Archive for April, 2009
Apr
26
Dan Ho asked:
The rising prevalence of foreclosed property in Oakland county Michigan
The problem of foreclosed property in Oakland County, Michigan is a very serious one. Foreclosed homes in Oakland County, Michigan are numerous and some of them have been in foreclosure or pre-foreclosure for the past many months.
The causes of foreclosure of properties and homes in Oakland County, Michigan are mainly two.
The major one is the failure of home and property owners to meet up with their monthly mortgage loan payments to their lenders. Often, this is not due to any fault of their own but simply bad circumstances: the bad economy, job loss, medical emergency, etc.
The second cause of foreclosed property in Oakland County, Michigan is failure of an owner to meet up with their property taxes. Where a home owner fails to make regular payments on their mortgage loan for three consecutive months in Oakland, Michigan, the lender then gives them notice of pending foreclosure of their property.
This notice is usually placed in a local newspaper called The Legal News for the span of 4 weeks.
The defaulting homeowner has about six months to redeem their home after the home is auctioned off at the sheriff’s sale, which happens 28 days after the first notice of default.
If they do not make adequate arrangements with their lender before the expiration of this period of grace, the property or home goes into foreclosure.
foreclosed homes in Oakland County, Michigan: Your Options
Options to Consider
There are several options open to stop foreclosure by the mortgage debtors.
Some of these options are: short sales, lease options, buying the property through refinancing, and bankruptcy.
Each of these options has their pros and cons. The choice of what option to take depends on the present financial position of the mortgage defaulter and his perceived immediate future prospects.
Where an owner of a pending foreclosed property in Oakland County, Michigan chooses the option of a short sales or FSBO (For Sale by Owner), they have to ensure that they are able to get a buyer for their home before it goes to auction. A real estate investor may contact you (or you can contact a real estate investor) to execute a short sale for you.
The investor will get a signed understanding with you that you want their assistance, and they will try to work with your lender to buy the defaulted mortgage note at a discount.
The bank may allow the short sale to happen to avoid having to take the property back at the sheriff’s auction and save itself tens of thousands in various fees.
Lease Options
Where a defaulting mortgage debtor chooses lease options to redeem their foreclosed property in Oakland County, Michigan, and save it from the auctioneer’s hammer, they can make arrangements by finding tenant-buyers who are willing to lease their property with an option to purchase it.
Lease options are a great way to avoid foreclosures, and they also have numerous benefits to the homeseller because the tenant-buyers, due to typical credit issues, are willing to pay a higher rent per month.
The higher rent collected is now used to offset the mortgage loan payments by the defaulting debtor.
The problem with lease options is they usually take some time to locate a tenant-buyer for the property. And when you are facing foreclosure, time is of the essence. This is why you may also want to work with real estate investors like us who may be able to find you a tenant-buyer more quickly for your home if you are facing foreclosure and execute the transaction for you.
Another option to consider if you have a lot of equity is refinancing a pending foreclosed property in
Oakland County, Michigan. This may allow you to lower your monthly payments and create a new mortgage. However, this option will only work for people who can afford to pay for the refi, and have income coming in to actually make the new lower monthly payments.
Causes of foreclosed Property in Oakland County, Michigan.
The causes of the recent spate of foreclosed homes and property in Oakland County, Michigan can be traced to the depressed property market. A lot of homes went into forclosure in Oakland County, Michigan, because of the loss of jobs by the owners of these homes as a result of the recent downsizing by the automobile manufacturing companies. The State of Michigan has the highest number of automobile manufacturing workers in America.
Website content
The rising prevalence of foreclosed property in Oakland county Michigan
The problem of foreclosed property in Oakland County, Michigan is a very serious one. Foreclosed homes in Oakland County, Michigan are numerous and some of them have been in foreclosure or pre-foreclosure for the past many months.
The causes of foreclosure of properties and homes in Oakland County, Michigan are mainly two.
The major one is the failure of home and property owners to meet up with their monthly mortgage loan payments to their lenders. Often, this is not due to any fault of their own but simply bad circumstances: the bad economy, job loss, medical emergency, etc.
