Posts Tagged ‘loan mod help’

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Technorati Tags: drive by's, Foreclosures, hot sheet, housing, loan mod help, mortgage, nolan vance, REO, sales, Seattle, seattle distressed property, seattle fixers, seattle loan mods, Seattle Short Sales, Seattle Wa Foreclosures, short, stop foreclosure, video drive by's

A “short sale” happens when the real estate market will not support a price for property that is equal to or higher than the current owners’ debt on the property plus any Realtor fees, taxes, and closing costs. The homeowner would have to bring money to the closing table to sell the home. Unfortunately, the most widely known

alternative is foreclosure.

Short Sales are another alternative for the homeowner and they also provide opportunities for a savvy real estate investor.

Here’s an example:

Mark and Heather bought a home for $400,000 with 80 percent LTV (Loan To Value) financing. Later they opened a home equity line of credit and used the remaining value in their home of $80,000. A year later they decided to divorce, and Heather moved out. Heather stopped contributing to the mortgage payment.

Mark decided to sell the home and discovered the market value is only $380,000. So if they were to sell the house and get the full value of $380,000, they would have to pay the difference between the loans against the property and the selling price, in this case $20,000. They would also be responsible for any taxes, closing

costs, and any Realtor commissions, which could be as much as another $25,000. They don’t have any money. Mark and Heather are in a “short sale” situation.

The lender or bank’s loss mitigation specialist estimates that a non-judicial foreclosure will cost Mark and Heather about $5,000. Plus there are $2,000 in property taxes due. The property is worth less than the mortgage and with these additional costs, the bank will suffer a serious loss.

With no money, Mark feels he is on a sinking ship and stops making the mortgage payments. Soon he is in a pre-foreclosure situation.

A real estate investor, Tom, approaches Mark and Heather and then the lien holder (the bank holding the mortgage) and offers to buy the

house for $290,000. Everyone agrees, Mark moves out and the closing takes place. Now the savvy real estate investor has a property with almost $100,000 of equity.

What happened behind the scenes is that Tom borrowed the funds to pay the bank from a private mortgage lender, Mary. Mary uses her

self-directed IRA to loan money to real estate investors. She earns a competitive rate of interest on the loan. Everybody wins.

A “short sale” is when no one gets the “short end” of the stick.

Travis Millward
http://www.articlesbase.com/real-estate-articles/the-long-and-short-of-short-sales-336508.html

Technorati Tags: drive by's, Foreclosures, hot sheet, housing, loan mod help, mortgage, nolan vance, REO, sales, Seattle, seattle distressed property, seattle fixers, seattle loan mods, Seattle Short Sales, Seattle Wa Foreclosures, short, stop foreclosure, video drive by's

With the current credit crisis and softening economy, property values have dropped significantly across all states and with all property types.  In turn, owners are lining up to conduct their own property tax appeals to get a reduction in their real estate taxes.  At the same time cities are fighting hard to keep their tax base – the result is shaping up to be an all out “dog fight”. 

On the commercial side, we are seeing a drop in value as capitalization rates continue to rise and as the credit crisis lingers.  Longer amortization schedules and “built in” appreciation models within commercial loans have had an almost artificial boast in property values.  Now as these commercial loans are gone, this artificial increased value is gone.   

For owners, reducing property taxes has an immediate impact to the owner’s bottom line.  All property tax savings go right to the NOI (Which in a way, actually increases the property’s value).  The savings can be huge and once the new assessed value is established, the savings are ongoing, year after year.  In short, it is well worth most owners time to fight for this, especially those that have purchased their property in the last 5 years or less.

Property Tax Appeal

There’s a procedure to getting for any property tax appeal and remember your city, does not want to lessen its tax base (they have those pensions and long vacations to protect).   There is a lot that goes into doing it right, but perhaps the biggest issue, that most property owners are shocked to learn is how much control the city has in picking the COMPS (comparable recent sales).  Your city will only want to use comps from transaction that happened under normal, non distressed conditions.  They often refer to this as “Fair Market Value without Undue Influences.”  

