MN Foreclosure

Search Twin Cities Foreclosures

Powered By WP Footer

How To Find Money To Buy A Home

Powered By WP Footer

So You Think You Want To Fix & Flip Homes

Follow some of the tips in this video so you don’t get financially destroyed. It is harder than you think!

Powered By WP Footer

Why Use A Realtor?

Today, more than ever, you don’t want to buy or sell a home on your own. You need an expert. Let my 25 years of experience help you make the right decision.

Powered By WP Footer

How Banks Negotiate & Sell Their REO’s – Part #2

The tips and techniques of doing business with REO’s is continued..

Powered By WP Footer

How Banks Negotiate & Sell Their REO’s -Part #1

Most banks sell in a similar manner. This will help give you an idea of what to expect

Powered By WP Footer

Why Buy An REO?

Let me tell you from experience-the values are extreme. If you avoid this market, you are leaving big time money on the table.

Powered By WP Footer

What The Heck Is An REO

Let me explain what one is:

Powered By WP Footer

Twin Cities Real Estate-Investment Property In Minneapolis St Paul

This is a recent power point I’ve just put together. It gives you some ideas and information before you begin investing in real estate.

Powered By WP Footer

Learn More About 203K Loans For Home Fix Up Upon A Purchase As Well As Home Improvement

These guys do a pretty good job of explaining the process. Check it out. WE do have outlets for the 203K loans at this time-both streamline and FULL 203K loans. Call us today-952-285-4319 NMLS #373115 Venture Development http://www.VentureLoanApp.com

203k Home Improvement Loans Part 2 of 2

Powered By WP Footer

Funny Video That Explains The Banking System & Our Economy Of Today

You will find it funny, you will find it sad, but you will find it very similar to where we are today. It is called the American Dream. It explains a lot. Watch it once, then watch it again. History repeats itself because we are such poor students of history.

Powered By WP Footer

Insured Conventional Loan Vs FHA-Which Is Better

There are many factors that go into a loan decision-credit scores, down payment, debt ratios, etc. One big question is whether you should consider buying a home with an insured conventional loan using 5% down or applying for an FHA loan with 3.5% down. The information below might make that decision easier. In fact, if FHA continues to raise the cost of their monthly mortgage insurance-known as MIP-the decision may start to favor conventional loans with PMI-private mortgage insurance. Remember, everyone’s situation is different. This information just gives you one more way to look at financing your purchase.

Powered By WP Footer

How Does RE/MAX Compare? Let’s look at 2011

The numbers are now out! RE/MAX is a top producing company. In many markets, RE/MAX is the leader-often head and shoulders above the competition. I have been with RE/MAX for 16 years. Prior to that, I was with another large company for 10 years. Before you select an agent, interview a RE/MAX agent. I think you will agree that there is a difference. If you’re in the Twin Cities Metro-consider my services.

Powered By WP Footer

Twin Cities Market Report 2010

Have you ever wished you had all the metrics of the marketplace in once nice concise report? Well now you do. Our board of Realtors compiles an annual report showing comparative data. While each home is different, pricing trends are trends. The data since the end of 2010 going into 2011 has gotten worse. If you’d like me help you interpret the information as it might pertain to your home sale or potential home purchase, just let me know. Enjoy the report.

Powered By WP Footer

Underwater Homeowner Refinance Programs Extended For 1 More Year

FHFA Extends Refinance Program By One Year

Washington, DC — Federal Housing Finance Agency Acting Director Edward J. DeMarco has announced an extension of the Home Affordable Refinance Program (HARP), a refinancing program administered by Fannie Mae and Freddie Mac, to June 30, 2012. The program was set to expire on June 30 of this year. In addition, Fannie Mae and Freddie Mac will make the following adjustments to their programs: Freddie Mac will exempt HARP loans from their recently announced price adjustments and Fannie Mae will conform their eligibility date to May 2009.

The program expands access to refinancing for qualified individuals and families whose homes have lost value. HARP has grown over the past year. In 2010, Fannie Mae and Freddie Mac purchased or guaranteed more than 6.8 million refinanced mortgages. Of this total, 621,803 were HARP refinances with LTVs between 80 percent and 125 percent. This is up from 190,180 in 2009, when HARP began.

For more information on Fannie Mae and Freddie Mac refinance activity, see FHFA’s Fourth Quarter 2010 Foreclosure Prevention & Refinance Report. Additionally, homeowners can visit www.MakingHomeAffordable.gov for more information on the program.

###

The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks. These government-sponsored enterprises provide more than $5.9 trillion in funding for the U.S. mortgage markets and financial institutions.

Powered By WP Footer

WHY Pick RE/MAX?

There are lots of reasons why you might choose to select one agent or company vs another. Unless you have a best friend or relative who you “have” to use, I would like to show you how I am different. I believe I have an excellent value proposition as to why you would select me as your agent and RE/MAX as your company. I would welcome the opportunity to meet with you and discuss how I can help you meet your housing goals-whether it be buying or selling. Interview a couple of agents, you will see there is a difference. You may wonder how does RE/MAX stack up within the Twin Cities. The attached PDF’s will give you some market share information as well as agent productivity-based on a 2010 compilation of the numbers. While these are just some of the metrics on which to base your decision, success does leave clues. How can I help you?

Powered By WP Footer

Down Payment Assistance Synopsis

Where there is a will, there is a way. There are many many programs today that are city specific. So, the attached synopsis is a multi county foreclosure down payment assistance pool. Basically, there is money available for purchasers of distressed homes. If you want to buy a home and are flexible in which area you make your purchase, we can try to find you some programs.

Powered By WP Footer

Gifts and Grants can be considered towards borrowers funds on certain 3% down conventional loans

Yes, you read that right. I just got an email today from a leading mortgage insurance company that is willing to underwrite this loan. You will need at 740 or better score. But, what an opportunity. In many ways, this is like FHA, but with a little higher credit threshold. The KEY difference, besides credit score, is the lack of an upfront MI (mortgage insurance) premium and as well as a smaller required monthly premium. This product could be a game changer for the MI company and conventional loans.

Powered By WP Footer

Purchase 80/10/10 and 80/5/15 STILL exists

As of this post, the 80/10/10 and 80/5/15 can still be done. While underwriting has allowed it, it has been very difficult to find a second mortgage product that would write a 5 or 10% second mortgage. Well, after many phone calls, we have sourced two lenders who at this time are willing to offer the second mortgage. One is a bank and the other is a credit union. As with EVERY program, the rules can and do change at any given moment. The key to both product is extremely high credit scores and a file that utilizes conservative ratios. If you don’t have at least a 700 score, this might not be something you can utilize at this time. For the 80/10/10, you will need a 740 or better score.

Powered By WP Footer

What Is Your Home Worth Today? | Home Price Calculator

I found a cool resource at http://www.FHFA.gov. If you go there, in the middle of the page you will find something called the Home Price Calculator. You input your home purchase information in terms of State, quarter in which you purchased and the quarter in which you’d like to get the valuation. Next, you hit calculate, and it will show you a chart. While it isn’t specific to YOUR exact home, it does give trends for your area. If you want specific information-specific to your home-within the Twin Cities metro-give me a call and we can discuss your situation. I can then give you guidance on what the value might be.