The second cause of foreclosed property in Oakland County, Michigan is failure of an owner to meet up with their property taxes. Where a home owner fails to make regular payments on their mortgage loan for three consecutive months in Oakland, Michigan, the lender then gives them notice of pending foreclosure of their property.
This notice is usually placed in a local newspaper called The Legal News for the span of 4 weeks.
The defaulting homeowner has about six months to redeem their home after the home is auctioned off at the sheriff’s sale, which happens 28 days after the first notice of default.
If they do not make adequate arrangements with their lender before the expiration of this period of grace, the property or home goes into foreclosure.
foreclosed homes in Oakland County, Michigan: Your Options
Options to Consider
There are several options open to stop foreclosure by the mortgage debtors.
Some of these options are: short sales, lease options, buying the property through refinancing, and bankruptcy.
Each of these options has their pros and cons. The choice of what option to take depends on the present financial position of the mortgage defaulter and his perceived immediate future prospects.
Where an owner of a pending foreclosed property in Oakland County, Michigan chooses the option of a short sales or FSBO (For Sale by Owner), they have to ensure that they are able to get a buyer for their home before it goes to auction. A real estate investor may contact you (or you can contact a real estate investor) to execute a short sale for you.
The investor will get a signed understanding with you that you want their assistance, and they will try to work with your lender to buy the defaulted mortgage note at a discount.
The bank may allow the short sale to happen to avoid having to take the property back at the sheriff’s auction and save itself tens of thousands in various fees.
Lease Options
Where a defaulting mortgage debtor chooses lease options to redeem their foreclosed property in Oakland County, Michigan, and save it from the auctioneer’s hammer, they can make arrangements by finding tenant-buyers who are willing to lease their property with an option to purchase it.
Lease options are a great way to avoid foreclosures, and they also have numerous benefits to the homeseller because the tenant-buyers, due to typical credit issues, are willing to pay a higher rent per month.
The higher rent collected is now used to offset the mortgage loan payments by the defaulting debtor.
The problem with lease options is they usually take some time to locate a tenant-buyer for the property. And when you are facing foreclosure, time is of the essence. This is why you may also want to work with real estate investors like us who may be able to find you a tenant-buyer more quickly for your home if you are facing foreclosure and execute the transaction for you.
Another option to consider if you have a lot of equity is refinancing a pending foreclosed property in
Oakland County, Michigan. This may allow you to lower your monthly payments and create a new mortgage. However, this option will only work for people who can afford to pay for the refi, and have income coming in to actually make the new lower monthly payments.
Causes of foreclosed Property in Oakland County, Michigan.
The causes of the recent spate of foreclosed homes and property in Oakland County, Michigan can be traced to the depressed property market. A lot of homes went into forclosure in Oakland County, Michigan, because of the loss of jobs by the owners of these homes as a result of the recent downsizing by the automobile manufacturing companies. The State of Michigan has the highest number of automobile manufacturing workers in America.
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Apr
25
How to Purchase Forclosed Homes in Oakland County Michigan
Posted by: | CommentsDan Ho asked:
With Michigan’s economy seemingly forever flagging the rest of the Nation, how to purchase foreclosed homes in Oakland County Michigan has been gaining interest among real estate investors.
There are several methods real estate investors can employ when deciding how to purchase foreclosed homes in Oakland Country Michigan.
We will discuss these here.
First, you can bid on a home when it is being auctioned off at the sheriff’s sale.
Here’s how this works.
When a homeowner misses 3 consecutive mortgage payments they will be in preforeclosure. At this point, their mortgage lender (bank) will pass their info to an attorney who will file the mortgage default information once a week for 4 weeks as public information in a paper called the Legal News.
28 days later, the home will be auctioned off at the local county courthouse steps to the highest bidder. So if you go to bid, you will be competing against other investors and also an agent for the bank, who will also bid on the home to make sure it doesn’t sell for a ridiculously low amount.
If the agent bidding on behalf of the bank wins, the property will be called an REO (Real Estate Owned). This is just a term used to denote a property that has gone through foreclosure and that was taken back by the bank.
