Archive for October, 2009

Leverage Orlando Loan Modifications To Get Homes For Pennies On The Dollar

As some of you know I like to buy defaulted mortgages when affiliates find deals they don’t know what to do with. Well I just had a fax come across my desk from an affiliate who participates in our Mastermind Coaching program. As part of this program we talk about all different ways of making money from bad debts. A defaulted mortgage is a bad debt. Most people think of a defaulted mortgage as a foreclosure. It all means essentially the same thing.

In this case we have a seller carry back mortgage on a 2 bedroom 2 bath house in San Antonio Texas. The sale price of the property was 78000 with 2000 down by the buyer when they purchased the property. The seller of the house decided to act like the bank and take back a mortgage so that they could get monthly payments. What often happens in cases like these is that the seller of the house sooner or later needs a lump some of cash instead of monthly payments. They may need the money to pay bills buy a car travel or even for the purchase of a new property. Either way the seller of the property note owner needs cash and is often willing to sell their note at a discount. We are in the negotiating phase with the note owner to buy their note for 18000.

Wait a minute you might say! Why would someone sell their 76000 note for just 18000? The answer is pretty simple. This note is in default. In other words the current owner of the house person making the payments is behind in their mortgage by 8 months. Their monthly payment is 647.47. Multiplied times 8 months and they owe a minimum of 5179.76 in back payments not included late fees.

The note owner does not know how to foreclose or have the money to pay an attorney to handle the foreclosure. They have been living off the monthly payments but now they have had no income for the past 8 months. The note owner is now late on their bills because they do not have the income they were promised when they sold their property.

So let me jump to the end and tell you the plan.

When I or you buy the paper mortgage on a property I do not need to do a short sale yet I can make as much money or more as someone who does a short sale. I will cover this topic at my live 3Day Foreclosure and Bad Debt Academy.

Here is what happens. We will complete the purchase of the note for 18000. We will then contact the homeowner actually we will get this part done even before we complete the purchase and offer our own forbearance agreement. Meaning we will not foreclose on the property. As part of the forbearance agreement we will get a Deed in Lieu of Foreclosure placed in escrow. It must go in escrow because we do not own the mortgage yet. We will agree with the homeowner that if they sign the Deed in Lieu of foreclosure to the house we will not foreclose remember we are buying the note and we will end up being the bank. The homeowner agrees to move from the property and we agree to keep the foreclosure from appearing on their credit report. We can even give them cash to help them move if they need it again we are the bank; we are not doing a short sale.

When we complete the purchase for the 18000 we transfer the Deed that was held in escrow and now we own a 78000 house value in 2004 for just 18000. We can turn around and rent the property out flip to an investor or sell it a full value to an end buyer. We have a 60000 profit from knowing how to shuffle paper.

In this deal we combined two techniques. We used our own forbearance agreement with buying a note from the bank note owner.

About the writer:nbsp;nbsp;Jason Keller has extensive experience in real estate valuation and property tax assessment. Mr. Keller is the Director of Property Tax Services within the Private Lending Group at Resolution Finance LLC.

Moving To St. Paul

St. Paul is becoming an increasingly popular area in which to live. Featuring the convenience of proximity within the Twin Cities St. Paul is a fantastic place to live work and raise a family. However if you are looking for more reasons to move to this beautiful area here are some other things to think about.

1. Schools The St. Paul area is home to some fantastic schools. Whether your child attends public schooling a charter school or private schools St. Paul schools have a very high attendance rate and a graduation rate of 80. There is also a great selection of post secondary options in the St. Paul area including the University of St. Thomas Metropolitan State University and Hamline University.

2. Amazing Homes This city is the location for some beautiful homes. In particular the Downtown St. Paul area is widely known for its trendy loft condos. There are also beautiful single family homes located throughout the St. Paul area. No matter what your tastes you will find a great home in St. Paul.

3. Employment The employment sector in St. Paul is thriving. There is a strong educated and skilled workforce here that provides a backbone for numerous types of industry and business. Finding meaningful employment in St. Paul is not hard.

4. People This city is possessed of a fantastic sense of community. Friendly and welcoming people have created an atmosphere of community spirit and belonging that is highly desirable. New home owners feel welcomed and a real part of the community very quickly.