Powered By WP Footer

Did you know-Current & Future Housing Data

Watch this video-then call me to help you buy or sell a new home or investment property.

Powered By WP Footer

8 Tips For Finding Your New Home

A solid game plan can help you narrow your homebuying search to find the best home for you.

House hunting is just like any other shopping expedition. If you identify exactly what you want and do some research, you’ll zoom in on the home you want at the best price. These eight tips will guide you through a smart homebuying process.

1. Know thyself
Understand the type of home that suits your personality. Do you prefer a new or existing home? A ranch or a multistory home? If you’re leaning toward a fixer-upper, are you truly handy, or will you need to budget for contractors?

2. Research before you look
List the features you most want in a home and identify which are necessities and which are extras. Identify three to four neighborhoods you’d like to live in based on commute time, schools, recreation, crime, and price. Then hop onto REALTOR.com to get a feel for the homes available in your price range in your favorite neighborhoods. Use the results to prioritize your wants and needs so you can add in and weed out properties from the inventory you’d like to view.

3. Get your finances in order
Generally, lenders say you can afford a home priced two to three times your gross income. Create a budget so you know how much you’re comfortable spending each month on housing. Don’t wait until you’ve found a home and made an offer to investigate financing.

Gather your financial records and meet with a lender to get a prequalification letter spelling out how much you’re eligible to borrow. The lender won’t necessarily consider the extra fees you’ll pay when you purchase or your plans to begin a family or purchase a new car, so shop in a price range you’re comfortable with. Also, presenting an offer contingent on financing will make your bid less attractive to sellers.

4. Set a moving timeline
Do you have blemishes on your credit that will take time to clear up? If you already own, have you sold your current home? If not, you’ll need to factor in the time needed to sell. If you rent, when is your lease up? Do you expect interest rates to jump anytime soon? All these factors will affect your buying, closing, and moving timelines.

5. Think long term
Your future plans may dictate the type of home you’ll buy. Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in the home for five to 10 years? With a starter, you may need to adjust your expectations. If you plan to nest, be sure your priority list helps you identify a home you’ll still love years from now.

6. Work with a REALTOR®
Ask people you trust for referrals to a real estate professional they trust. Interview agents to determine which have expertise in the neighborhoods and type of homes you’re interested in. Because homebuying triggers many emotions, consider whether an agent’s style meshes with your personality.

Also ask if the agent specializes in buyer representation. Unlike listing agents, whose first duty is to the seller, buyers’ reps work only for you even though they’re typically paid by the seller. Finally, check whether agents are REALTORS®, which means they’re members of the NATIONAL ASSOCIATION OF REALTORS®. NAR has been a champion of homeownership rights for more than a century.

7. Be realistic
It’s OK to be picky about the home and neighborhood you want, but don’t be close-minded, unrealistic, or blinded by minor imperfections. If you insist on living in a cul-de-sac, you may miss out on great homes on streets that are just as quiet and secluded.

On the flip side, don’t be so swayed by a “wow” feature that you forget about other issues—like noise levels—that can have a big impact on your quality of life. Use your priority list to evaluate each property, remembering there’s no such thing as the perfect home.

8. Limit the opinions you solicit
It’s natural to seek reassurance when making a big financial decision. But you know that saying about too many cooks in the kitchen. If you need a second opinion, select one or two people. But remain true to your list of wants and needs so the final decision is based on criteria you’ve identified as important.

G.M. Filisko is an attorney and award-winning writer who has found happiness in a brownstone in a historic Chicago neighborhood. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

Powered By WP Footer

4 Tips to Determine How Much Mortgage You Can Afford

By knowing how much mortgage you can handle, you can ensure that home ownership will fit in your budget.

Here are six surefire ways you can get your finances in order before you buy a home.

Homeownership should make you feel safe and secure, and that includes financially. Be sure you can afford your home by calculating how much of a mortgage you can safely fit into your budget.

Instead of just taking out the biggest mortgage a lender qualifies you to borrow, consider how much you want to pay each month for housing based on your financial and personal goals.

Think ahead to major life events and consider how those might influence your budget. Do you want to return to school for an advanced degree? Will a new child add day care to your monthly expenses? Does a relative plan to eventually live with you and contribute to the mortgage?

Still not sure how much you can afford? You can use the same formulas that most lenders use, or try another of these traditional methods for estimating the amount of mortgage you can afford.

1. The general rule of mortgage affordability
As a rule of thumb, you can typically afford a home priced two to three times your gross income. If you earn $100,000, you can typically afford a home between $200,000 and $300,000.

To understand how that rule applies to your particular financial situation, prepare a family budget and list all the costs of homeownership, like property taxes, insurance, maintenance, utilities, and community association fees, if applicable, as well as costs specific to your family, such as day care costs.

2. Factor in your downpayment
How much money do you have for a downpayment? The higher your downpayment, the lower your monthly payments will be. If you put down at least 20% of the home’s cost, you may not have to get private mortgage insurance, which costs hundreds each month. That leaves more money for your mortgage payment.
The lower your downpayment, the higher the loan amount you’ll need to qualify for and the higher your monthly mortgage payment.

3. Consider your overall debt
Lenders generally follow the 28/41 rule. Your monthly mortgage payments covering your home loan principal, interest, taxes, and insurance shouldn’t total more than 28% of your gross annual income. Your overall monthly payments for your mortgage plus all your other bills, like car loans, utilities, and credit cards, shouldn’t exceed 41% of your gross annual income.

Here’s how that works. If your gross annual income is $100,000, multiply by 28% and then divide by 12 months to arrive at a monthly mortgage payment of $2,333 or less. Next, check the total of all your monthly bills including your potential mortgage and make sure they don’t top 41%, or $3,416 in our example.

4. Use your rent as a mortgage guide
The tax benefits of homeownership generally allow you to afford a mortgage payment—including taxes and insurance—of about one-third more than your current rent payment without changing your lifestyle. So you can multiply your current rent by 1.33 to arrive at a rough estimate of a mortgage payment.

Here’s an example. If you currently pay $1,500 per month in rent, you should be able to comfortably afford a $2,000 monthly mortgage payment after factoring in the tax benefits of homeownership.

However, if you’re struggling to keep up with your rent, consider what amount would be comfortable and use that for the calcuation instead.

Also consider whether or not you’ll itemize your deductions. If you take the standard deduction, you can’t also deduct mortgage interest payments. Talking to a tax adviser, or using a tax software program to do a “what if” tax return, can help you see your tax situation more clearly.

G.M. Filisko is an attorney and award-winning writer who’s owned her own home for more than 20 years. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

Powered By WP Footer

Minnesota Foreclosure comparison report

A very interesting year over year foreclosure report was just released. It takes the MN foreclosure crisis and breaks down the data into micro data. It is definitely worth looking at if you want to identify trends and opportunities.
http://www.hocmn.org/Stock/Editor/file/REPORTS/2010_YrEnd_ForeclosureCount/2010_Annual_ForeclosuresInMN.pdf

Powered By WP Footer

Two Special Twin Cities Home Buying Programs

One program is called FPP-Foreclosure Partnership Program, and the other is NSP2 Homebuyer Assistance Program.  Both programs offer incentive money for a purchase.  I can use these financing programs with one of our mortgage investors.  Consider checking them out to see if they’d work for you.

