Foreclosure Options

A seller facing foreclosure would probably be considering various options for avoiding it. Investing in Foreclosure homes is a great deal! For a mutually beneficial and intelligent negotiation, it is important that all options are known and understood by all parties in the negotiation.

Cure a loan or loan reinstatement: Loan reinstatement is when a buyer is to pay off the total amount due on the property directly to the lender in one go and ‘cure’ the loan. The payment would include everything from interest to legal fees, missed payment(s), late fees foreclosure fees etc. To prevent foreclosure, the borrower deeds the property to the buyer subject to loans existing on the property. Once the ‘deeding’ is complete, the seller loses his right and hold on the property. This can be a dangerous situation as the lender may accelerate the loan and in the event that the buyer does not clear the payment due on the property, the seller faces recovery action by the lender and also loses his title to the property.

Modification of loan terms: The borrower may get one or more of the original terms under which the loan was granted modified to help prevent foreclosure. The modifications can relate to a reduction in interest rates, change the nature of the mortgage; e.g. to a fixed rate mortgage from a variable rate one, an extension of the loan period or capitalization of the default amount. These modifications are very difficult to obtain and are never allowed by the lender unless extremely strong and justifiable reasons exist.

Forbearance: In forbearance, a lender allows a borrower to skip payment of installments for a period generally extending from three to six months. The monthly payments after the forbearance are enhanced to cover up for the payments not made during the period of forbearance.

Special forbearance: This option is available only to homeowners who obtain an FHA (Federal Housing Administration) loan. Special forbearance lets a borrower postpone monthly loan payments for not less than four months with no maximum time limit prescribed. However, the maximum amount for which special forbearance is allowed cannot exceed an amount equal to twelve months PITI i.e. principal/interest/tax/insurance.

Deed in lieu of foreclosure: When a borrower is unable to make repayments on a home loan that is heading for foreclosure, he may negotiate with the lender to execute a Deed in lieu of foreclosure. This will release the borrower from the financial obligations of the mortgage loan. Through the deed, foreclosure will be avoided and all the rights and title with respect to the mortgaged property will be transferred to the lender. It is necessary that both lender and borrower enter into such an agreement voluntarily. Lenders usually do not prefer to go this way as it saddles them with real estate to be sold in the market to regain the amount loaned. Financially sound borrowers may not be allowed to take recourse to such an option.

Cash for keys program: The lender may decide to pay a difference in the market value of the property and the loan amount under Cash for keys program. The borrower peacefully hands over vacant possession of the property in good repair and in a broom-clean condition.

How To Choose A Real Estate Agent

To buy or sell a property you need correct guidance and a resource which can actually make a deal for you. For this, you need a real estate agent which will do everything for you. There are many tasks a real agent must do for example he must go by himself to see a property and tell you good or bad things about it. Choosing a real estate agent can be a very difficult task and he/she must be chosen very carefully. This article will show you how to choose the best real estate agent available in your area.

Check for Referrals

If anyone from your friends or family bought or sold a property in the past few months then half of your problem is solved. Ask them about their experience with the agent they hired. How was the communication and response of the agent? What was the fee taken by him/her? Your family or friends can be a real help to you at this point. If their experience is good then without thinking the second time you must hire the same agent for your property immediately.

Customer Care is Very Important

Hire the agent who is able to provide you 24/7 support and give you regular updates about the properties you want. If you are not getting the updates then it is time to change your agent. Customer care is very important and it also shows that whether the agent is showing any interest in your property or not.

Famous Agents Are Always The Best

No one gets famous without any good repute from his/her history. You will find very few good agents in your area. They will surely charge you a lot more but that money spent on the agent is the money which will turn your property into a fortune. Sometimes you will be able to find good agents with very very reasonable prices but to find those ones you have to do a lot of hard work like asking people, reading the newspaper and watching business news etc.

Survey Yourself

If you are unable to afford the famous agent or the agent with very good repute then it is time for you to survey yourself. The best way is to go to different agents and discuss every detail about the property. See the response of the agent and ask him whether he/she will provide updates or not. Ask some more general questions to judge the agent. Repeat the same thing with at least 5 different agents and then choose one of them which you think is the best. Ask some extra questions, talk about insurance to see if they can help you with your homeowner’s insurance and other insurances you’ll need.

Look Into Other Resources

After doing a survey it is time for you to find more details about those agents. Read business newspapers and magazines. Search on the internet about those agents. Also, ask your friends and family members if they have any experience with them. If you are able to find at least 3 positive reviews about an agent then you should immediately hire him/her for the sale or purchase of a property.

Success at a Real Estate Auction

To set about auctioning an asset as weighty as someone’s home is not a task to be taken lightly. It can be a huge responsibility: it is someone’s home, the investment of someone’s lifetime. To be carried off in the best way possible, a real estate auction needs a well-thought-out promotional campaign that can win as many eyeballs as possible. This usually requires promoting on a scale that would dwarf the sale price of an average private home. The secret to a successful real estate auction then is creativity.

Clearly, the widest net one can cast comes with a marketing campaign on television. It can be expensive, certainly, and so, it can’t be a part of a strategy to get the widest publicity all by itself. One will need to pursue other media to support the effect a television strategy achieves – other media such as print. Taking out classified ads to run in the kind of markets you believe would have an interest in your real estate auction would be the best choice to make for the money. If you believe that buyers across the state or the entire nation could be interested, those are the kinds of papers and magazines you should advertise it. The mistake many novice players in the real estate auction market make would be to neglect the lucrative opportunities present in an international audience though. There are so many people who miss out on this audience through a lack of adequate comprehension of the possibilities present here. Every auction company retained in a real estate auction needs to offer property owners the option to advertise on their website too.

