in the morgage says i need to live in the property for one year then i can do whatever , since i am in the first year what happen if i rent it

Sell House Quick

Investing in Foreclosures For Beginners

by Lex Levinrad Copyright © 2008

If you are thinking about investing in foreclosures there are some key points for you to consider before you begin investing.

The first step for you to understand is how the foreclosure process works. The foreclosure process can be broken down into three key components.

Pre-Foreclosure Foreclosure Auction REO

 Pre-foreclosure

The first step in the foreclosure process is called pre-foreclosure. When a homeowner has not paid their mortgage for more than ninety days the bank that owns the mortgage on that property files what is called a “lis pendens” which means “suit pending” in Latin.

A “lis pendens” is a written public notice that a lawsuit has been filed concerning real estate. This notice is filed in the county public records against a piece of property. This notice is also often listed in the classified ad legal section of certain newspapers. Filing this public notice alerts any potential purchaser or lender that the title to this property is “clouded” or unclear.

When a property has a “clouded” title then the title is not “free and clear” which makes the property less attractive to potential buyers or lenders. In reality, once a “lis pendens” is filed, a property cannot be sold or refinanced without the buyer being fully aware of the fact that the “lis pendens” has been filed.  The only way to get rid of a “lis pendens” is through foreclosure which wipes out a “lis pendens”.

Once a lis pendens has been filed the property is considered to be in pre-foreclosure. If you subscribe to a public database like foreclosures.com, realtytrac.com and many other similar sites you can get access to the properties that are in pre-foreclosure. You can also get a list directly from your county clerk by visiting your county courthouse. In some counties these lists are even available online.

If you are investing in pre-foreclosures you are buying a house directly from the homeowner. This negotiation with the homeowner is usually done without the banks knowledge. If you are investing in pre-foreclosures you will need to negotiate directly with the homeowner about purchasing their house. Since the “lis pendens” filing is public knowledge investing in pre-foreclosures is very competitive.

If the house has no equity then you will need to negotiate a short sale with the bank. A short sale is where a bank agrees to take less than the full amount owed to them. This occurs when a buyer is only willing to purchase the property for less than the amount owed on the mortgage by the seller. In the case of a short sale the bank is aware of the process since you will need to negotiate with them. The department at the bank that is responsible for negotiating short sales is called “loss mitigation”.

There are numerous online sources of pre-foreclosure lists which make the barrier to entry in pre-foreclosure investing very minimal.  Anyone can become a pre-foreclosure investor simply buy purchasing a list of homeowners in foreclosure. Since the information is public record it can even be obtained for free by visiting your county courthouse.

For this reason, pre-foreclosure investing is fiercely competitive. Since there are so many potential pre-foreclosure investors, the homeowners in foreclosure are literally bombarded with offers to purchase their homes. This makes it difficult for investors to differentiate themselves from one another to the homeowner. Additionally there is often hostility and anger from the homeowner since they do not want to be bothered by “foreclosure sharks” or people that they perceive as trying to take advantage of their situation.

For the above reasons, pre-foreclosure investing is a difficult and competitive are of foreclosure investing. If the homeowner cannot do a loan modification or sell their house to an investor then the house goes to the foreclosure auction.

Foreclosure Auction

The foreclosure auction is a public auction that allows any member of the public to bid on a house. Typically you need to register prior to the day of the auction and you need to have a cashiers’ check made payable to the clerk of the court for at least 5% of the purchase price.

If you bid on a house and win the auction you are expected to pay the balance of the amount either later that day or within 24 hours. In the event that you do not pay the balance in time then in most counties you forfeit your deposit.

You cannot get a mortgage to buy a property at the foreclosure auction. You need to have the ability to pay cash for a property and you need to be able to produce both the deposit amount and the full amount within no more than 24 hours after the auction. Since so much cash is required, investing in foreclosures by buying at the courthouse is difficult for new investors.