HennipenCounty-Non-forclosedHomes-overview

HennipenCounty-Nsp2-overview

Powered By WP Footer

You CAN do an FHA short sale

HUD recently issued guidance on this issue. IF you have an FHA loan, call me and we can work through the discussion of whether or not you may qualify for a short sale. See the HUD letter below.

Powered By WP Footer

HAFA Update-More Beneficial

Apparently the OLD HAFA wasn’t as successful as hoped. Yet, the program had some great attributes. They’ve just tweaked it, and are about to roll out a new improved version. See the sheet between for a comparison. The ability to pay the second lien holder a larger amount to make a settlement is what I feel will allow more HAFA short sales to close.

Powered By WP Footer

Rebuilding Credit To Get A Mortgage

Often, especially in this market due to the recession, we find potential home buyers who have had a life event or “bump in the road” that affects their ability to obtain a new loan. If you want to buy a home, you will have to have a certain number of reporting trade lines and for certain length of time. MOST mortgage programs require 3-5 trade lines and a minimum of two years of reporting. The other criteria is the actual credit score-which generally has to be 620, 640 or even 660 as it is all lender dependent. A manual underwriting where they use alternative credit such as rent payments, cell phone bill, utility bills, and the cable bill might be able to be used-but only with a few certain programs and lenders. So, the best bet is to re-establish credit as quickly as possible. HOW ABOUT NOW!! Don’t wait-it will only extend the time until you are going to be eligible. I have put together a list of resources that might be helpful. This list is only a starting place for your research. If you find another good resource please post it in the comments below so that the list can be expanded upon.

TOP IDEAS FOR CREDIT RE.doc

Powered By WP Footer

Projected Loss Severity Of A Foreclosure-both 2010 & 2011

Short sales are probably going to be the loss mitigation method of choice.  When you look at the loss severity of a foreclosure, you can see why some other method might be preferable.  Look at the Fitch ratings report here and see for yourself.  This may be useful information when negotiating with the banks and servicer.

Powered By WP Footer

Buying Rental Property In The Twin Cities

Have you ever wanted to own rental property, but were unsure where to start? I teach a class on the topic. I’ve decided to make the outline into a PPT. I cover the information in my class in much more depth and breadth, but this will give you a lot of useful information. If you are interested in discussing purchasing a rental property as an investment, just give me a call and we can set up a time to meet and review how I can help you become a “real estate mogul”.

Powered By WP Footer

Mortgage Insurance May Still Be Deductible For Some Buyers

Powered By WP Footer

Is There An Opportunity Right In Front Of YOU

I just watched an amazing video which I’ve posted below called the Money Tree. There are so many different interpretations. One that struck me was that people are oblivious to opportunity that is right in front of them. How many of us are looking for something that we already have or is within our reach? How many people are NOT buying real estate today when they could be looking at this as an incredible wealth building opportunity for what it is over the long term-assuming properties rise again in value? I was showing homes this past weekend. It was incredible to see townhomes in great communities selling for 40-60% less than they had sold for just as little as 5 years before. Luckily for my client, we are going to make an offer and ACT. Watch this video and don’t let the opportunities in your life pass you by. Don’t let life pass you by. Happy New Year and may 2011 be your best yet!

Powered By WP Footer

December Is The Time To Reflect

Are each of us doing all we can to make the world a better place? Many of us have our favorite charity and organizations we support. RE/MAX is a very large sponsor of Children’s Miracle Network. Many people don’t realize how much has been given. Each time I sell a home, I automatically donate a portion of my commission to this organization. Other RE/MAX agents like myself contribute from their commission checks as well. Together, with RE/MAX we have collectively given over 100M. I would encourage everyone to consider finding an organization they believe in and make giving a part of their life. Just imagine what the world could look like?

Powered By WP Footer

Short Sales Are Today’s Investor Opportunity

Short sales can be win win transactions for everyone. Take a look at the video and give me a call to get started.

Powered By WP Footer

Getting Ready to Sell Your House

Powered By WP Footer

HUD Has A YouTube Channel-Here Is There Vid On Buying A Home

Powered By WP Footer

Google lets you create cool templated websites

Powered By WP Footer

Can Home Ownership Contribute To Your Wealth?

Powered By WP Footer

Minnesota Foreclosure And Distressed Home Fact Sheets PLUS Twin Cities First Time Buyer Special Programs

Powered By WP Footer

What Does The Foreclosure Moratorium Mean To A Distressed Homeowner?

Check out the PDF and share with your friends/family who might need this information.

Powered By WP Footer

Minnesota First Time Home Buyer Tips

Powered By WP Footer

Top Seven Tips For Home Buyers

Powered By WP Footer

The Difference Between Judicial And Non-Judicial Foreclosures

Powered By WP Footer

Foreclosure resource page

Powered By WP Footer

Possible Effects From The Foreclosure Halt

By Rob Minton & John Mazzara

In case you’ve somehow missed it, many of the largest U.S. mortgage servicing companies have halted foreclosures. Ally Financial’s GMAC Mortgage, Bank of America, JP Morgan and PNC have stopped foreclosures in many states – BOA has, in fact, put a moratorium on foreclosures in all 50 states.

Pressing the pause button on foreclosures came as the result of several states’ attorneys general inquiring into the validity of foreclosure judgments for which mortgage servicers did not properly handle documents.
The “blind stamping” of documents – signing off on documents without really reading them – has come under fire after one manager admitted to signing off on about 8,000 foreclosure documents a month without reading them to verify facts. The mortgage companies have halted foreclosures while they investigate practices in their foreclosure processes.

Of course, it being an election year and all, members of congress are calling for a federal probe of lender misconduct. In the short-term anyway, the halt in foreclosures might give some struggling homeowners a little extra time to get on their feet. It might finally lead to overworked employees at busy banks getting the help they need to properly handle foreclosures, and it should make banks a little more willing to work with homeowners to modify distressed loans. With fewer foreclosures hitting the market, home values in some areas might creep up.

There are some long-term effects, though, that can’t be ignored. And some of them are downright troubling.
First, the halting of foreclosures for any period of time by banks that hold as many mortgages as these firms do is going to stop up the pipeline. Tons of foreclosed homes hit the market over the past two or three years, but there are more coming. Stalling that flow of homes now is going to drag out the process for a longer period of time. That means, for one, likely longer pressure on home values. Most experts will agree: The inventory of unsold homes on the market, many of them foreclosures, has to get smaller before home values will stabilize completely.

The effect on the volume of homes sales could be staggering if the moratorium lasts longer than a month or two, and/or if more servicing companies join the party. Across the U.S., foreclosures make up about 30 percent of all home sales. In California, Florida, Nevada – the states that have been hit hard by foreclosure – they make up a considerably larger percentage of all sales.

It’s also safe to assume that title insurance companies are going to be reluctant to insure titles on homes that have been foreclosed. That could be a huge problem because no lender is going to make a loan on home without an insured title. And what happens if the bank has already re-sold homes that were invalid foreclosures? Are the title insurance companies going to have to pay the new buyers?