Whatever advertising is done ahead of a real estate auction, everyone needs to be aware of how no one can ever be interested enough unless they are given a good look at the property information packet for the auction in question. This is a brochure prepared with a detailed description of the place going under the hammer – pictures, home inspection reports, financing options possible, information about the title and how it will be transferred.

An important reason that people might choose to participate in auctions is the chance to make a killing. This possibility, slim as it might be, always imbues an auction with an air of intrigue and suspense that could often work to sellers’ advantage. The first thing that sets the stage for this is the fact that once an auction for a property is announced, one has to wait for the appointed date. The fact that there is waiting involved separates the non-serious players from the real ones. All of which leads s up to an intense time at the auction itself. On average, the amount of time any parcel of property stays up for bidding before it gets lapped up is about 15 minutes. And that is high that many property buyers can’t resist.

The Innovative Way of Selling Properties Through Real Estate Auctions

The disposal of a real estate property can be very hard, especially when there are no buyers who are willing to negotiate on the price. While it can become a frustration to not be able to easily sell properties when you need to, a number of solutions relative to the sale of a property are available to help you create an easier way of selling real estate properties. Among these solutions are real estate auctions.

Real estate auctions are one of the most effective and newest methods in terms of selling properties. Because real estate offers limited liquidity to the sellers, the method of selling these properties in auctions allows for more liquidity on the asset. It is also not that time consuming and is less costly compared to trying to find a buyer and negotiating. In the auction, buyers are prepared to buy and sellers are prepared to sell. The process is usually done by holding a pre-auction preparation were marketing strategies to promote the auction proper are done by informing all possible buyers through advertisements and other forms of publications about the event. Through proper dissemination of information, the seller can be assured that his venture through the auction will be a success.

The next phase is the auction proper. Here the competition starts as one bidder contends against other bidders in order to get the property that he wants. The advantage offered by this transaction to the buyer is the guarantee that he will be able to buy the property at a fair market value and that there is definitely a sale at the end of the bidding. Also, the buyers that will be allowed to join in the bidding will be assessed prior to the auction to ensure that the transactions will push through. The burdensome process of negotiating is eliminated through the auction because the highest bidder will be the one to have the advantage in buying the property.

Once the property is awarded to the highest bidder, it will be under contract in the post-auction and will close within 30 days. The personnel at the auction will be the one in charge of the necessary steps needed to close the transaction in that amount of time.

Auctions for this type of property offer various advantages for all parties involved. For the buyers, the ability to buy the property at their fair market value is a plus. For the seller, it is advantageous because the time in negotiation and the costs of entering into these transactions can be minimized. The other advantage is that because all participants in the auction are prepared to buy, the asset at the end of the auction is high to be disposed of immediately. For the agents, it becomes a comfortable area in real estate inter-mediating because it could provide for a ready access of prospective clients and shortens the process in which the property can be sold.

Real estate auctions are designed to provide an effective and innovative way of buying and selling assets for a shorter period of time and with real advantages.

Buying A Property As An Investment Decision

Real estate purchase serves a dual purpose for everyone, one is the residential and other one is an investment. If you have purchased a home already and now are looking to invest in a second home, you will get both, rental income and capital appreciation. Rental income will happen if you rent out your property. Other then that, with time, its value will increase, thereby giving you capital gains. Buying property for investment is an excellent idea due to certain reasons like,

– It allows you to invest your extra income, to build an asset, rather than pay taxes on it, or splurge it.

– Property prices always rise over a period of 10-20 year horizons, since land is a limited resource, while the population is growing.

– Real Estate, in general, is not affected by inflation.

If you are looking to invest in real estate and buy a home, few things you should remember are,

Build a Good Credit Report

Efficient financial management will help you build a good credit report and that will ensure that you get cheaper loans to invest. At any point, you may not want to pay all the cost of your new purchase by yourself, so you need to get a cheaper loan.

Choose a Property With a Great Location

In real estate, location precedes everything, so you should pick up a residential property, very close to supermarkets, stores etc. Try to find a place in a residential condominium. This is important, as it will take care of security concerns and renting it out will be easier.

Price Your Property Well

Since, this property is for your investment, future cash flow and present outgo should be carefully calculated. Find out the cost of this property, add on all money required for repairs etc. Then you can find out the kind of rentals, will such a property get, and analyze if it is a sensible investment. If you have not done thorough costing, your investment yield will go down.

Exiting The Property

Prepare an exit strategy, so you know at what level you will exit your investment. If you plan what is the profit margin you want, you will be able to exit in time. Look at the possibility of renting or leasing your property post-purchase to maximize gains, and then when you feel its capital value has reached a level you wanted, sell it off.

Property Management

Like any other investment, real estate also needs to be carefully monitored. If you are investing in real estate, which is far from your current residence, utilize services of an agency, which will look after your property, help you lease it out or rent it to people.

Real Estate is going through a tough phase now, but it is following a cyclic pattern and in near future, it will turn for good. In fact, with depressed prices, there are many good deals available now. If you have some money to invest, this is an excellent time to buy property and sell later for profit.