Archive for October, 2009

10 Frequently Asked Short Sale Questions

Saturday, October 31st, 2009

1. What happens to the seller’s credit rating when they allow an investor to short sell their property?

What typically happens is the loan will show up as “paid” on their credit report; however there will be a notation that says “settled for less than originally owed” or something along these lines. It is more favorable for a homeowner to short sell than to have a foreclosure on their credit report.

2. Where do you find investors for Short Sales?

Depending on where you live, you may see investors who advertise with bandit signs or in your local newspaper. Call the investors directly and ask them if they are experienced in doing short sales and if they would be interested in working with you. Another good place is your local real estate investors club meeting.

3. Define Short Sale?

A short sale is really a form of pre-foreclosure sale and occurs when the mortgagee agrees to accept less than the loan amount to avoid foreclosure. A negotiated short sale results in a discounted purchase price for the buyer. The buyer would finance the acquisition much the same as in any conventional realty acquisition… but without the luxury of time.

4. Can an owner profit from a Short Sale?

The seller cannot profit (monetarily) from a pre-foreclosure short sale..But there are always exceptions to the rule.

5. How do bankruptcies affect the possibility of doing a short sale?

Most mortgagees won’t consider a short sale if the homeowner is in bankruptcy…why? Because negotiating a short sale payoff is considered a collection activity. Collection activities are prohibited in bankruptcy.

6. Can somebody tell me what documents do I have to include in a Short Sale package?

Documents depend on the lender. Each lender has different requirements. It is typical to require hardship letter, purchase and sales contract, ECOR,settlement statement (HUD 1), net sheet, pay stubs, bank statements,personal financial sheet (monthly budget), amongst other things.

7. What percentage of mortgage companies send someone out for an appraisal on a possible short sale?

All lenders order a BPO or full appraisal of the property before making their decision to accept or reject the short sale offer. This is there only way of assessing the value of the property.

8. How late in the pre-foreclosure process can you start a short sale?

Try to allow a window of at least 90 days to effectuate a mortgagee approved, pre-foreclosure short sale.

9. What is a Due on Sale Clause?

“Due on Sale” Clause (DOS) Provision in a mortgage or deed of trust calling for the total payoff of the loan balance in the event of a sale or transfer of title to the secured real property. A contract provision which authorizes the lender, at its option, to declare immediately due and payable sums secured by the lender’s security instrument upon a sale of all or any part of the real property securing the loan without the lender’s prior written consent. For purposes of this definition, a sale or transfer means the conveyance of real property of any right, title or interest therein, whether legal or equitable, whether voluntary or involuntary, by for deed, leasehold interest with a term greater than three years, lease-option contract or any other method of conveyance of real property interests. Standard language which states that the loan must be paid when a house is sold.

10. Will banks allow a short sale when the owner has some or a good amount of equity?

If a property has what the lender would consider a substantial amount of equity, chances are they would consider allowing the property to foreclose and then reselling it closer to the retail value. Focus on homes that do not have much equity. Your job will be to create the equity in the home by negotiating a successful short sale.

Mr. Fowler has been a real estate investor for over 15 years specializing in the area of pre-foreclosure/short sale investing. He has bought and sold over 200 homes in Georgia, Florida, Louisiana, and Tennessee using the same short sale techniques that he teaches in his course, Making Money with Short Sales: The Complete Guide to Acquiring Property Pre-Foreclosure. Mr. Fowler currently resides in Atlanta Georgia. He also spends many hours per month teaching his creative real estate investing techniques to other aspiring investors across the country.

http://www.ShortSaleDeals.com

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Utah Real Estate – Mother Nature’s Masterpiece

Monday, October 19th, 2009

Mother nature has done some amazing work in Utah. Fortunately, you can live in the middle of the masterpiece with reasonable prices for Utah real estate.

Utah

Utah is a state of open desert in the south and raging mountains in the north. Plunging gorges and raging rivers are something to be seen in this state of immense beauty. If you enjoy outdoor activities such as fishing, rock climbing, skiing, biking, hiking, camping and water skiing, Utah may just be your nirvana.

Salt Lake City

Host of the 2002 Winter Olympics, Salt Lake City is relaxed place to live and centrally located to many of the wild wonders of Utah. As host of the Olympics, a tremendous amount of money and effort was put into the effort and it shows. The city has a very modern atmosphere that surprisingly mixes with a more staid way of life. The nightlife can be surprisingly active. If snow skiing is your passion, Salt Lake City is surrounded by some of the best skiing in the world.

Provo

Home to Brigham Young University, Provo has a definite college atmosphere but with a twist. The town has a strong Mormon influence and the lifestyle can best be described as very conservative. Although you will not find a very active nightlife, the town sits in a beautiful area and is ideal for raising a family without worry about the typical risks associated with living in many cities. If fly fishing is your passion, the Provo River provides plenty of opportunities to try out your flies.

Utah Real Estate

In general, Utah real estate is very affordable. A single-family home in Provo averages $235,000, while you’ll need an additional $30,000 for the same home in Salt Lake City. These prices, however, do not apply to any of the ski resort areas such as Park City. You can expect to pay a premium for property in such areas.

The appreciate rate for Utah real estate in 2005 was eight percent. Although below the national average of 13 percent, this is still an acceptable rate.

Raynor James is with the FSBO site – FSBOAmerica.org – homes for sale by owner. Visit our home buying page to view and buy Utah real estate.