Before you decide to learn how to purchase forclosed homes in Oakland County Michigan, you may also want to consider learning the short sale investment strategy.
This is a strategy in which you try to buy the defaulted mortgage note before the foreclosure auction.
Here’s how it works.
You contact the homeowner facing foreclosure and present yourself as an investor who may be able to help their situation. You’ll need the homeowner’s approval.
You will then contact the loss mitigation department of the homeowner’s lender and try to negotiate a discount on the defaulted mortgage. You will make the case for the homeowner’s hardship and why the homeowner will not be able to make payments on the mortgage. You will try to show how the property has flaws or other problems that will make the bank think about taking it back as an REO after the foreclosure auction.
If the bank accepts your short sale offer, you will basically create instant equity. For example, say the distressed homeowner owes $200k on the mortgage and that the home is worth only $195k. If you could negotiate a short sale for $150k, you’ve just created 45k in equity.
You will also be helping the distressed homeowner because they will get to avoid the foreclosure and the damage to their credit that this event would case. Of course, they’ll have to move out of the home since you will be the new owner, but they would have had to move out anyway if it went through foreclosure and the redemption period ended.
How to Purchase Forclosed homes in Oakland County Michigan
Another example of how to purchase foreclosed homes in Oakland County Michigan is to try to buy the property from the bank when it’s become an REO.
After the bank takes the home back after the foreclosure (assuming it is the highest bidder at the auction) they will now have a “non-performing asset” on their books. Banks don’t like non-performing assets for several reasons.
One reason is because the bank is in the business of lending money and making money on interest, not from holding real estate. Second, Federal Law requires that the bank have a certain amount of cash reserves on hand for every dollar of “non-performing asset.” This means that for every dollar of bad debt the bank has on its books, it has an opportunity cost in the form of “good money” that can’t be loaned out until that bad debt is eliminated.
In short, this costs the bank money.
Lastly, banks, being publicly traded entities, suffer when they have too much bad debt on their books. Their stock price suffers as a result. The faster banks unload their bad debt from the books, the better their stock prices will be.
So, if you can get a hold of REO lists, either through a mortgage broker, or through networking with other real estate investors, you can make offers on REO’s that banks hold. Some investors can pick up REO properties from banks for 40 to 50 cents on the dollar.
In summary, being an educated real estate investor on how to purchase forclosed homes in Oakland County Michigan can lead to big profits.
Kansieo.com
With Michigan’s economy seemingly forever flagging the rest of the Nation, how to purchase foreclosed homes in Oakland County Michigan has been gaining interest among real estate investors.
There are several methods real estate investors can employ when deciding how to purchase foreclosed homes in Oakland Country Michigan.
We will discuss these here.
First, you can bid on a home when it is being auctioned off at the sheriff’s sale.
Here’s how this works.
When a homeowner misses 3 consecutive mortgage payments they will be in preforeclosure. At this point, their mortgage lender (bank) will pass their info to an attorney who will file the mortgage default information once a week for 4 weeks as public information in a paper called the Legal News.
28 days later, the home will be auctioned off at the local county courthouse steps to the highest bidder. So if you go to bid, you will be competing against other investors and also an agent for the bank, who will also bid on the home to make sure it doesn’t sell for a ridiculously low amount.
If the agent bidding on behalf of the bank wins, the property will be called an REO (Real Estate Owned). This is just a term used to denote a property that has gone through foreclosure and that was taken back by the bank.
Before you decide to learn how to purchase forclosed homes in Oakland County Michigan, you may also want to consider learning the short sale investment strategy.
This is a strategy in which you try to buy the defaulted mortgage note before the foreclosure auction.
Here’s how it works.
You contact the homeowner facing foreclosure and present yourself as an investor who may be able to help their situation. You’ll need the homeowner’s approval.
You will then contact the loss mitigation department of the homeowner’s lender and try to negotiate a discount on the defaulted mortgage. You will make the case for the homeowner’s hardship and why the homeowner will not be able to make payments on the mortgage. You will try to show how the property has flaws or other problems that will make the bank think about taking it back as an REO after the foreclosure auction.