On top of all that, the whole mess is going to make potential real estate buyers even more nervous about the market, which is already dealing with a huge drop in demand since the federal government’s tax credits for home buyers expired. Perhaps the delay in the flood of foreclosed homes to the market will give time for demand to return, but more likely is yet another “doom and gloom” real estate scenario that will scare buyers and investors off.

Hopefully, the big lenders agreement to halt foreclosures was a gesture of good faith made to the attorneys general, a sign that the firms are taking seriously the matter of following proper procedure in foreclosures. Hopefully, investigations will determine that for the most part, the banks are doing things the right way and will be able to move on.

Because while the short-term effects of the halt might seem attractive, a long-term foreclosure problem would not be good for anybody involved in real estate. In Minnesota, the market has definitely slowed, but some of this is seasonal. I think that the foreclosure issue will put more pressure on all parties involved to pursue short sales. Short sales are generally less expensive-in terms of loss-to the lender. Also, a short sale generally is viewed more positively on your credit. So, why aren’t more short sales being pursued? Rather than give you my conspiracy theory and explain who makes money throughout the foreclosure process, I would simply encourage you to follow the money.

Powered By WP Footer

Monitor Foreclosure Fraud From Around The Country

Have you heard of the “think big work small” guys?  Unless you are in the mortgage or real estate industry, you may not know who they are.   In a nutshell, they are awesome.  They produce a 5 minute daily video synopsis of what’s happening in our industries.  Today’s video referenced a new site called http://www.4closurefraud.org I went there to take a look.  It is another excellent resource for anyone who wants to monitor articles and information regarding foreclosure fraud-meaning foreclosures done incorrectly with the likes of robo signers, faulty documentation, and more.  Go there and bookmark for future reference.

Powered By WP Footer

Lenders Are Halting Foreclosures-Temporarily

Not all lenders, but a few of the largest-including Bank Of America- have recently suspended foreclosures in all 50 states. What will be the outcome and when will they move forward again with the process? It is all an unknown at this time. What we do know, is that they may not have processed the paperwork properly. Now, it appears they will be reviewing everything twice before they go forward. Ultimately, the end result will probably end with the home being foreclosed upon if the homeowner is actually behind and there hasn’t been a modification. But for many, this reprieve will probably be a nice relief in this tough economy. Here is a link to a recent article from our local paper http://www.startribune.com/business/104612084.html?page=3&c=y

Powered By WP Footer

Here’s What The Federal Reserve Has To Say

There is an interesting report from the Federal Reserve entitled REO and Vacant Properties http://www.bos.frb.org/commdev/REO-and-vacant-properties/REO-and-vacant-properties.pdf You can read/download the report at this link.

Powered By WP Footer

Data.gov – A Cool Site With Lots Of Great Info

http://www.Data.gov I just found this site and wanted to share it.  It has a ton of info and reports.  If you have a project or just an “inquiring mind”, this is sure to be a hit.  Check it out and get the data you need.

Powered By WP Footer

Homepath.com is Fannie’s Foreclosure Portal

Fannie Mae posts their foreclosured properties with a Realtor of their choice and also on http://www.HomePath.com.  What is cool about a Homepath property is that many times they will qualify for Homepath loans (requiring only 3% down) and no appraisal.  They also have a homepath Renovation loan.  There is a program called FirstLook, which allows certain selected developers and non profits to purchase these homes for rehabilitation first, so you might loose a home that is really a good deal. Still, don’t let this deter you.  I recently sold a home in Brooklyn Center that was a HomePath property.  It was pretty nice, just a little dirty. Because it was in very good shape, we were able to use FHA financing.  I’ve found that FHA financing is cheaper than Homepath with a minimum down payment.  We’ll have to see if that changes in the future.

Powered By WP Footer

Master The Mechanics Of Foreclosure – The Key To Being Effective In Pre-Foreclosure Investing

Master The Mechanics Of Foreclosure – The Key To Being Effective In Pre-Foreclosure IBy Oscar Morante

To confidently compete in the pre-foreclosure arena, every investor must master the mechanics of foreclosure. The events of foreclosure, the timeframes, the disposition of the proceeds of sale, and the effects of the sale – these are all important landmarks in navigating through the foreclosure process. To be effective in pre-foreclosures, the investor must see through the foreclosure process as clearly as through glass. Understanding the mechanics of foreclosure allows the investor to effectively evaluate an opportunity, develop a strategy, provide a solution that satisfies all the parties involved and, as a result, come out with a profit.

Washington State law Title 61 RCW “Mortgages, deeds of trust, and real estate contracts” governs foreclosure procedures in Washington State. Oregon State law chapters ORS 86.705 through 86.770 govern foreclosure procedures in Oregon. This is a must-read for all pre-foreclosure investors. With the understanding of this law and specialized real estate legal counsel, the pre-foreclosure investor will be well-equipped for profiting in this arena.

This article is oriented towards pre-foreclosure success. I, the author, am very effective in this field, I’m not a lawyer. This article should not be taken as legal advice. The purpose of this article is to provide a clear view of the foreclosure process through the scope of pre-foreclosure investing. With that in mind, the reader will find this material informative, entertaining and valuable. Most pre-foreclosure investing takes place in the single family, and up to the 4-plex markets. These loans are secured by residential trust deeds, and it is here where we will focus.

The seeds of the foreclosure process are really planted at the moment a real property is financed by a lender through a secured loan. The lender, in order to feel confident of recovering the principal plus interest, requires the property owner to pledge the financed property as collateral. If the loan is not paid or defaults, the lender is entitled to use the collateralized property to get paid. This is called securing a loan by mortgaging a property. This system was most likely invented by the Babylonians at least 2000 years before Christ. Mortgages and foreclosure are indeed a very old business.

Well executed, legal, real estate financing has two components. These are the securing instrument and an obligation.

In the state of Oregon, the preferred instrument to secure real estate loans is the trust deed or deed of trust. The trust deed secures the financed property as collateral. The preferred instrument to delineate an obligation is the promissory note. The promissory note dictates the terms of payment of the secured loan. If there is a default in the terms of payment delineated by the promissory note, the trust deed will be used to secure performance by using the collateralized property. This is called foreclosure.

A trust deed is a means to convey an interest in the financed property to a trustee in order to secure a loan. The trust deed involves three parties: Beneficiary, Grantor and Trustee. Beneficiary is the person financing the property or its successor. This person is the lender, also known as the mortgagee. Grantor is the person obligated to perform (pay) as per the promissory note. This person is the homeowner, also known as the mortgagor. Trustee is a person employed by the beneficiary to make sure that the grantor performs. Financing a property is the equivalent of a shotgun wedding; if the groom does not perform he will be shot by the bride’s brother. The trustee in the trust deed is usually the title company which handled the real property financing transaction.

As you can see, the mechanism of foreclosure is put in place at the moment of financing. It is ready to be activated as soon as there is payment default. In the event of default, the beneficiary is entitled to exercise, through the deed of trust, the payment of his principal plus interest. In other words, the beneficiary (lender) will ask the trustee to foreclose the grantor (homeowner) in order to use the collateral (property) for making the loan perform (get paid). When this happens, the following events, timeframes and effects take place.

