As a foreclosure specialist, Bobby is skilled at communicating to both creditors and people; if you are thinking how can i avoid foreclosure, and are needing to get out of your current situation, then you should look at how can i avoid stop foreclosure on your home.
Archive for foreclosure alternative
Jan
26
We’ll Be Seeing A Lot More Of Commercial Short Sales
Posted by: | CommentsFirst it was the residential real estate collapse. Now comes the commercial real estate collapse! Commercial has lagged behind residential by 12 to 18 months, but is now here. Commercial foreclosures are all over now.
Commercial distressed properties will overtake residential in the coming year or two. There is a lot more money involved in these properties. Commercial is financed differently than residential. Typically, they have short term 3,7, or 10 year loans on them that need to be refinanced at the end of the term. The problem is the values have dropped 10-50% so it is very difficult to get a loan on them. Many businesses have had greatly reduced revenue which has caused them to downsize or close which put even more pressure on the building owner. Sometimes rent reductions are given to try to keep tenant in the property and in business. Even with this, many companies are closing the doors. Also, the government bailouts have not reached most businesses. (except banks and car manufactures!)
If the owners cannot refinance or pay off the mortgage, the owners may try to hang on, but foreclosure is often the outcome.
Investors are gearing up to tackle this huge opportunity. They can now buy properties for 60 to 90 percent of value. At these rates, often the properties will now cash flow even at reduced rents. Make sure you deal with an investor that has experience in commercial short sales. Also do not pay money up front for negotiations. Legitimate investors will typically do the negotiation with their fees being paid by the lender.
Commercial property owners may be held responsible for the difference amount forgiven for the short sale, and the amount forgiven may be required to act as income on their tax return. Commercial property owners should contact their tax and legal teams before continuing to see how this may impact their overall tax and financial situation.
This method over most others will help the U.S. commercial market regain its stability over the next 3 to 5 years.
Learn more about Commercial Short Sales. Stop by Daniel Wolkoff’s site where you can find out all about foreclosure alternatives and what it can do for you.
categories: Commercial Short Sales
Nov
05
Avoid Foreclosure Orlando – Making Money On Shortsales
Posted by: | CommentsAvoid Foreclosure Orlando – Making Money On Shortsales
Lenders have been doing them for years. However, due to the increase in mortgage delinquency due to our current economic situation, the lenders are now overwhelmed with request for short sales. Bank of America, Chase and Wells Fargo are lenders who have been very slow in their response to short sale request. Chase has indicated that they are still working on request made in June, 2009 and we are now closing in on November, 2009.
What’s a shortsale?
If you own real property and you owe more on your mortgage then the home would appraise for and you have a hardship, then you may be able to short sale your property. A short sale is when the lender is willing to accept less than the full amount you owe.
In order for your lender to consider this option the following must apply: Your property must be listed with a realtor and must have a contract based on the comparables in the area the property is located. Owner must have a financial hardship. financial hardship could occur from divorce, loss of job, pay cut, illness, accident. etc. Owner’s expenses exceed their income, this is considered a hardship. Expenses must be legitimate expenses. One cannot have a $300 dollar a month clothes shopping addiction. Real expenses including; electric, water, rent, insurance, car payments, gas, groceries, health insurance, etc.
Once a financial hardship has been established on behalf of the owner, These required documents that must be submitted to your lender: 1. Bank Statements – Last two months 2. Pay Stubs – Last two pay periods 3. Tax returns for 2008 and 2007 4. W’2s for 2008 and 2007 5. Financial Worksheet
The realtor will provide the following in order to submit to the lender: 1. Listing Agreement 2. Comparables ( active/pending/sold) 3. Listing History 4. Contract offer ( The accepted sales price, should be on or around the current market value) If the contract offer is not acceptable, then the agents should leave the short sale addendum un marked on #5, to allow additional offers to be submitted. But if the original offer submitted is sufficient, this clause should be eliminated.
The Title company will provide: 1. Title search 2. Preliminary Hud 3. Complete Lien search, including: Code Enforcement, Open Permit and Water balance search.
It is highly recommended that a title search and lien search be completed on the property being sold in order to make sure that there are no judgments, liens other than the existing first or second mortgage. If a title search is not completed and a Preliminary HUD -1 Closing Statement is submitted to the lender, which does not reflect other items such as: Code Enforcement liens, Outstanding Water Balances, Open Permits, HOA Liens, Certified Judgments, delinquent real estate taxes, you can get your approval. However, once you have completed your title search and lien search and they show any of the items above, at that point you have to re-negotiate with the lender. In some cases you will not be able to re-negotiate with the lender, so now you have wasted time and energy and you no longer have a deal.
Important Items to consider regarding a short sale: Be careful of large homeowners associations back assessments. Most lenders are not paying the entire amount owed. They are comparing a short sale to a foreclosure in these cases. If a lender proceeds to the foreclosure sale, the lender is, under law, only required to pay a certain portion of the back assessments. This is the rule of thumb to go by, if the property is a condominium, the lender will pay up to 6 months in back assessments, if the property is a single family home, then the lender will pay up to 1 % of the original balance of their mortgage or 12 months of back assessments. Attorney fees are not considered, nor paid for by the lender. In most cases, the HOA will reduce the amount owed to them. However, some HOA’s are taking a stance that they will not accept what the lender is offering and they will kill the deal. Most lenders will only accept individual buyers. Most lenders do not allow; Corporations, LLC, LLP, Land Trust, Trust etc. The property must be purchased by an individual person(s). Not all companies who say they can negotiate a short sale are qualified to do so. Negotiating a short sale or even a loan modification requires a background and experience in mortgage, title and real estate. Most short sale negotiators who have a background in title insurance, mortgage, or even real estate have a better idea of the entire process and what is involved in all areas of the short sale transaction.