Investing at the courthouse is also full of risks. When you buy a house at the courthouse you do not get free and clear title. You get a property as is. If there are liens, judgments or code violations recorded against the property then these will not be wiped out by the foreclosure auction. If your property has squatters or unwanted tenants you will need to go through the eviction process prior to even entering your property. In most cases there is no inspection of properties sold at the courthouse so any damages that there might be are your responsibility. You also might purchase a property only to find out later that all the cabinets, appliances, and fixtures have been stolen out of the property.

In some cases beginners at the courthouse are not even aware that they are not bidding on a first mortgage. I have seen bidders bidding on a second mortgage only to find out that there is a first mortgage ahead of them. If you are going to be investing in foreclosures by buying them at the courthouse it is imperative that you understand “position” and which mortgage you are bidding on. It is also imperative to do a very thorough title, lien, utility and code violation search. It is also important to do your homework in understanding the condition of the property, the value of the property and the estimated repairs that the property will need.

Investing in foreclosures at the courthouse is not for the faint of heart and certainly not for beginners. You need to be very knowledgeable about real estate law, the foreclosure process, and have access to a good title agent that will run title searches for you. Since buying at the courthouse requires cash it has a high barrier to entry. Anyone without access to cash cannot buy at the courthouse. This effectively eliminates a lot of the competition. If you are willing to be diligent and do the work, buying at the courthouse can be very rewarding. However this is not an area for beginners. Anyone can watch a foreclosure auction by going to the courthouse on the day of an auction. You do not need to be a bidder to enter the room where the auction is being held.

Buying at the courthouse can be frustrating since foreclosure auctions are often cancelled at the last minute. Auctions can be cancelled because one or both of the parties was not served correctly, the seller has filed bankruptcy or the seller has negotiated a loan modification with the bank. Doing a lot of research on properties and then watching them get cancelled at the last minute can be very time consuming and frustrating.

Usually the bank is prepared to let a property get sold at the courthouse for eighty to ninety percent of its market value. Depending on economic times, this number can be higher or lower. The attorney representing the bank will protect the banks interest by bidding up to the value of the amount that they are willing to sell their property for. It is a myth that foreclosures get sold at the courthouse for pennies on the dollar. In reality, the bank will protect their interest up to almost the full amount that is owed to them. This is another reason why bidding can be very frustrating at the courthouse. If the bank is the highest bidder, then the property goes back to the bank and becomes a bank owned or REO property.

REO

 Real estate owned or REO properties are properties that are owned by the bank. Since banks are not landlords the first thing that they do with a property that comes back to them is they try and sell it. The way that they do this is by using “asset managers” or asset management companies which are companies that represent the banks in dealing with their REO properties.

These asset managers submit their REO properties to pre-established realtors that only work with REO properties. These realtors give their asset managers a “brokers’ price opinion” (BPO) which lets the bank know at what price the realtor thinks the house should be listed. Usually bank owned properties are listed at competitive prices in order to facilitate a quick sale. REO properties are cash only deals meaning any potential buyer needs to be pre-qualified by the bank and needs to show a “proof of funds” like a bank statement. Buyers need to show that they have the cash available to purchase a property.

Buying REO properties is not as competitive as pre-foreclosures but is more competitive than buying at the courthouse. The reason is because all of the properties are listed on the multiple listing service (MLS) so any member of the general public can have access to REO properties through websites like realtor.com and zillow.com. This makes purchasing REO properties fairly competitive although the barrier to entry is high since you need to be a cash buyer.

You cannot get a mortgage to buy a property that is owned by a bank. In fact if a bank is faced with two offers they will always take the cash offer even if it is substantially lower than any other offer. The reason is because banks need to liquidate REO properties quickly in order to avoid a bottleneck of owning too many properties. Federal regulations limit how many bad loans a bank can have on their balance sheet so banks try and get rid of their REO properties as quickly as they can.

For this reason, cash buyers that are prepared to close quickly and waive contingencies like inspections will always get the best deals. One big advantage of purchasing REO properties is a relatively free and clear title. I use the word relatively since the banks use their own title companies to close on their REO properties. Sometimes these title companies do not search for code enforcement and utility bill liens. However the marketability of the title is never in question.