Events of Foreclosure:

1 – Succession of Trustee. The original trustee is usually the title company which handled the lending transaction. This arrangement remains in place through the life of the loan until default. The original trustees are title companies such as Ticor, Fidelity or First American Title. Title companies, although they can do it, are usually not in the business of foreclosing. Because of this, at default, the beneficiary usually selects a successor trustee. A successor trustee is usually an attorney firm specialized in the business of foreclosing. Northwest Trustees and Shapiro & Sutherland are two examples of such firms. The successor trustee is in charge of all matters related to foreclosure. From now on the successor trustee will be referred to as the trustee.

2 – Service and Publication of Notice of Default and Election to Sale (NOD). The trustee must record and send a letter to all parties with a recorded secured financial interest in the property stating that the subject property will be sold in order to satisfy the secured loan. This letter is commonly known as the NOD letter. This letter must be sent to all parties by certified mail or served in person. Failure to not serve all secured parties may invalidate the process. The secured parties are usually second mortgages, lien holders, child support beneficiaries, tax lien holders, etc. The letter shall state the property description, amount of the principal, payoff value in full, amount needed to cure, and all contact information, as well as time, date and location of the scheduled auction sale.

3 – Sale of Property. The sale of the property is held as per the time, date and location set in the notice of default and election to sell letter (NOD letter). Anybody can bid on the property except the trustee. The winner pays cash at the time of sale and receives, within 10 days a “trustee deed” demonstrating his ownership of the property. The new owner is entitled to possession of the property on the 10th day after the sale.

Timeframes:

This is the time available for pre-foreclosure investing. You can download a foreclosure time line graphic from http://www.bestshortsales.com. This graphic give a clear, easy to read view of the foreclosure time frames.

1 – Total Length of Process. In Oregon a minimum of 120 days between the date of service of NOD letter and date of auction.

2 – Notice of Sale Publication. A notice of sale is published in a newspaper of general circulation, once a week for four consecutive weeks. The last publication can be no later than 20 days prior to auction.

3 -End of Right to Cure. The mortgagor (or homeowner) as well as any other party secured by the property is entitled to cure the loan in default until up to 5 days prior to auction. Within those five days before auction, the only recourse to retain the property is to pay the loan in full. The beneficiary (or lender) is not obligated to accept the loan to be cured. They can do so according to their convenience.

Disposition of Proceeds of Sale:

The proceeds of the sale are distributed according to the following priorities. The very fact that the junior liens may not be paid creates the pre-foreclosure investment opportunity.

1 – Compensation for attorneys and trustees.

2 – Payment of obligation secured by the trust deed.

3 – Payment to all recorded junior liens by order of priority.

4 – Payment to the grantor (homeowner) if anything remains for him.

Basically, the lawyers get paid first, followed by the first mortgage holder, then everybody after that. If there are any bones left, they go to the owner.

Effects of the Sale:

This is where buying at auction gets tricky and creates the pre-foreclosure investing opportunity.

Termination of Interests. All interests on property by liens junior to the foreclosing trust deed are terminated. All interests on property by liens senior to the foreclosing trust deed remain in force and must be satisfied. This means that the highest bidder at the auction, by buying the property, must now pay all taxes, senior mortgages and senior liens. These are not foreclosed out. For example, if the foreclosure is on a first mortgage, the buyer will not have to pay for the second mortgage and anything that came after. Most likely the buyer will only have to pay for the unpaid taxes, HOA and city liens. If, on the other hand, the foreclosure is on a second mortgage, then the buyer will have to pay for the first mortgage in addition to everything else.

Satisfaction of Obligation: The foreclosing trust deed is satisfied in full even if the lender does not get full payment of principal and interest or if there is a loss. All other interests in the property are foreclosed-out and have no further rights over the property.

Unpaid Parties: Any parties with secured interests foreclosed-out of the property and not paid, partially or fully, by the auction proceeds lose that secured interest in the property. Basically, they have nothing else to do with the property. However, the promissory notes of these obligations remain in force. Because of this, the foreclosed homeowner remains responsible for the payment of any unpaid balance. The result is that any party still owed on the property has to try to collect an unsecured loan. This is not easy. What are the chances that someone will pay a debt owed on a property that they no longer own? This is where the investor comes in.

Short Sale. The Pre-Foreclosure Business Opportunity:

Clear understanding the foreclosure process enables the pre-foreclosure investor to unravel the entanglement created by all the parties involved with the property in foreclosure. Usually, the total value of all of the principals and interest, taxes and liens is greater than the value of the property. As a result, there will be losses to everybody, including, sometimes, the senior lienholders. The goal of the pre-foreclosure investor is to obtain the property at a very convenient price by reducing the losses of all secured parties. This is called a short sale. A short sale happens when the creditors authorize the homeowner to sell a property for less than what they are owed. You, the investor, makes this happen through knowledgeable and skillful negotiation. Look forward to my future article on these negotiation techniques.

I hope this information puts you one step closer to achieving your own success in pre-foreclosures. Mastering the mechanics of foreclosure has worked for me and will work for you. Great profits will be your reward.

(C) 2006 -2007 Advanced Real Estate Concepts, LLC., Portland OR. All rights reserved.

Oscar Morante is a full time real estate investor. He is primarily active in short sales. He teaches how to do short sales in his “Short Sales A to Z” seminar. This is an intense full day nuts and bolts seminar about the exclusive subject of foreclosure and short sales. To find more information visit http://www.bestshortsales.com

Article Source: http://EzineArticles.com/?expert=Oscar_Morante
http://EzineArticles.com/?Master-The-Mechanics-Of-Foreclosure—The-Key-To-Being-Effective-In-Pre-Foreclosure-Investing&id=481959

Powered By WP Footer

Home Foreclosure Investing -Learn the Secrets – How I Created A Second Income Stream

Home Foreclosure Investing -Learn the Secrets – How I Created A SecoBy Dorothy M. Neddermeyer, PhD

The majority of investors seldom think of real estate foreclosure investing as the highly profitable investment that it is. Why, because most people don’t have the time to learn the secrets or do the leg work to find properties in foreclosure, or they are reluctant to trust foreclosure investing advertisements –foreclosure auctions or sales through lenders.

RealtyTrac(TM) (www.realtytrac.com), the leading online marketplace for foreclosure properties, released its May 2006 report–Colorado, Georgia, Texas post highest rates. U.S. Foreclosure Market Report shows 92,746 properties nationwide entering some stage of foreclosure during the month, an increase of less than 2 percent from April 2006, but still a 28 percent increase from May 2005. Report results indicate a national foreclosure rate of one foreclosure filing for every 1,247 U.S. households during the month. RealtyTrac publishes the largest and most comprehensive national database of pre-foreclosure and foreclosure properties, with more than 600,000 properties from more than 2,500 counties across the country, and is the foreclosure data provider to MSN Real Estate, Yahoo! Real Estate, AOL Real Estate and Knight Ridder Online.

Currently there are 13,318 pre-foreclosure properties in Maricopa County reported by

RealtyTrac(TM). Seventy-five percent of these homeowners will avoid foreclosure. How? They will be saved by Pre-foreclosure real estate investors, the investor, who understands foreclosure investing secrets.