5. Expansion With the interest in this area has come expansion. New homes and businesses are cropping up at an impressive pace. This expansion brings with it an increase in social programs home values and private and public services. This is creating a great market for homes and properties and the opportunities are unending.

6. Diverse Population This area boasts an economically and racially diverse population with an abundance of culture from around the globe. This has created a wonderfully synchronized community with a strong emphasis on family values and equality.

7. Investment The real estate industry in St. Paul is on the rise. This area is a great location for investing due to the need for quality housing. Home owners are enjoying the rise in their equity and investors are also realizing a high ROI on their investment properties.

8. St. Paul residents enjoy a great package of amenities that are supplied by the city. The professionally run and managed public services and utilities see to it that residents are supplied with every necessity of life and that their homes and properties receive the services that keep them in pristine order.

9. Things to Do There is never a shortage of things to do in St. Paul. This area provides excellent recreational options as well as a great selection of entertainment and dining choices. The downtown area in particular is a lively and diverse area with a huge selection of things to do.

10. Scenery The scenery in St. Paul is simply beautiful. In particular the Como or “Garden District” area is a favorite of residents and visitors alike. There are numerous parks surrounding scenic Como Lake that add a natural element to this amazing city.

About the writer:  M. Shane is a member of the REW Writers Team. A collective publication network facilitated by Real Estate Webmasters. Each article is contributed by a member of our real estate community. This particular article was submitted on behalf of Matt Barker your elite St. Paul/Como realtor.

Home Inspection – Description Of Why It Is So Imperative To The Family

As the agent of the “For Sale By Owner” home it is imperative that you are aware that home inspections are required by most contracts. A standard sales contract will give the buyer the opportunity to have many inspections performed on both the home and the property. If the home inspection results in some unforeseen information it is possible for your sales to fall through. This is a terrible situation that every seller should avoid.

The inspections are as follows:

General Inspection: This home inspection is required because it ensures that all major appliances heating plumbing airconditioning and electrical systems are in good working condition. It is the responsibility of the seller to keep all of it in working condition until the sale is closed. It will also be the responsibility of the “For Sale by Owner” seller to make any needed repairs to the house.

Roof Inspection: The “For Sale By Owner” seller has a chance of being liable to make repairs for leaks or any damage to the roof for up to three percent of the price of the sale. This liability is especially valid to sellers in areas with heavy snow.

Termites and other Wood Destroying Organisms: In this event liability will differ depending on which state you are in. In some states the seller is obligated to pay for up to three percent of the purchase price to cover the repairs. In which case the buyer would be obligated to pay for the inspections.

However other states will have the “For Sale By Owner” seller be responsible for providing a certificate guaranteeing that the home is clean and termite free to the buyer. One must obtain this letter or certificate through a licensed pest control company. The majority of the time you will spend less than one hundred dollars for these inspections.

For most sales contracts one must have these home inspections concluded within a limited amount of time. If a buyer runs out of time he or she loses the right to have any of these inspections. If the buyer has the inspections concluded within the given amount of time the results will be sent to the seller.

As the “For Sale By Owner” seller it is in your best interest to avoid any unforeseen surprises that can coincide with these home inspections. As a precaution you can choose to hire an inspector in order to acquire a written report describing the condition of your home. More often than not you will save money on the repairs that an inspector you have hired points out as opposed to an inspector the buyer has hired. The Home Inspector Locater is a great service that is available which is designed to help you find an inspector in your area. If you should choose to hire your own inspector it will generally cost you about two hundred dollars. That money will be well spent for you will most likely save a lot of money by doing so.

If you would prefer to avoid the home inspection entirely you can do so by selling the home “as is” but generally speaking you will be forced to sell your house for less. If you are the agent of the “For Sale By Owner” home it is imperative that you make sure the stipulation of the sale of the house “as is” is written in the sales contract.

About the writer:  Seb Frey is a Capitola California Real Estate Broker specializing in Santa Cruz Real Estate. He is fluent in Spanish and enjoys helping people find their piece of the American Dream in Santa Cruz. You can find Seb’s blog at SantaCruzHomeBroker.com/blog.