Debt Consolidation Blog

Posts Tagged ‘foreclosure’

I have been investing in foreclosures in California for last couple of years and successfully closed few deals in profit. I have been encountering questions from many forthcoming investors regarding the how to go about while bidding at foreclosure auction in California. For this reason I came up with this post about foreclosure investing guide.

Home owner faces foreclosure when he falls behind the mortgage payments to bank or lender who in turn tries to sell your property to recover his amount which you owe him usually at auction. Many look forward to take this opportunity of buying properties at foreclosure because of the substantial cost savings compared to one that is sold privately by home owner. One can manage to save with purchasing foreclosure properties as the bank or lender will only try to recoup the amount what is actually owed, which is significantly less that actual worth of the property. Hence determining the bid price at foreclosure requires much more research and knowledge of the local rates and state laws to make a good investment.

Here is the process to go through when you are looking to purchase the property through foreclosure process.

First, one should learn the foreclosure laws in your state to make yourself aware of the things involved. Almost all states require that the list of foreclosures is to be advertised well before certain time and that include the minimum amount for bidding.

Second, visit the foreclosure sales and know the process of bidding before you start to precede bidding. Generally, the foreclosures are listed at the courthouse located where the foreclosed property is present. These listings are also published in the newspapers.

To bid on the foreclosure auction, research the market value of the property which you are looking to buy. To know the market value of the property that is listed at foreclosure is by comparing the foreclosed property with other property in the neighbourhood where the foreclosed property is located. This way can help you a lot in determining the amount to bid.

Find out the minimum amount for bid if it is not provided at the time of listing. You can get this by contacting the individual listed in foreclosures. Then start researching the title of the property to find out if it is not subject to any second and third mortgages, taxes and lines against the property listed out for foreclosure or any other factors that might prevent the transfer of the property after buying the home.

Next, visit the property to examine the physical condition of the property and find out any physical or structural problems that might lead to additional expenses beyond what you actually bid at foreclosure auction. Make sure to find out all the necessary improvements and estimate all the additional expenses to repair the property and add that figure to minimum bid price. After doing so if you find that property after attaining at a total cost of the home to be feasible then go ahead and bid the foreclosure.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice.

When a Oregon home owner facing foreclosure, he might be already in financial hardship and fall behind the mortgage payments for at least six month. If such is the financial position then it may be hard to hire a lawyer to defend the foreclosure process.

If you are facing such situation then you are at the right place as in this article I am going to explain you how to defend the foreclosure when you are facing it. My intention to take this article to you is not only help the home owners but also communities. Yes, we all are going to loss in any way when our communities lose home owners.

Before you know how to defend foreclosure process, it is important to know actual foreclosure process. Here is how the Oregon foreclosure process step by step.

In Oregon, the foreclosure process starts at the moment the notice of default is recorded under ORS 86.735 and advertisement for sale is issued as provided in ORS 86.740 to 86.755. After recording the notice of default and at least 120 days before the day of sale, the notice of sale should be served to home owner or any grantor facing the foreclosure.

If the trustee fails to give notice according to rule mentioned above then he posses the right to file a case against the trustee in the circuit court where the real property is located about the notice of sale is not served to him as required by ORS 86.740 and 86.750 saying that the omitted person could have cured the default under ORS 86.753 and sustained the damages that resulted the loss of property as a result such person had loss the opportunity to cure the default.

After the auction date is set, publication of sale is to be done in such a way that published once a week for 4 weeks where the last publication is no sooner than 20 days before the sale. Before the sale the trustee must submit the affidavits of the completed service and publication to prove the publication.

With in the period of 120 days time given after the foreclosure notice is given to home owner, there are many things that can happen. For example: the foreclosure auction may be postponed to another 180 days before the process restart or the defaulter may cure the loan or brought to current with no acceleration.

If you being a home owner facing a foreclosure feel that you have been treated unfairly, fight back. You can do this by following a produce the note strategy. In any state in US, you can sue the foreclosure by produce a note strategy. There are two types of foreclosure, non-judicial and judicial. Even if you foreclosure is non judicial you can ask the entity foreclosing your property to produce the note that you owe debt to them. It works because there is only one paper regarding your mortgage on which you had signed. If you don’t do this then you simply allow the foreclosure process to process and loss the home.

You can also defend the foreclosure process if any of the steps mentioned above were not followed and not served you with required notices well before the foreclosure process begins.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice.

Buying a home itself is a long and complicated process and even more if you are buying a foreclosure home as the foreclosure process can be very complex. Many think that buying a home through foreclosure is almost finished once your submitted offer is accepted. But before submitting the purchase offer and after it there are many other steps that any prospective home buyer must take action to successfully complete the process. If you are one who is looking to purchase home then you are at the right place as this article will guide you through a series of steps to be followed in Texas during purchase of home.

Before submitting a purchase offer, you must find out different offers at place you are looking to invest and find a right one for you. Once submitted, after several counter offers your purchase offer may be accepted. Accepting offer is not the final step in your buying a home but thereafter, post buying actions should be taken care off in order to smooth the home buying process.

First step after your purchase offer at foreclosure is accepted is getting appraisal done. This is most important because in most cases, the lender will only loan you 80 to 90 percent of the home value where the remaining 10 percent must be arranged by the buyer itself which is called as down payment.

To perform this action, one must approach a licensed real estate appraiser but in most cases, the lender wish to use his own real estate appraiser in such case you will not have any option to choose the real estate appraiser. In the process of appraisal, the appraiser will assess the property with help of different set of criteria to arrive at value of the property. In fact the figure at which the appraiser arrived at is the opinion of the appraiser. In simple words it is the value of the property according to him but it is mostly considerable when dealing with lender for home loan.