Experts predict foreclosures will increase nationwide in the coming months if the rate of home appreciation remains slow. This foreclosure prediction is the same in every area of the country. The economy is slowing, people are losing jobs and they can’t keep up with mortgage payments. Tens of thousands are in the first stage of losing their homes–pre-foreclosure!

There are three stages to buy a foreclosure property:

o Pre-foreclosure

o Foreclosure auction

o Buying from the lender after the foreclosure sale

o A fourth investment opportunity is reinstating the home owner’s loan. A licensed real estate agent, who specializes in foreclosure investments, develops relationships with investors, thus when a home is in Pre-foreclosure, the agent turns to these investors, if the loan can be reinstated. Reinstating the home owner’s loan usually requires several thousands dollars. However, this type of home foreclosure investing can be part of your portfolio, if you know the secrets or you have developed a good relationship with foreclosure realtors.

Receiving a foreclosure notice, does not mean a homeowner will automatically lose their home. Real estate appreciation has allowed many homeowners to pull out their increased equity to pay what they owe or to sell the home and pay off the loan, avoiding a foreclosure battle. Those who have already refinanced or used a home equity loan and spent the money or there isn’t enough equity, do not have a hedge against foreclosure. It is, also, predicted that many homeowners with ARM loans face a difficult refinance picture.

The Mortgage Bankers Association of Arizona reports nearly 40 percent of all home loans in metropolitan Phoenix are adjustable. Nationally, about 30 percent of all mortgages are ARMs.

Mortgage Bankers Association of Arizona reports, the number of subprime ARMs jumped by 50 percent in the state last year, making the situation potentially worse for Arizona’s housing market. The Subprime loans, which carry high interest rates, typically are taken out by borrowers with poor credit histories.

“Record numbers of people lured by low initial teaser rates have taken out adjustable-rate mortgages that are putting them in vulnerable positions as rates rise,” said Jay Luber, a vice president with First Horizon Home Loans in Phoenix.

This creates a perfect opportunity for the informed real estate investor to come to the rescue of the distressed homeowner, and at the same time make a good return on their investment.

It’s a win-win proposition. You, the real estate investor, can help the homeowner save their credit and make a nice profit at the same time. This is called Pre-foreclosure real estate investing. “Pre-foreclosure is where the most return on the investment can be made,” states Don Myers, real estate agent and Pre-foreclosure consultant at the Arizona Department of Foreclosure Assistance, Inc., a non-profit organization, Tempe. AZ–DonBMyers@gmail.com

If real estate Pre-foreclosure investing sounds like something you want to know more about, here’s a recommendation–”Contact a Pre-foreclosure real estate specialist. Unless you know the secrets, it is difficult to find and move quickly enough to get in on the ground floor of the majority of opportunities. Don’t make the mistake of spending thousands on programs offered by TV Pre-foreclosure pitchmen,” Myers stated, “a Pre-foreclosure specialist does all the leg work and offers you the opportunity to invest or pass. With a real estate foreclosure specialist you know you are on firm legal ground in every investment.”

A licensed real estate professional, who specializes in foreclosure, is the secret to foreclosure investing success. Pre-foreclosure real estate specialists look for new investors and that new investor could be you.

Dorothy M. Neddermeyer, PhD, author, speaker, and inspirational leader shares her secrets to real estate investing. Dr. Neddermeyer empowers people to view life’s challenges as an opportunity for Personal/Professional Growth and Spiritual Awakening. http://www.drdorothy.net

Article Source: http://EzineArticles.com/?expert=Dorothy_M._Neddermeyer,_PhD
http://EzineArticles.com/?Home-Foreclosure-Investing–Learn-the-Secrets—How-I-Created-A-Second-Income-Stream&id=238024

Powered By WP Footer

Check Out Energy Rebates

EnergyStar.gov –  Check Out Energy Rebates

This is a government site that offers lots of energy saving tips as well as explains what energy saving grants or credits might be available.

Powered By WP Footer

Foreclosure Trends Newsletter

Here is the latest issue of my foreclosure trends newsletter.  As you can see, the trend is not our friend, in the sense that the housing market has not recovered.  Until jobs come back and people are employed and feel safe in their employment, they will tend to avoid making a committment.

ForeclosureTrends.pdf

Powered By WP Footer

Foreclosed Property Coupon-10% off

When you buy a foreclosed with me as your agent, I will be happy to sign you up for a coupon from Lowes.   It entitles you to 10% off, up to a predetermined purchase amount.  Currently I believe it 10% off of up to a $10,000 purchase.  Of course, this amount and the coupon’s terms and conditions are subject to change by Lowes at anytime.

Besides Lowes, RE/MAX has exclusive deals with Cambria and Pods-to name just few of the suppliers we can help you save money with.  We’ve got your back.  Consider me when choosing your team.

Powered By WP Footer

Twin Cities Foreclosure Trends-From our MLS & Realty Trac

Besides the board of realtor sites:  http://theThing.mplsrealtor.com and market data posted elsewhere at http://www.MplsRealtor.com I have a subscription to Realty Trac.  My subscription gives me additional data about foreclosures and trends within certain zip codes.  This is in addition to my daily subscription to Finance & Commerce (a business newspaper that prints all the foreclosure information as well as very timely articles regarding the business community).  If you are looking for someone who has experience and access to information about distressed sales, we need to be working together.  Whether buyer or seller-I can help you understand the market we are in and the options and opportunities available to you.  Give me call today.

Powered By WP Footer

Real Estate Information

These are a couple of my newsletters that have a ton of valuable information. Go check them out.

Foreclosure Market Trends Newsletter
http://www.realtytrac.com/MarketTrends/NewsLetter.aspx?guid=131bd355-1b69-4bd1-99cd-2f0c9a936810

Real Estate Cyber Space Tips
http://www.REcyber.com/cybertips/r11627

Powered By WP Footer

Understanding HAFA-What Is It & How It Works

This explains what the HAFA is and how it might work for you. This might work for people that are in distress and would like to try and avoid a foreclosure. Here is a link for additional information http://www.CDPE.com/hafa I work with homeowners who need help at this difficult time-let me know what I can do for you.

Powered By WP Footer

Owner Financing – The Foreclosure Process

By Craig Meriwether

One of the great parts of the owner finance home sale is the opportunity to work with the buyer in the case of financial problems. By creating a solution that works for both parties a home owner is more than likely to stay in the house and the loan holder will continue to receive monthly payments. If a solution cannot be created then unfortunately foreclosure might be the only option to take. This article will present a look and some of the different ways foreclosures can be handled.

In some states, the beneficiary can choose one of two methods to foreclose judicial or non-judicial. In a judicial foreclosure, the beneficiary files a lawsuit against the trustor in Superior Court to foreclose on the property. The case is then set for trial. If the court rules in favor of the beneficiary, the property will be ordered sold at a public sale. In most instances, however, it is a non-judicial foreclosure. In a non-judicial foreclosure, the court system is not involved. To foreclose non-judicially, the deed of trust or mortgage must contain a power of sale clause. The power of sale clause gives the trustee the right to begin foreclosure without going to court. To include a power of sale clause does not require a specific form or language.