What this really boils down to is that your city will not want to use comps from foreclosed properties sales and or from other “distressed” sellers.  They will want to use comps that support their estimates of value.  Which of course support their point of view and their tax base.  A major problem with this is that a lot of transactions these days occur from foreclosed properties… 

The owner considering a property tax appeal will have to know how to deal with this issue as well as others before they sit in front of their city to appeal.   Your city will do everything in their power to protect their tax base.  You will need to understand the process; otherwise you will just waste your time. 

jeff rauth
http://www.articlesbase.com/taxes-articles/property-tax-appeals-the-reality-677284.html

Technorati Tags: drive by's, Foreclosures, hot sheet, housing, loan mod help, mortgage, nolan vance, REO, sales, Seattle, seattle distressed property, seattle fixers, seattle loan mods, Seattle Short Sales, Seattle Wa Foreclosures, short, stop foreclosure, video drive by's

Technorati Tags: drive by's, Foreclosures, hot sheet, housing, loan mod help, mortgage, nolan vance, REO, sales, Seattle, seattle distressed property, seattle fixers, seattle loan mods, Seattle Short Sales, Seattle Wa Foreclosures, short, stop foreclosure, video drive by's

Things are still pretty darned good for buyers these day’s. Interest rates are really low, Prices are really low, Inventories are huge,  Seller are more desperate than ever with really long market times on there homes.  The ones that can’t hang end up going into short sale status, and others are forced into foreclosure’s.  This is a buyer dream market, but how long can it last. Now they have the tax credit extended till April and its not just for first time home buyers anymore. And you don’t have to close by the end of April just be in contract by the end of April. How much better can it get???

How about all the above and top it off with working with a company that is based on experience working with High Value Low Priced homes.  At Equity Magic Realty, we have been specializing in Great Deals for our clients long before the market shifted.

Right now there are so many Short Sales and Foreclosures the every agent out there had to go take a cram course’s and become a self proclaimed expert in the field of Distressed Property overnight. Wow it’s pretty amazing how many experts and #1 agents there are out there right now, holy cow.   And you watch, when the market someday shifts back to a strong Sellers market they will all be back to their old ways of nose in the air hoytie toytie….only dealing with high end waterfront homes and high rise condos.

Well OK…..when that happens we will again stand alone as the areas only company that has dedicated itself to finding the best values on the market for its clients,  not the highest commissions like all those self proclaimed #1 agents in the state.  We work hard for our clients no matter what the real estate climate is currently like. We will stick to what we know and that is finding best deals on the market for our clients and helping them achieve their goals of home ownership and real estate  investment.

We don’t claim to be #1 but we do promise this….to always place our clients best interest above our own, that is the motto we live by and it is our promise to you.

Talk again soon

Jim St John
Broker/Owner
Equity Magic Realty

Technorati Tags: filp that house, flipping, Foreclosures, housing, invest in real estate, loan mod help, mortgage, REO, sales, Seattle, seattle distressed property, seattle fixers, seattle loan mods, Seattle Short Sales, Seattle Wa Foreclosures, short, stop foreclosure

Technorati Tags: drive by's, Foreclosures, hot sheet, housing, loan mod help, mortgage, nolan vance, REO, sales, Seattle, seattle distressed property, seattle fixers, seattle loan mods, Seattle Short Sales, Seattle Wa Foreclosures, short, stop foreclosure, video drive by's

Short Sales: Stacking the Deck in Your Favor

A short sale is a sale in which the lenders allows the sale of a property for an amount less than the existing loan balance. Short sales have the potential for large profits because you, as the real estate investor, are gaining control of the property for a better than expected price.

The properties and situations that will ultimately be approved for a short sale by the lender usually fit a certain profile. When you’re investigating properties and scouting for leads, keep these different factors in mind to improve your chances of getting permission for a short sale agreement. Likely short sale candidates fit a profile that includes factors about the property, the borrower and the lender.

Short Sale Positive Factors for Properties

First of all, certain properties end up being more attractive for the short sale option than others. This includes houses that were purchased or refinanced at a high comparative price, but have since dropped in value due to the real estate market or the condition of the house. This could also include houses that were refinanced at more than their market value based on a high appraisal. Sometimes economic conditions can cause the values of certain areas to spiral downward. Properties located in these affected areas may fit the profile for likely short sales.