If the bank accepts your short sale offer, you will basically create instant equity. For example, say the distressed homeowner owes $200k on the mortgage and that the home is worth only $195k. If you could negotiate a short sale for $150k, you’ve just created 45k in equity.
You will also be helping the distressed homeowner because they will get to avoid the foreclosure and the damage to their credit that this event would case. Of course, they’ll have to move out of the home since you will be the new owner, but they would have had to move out anyway if it went through foreclosure and the redemption period ended.
How to Purchase Forclosed homes in Oakland County Michigan
Another example of how to purchase foreclosed homes in Oakland County Michigan is to try to buy the property from the bank when it’s become an REO.
After the bank takes the home back after the foreclosure (assuming it is the highest bidder at the auction) they will now have a “non-performing asset” on their books. Banks don’t like non-performing assets for several reasons.
One reason is because the bank is in the business of lending money and making money on interest, not from holding real estate. Second, Federal Law requires that the bank have a certain amount of cash reserves on hand for every dollar of “non-performing asset.” This means that for every dollar of bad debt the bank has on its books, it has an opportunity cost in the form of “good money” that can’t be loaned out until that bad debt is eliminated.
In short, this costs the bank money.
Lastly, banks, being publicly traded entities, suffer when they have too much bad debt on their books. Their stock price suffers as a result. The faster banks unload their bad debt from the books, the better their stock prices will be.
So, if you can get a hold of REO lists, either through a mortgage broker, or through networking with other real estate investors, you can make offers on REO’s that banks hold. Some investors can pick up REO properties from banks for 40 to 50 cents on the dollar.
In summary, being an educated real estate investor on how to purchase forclosed homes in Oakland County Michigan can lead to big profits.
Kansieo.com
Apr
18
Learn to Buy Bank Notes THE 4 SOURCES Note Buying Profits.com
Posted by: | Commentsihbkep64 asked:
www.notebuyingprofits.com No-nonsense How-to-Buy-Bank-Notes Information. Up-to-date! Hours of FREE Bank Notes Training Videos, Free 1-on-1 Coaching Session! Click or Call 718-783-7605
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Apr
10
Top 5 Reasons Why Short Sales Crash
Posted by: | CommentsDave Peeples asked:
Many real estate agents and real estate investors spend a lot of time, money, energy, and effort working short sales without having an Idea Why Short Sales Crash. In this article, we are going to discover the Top 5 Reasons Why Short Sales Crash.
Let’s start with the basics. A short sale occurs when a seller and lender agree that a home owner may sell their property to a third party for an amount that is not sufficient to satisfy all the liens against the property. In the case that their are multiple liens, then all lien holders must agree to the arrangement (this can be tricky). Short Sales are advantageous to wise owner occupants and investors alike who desire to acquire discounted real estate. Lenders are open to the idea of short sales because they can actually save money in the process. They save money because it becomes incredibly expensive for the bank to repossess property and to manage the sale of that property. On occasion, it may make more sense for the bank to sell the property at a discount, rather than go through the trouble of repossessing the property.
However tantalizing buying a short sale may be, it can be very hard to get the transaction closed. Here are the Top 5 Reasons Why Short Sales Crash:
The Bank is not provided with a complete packet (to include, but not limited to); financial information, hardship letter, 2 Years of Income Taxes, last two bank statements, last two pay stubs, listing agreement, preliminary settlement statement, etc… The Buyer is not committed. The short sale process is long. It can take banks 6-8 weeks just to make a decision whether to take an offer or not. This process has scared off more than a buyer or two. It takes a committed buyer to hang in there throughout the process. As a side note, make sure the buyer is well qualified before beginning the process. There is nothing worse than being well into the process before realizing that the buyer is not ready, willing, or able to close on the property. The Bank Loses Your Packet. This seems to happen on almost every transaction. Sometimes the bank sells the loan to another servicing company. Sometimes the bank loses files when transferring the file between departments. As long as you keep good files (and copies), there is nothing to worry about. The problem arises when they lose something that you once had, but can no longer find! The BPO is too high. BPO is an acronym for Broker Price Opinion. Before the bank will accept an offer, they will generally order a BPO or an appraisal to determine if the asking price is a fair reflection of the property value. Many times they will hire a real estate agent to do the BPO. The range of values reflected by BPOs can vary greatly. The bank generally believes the BPO, whether they reflect reality or not. This can kill the deal. You run out of time. This happens for a variety of reasons. Sometimes, the bank will discover an encumbrance to the property that was not previously disclosed (IRS lien, Property Tax Lien, Home Owner Associate Lien). These liens can often change the lender’s bottom line enough for them to kill the deal. In addition, you can run out of time when the first and second lien holders cannot come to agreement concerning how much is allocated to each loan.