The popularity of purchasing REO properties changes depending on the current state of the real estate market. Presently in 2008 the best opportunity for buying foreclosed properties is with REO properties. In some situations these houses are being sold at ridiculously cheap prices. Since there is so much turmoil in the banking sector many banks are reluctantly being forced to “dump” properties are very low prices. If you have the cash to invest you should begin looking for an REO bargain while they are still available. It is estimated that there is enough supply still entering the market that you can probably purchase an REO property relatively cheaply and easily over the next two years.

For patient long term real estate investors, buying REO properties directly from the bank could have significant upside potential.

 



Sell and Rent Back

A house or a property comes to an auction center when the owner of the house is unable to sell the property or the house, and the property has been taken back by the lender in foreclosure. The owner of the house can either be a builder or an individual; so he can sell the home either by a real estate investor or with a help of an auction company.

The most important task that you need to do when you’re planning to buy an auction property, is that you need to investigate and do some research! If the property is a single property that went into foreclosure, try to get some information about the house. Try to know about the house’s size, what are the basic facilities does the house have, was there any previous owner and who owned it. The most important part you need to know is the opening bid. You may even cross check with local title company or with the county’s recorder for list of houses which are currently in foreclosure. Before you buy the property or the house, you must know the property’s value; therefore you have to compare the sale prices of two such similar properties in that particular locality. In order to predict the property’s value, try comparing houses which are within 3 miles of the house which is been auctioned. Try to find what kinds of amenities does the house have; such as number of bathrooms, bedrooms, parking area, fireplaces, swimming pool, etc. This will help you to know about the value of the property.

Keep yourself financially ready, at property auctions you might need to deposit a minimum of at least $1000 to maximum of $5000. You may pay the remaining amount when you buy the house. You should always know to keep your price limit. People at auction are known to create excitement and agitations, so more the crowd, the more likely the price to increase! Keep yourself stuck to the price which you have targeted and don’t get carried away. You have to be prepared to just walk away if you think the property or the price doesn’t satisfy you. If you feel if there is a bidding war among the bidders then try to stay away, as your bid will only shoot up the tension. So once the bidders have dropped out you may slowly get in.



Quick House Sale

Every heard of Real Estate auctions?? If no, don’t be flabbergasted. The traditional way of selling properties has been either through placing an ad in the classifieds of the local daily with a good reach or through real estate brokers, who have access to real buyers. Undeniably both of them have their advantages. With a classified in a local daily, you can reach a wide audience spread over the area where the daily is usually distributed. While this gives you a wide reach, it might result in a lot of unwanted calls and enquiries. Real Estate Auctions eliminates these hassles. With the real estate agent, you might get a lot of prospects, but how many of them are qualified prospects is something to be noted.

Here is where real estate auctions come into picture. They provide a great platform for you to sell your property. It minimizes the hassles of prospects visiting the house frequently at untimely hours as well as attracts only qualified buyers who are actually looking to buy a property.

There are numerous advantages of holding a real estate auction.

5.Speed: One of the biggest advantages in an auction. You have prospects that are willing to buy and the auction itself will be completed one day. Everything is done at double-quick speed. This is a refreshing change from the long drawn process of the normal way of selling real estate.

6.You decide the date and time of auction. Once the prospects have looked at the property, you decide the date of auction and time as well. All happens without disturbing your regular schedule!!

7.You will get a better pricing with auctions. It is a known fact that auctions usually drive up prices. Real estate auctions are no different. They get a better price for the property owner with minimal effort. Sooner or later the property owner will be out looking for a new house, maybe in a better neighborhood.

8.You get the right prospects in a real estate auction. Invariably, the prospects will be people who are interested in buying the property and with the required credit line or funds.

Irrespective of the state of the property market, real estate auctions provide a great way to sell your properties for a better price. It is really a quicker way of disposing properties without the usual hassles. In real estate auctions it is said, both the buyers as well as seller, benefits, a lot. The Seller has the advantage of getting the properties disposed off faster and the Buyer has the advantage of getting the property into his hands quicker.

So, if you have a property and are looking to sell of the property, but were scared about the hassles involved in it, Real estate auctions are the way out for you. You decide the time, place and date of the auction. You are more or less assured of a better price. You

can be assured of a quicker disposal of your property.