Sometimes the property’s value drops below the loan balance for reasons not under control by the owner. Local or even national economic conditions can be at fault. In some cases, the owner’s failure to maintain the property causes it to deteriorate and dramatically lose value. If the lender judges that it’s not financially sound to put things right, they may be more willing to consider a short sale. If the price you propose in your short sale agreement is more than the lender believes they can net after the foreclosure auction, they may favorably consider your short sale proposal.

Short Sale Positive Factors for Borrowers

Lenders are going to take a long, hard look at the borrower and his financial condition before they approve any sort of short sale agreement. In particular, they will want to know if the borrower or someone in their immediate family has experienced a catastrophic illness that has reduced the household to near bankruptcy. The death of a spouse or a divorce could have similar financial consequences on the remaining partner. Forced relocation of the borrower by his employer may be viewed favorably by the lender in a short sale decision, especially if the owner is unable to rent or sell the property. Other significant changes in the borrower’s working situation, including permanent disability, active military service, unemployment or incarceration will also be considered.

Short Sale Positive Factors for Lenders

Finally, even the lender’s own situation may affect their willingness to approve a short sale application package. The lender’s general financial condition plus the status of other loans in their portfolio will bear on the decision making process. This also goes for any third party investor who may actually own the loan. If a government agency insures the loan, then their policies and procedures will need to be met.

To sum up, if the lender believes that the borrower is truly in a hardship situation, then it’s pretty much a comparison of the short sale price compared to what the lender believes they can net after the public foreclosure auction. By essentially “pre-qualifying” the homeowner, the market and the home itself, you can improve your chances of putting together a successful short sale agreement.

Mark Walters
http://www.articlesbase.com/advice-articles/short-sales-stacking-the-deck-in-your-favor-95637.html

Technorati Tags: Foreclosures, housing, loan mod help, mortgage, REO, sales, Seattle, seattle distressed property, seattle fixers, seattle loan mods, Seattle Short Sales, Seattle Wa Foreclosures, short, stop foreclosure

Many real estate investors make $5,000 to $10,000 or more by
flipping houses. These investors buy a home from a distressed
seller and resell it quickly for a profit. Just because a seller
has serious problems like a pending foreclosure or divorce
doesn’t mean the house is a fixer. Many distressed sellers offer
prime houses in perfect condition discounted for a quick sale.

Distressed sellers jump at the chance to get out from under
their overwhelming problems with an offer to close in ten days.
To purchase a home quickly, you need to be prepared to offer
cash or a have secure loan in place with a reliable mortgage
lender.

Other real estate investors prefer to buy fixers from distressed
sellers. Distressed fixers present the best investment to make
the highest return on your money. For instance, if you put 5%
down on a $200,000 home, spend $5,000 fixing the house up, and
another $3,000 in payments, your cash investment totals $18,000.
If you sell the home for a $70,000 profit like many real estate
Fixers, you can see that your return on your investment of
$18,000 for two months exceeds most other types of investments.

This investment plan assumes that you have the knowledge and
skills, time to work on your fixer, and that you sell the house
as soon as its finished to a qualified buyer. Home improvement
centers help you with how-to classes, brochures, and advice. You
need to give up your free time–TV, parties, leisure activities
and work on your fixer. You could hire workers, but contractors
and laborers work slowly and eat up your profits.

The last part of the equation, selling your house quickly to a
qualified buyer means you need to do your homework. Many
investors seek free help from a loan officer to price the house
right and to qualify their buyers. These investors earn the
sales commission by selling their houses by owner.

The most important issue, how you fix up your house, ensures
that you quickly attract a buyer willing to pay top dollar for
your transformed property. Investors using Design Psychology
strategies for fixing houses sell their homes, for more than the
asking price, three hours after putting the yard sign out.

Whether you want to make money investing in real estate by
flipping or fixing houses, you need to understand your market.
To get started in your real estate business, go house shopping.
You’ll soon learn how to pick up a flip or a fixer and be on
your way to making a high return on your investment capital.

Copyright (C) 2005 Jeanette J. Fisher. All rights reserved

Jeanette Fisher
http://www.articlesbase.com/business-articles/fixing-and-flipping-houses-for-high-return-on-investment-capital-1484.html

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The housing market is deeping through the continued use of short sales. If you believe Short Sales are contributing to the housing crisis, pass this video onto your Congress Person or Senator. It’s time to stop these short sales.

Duration : 0:3:18

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