GETTING THE SHORT SALE APPROVAL LETTER FROM THE LENDER IS THE EASY PART. PUTTING ALL THE PIECES OF THE PUZZLE TOGETHER: PRICELESS!
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categories: Real Estate,Shortsale,Florida Shortsale,Jupiter Florida Shortsale,Shortsale assistance,Foreclosure avoidance,Avoid foreclosure,Shortsale,high end shortsale,shortsale realtors,Real Estate Investing,Investing in Real Estate,Investing in short sales
Oct
19
Avoid Foreclosure Orlando- Why You Should Act Now To Avoid Foreclosure
Posted by: | CommentsAvoid Foreclosure Orlando- Why You Should Act Now To Avoid Foreclosure
As a homeowner, if you lose your job or suffer a medical emergency all of a sudden then your finances will most likely turn upside down in front of you. You will probably react at first thinking (and hoping) that your problems will go away, but you would be wrong. Too many people in the current climate are getting into a bad position as they enter into the category of financial hardship and begin to suffer.
But homeowners seem to have an infinite amount of optimism (or anxiety) that they will be able to turn their situation around and get back on top of all the bills that are piling up on their kitchen tables. A payment is missed but it is within the grace period; a call to the auto insurance company allows the borrowers to pay a few days late with no penalty; student loans can be deferred.
After some months these debts will start to pile up, you will have lenders and suppliers asking for their money with phone calls and more strongly worded letters, if you haven’t already spoken to them. You will also need to make sure that you prioritize your bills and payments, if you have any money coming in. Your main bill will be the mortgage payments to your lender, as you want to avoid foreclosure of your home and don’t want to become homeless as this will deeply affect your motivation for sorting things out.
As the account gets more behind your creditors will start sending letters from their hired legal help that will want to know why you haven’t been paying and suggesting that if you don’t contact them or agree to pay that you will then be subject to further action and risk losing your home – thus entering into foreclosure. If you talk to your lender at this point they will still be able to sort out the situation and agree further terms to pay your bills and mortgage.
If you speak to your creditors and promise to pay them an amount then you should and you should pay this on time and to the full amount that you said that you would. You shouldn’t leave it to the last moment and then not pay the amount. If you agreed to pay something yet you are then unable to, you should talk though with them as they will understand your situation. If you don’t, however, then you will get more phone calls from them and the certified mail foreclosure papers will arrive from the sheriffs office that will mean legal action has been taken against you.
Many people will end up in this situation because they have been unable to save their home from foreclosure because they have put their head in the sand and thought that the problems would go away. Facing up to your troubles and communicating with lenders will make sure that you have a positive outcome to this ordeal.
Therefore, you should take note that you should be taking action if you are close to or in foreclosure. Even if you have just received your foreclosure papers, you should be looking to take action and pursue to paying off your debt. You should find out your rights about foreclosure and what you will need to do right now to prevent your home being taken from you. There are a number of different things that you can do, but you will need to consider these with some advice from a person that has dealt with this situation before.
Oct
17
Avoid Foreclosure Orlando- How To Avoid Foreclosure Plus Keep Your Home
Posted by: | CommentsAvoid Foreclosure Orlando- How To Avoid Foreclosure Plus Keep Your Home
One of the worst things that can happen to anyone is to lose their home to their creditors. If you used your home as security for a loan and were to miss a couple of monthly payments on your loan, you could be on the road to big time trouble. Most people who signed a mortgage agreement with their creditors never read the fine print. Most mortgage agreements will give the creditors the right to foreclose on your property in the event that you have failed to repay your debts. Literally, you could end up on the streets if you fail to settle your debts. Talk about one stressful situation for you and your family.
How Best to Avoid Foreclosure?
The best ways to avoid foreclosure is to make sure that you pay your amortizations religiously. One of the keys to avoid foreclosure is to live well within your means and to save as much money as possible. Even if you are earning a limited amount of money each month, you still need to learn to budget your income. Each month, as you receive your paycheck, divide it immediately according to your needs for that month. One good idea is to incorporate an “envelope system.” What you would do in this case is to mark on each envelope the different types of expenses you have and then put money into each of those marked envelopes. Note that each envelope contains money for different purposes, thus you should never get confused. For example, never touch the envelope marked for mortgage payments and use it as grocery money. This type of system will eliminate any confusion with regards to money; however, it does take a lot of discipline though. If you do not have the discipline required, perhaps you can ask a family member to help you. Just to whatever it takes!
If you are one of those that earn cash on a daily basis, you should always set aside a portion of your cash to pay for your home amortization so that you can avoid foreclosure. For example, let’s say your monthly amortization payment is around $500 dollars per month. Now divide that amount according to the numbers of days you work. If you work 20 days a month, this means you will need to put aside $25 per day. If you’re married, you and your spouse can split up the daily saving quota, thus making it even easier.
In the event that you have an emergency, try not to use the money that you have set aside for the house amortization. Do your best to find other means of generating money to help you out of your emergency situation. This will take an extreme amount of discipline. But this is the only way that you can avoid foreclosure. The bottom line is, avoiding foreclosure requires a tremendous amount of discipline. The discipline to live below one’s means it is a good starting point. Without discipline, one can find them on the street in very short order.
Kerry Ng is a successful Webmaster and publisher of The Foreclosure Tips Blog. For more great helpful information about Foreclosure visit The Foreclosure Tips Blog
Oct
13
Avoid Foreclosure Orlando
Posted by: | CommentsAvoid Foreclosure Orlando with RJ Property Solutions, LLC. Stop foreclosure and save your Orlando home! We are the creative solution to all of your Real Estate needs! We specialize in negotiating with banks to prevent foreclosure!