Listed above are the Top 5 Reasons Why Short Sales Crash. When considering purchasing real estate, be sure to include short sales as an option to consider. Short sale buyers stand a chance at buying at a steep discount if they know what they are doing.
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Many real estate agents and real estate investors spend a lot of time, money, energy, and effort working short sales without having an Idea Why Short Sales Crash. In this article, we are going to discover the Top 5 Reasons Why Short Sales Crash.
Let’s start with the basics. A short sale occurs when a seller and lender agree that a home owner may sell their property to a third party for an amount that is not sufficient to satisfy all the liens against the property. In the case that their are multiple liens, then all lien holders must agree to the arrangement (this can be tricky). Short Sales are advantageous to wise owner occupants and investors alike who desire to acquire discounted real estate. Lenders are open to the idea of short sales because they can actually save money in the process. They save money because it becomes incredibly expensive for the bank to repossess property and to manage the sale of that property. On occasion, it may make more sense for the bank to sell the property at a discount, rather than go through the trouble of repossessing the property.
However tantalizing buying a short sale may be, it can be very hard to get the transaction closed. Here are the Top 5 Reasons Why Short Sales Crash:
The Bank is not provided with a complete packet (to include, but not limited to); financial information, hardship letter, 2 Years of Income Taxes, last two bank statements, last two pay stubs, listing agreement, preliminary settlement statement, etc… The Buyer is not committed. The short sale process is long. It can take banks 6-8 weeks just to make a decision whether to take an offer or not. This process has scared off more than a buyer or two. It takes a committed buyer to hang in there throughout the process. As a side note, make sure the buyer is well qualified before beginning the process. There is nothing worse than being well into the process before realizing that the buyer is not ready, willing, or able to close on the property. The Bank Loses Your Packet. This seems to happen on almost every transaction. Sometimes the bank sells the loan to another servicing company. Sometimes the bank loses files when transferring the file between departments. As long as you keep good files (and copies), there is nothing to worry about. The problem arises when they lose something that you once had, but can no longer find! The BPO is too high. BPO is an acronym for Broker Price Opinion. Before the bank will accept an offer, they will generally order a BPO or an appraisal to determine if the asking price is a fair reflection of the property value. Many times they will hire a real estate agent to do the BPO. The range of values reflected by BPOs can vary greatly. The bank generally believes the BPO, whether they reflect reality or not. This can kill the deal. You run out of time. This happens for a variety of reasons. Sometimes, the bank will discover an encumbrance to the property that was not previously disclosed (IRS lien, Property Tax Lien, Home Owner Associate Lien). These liens can often change the lender’s bottom line enough for them to kill the deal. In addition, you can run out of time when the first and second lien holders cannot come to agreement concerning how much is allocated to each loan.
Listed above are the Top 5 Reasons Why Short Sales Crash. When considering purchasing real estate, be sure to include short sales as an option to consider. Short sale buyers stand a chance at buying at a steep discount if they know what they are doing.
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Apr
07
$2 Billion Federal Reserve Bank Notes Printed 1933/3/20
Posted by: | CommentsUniversalNewsreels asked:
“Washington, DC: Remarkable scenes showing Two Billion Dollars in Federal Reserve Bank Notes being turned out by the Bureau of Engraving and Printing to meet the current cash famine. William H. Woodin, Secretary of the Treasury, praises the efficiency of the plant, and tells how the resulting bills will relieve the situation.” scenes of Secretary Woodin in money printing plant, trucks carry cash to banks. (silent partial newsreel)
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