In case the appraised value of the property is less than your purchase offer, then it is up to you to make use of the Texas home loan lender or move to other home loan issuer. If you decided to go with loan issuer, bank will still loan you, but only a percentage of the appraised amount, where the remaining amount has to be arranged by the buyer itself.

If you are unable to meet the remaining balance amount then you can decide to lapse the purchase agreement with the foreclosure seller. In case the purchase agreement is lapsed only because of the apprised value does not meet the purchase price then the buyer money will be returned back. Then you can start looking for the new offer that suits your need.

Hence, one must remember to include the appraisal condition in the purchase agreement as in such conditions mentioned above will you can make or break the deal depending on the appraised conditions.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice.

The Foreclosure Rental Trap
The Dollar Stretcher Blog
by Gary Foreman
A record 2.8 million U.S. properties began the foreclosure process in 2009 (according to ForeclosurePulse.com). It appears that there’s no end in sight. And, while the focus has been on families losing their residence, there’s a subplot that’s gone largely unnoticed. Innocent renters are often hurt when banks foreclose on their landlords.

Nationwide it’s estimated that about one third of properties that are being foreclosed are not owner occupied. And, while some of those are second homes, many are rentals. It’s probably pretty safe to say that at between 25 and 30% of foreclosures are occupied by a renter. So about 750,000 renters were in foreclosed units last year.

What does foreclosure mean to the renter? If the bank forecloses on your landlord they take over the property. Their goal is to protect their financial interest. Sometimes that hurts the renter.

Historically, banks wanted the owner to vacate a foreclosed property. That meant the renter, too. So even renters who had leases were suddenly being thrown into the street. Without any legal recourse.

In May, 2009 the “Protecting Tenants at Foreclosure Act” became law. The main part of the law guaranteed that tennants could stay until their lease was up. Those on a month-to-month get 90 days.

Today, in part because of the law and in part because it’s bad business to chase away paying renters, banks are allowing more tenants to stay in foreclosed properties. Often they’ll use a management company. Some managers are more responsive to renter needs than others.

So what can a renter for protection? Unfortunately, even with the new law, their options are fairly limited.

It’s hard for a renter to determine if his current or potential landlord is in financial trouble. There is one website <RentalForeclosure.com> that can check an address for you. It’s not 100% certain. They only report what their records show. But, you’ll want to avoid any properties on their list.

In some counties, court records are available online. Checking your county’s website can be a real eye-opener. You can check your landlord by name (or by company name). Look for any pattern that shows financial problems. Make sure you look for liens and mortgages against the property you rent.

If the bank does notify you that your landlord is being foreclosed, contact the local housing agency. They’ll be in the best position to tell you which local, state and federal laws apply to your situation. Among other things you’ll need to know who should get your rent checks and who to call for a leaky faucet.

As a tenant you can sue the former landlord for lost deposits and rent. But the small claims process can take months. Plus you’re trying to get money from someone in foreclosure. The odds of getting your money back are pretty long.

The trickiest time for a renter is when the landlord expects to be foreclosed. Some will collect rent and make no effort to make their mortgage payment. They’ll also avoid doing any maintainence. This can go on for months. That’s why it’s a bad idea to prepay your rent in this economy. If you have next month’s rent available, better to put it into an insured savings account until the rent is due.

If you’re looking for a rental, beware of landlords who seem overly anxious to get you into their unit. Some are attempting to use renters’ first/last/deposit to keep themselves afloat financially. Reputable landlords will check your credit and references. Failure to do so could be a sign that they’re just after your deposit. Time to run!

Bottom line? It’s important for a renter to check out the landlord. The tools aren’t particularly good, but they can help you avoid some obvious problems. And, if you do find that your landlord is in foreclosure contact the bank and housing agencies to see what steps you need to take to protect yourself.

Keep on Stretching those Dollars!
Gary

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Gary Foreman is the editor of The Dollar Stretcher.com website <www.TheDollarStretcher.com> and various enewsletters including Financial Independence <http://www.stretcher.com/subscribe/subscribeFI.cfm> Financial Independence is designed to walk step-by-step with you as you take control of your finances and achieve financial freedom! Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice.

When you have bought your dream home, foreclosure would have been the last thing in your mind. Foreclosure may be the outcome of various situations like:

• Unexpected unemployment or job cut
• Medical crisis or sudden illness
• Sudden demise in the family
• Divorce
• Debt obligations
• Downsizing
• Sudden increase in the rate of interests

But, still there are many ways to stop foreclosure. The best and easiest way is to avert the lender from filling in the Notice of Default. Many-a-times the lender file the notice just to create a pressure on the borrower. If you know it is tough for you to make the payment right on time, communicate this message amicably to the lender. The other ways are listed below for you:

• Try and negotiate the repayment plan: get in touch with the lender and try and chart out a convenient loan repayment plan. While charting out the plan keep the hardships, situations and your needs in consideration.
• Adjust the missed payment: in case you have missed a payment you, can ask the lender to divide it equally over the next few months. So that you are not over burdened.
• Try and modify the terms of the loan: try and get your rate of interest modified as per your convenience. If you feel it is considerably high try and negotiate it with the lender. But, this can work out if and only if you have good credit score in the past. As that is a strong indicator of your commitment level.
• Partial claim: in case of government loans you can always take an escape in the name of partial claim. That is, in case you meet out certain conditions you are granted additional loan to pay off your missed installment.
• Sell of your home: ask some of the real estate agents about the market value and DOM. You can hire either the discount broker or the full-service broker. All you need to do is, compare their offers and deals well.
• Short sell your home: in case the value of your home is less in comparison to the amount owed you can look forward to short selling. All you need to check whether your lender approves of the short selling or not.

You can even take assistance from some expert as to how to stop foreclosure and escape this situation.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice.