seek professional help, from either a housing counselor or an attorney, it is
important you choose a professional who is familiar with your state’s laws on
foreclosure, as they do vary.For example, in New York, judicial and non-
judicial foreclosures are permitted by law. A judicial foreclosure is where
the lender must file an official complaint against the borrower, which would
be you. This complaint must be approved by the local courts. A this point in
time, the borrower may be given one more opportunity to pay the amount in
delinquency, if not the property will be sold.
As for non-judicial foreclosures, financial lenders must have entered a
specific clause in the mortgage agreement. This clause states that the
borrower, which would be you, authorizes the sale of the property when
delinquency occurs on payment. Typically, non-judicial foreclosures are not
used often and some states even prohibit them. That is why it is important to
know all of your state’s foreclosure laws.When the foreclosure process has
started, now is the time that you should start looking for other arrangements.
Unless you can come into a large amount of cash and rebuy your home, you best
option may be to move. Although you are not required to leave your home until
you are served an eviction notice by the lender or new property owner, it is a
process that you should start planning and preparing for. Where do you want to
live? If you will rent an apartment, how do you intend to pay for the security
deposit? These are questions that you need to have answers to.
As a recap, foreclosure laws vary by state, banks want to avoid foreclosure and
multiple notices will be sent. For that reason, foreclosure should never come as
a surprise. For more information on foreclosures, contact a HUD (United States
Department of Housing and Urban Development) approved counselor, your lender, or
an attorney, but do so right away.
difficulties that may result in it? If so, now is the time to familiarize yourself with the process. Foreclosure can be scary for homeowners, but
you can protect yourself by knowing what'll happen, what you can do, and
what your rights are.
Mortgage lenders are often banks, and they must and will provide you with
proper notice. In fact, you will receive multiple written notices and
telephone calls. Foreclosure should not come as a surprise to you.
Neither should the eviction notice that may later arrive. As soon as you
start receiving calls or letters from your financial lender, it is important
to take action. As for what action you should take, that leads to another
important fact.
Banks want to avoid foreclosure just as much as you do, many homeowners are
actually surprised to learn this. Many times, financial lenders lose money when selling a foreclosed property, for that reason, you should speak
directly with your financial lender. When doing so, have this meeting in
person and meet with a high-ranking official, such as the chief loan offer
or the branch’s president.
Since banks want to avoid foreclosure whenever possible, it's important to
go into detail about your financial situation. Are you only experiencing temporary problems? For example, did you suffer an injury that will put you
out of work for a few months? Were you laid off, but are you actively
looking for a job now? If so, your financial lender may be willing to work
with you. If you can prove that you have intent to get your mortgage back in
good standing, your lender may temporarily accept smaller payments.
As for the foreclosure proceedings themselves, the process will all depend on
the state in which you reside. Unfortunately, this is a fact that many facing
foreclosure do not know or do not take into consideration. If you intend to
seek professional help, from either a housing counselor or an attorney, it is
important you choose a professional who is familiar with your state’s laws on
foreclosure, as they do vary.For example, in New York, judicial and non-
judicial foreclosures are permitted by law. A judicial foreclosure is where
the lender must file an official complaint against the borrower, which would
be you. This complaint must be approved by the local courts. A this point in
time, the borrower may be given one more opportunity to pay the amount in
delinquency, if not the property will be sold.
As for non-judicial foreclosures, financial lenders must have entered a
specific clause in the mortgage agreement. This clause states that the
borrower, which would be you, authorizes the sale of the property when
delinquency occurs on payment. Typically, non-judicial foreclosures are not
used often and some states even prohibit them. That is why it is important to
know all of your state’s foreclosure laws.When the foreclosure process has
started, now is the time that you should start looking for other arrangements.
Unless you can come into a large amount of cash and rebuy your home, you best
option may be to move. Although you are not required to leave your home until
you are served an eviction notice by the lender or new property owner, it is a
process that you should start planning and preparing for. Where do you want to
live? If you will rent an apartment, how do you intend to pay for the security
deposit? These are questions that you need to have answers to.
As a recap, foreclosure laws vary by state, banks want to avoid foreclosure and
multiple notices will be sent. For that reason, foreclosure should never come as
a surprise. For more information on foreclosures, contact a HUD (United States
Department of Housing and Urban Development) approved counselor, your lender, or
an attorney, but do so right away.