Sell and Rent Back

Raleigh, North Carolina – 2009

Homeowners looking for a fast sale in Raleigh and surrounding areas isn’t going to happen with listing your house through a real estate agent.  According to the numbers home sales are down to a whopping 709 homes sold in the month of February.  Those numbers suggest that out of all the houses in Raleigh on around 700 actually sold and real estate agents were the ones that contributed to such a low number of homes sold.

The foreclosure crisis and housing market bust is leading the Raleigh to a five year low, as far as, houses sold are concerned.  That means homeowners that need to sell their house fast because they are facing the threat of foreclosure need to make their house stand out from the houses on the market. The number 709 houses sold are at a really low number and the only thing that can help a house sell faster is by having the lowest price on the market.  The only problem is home values have been pretty stagnate over the years which means most homeowners have little or no equity.

Owners with little or no equity that are behind on their mortgage payment only hope to sell their house fast is something called a short sale.  Short sales are becoming the leading method to help homeowners avoid the foreclosure process.  The current state of the Raleigh housing market more homeowners behind on their payments will have to short sale their house if they want to seriously stop foreclosure by making their house more marketable.

A short sale is when the homeowner’s mortgage lender agrees to reduce the mortgage balance owed to a price that makes the house more marketable.  Lenders agree to short sales because they can cut their losses early and recoup their money as soon as possible.  Lenders will rather get their money now rather than take a house back that may decrease in value, resulting in a lower bottom line.  Plus a short sale can cut cost such as foreclosure fees, attorney and realtor fees.

Homeowners benefit from a short sale as well because they can avoid foreclosure and qualify for a home quicker than allowing their lender to take their house.  Freddie Mac will lend to a homeowner that went through a short sale in as little as 2-3 years versus 5 years for a foreclosure.  Owners can also negotiate the balance which can become a judgment to a zero balance which is impossible if they let their house go to foreclosure.

 

 



Repossession

In order to get your mortgage company to work with you to stop house foreclosure, chances are that you will need to provide them with a whole lot of documented proof of financial hardship. Financial hardship requirements and paperwork varies by mortgage company but here are a few things you should be prepared to provide them.

1. A current overview of your income and expenses. In order for them to decide if they are willing and/or able to work with you, they will need to know what your current financial picture looks like. Here is where you are going to need to get honest with yourself and your mortgage company about what your financial picture really looks like. Doing this exercise might also help you figure out where you can cut back on your expenses. If you want to stop house foreclosure, you will need to find areas to cut back.

2. Documented proof of your current income. If you have a job, this will mean getting pay stubs. If you have incoming coming in from other sources, you will have to provide proof of that as well. I had child support and maintenance payments that I had to provide proof of. Sending them copies of checks worked in my case.

3. Tax returns for the past few years. My mortgage company required the past 3 years of tax returns. If you file a 1040, just to be on the safe side, I would provide them with any schedules (A, B, etc) and any additional forms as well as the 1040 form itself.

4. Hardship letter. Here is where you explain what your financial hardship is. Here is where you get to make your case. Explain that you want to stop house foreclosure and what your situation is. Some things that many mortgage companies will accept as financial hardship is divorce, job loss or disability.

Every mortgage company has different requirements and in order to stop house foreclosure, you will need to get the requirements from your bank.

A helpful tip: Fax or email all of the paperwork that they want all at once. They are busy and it is very likely that your information could get lost or misplaced if you fax or email your paperwork in separate batches to them. Also always reference your loan number on everything that you send to them.



Real Estate Professionals

With today’s economic crisis, many people are finding it more and more difficult to qualify for bank financing on a home.  The restrictions and requirements to qualifying are now very hard to meet, and if you qualify, you can expect problems if you are late with even one payment.  If you are self-employed or have had credit problems in the past, you can expect many more difficulties with financing. 

 

There is a way to own a home and without all the problems mentioned above.  At Mina Properties, we sell house properties.  We then sell these properties to people just like you.  We have no credit check programs.  You don’t need to jump through hoops just to get the home you want.  We can help you with just a small down payment and a monthly payment that you can afford.