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Real Estate Investing – “The Neighborhood Factor”

Wednesday, October 14th, 2009

Real estate investing can be a dream career when the process of buying and selling is mastered. The biggest challenge in real estate investing is not the money to get started or the availability of the product. Real estate investing’s biggest challenge is judgment. Personal decisions in making the purchase, fixing up the right things, and making the sale require judgment that comes from experience. The second and 100th property should involve better judgment than the first.

An approach to the first acquisition in a real estate investing career involves analysis of the neighborhood.

If the target property is located in a familiar neighborhood, an analysis is clouded by past memories and feelings. Familiarity can preclude objectivity.

And if the target property is located in an unfamiliar neighborhood, the analysis is shrouded in immediate impressions that may or may not be accurate.

Real estate investing today must consider unfavorable elements like drug and prostitution traffic, crime statistics, and the overall visual impression of neighborhood negligence and abuse by property owners and/or tenants. The windshield view will not reveal the whole story.

Research at city planning and the police department might be a starting point, if the initial drive through the neighborhood does not arrive at a negative conclusion. Casual conversations with neighbors might provide clues. Watching from a perch unobtrusively during certain hours might be helpful, such as after school is out and after dark.

If analysis leads to the formation of good judgment, time is needed to assess “the Neighborhood Factor.” When I plunged into my first year of real estate investing, no one warned me of “the Neighborhood Factor,” and still I sometimes overlook it even millions of dollars in property purchases later. Buying $1 million in rental houses during my first year, and another $1 million in properties the next year did not leave me much time for analysis. However, when placing a makeover house on the market after the work is completed, “the Neighborhood Factor” has often come back to haunt me.

The bottom line for developing judgment about “the Neighborhood Factor” is the consumer’s windshield view. The real estate investor can become enamoured over the potential profit margin in a “good deal.” But the home-buyer and house-hunter make instant assessments upon a first approach to the house for sale. Their initial impression of “the Neighborhood Factor” is untrained and irreversible. And in real estate investing, the prospect’s first impression of “the Neighborhood Factor” overshadows their impression of your labored makeover. More times than I like to admit, I have created a “Dream House” from a junker, only to experience a slow sale because of “the Neighborhood Factor.”

Phil Speer, Ph.D., started his real estate investing career 25 years ago. Without the availability of credit and using only a $10 bill, he purchased $1 million in properties in his first year, and had accumulated $10 million in properties by his fourth year. He was featured in a Wall St.Journal editorial as most successful investor in the Nothing Down Real Estate Movement, and was honored with a Caribbean cruise as top investor of the year. In his hometown of Nashville, Tennessee, he has been a businessman and Human Resources Consultant for 30 years. He is an author, speaker and seminar director. To learn how to profit in real estate investing, even without cash or credit, read his report at http://www.CashinHouses.com/. Subscription is free to his Fix-up Ezine – http://www.AAREIT.com/.

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Cape Coral Realtor

Sunday, October 4th, 2009

As the second largest city geographically in Florida, this beautiful southwestern attraction is located on the banks of the Caloosahatchee River. It also lies between the Gulf of Mexico and part of the Intracoastal Waterway. With a population of more than 138,000, Cape Coral is known as a vibrant city that promotes growth industrially, educationally, and culturally. Residents take pride in the area’s momentous growth, ideal weather, resource availability, and the affordable cost of living. It’s no surprise that a Cape Coral realtor is destined to be successful in the numerous real estate transactions that take place in this city.

History:

Cape Coral has developed into what it is today in just a 40-year span. This young city was incorporated in 1970 by two land speculators that placed confidence in the host of opportunities that waterfront living would bring. The Rosen Brothers purchased the property, built more than 400 miles of canals, and launched a major marketing project that would later result in the sale of thousands of residential building sites. Today, Cape Coral continues to experience rapid growth economically and socially. The city is even able to distinguish itself from others since it features thousands of waterfront residential properties on canals and direct saltwater routes to the Gulf of Mexico. Cape Coral is proof that a little investment can go a long way.

Qualities:

No matter what leisurely activity catches your interest, Cape Coral guarantees plenty of fun in the sun. You will definitely enjoy all of the park, playgrounds, golf, and sailing that the city has to offer. Do you like to go fishing? Southwest Florida is nationally recognized for saltwater fishing, and the extensive miles of canal undoubtedly make Cape Coral a haven for fishermen and boaters. If you are looking to make the most out of a peaceful day, Jaycee Park features many areas designated for picnicking, romantic strolls, and sightseeing. Four Freedoms Park offers more energetic outings that include a playground area for children and a recreation center. You can also visit Veteran’s Memorial Park to engage in sporting events like basketball or bocci ball. Are you an aqua-lover? If so, the Sun Splash Family Water Park provides 15 acres of two dozen water attractions. A Cape Coral realtor will inform you of all these wonderful activities and much more when you consult about prospective properties.

Housing Opportunities:

One of the duties of a Cape Coral realtor is to confirm that absolutely nothing is better than the residential opportunities found in this magnificent city. There is a wide range of waterfront residences to suit your tastes at fairly reasonable prices. You can opt to dwell in a cozy condominium near the Gulf, a luxury villa surrounded by the city’s most lavish clubhouse, or even a spacious single family flat with a waterfront view for the whole family to enjoy. The housing opportunities are limitless, and investment possibilities are abundant. Since Cape Coral acquires so much land mass, it is easy to purchase pristine property for your own private use.

You can look forward to a literally bright future by conversing with a Cape Coral realtor about the endless benefits that this endearing city has to offer.

Inside Real Estate in a network entirely devoted to real estate information. Our staff of nationwide writers has provided a library of over 25,000 real estate articles. Inside-Real-Estate covers several topics from the basic “how to’s” of real estate to city specific real estate information.

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