How to Avoid Foreclosure Scams
Are you facing foreclosure? If you are, you may try anything to
save your home. Of course, you are urged to do so, but it is
important to not let desperation get in the way. Homeowners
who do, often find themselves the victims of a foreclosure scam.
When it comes to foreclosure scams, the best way to protect
yourself is to know what to look for. Although foreclosure scams
come in a number of different formats, many are easy to spot.
One type of scam that you'll want be on the lookout for is when
an individual or a company approaches you offering to help.
They'll offer to provide you with a loan alright, the problem is
that a loan might not be what you get. The documents you sign
may actually turn over ownership to the individual or company in
question. However, you often end up agreeing to rent the
property at a very high rate. When you can't afford to make
those payments, you will be evicted from a home that you no longer
own.
Another foreclosure scam involves an individual or company coming
to your rescue and they offer to negotiate with your lender for
you. During this period, you are asked to pay the individual or
company in question, which may be referred to as a rescuer. The
only problem is that individual or company isn’t in contact with
your mortgage lender at all, what they are doing is pocketing
your money and you will still end up facing foreclosure.
Similar to the foreclosure scam listed above is one that involves
strong-arming your home from you. In this case, the individual or
company in question isn’t necessarily after your money, but more
your property. They will instruct you not to contact anyone for
help, aside from them. You are instructed not to speak with a
lawyer, not to talk to or make payments to your mortgage company,
and so forth. Right before the foreclosure proceedings start, the
scammer will then take every step possible to get your home.
One mistake that you won't want to make concerning foreclosure
scams, is believing that the individual in front of you is different.
Desperation and despair can cloud your judgment. If you are
presented with a contract or legal document to sign, don't do so
until you can have it reviewed by an attorney. Be sure to choose
your own attorney. Don't rely on the advice of an attorney
suggested to you, as they may be in on the scam, if they are even a
real attorney to begin with.
The three above mentioned foreclosure scams are just a few that you
may run into, and they have the potential to cause the most damage
and the most heartbreak. The good news is you now know what to look
for. This means you can avoid falling victim to these types of scams.
A word to the wise, never agree to do business with someone who
approaches you. A reputable lawyer or housing advisor will wait for
you to come to them. No one who comes knocking on your doorstep is
likely to have your best interests at heart.
As a recap, foreclosure scams are out there. Typically, the only way
for you to legally avoid foreclosure is to speak with an attorney or
to make arrangements with your financial lender.
save your home. Of course, you are urged to do so, but it is
important to not let desperation get in the way. Homeowners
who do, often find themselves the victims of a foreclosure scam.
When it comes to foreclosure scams, the best way to protect
yourself is to know what to look for. Although foreclosure scams
come in a number of different formats, many are easy to spot.
One type of scam that you'll want be on the lookout for is when
an individual or a company approaches you offering to help.
They'll offer to provide you with a loan alright, the problem is
that a loan might not be what you get. The documents you sign
may actually turn over ownership to the individual or company in
question. However, you often end up agreeing to rent the
property at a very high rate. When you can't afford to make
those payments, you will be evicted from a home that you no longer
own.
Another foreclosure scam involves an individual or company coming
to your rescue and they offer to negotiate with your lender for
you. During this period, you are asked to pay the individual or
company in question, which may be referred to as a rescuer. The
only problem is that individual or company isn’t in contact with
your mortgage lender at all, what they are doing is pocketing
your money and you will still end up facing foreclosure.
Similar to the foreclosure scam listed above is one that involves
strong-arming your home from you. In this case, the individual or
company in question isn’t necessarily after your money, but more
your property. They will instruct you not to contact anyone for
help, aside from them. You are instructed not to speak with a
lawyer, not to talk to or make payments to your mortgage company,
and so forth. Right before the foreclosure proceedings start, the
scammer will then take every step possible to get your home.
One mistake that you won't want to make concerning foreclosure
scams, is believing that the individual in front of you is different.
Desperation and despair can cloud your judgment. If you are
presented with a contract or legal document to sign, don't do so
until you can have it reviewed by an attorney. Be sure to choose
your own attorney. Don't rely on the advice of an attorney
suggested to you, as they may be in on the scam, if they are even a
real attorney to begin with.