 

Mina Properties is based in the Dallas/Fort Worth area and we have many, many no credit check properties for you to search through.  The process is very simple when it comes to selling a home through Mina Properties.

 

Since we don’t check your credit score, we can move very quickly through the selling process.  We don’t charge a fee for our services and there are no closing costs.  Sometimes, the process can be completed in as little as one day.  We offer low down payments, not the typical ten to twenty percent of the purchase price like some traditional lenders.  Our no credit check properties have reasonable monthly payments.  We want you to be happy with your home, but we also want you to be able to easily make the payment to keep the home.

 

We have no credit check homes that fall into all different prices ranges, sizes, and locations.  We offer homes in the Dallas/Fort Worth, Texas area, but also in the surrounding locations, such as Addison, Allen, Azle, Aubrey, Carrollton, Farmers Branch, Flower Mound, Frisco, Garland, Lewisville, Little Elm, Mckinney, Mesquite, Murphy, North Dallas, Plano, Prosper, Princeton, Wylie, Duncanville, Euless, Farmersville, Cedar Hill, Balch Springs, Desoto, Coppell, Richardson, Rowlett, Sachse and the rest of the Dallas/Fort Worth metroplex.  No matter which area you choose, there is no qualifying needed to sell a no credit check home from Minas Properties.  We only need to know you can provide the down payment and have means to make the monthly house payment.

 

If you are self employed or have had prior credit problems, it’s all right.  We can help you.  However, if you are looking to sell your home, we can help you do that as well.

 

We are not realtors.  We sell house properties and sell them to individuals that have had trouble qualifying for home loans in the past.  We believe everyone deserves to own a home and we can help people realize their dream of home ownership.

 

IF you would like to sell your home, but don’t have a lot of equity, we can assist you.  If you are facing foreclosure, let us help you out of that mess.  We can sell your home at a good price, so you won’t have the foreclosure on your credit history.  Don’t let the banks and financial institutions ruin your life.  We sell house properties from people who are struggling.

 

Minas Properties also sell homes from people who simply need more living space or are ready to move.  Our website is very informative and will provide you with the details of how we sell house properties.

 

If you have had difficulties in the past with selling a home, we can help.  With no credit check properties, low down payments, and reasonable monthly payment, you can be in your new home quickly.  If you need to sell your property, contact us to see how we sell house properties for a fair and honest price.

 



Quick Property Sale

Is it time to move?  Do you need more living space for your growing family?  Many homeowners need to sell their home, but don’t want to pay the expensive realtor fees involved with the sale.  We sell houses and all you have to say is “Sell My House!” We take care of the rest.

 

The flip side is when homeowners are facing foreclosure.  In this case, you may need to sell your home very quickly to avoid having the foreclosure in your financial history.  We can help.  At Minas Properties, we sell houses and can easily relieve a lot of the stress of home foreclosures.

 

Mina Properties is located in the Dallas/Fort Worth area and we offer services for the entire metroplex surrounding these two cities.  For those of you that are looking for a home, we have many properties available.

 

We have homes of all sizes, prices, and in many communities.  The best part is that we offer no qualifying in order to buy these homes.  We don’t do a credit check and you don’t have to complete mounds of paperwork.  Our down payments are reasonable.  You don’t have to come up with 10 to 20 percent of the purchase price.  Let’s face it – in today’s economy, this is simply not an option for most people.  Our down payments are as low as 2%.

 

How can we help you get into a home?  It’s a very simple process.  You can browse our website and see our properties that are currently for sale.  Don’t see something you like?  No problem.  We can add you to our Buyer’s List.  We always notify those on our list about new properties before we start advertising the homes.

 

If you’re not ready to buy, we also offer leasing options for many of our properties.  You can decide at anytime to purchase the property.  This is a great option for people that don’t quit have enough money for the down payment.  Our monthly lease payments are very reasonable and you will quickly see how affordable our properties are.

 

For those of you that are looking to sell your home, we can help.  “Sell my house” will get the process started.  We buy homes from people just like you.  It’s easier and much more economical than using a realtor.  We lay everything out; there are no surprises.  Let us show you what we can do for those who say, “Sell my house!”