If, on the other hand, the security instrument does not contain a power of sale provision, judicial foreclosure is the beneficiary’s only way to obtain the property. Most conventional deeds of trust say “with the power of sale”.

Judicial and non-judicial foreclosures differ in many ways. The foreclosure method selected by the beneficiary has significant consequences for the trustor.

Non judicial foreclosure is relatively fast, as this method does not involve the court system. In most instances, non-judicial foreclosure takes, at minimum, about four months after the trustor has failed to meet the obligation or defaulted on the loan. Judicial foreclosure, on the other hand, may take up to several years.

Non judicial foreclosure is generally less costly than judicial foreclosure. In a non-judicial foreclosure, the trustee’s and attorney’s fees are largely specified by law. In a judicial foreclosure, however, there are generally no legal limits for attorney’s fees. As a result, the trustor may be liable for significant legal expenses.

Another major difference between the two foreclosure methods is the beneficiary’s right to a deficiency judgment. A deficiency judgment is a court order stating that the trustor still owes money to the beneficiary if the proceeds from the foreclosure sale are not sufficient to pay the balance of the debt.

Some state laws do not allow a deficiency judgment in a non-judicial foreclosure on residential purchase money loans. A residential purchase money loan is one in which loan proceeds are used to purchase the property. Furthermore, state laws do not allow deficiency judgments against the residential trustor where the loan was made by the seller of the property or by a third party lender (often a financial institution) on a four-unit or less residential property that is the principal residence of the trustor. If the beneficiary judicially forecloses on a non-purchase money residential loan, a deficiency judgment may be obtained against the trustor.

Non-judicial and judicial foreclosures also differ with regard to the trustor’s right of redemption after the foreclosure sale. This is the trustor’s right to reclaim the foreclosure property. In a non-judicial foreclosure, the sale of the property at the trustee’s sale is an irrevocable final sale, and the trustor does not have the right to redeem or reclaim the property after the sale. Judicial sales, however, are subject to redemption by the trustor.

This summary of the major differences between non-judicial and judicial foreclosure shows the advantages of non-judicial foreclosure for the beneficiary. The non-judicial foreclosure is timely, economical, non subject to redemption, and may command a higher sales price. In addition, it is unlikely that the beneficiary would recover any losses through a deficiency judgment, as the trustor could not make the loan payments in the first place. Because of these advantages, beneficiaries typically prefer to foreclose non-judicially. Beneficiaries might foreclose judicially when they see an opportunity to recover any losses through a deficiency judgment.

The following two sections give detailed information on each of the foreclosure methods.

Non-Judicial Foreclosure

This section describes the major procedural requirements of non-judicial foreclosure, discusses the trustor’s reinstatement and redemption rights, reviews legal provisions for trustee’s fees and summarizes special legal provisions affecting foreclosures in many states.

Many states allow the beneficiary of a deed of trust containing the power of sale provision to foreclose non-judicially after the trustor has defaulted on one or more contractual obligations. In case of default, the beneficiary may order the trustee to initiate foreclosure.

Notice of Default

Foreclosure begins when the beneficiary notifies the trustee that the trustor has defaulted on any obligations stated in the promissory note and deed of trust. The beneficiary gives the trustee information concerning the condition of the debt such as the amount of the unpaid balance and due dates. Upon receipt of this information, the trustee prepares the Notice of Default.

The Notice of Default must be recorded in the office of the recorder of the county where the property is located. If the deed of trust encumbers property located in more than one county, the Notice of Default should be recorded in the other counties as well.

The trustee must mail a copy of the Notice of Default to the trustor and to each person requesting notice within ten days of recording the notice. The law specifies additional notification requirements under certain circumstances. The Notice of Default must be published weekly for four weeks in a newspaper or personally be served on the Trustor, if the trustor has not requested to be notified of its recordation of the notice

Trustor’s should always notify the beneficiary and the trustee of any address changes to ensure prompt receipt of any correspondence from the beneficiary or trustee.

Before January 1, 1986, the trustor and beneficiaries under subordinate deeds of trust were given three months from the recordation of the Notice of Default to cure the default. An amendment to the law extended the expiration of the reinstatement period to five business days before the scheduled trustee’s sale. If the trustee’s sale is postponed, the reinstatement period is extended to five business days before the new date of the sale.

At any time during the reinstatement period, the trustor may stop the default by paying the beneficiary all sums of money due on the loan up to that point including additional costs incurred by the beneficiary, and attorney’s or trustee’s fees as specified by law. It is not necessary to repay the entire loan balance.

After reinstatement of the loan, the foreclosure proceeding is discontinued and the trustor resumes making the regular periodic payments.

Notice of Trustee’s Sale

If three months have passed since recording the Notice of Default, and the trustor has not begun to reinstate the loan; the trustee may proceed with the foreclosure by preparing a Notice of Trustee’s Sale.

The Notice of Trustee’s Sale must be recorded in the office of the recorder of the county in which the property is located at least 14 days before the date of the sale. As with the Notice of Default, the Notice of Trustee’s Sale must be mailed to the trustor’s last address actually known to the trustee.

The Notice of Trustee’s Sale also must be published in a newspaper of general circulation in the city, judicial district or county where the property is located. The notice must be published once a week over a 20-day period before the sale.

In addition to mailing and publication, the Notice of Trustee’s Sale must be posted for at least 20 days before the sale at the following locations:

o In at least one public place in the city, judicial district, or county in which the property is to be sold; and

o In a conspicuous place on the property to be sold

Improperly broadcasting the Notice of Trustee’s Sale typically will result in the cancellation and re-notice of the sale.

As mentioned before, the trustor can cure the default during the reinstatement period that runs up to five days before the schedule sale. After the reinstatement period expires, the trustor must pay the entire indebtedness plus foreclosure costs to avoid foreclosure. This is called redemption and only can be done during the five days before the sale. The trustor’s right of redemption ends once bidding at the foreclosure sale starts.

Trustee’s Sale

The trustee or the trustee’s agent must conduct the foreclosure sale at a public auction in the county where the property is located. The sale is to the highest bidder who must pay in cash, cashiers check or cash equivalent as specified in the notice and acceptable to the trustee.

The trustee may postpone the sale at any time before it is completed. The sale may be postponed at the trustee’s discretion, upon instruction by the beneficiary, or upon a written request by the trustor who has the right to request a one-day delay to obtain sufficient cash to pay the debt or bid at the sale. The trustor’s request for postponement must include a statement identifying the source of the funds. The law allows for three postponements. After three postponements, a new notice of sale must be given, except for postponements requested by the trustor or ordered by a court.

After the sale to the highest bidder, the trustee executes and delivers a trustee’s deed to the purchaser. The trustee’s deed conveys title to the purchase free and clear. The issuance of the trustee’s deed terminates the previous trustor’s legal and equitable rights in the property. It should be noted, however, that title to the property is conveyed subject to all senior liens, including liens for property taxes and assessments.

The purchaser of the foreclosed property is entitled to take immediate possession. A trustor who refuses to vacate the property may be legally forced to do so.