The three above mentioned foreclosure scams are just a few that you
may run into, and they have the potential to cause the most damage
and the most heartbreak. The good news is you now know what to look
for. This means you can avoid falling victim to these types of scams.
A word to the wise, never agree to do business with someone who
approaches you. A reputable lawyer or housing advisor will wait for
you to come to them. No one who comes knocking on your doorstep is
likely to have your best interests at heart.
As a recap, foreclosure scams are out there. Typically, the only way
for you to legally avoid foreclosure is to speak with an attorney or
to make arrangements with your financial lender.
Types of Listing Contracts
A listing contract is an agreement between you and a licensed real estate broker that authorizes the broker to represent you in the process of selling your home. There are several different types of listing contracts, but very few of them are used. The most common one used is the "Exclusive Right to Sell". But will find that there are a lot more types, allowing you to choose the level of authorization to give to your agent. Here are some of them:
Open Listing
Considered the one most generally used, this type of contract is for people who are want to both sell their home and work with real estate agents. What the contract does is giving the right for agents to do showings of your home, and gives them an amount of commission if the client chose to buy your house. The good thing about open listing is that there are nothing exclusive or painfully bonding about them. The bad thing is that you can expect less marketing or advertising done.
One-Time Show
This type of listing contract is pretty much the same to open listing. It’s generally used by people trying to sell their own home and involving an agent for the home showings. The listing contract identifies the potential buyer and guarantees the agent a commission if that buyer buys the home. Just like open listings, this type lacks of marketing efforts.
Exclusive Agency Listing
During your home selling, you will find that different types of listing contracts involve a lot of different people. This one involves a broker. Basically an exclusive agency listing will give you the right to sell your own home, without paying the broker any commission unless the house is sold through a licensed real estate professional. Should the house be sold without any help of agents, the contract allows homeowners to pay no commission at all. The reason why this type of listing contract is widely used is the temptation of not having to pay your broker.
Exclusive Right to Sell Listing
The most popular type of listing with sellers and brokers, this contract gives the full right for your broker to do whatever it takes to sell your house. For obvious reasons, this is probably the type of contract where you can expect the most incentive from the agent – a good marketing effort can take place here, and the homeowners’ work is much reduced.
Before you choose your contract, always make sure you know every type of listing contracts available to you. Take in mind how much effort you would like to contribute to the home selling – this is often what distinguishes the types. Discuss the possibilities and disadvantages of each type. Remember, a listing contract is your first legal step in selling your house – take that step carefully.
Open Listing
Considered the one most generally used, this type of contract is for people who are want to both sell their home and work with real estate agents. What the contract does is giving the right for agents to do showings of your home, and gives them an amount of commission if the client chose to buy your house. The good thing about open listing is that there are nothing exclusive or painfully bonding about them. The bad thing is that you can expect less marketing or advertising done.
One-Time Show
This type of listing contract is pretty much the same to open listing. It’s generally used by people trying to sell their own home and involving an agent for the home showings. The listing contract identifies the potential buyer and guarantees the agent a commission if that buyer buys the home. Just like open listings, this type lacks of marketing efforts.
Exclusive Agency Listing
During your home selling, you will find that different types of listing contracts involve a lot of different people. This one involves a broker. Basically an exclusive agency listing will give you the right to sell your own home, without paying the broker any commission unless the house is sold through a licensed real estate professional. Should the house be sold without any help of agents, the contract allows homeowners to pay no commission at all. The reason why this type of listing contract is widely used is the temptation of not having to pay your broker.
Exclusive Right to Sell Listing
The most popular type of listing with sellers and brokers, this contract gives the full right for your broker to do whatever it takes to sell your house. For obvious reasons, this is probably the type of contract where you can expect the most incentive from the agent – a good marketing effort can take place here, and the homeowners’ work is much reduced.
Before you choose your contract, always make sure you know every type of listing contracts available to you. Take in mind how much effort you would like to contribute to the home selling – this is often what distinguishes the types. Discuss the possibilities and disadvantages of each type. Remember, a listing contract is your first legal step in selling your house – take that step carefully.
Monday, April 20, 2009
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