 

For those of you that want to purchase a home, you’ll find our properties are a great value, with low down payments and comfortable monthly payments.  There is no qualifying for a loan and you don’t have to worry about a credit check.  It’s time you found your new home and we are happy to help.

 

With today’s economy in a downward spiral, it’s never been a better time to sell or purchase a home.  Buyers are quickly grabbing up homes at reduced prices, but this doesn’t mean you have to let yours go dirt cheap. 

 

While you may have difficulty selling your home through traditional means, Mina Properties actually buys your home.  You don’t have to worry about a buyer qualifying for your property or the deal falling through.  Many times, it only takes a few days to complete the sale of your home to Mina Properties.  If you are thinking of buying another home in the Dallas/Fort Worth area, we can help you there as well.  Mina Properties can help you sell or buy a home.

 



Passive Income

For many years now the mortgage interest rates have been low. This has been very profitable for home owners or other people with mortgage loans. We don’t know how long this low rent period will last but the longer the better for home owners with mortgage. But even when the interest market is low the interest rates varies. Some people are still sitting with and are paying each month on a mortgage they took years ago, while the rates were much higher than today. All they have to do is refinance their mortgage and their interest rates will be much lower.

When you are searching for a mortgage, one of the most important things that you should consider is the mortgage rates. These are the things that will decide whether you can comfortably deal with your payments, or if they will always be a milestone around your neck. With house process on the increase, the amount of money you will have to repay can seem never ending.

The lower the mortgage rate, the less you will have to pay in monthly instalments. This can be important if you are paying back $600 a month; any small reduction can seem fantastic.

Low interest rates often keep the economy running, as people who already have mortgages take advantage of the low rates. They also help to allay people’s fears about buying a house.

Although there are many sites offering you the lowest mortgage rates, the questions that you need to be asking are: do we intend to stay here long? If you are planning to stay in the house more than a couple of years, then the long term paying and amortizing of your mortgage may be more important than a lower mortgage rate. If you have to pay extra on your mortgage to get the lowest mortgage rate, then it is not a good deal.

If you have not had much joy with finding a lower mortgage rate, then you may consider taking out a normal mortgage, and paying the sums back with an online credit card. These can offer lower interest rates, but it is also more likely to have payments raised above the rate of inflation, and you still have to pay off your mortgage.

Ideally, the best situation would be for your bank to offer the lowest mortgage rates; however, this never happens, and if you want to find the lowest interest rates, then you will have to shop around on the internet.



Rent Back

Getting the best mortgage rate is the topmost factor on everyones mind while applying for a home loan. There are many lenders who are willing to give you good deals. There are also some who will seem to charge you less but have many hidden costs. You have to be careful when choosing your lender. It would help you if you gather enough information about mortgage loan in general. This would enable you to know what exactly to look for.

Some Factors To Consider

You should first know what to look for while taking a loan. An important thing to know is that mortgage loans can fluctuate from time to time. If you could keep a track of the trends in the market, you would be able to get the best rate possible. There are many factors that cause these fluctuations. If you are planning on taking a home loan, you should plan it in advance and follow market trends for a while before actually availing a loan. This is one way of staying on top of the market. Some of the factors that determine this rise and fall are the demand of investors and the state of the economy.

When the economy is down, the rates will fall. This is because investors would be buying everything that they can get their hands on. This is the best time for you to take a loan. And this is when you will get the best mortgage rate possible.

Use A Mortgage Rate Calculator

There are several websites where you can get an estimate at a click. You can compare several rates offered by different lenders. This will also help you find the best available option in the market. You can also find out the rates of different types of mortgages for various periods of time by using the rate calculator. It can be a really handy tool for you. You will be able to take a look at the current rates and calculate your rates accordingly. You can even check out the second mortgage rate and adjustable mortgage rate on the site if you want to.

These sites help you to get the lowest deal that is available. You can compare the rates of the different products available. Once you have compared all the products and rates, you can find the one that is best for you. Once you find the best rates, you should check out the company and make sure that they are credible. These are the few factors you must keep in mind while shopping for mortgages.



Rent Back Fast