Rent and Rental Income

Generally, the trustor occupying the property does not have to pay rent to the beneficiary while in default. If a deed of trust should indicate a rent liability, enforcement of it would be unlikely.

The beneficiary may have a right, however, to any rental income generated by the property during the period of default. In the absence of such a provision in the deed of trust, the beneficiary is generally not entitled to any rental income.

Deficiency Judgment

In General, the law prohibits a deficiency judgment in a non-judicial foreclosure with a power of sale provision. Even if the proceeds from the foreclosure are inadequate to repay the loan, the beneficiary has no other possibility to recover.

Trustee’s Fees

The fees a trustee is entitled to charge the beneficiary or deduct from the proceeds of the sale are prescribed by law. The trustee may charge for costs incurred in recording, mailing, publishing, and posting of Notice of Default and Notice of Trustee’s Sale; the cost of postponing the sale by request of the trustor (not to exceed $50 per postponement) and the cost of a trustee’s sale guarantee. In addition to charging for these actual costs, the law provides for a fee schedule based on the amounts of the unpaid debt.

The legal limitations for trustee’s and attorney’s fees do not apply to attorney’s fees the beneficiary is entitled to recover under special provisions of the deed of trust.

Special Legal Provisions

Special federal and state laws may affect the manner in which the foreclosure is conducted. If the loan is insured or guaranteed by the U. S. Department of Housing and urban Development (HUD! EHA) or the Veterans Administration (VA), certain procedures must be followed. In the case of a VA-guaranteed loan, the trustor may be liable for any deficiency, unless the veteran obtains a release of liability from the VA. California law does not necessarily protect the trustor from liability for a deficiency on a VA guaranteed loan. Federal laws governing the VA loan program take precedence over any conflicting California law. Trustors should contact the VA for details concerning their rights and to learn about specific requirements.

Judicial Foreclosure

Judicial Foreclosure is tried in some state Superior Courts. The beneficiary, upon default of obligation by the trustor, brings a foreclosure lawsuit against the trustor. If successful, the court will issue an order to sell the property at a public sale. The beneficiary must use judicial foreclosure if the security instrument does not contain a power of sale provision. A mortgage or deed of trust containing the power of sale provision may be foreclosed judicially if the beneficiary chooses to do so.

The decision to foreclose judicially or non-judicially is not necessarily final. The beneficiary may discontinue judicial foreclosure at any time and commence non-judicial foreclosure.

Conversely, the beneficiary may abandon non-judicial foreclosure and initiate judicial foreclosure. Beneficiaries sometimes initiate both types of foreclosure simultaneously.

Foreclosure Sale

A court-appointed commissioner or sheriff in the public place must give notice of the sale of the property for 20 days preceding in the date of the sale. This same notice must be published in a newspaper of general circulation weekly for 20 days. The notice also must be sent by certified mail to all defendants at their last known addresses.

At the foreclosure sale, the property must be sold by the auctioneer to the highest bidder who is financially qualified.

Redemption of Property

In a judicial sale, the trustor has the right to redeem or reclaim the property after the foreclosure sale. For a trustor, the right of redemption makes a judicial sale attractive. It should be remembered, however, that a judicial sale might also lead to a deficiency judgment. This possibility does not exist in a non-judicial foreclosure.

Deficiency Judgment

In a judicial foreclosure, the beneficiary has, under certain circumstances, a right to a deficiency judgment. The deficiency judgment is limited to an amount equal to either the difference between the indebtedness and the fair market value of the property, or the indebtedness and the sales price at the foreclosure sale, whichever is less.

Rent and Rental Income

The trustor occupying the disputed property does not have to pay the beneficiary rent while in default. The beneficiary may be entitled, however, to any rental income generated by the property.

After the sale, the trustor retains possession of the property and does not have to pay the beneficiary rent while in default. The beneficiary may be entitled, however, to any rental income generated by the property.

Craig Meriwether is owner of Kula Investments, a company founded you help you get top dollar for you owner financed real estate loan. [http://www.ioubuyer.com]

Article Source: http://EzineArticles.com/?expert=Craig_Meriwether
http://EzineArticles.com/?Owner-Financing—The-Foreclosure-Process&id=2140489

Powered By WP Footer

Minnesota Foreclosure Help

Minnesota Foreclosure HelpBy Brent Rangen

With the foreclosure rate steadily increasing across Minnesota, up 15% in April, and also rising in Crow Wing County there are now more programs in place to help. Your home is your most prized possession and if you are one of the many homeowners in Minnesota facing foreclosure you should know how the foreclosure process works and where to turn for help. Counselor’s are free and confidential and can help you find a resolution. It highly recommended that you use a government sanctioned agency. Talk to your foreclosure counselor and lender about your situation. The lender will want to work with you. Banks often lose money in the foreclosure process so it is often in their best interest to help you figure out a workout plan for you. In Minnesota, homeowners usually will have six months to stay in the home which is followed by a sheriffs sale.

If you are facing foreclosure here are several tips:

1. When talking to financial services or lenders ask to be transferred to the loss mitigation department and document all calls and what was talked about. Get their extension so you can call them direct next time.

2. Whatever it is you talk about be completely honest. Tell the lender you want to work with them to keep your current mortgage

3. Check with your lender, see if they have any assistance programs for homeowners facing foreclosure.

4. If a resolution is found, request the document be sent to you, don’t agree to anything until you have the hard copy.

5. Don’t over extend yourself. Always make sure you don’t enter into an agreement you will not be able to afford.

Check with your lender and a private tax preparer, see if you are eligible for mortgage debt forgiveness. In 2007, Congress changed the mortgage debt forgiveness laws. If you owe a debt to someone else and they forgive that debt, the canceled amount may be taxable.The mortgage debt forgiveness act does not include income from the removal of debt on their principal residence. Mortgage debt forgiven in connection with a foreclosure and debt reduced through mortgage restructuring qualifies for the relief.

Signs to watch out for:

1. Any cold calls. Especially those offering solutions and easy fixes.

2. Having to give out your social security number.

3. Having to pay for counseling.

4. Anything that sounds too good to be true.

This is in no way meant to serve as legal advice. If you are facing foreclosure please contact a Minnesota foreclosure counselor or the Lutheran Social Services. They can help you create a budget, payment plans, even help coordinate your transition after a foreclosure. LSS have certified counselors and provide many services useful to anyone who could use help getting their finances in order.

Minnesota Real Estate News
Minnesota Foreclosure Help and Resources

Article Source: http://EzineArticles.com/?expert=Brent_Rangen
http://EzineArticles.com/?Minnesota-Foreclosure-Help&id=2429756

Powered By WP Footer

Outstanding Video-An Inspiration To All-Be The Best You Can Be!

Powered By WP Footer

Twin Cities Home buyer book

Thinking about buying a home but don’t know where to start? Why not start by reading the home buyer hand book that we have provided below. It is a great place to start to get the information you need. When you’re ready, we would love to help you find and finance a new home.

Powered By WP Footer

The Short Sale Process For A Seller

This ppt. will explain the basics involved in a short sale. Today, lenders are starting to put in place systems that will make the short sale process work smoother. This presentation covers what is generally involved.

Powered By WP Footer

Next Page »