What’s THE scariest homeowner comment about “Short Sales”?

“We’ve submitted our paperwork to our lender so we can get a loan modification!”

OK.

Seriously?

That’s EVERY homeowner’s song of salvation. Unfortunately, sung by a tone deaf homeowner without a band.

What that means is regardless of WHAT information you hear about Loan Mods…ITS ALL CRAP! TOTALLY FALSE and MISLEADING.

It’s the lenders ploy at falsely appeasing an unsophisticated consumer.

Think about it…GOOGLE the term “Loan Modification” and find the sites that track the actual progress and PERMANENT success of loan mods…go ahead…I’ll wait…

OK. So by now you should be FULLY aware that a loan mod is the lenders BEST OPTION at stalling the homeowner from hiring an attorney.

Know this: Loan Modification departments and legal departments of nearly ALL lenders NEVER COMMUNICATE! They’re not in the same building, city, zip code or state!

While you are living your life believing salvation via a loan mod is coming, the legal department is filing a notice of trustee sale because you’ve ALREADY RECEIVED A NOTICE OF DEFAULT;which is why you even were permitted to apply for a loan mod…

Federal guidelines (HAFA) REQUIRE the lender to “process” a loan mod AND a short sale attempt BEFORE they are permitted to foreclose.

BUT wait! There’s more!

Remember I wrote the two departments NEVER communicate?

“Left hand doesn’t know what the right hand is doing?”

All of a sudden (And trust me on this one. I lost one EXACTLY this way very early on in this game.) you receive a knock on your door.

You answer it.

It’s a man or woman in a constable uniform.

Yup.

It’s THE constable.

Why?

They’re here to help you take whatever you can grab, evict you and change the locks.

Don’t want to go? Think you’ve “Got Rights?”

Not anymore you don’t.

He’ll call more constables and the police and then WILL PHYSICALLY REMOVE YOU AND YOUR FAMILY FROM THE HOUSE…Which is NO LONGER YOURS as it was sold at auction right from under both YOU AND YOUR LENDER!

Listen and listen good.

If you don’t retain an experienced real estate broker with a shark of an attorney to represent you so you can exit gracefully and at least get some relocation cash, YOU ARE UP THAT PROVERBIAL CREEK!

Don’t take my word for it…

The property I will use as an example?

Here’s its address: 247 Summit Vista, Henderson, NV

Check out its history. You’ll see it was listed, then foreclosed. Without ANYONE, EVEN the real estate broker (not me) who owned it, knowing it.

Concerned?

You better be. Because if you don’t advocate for yourself, who will?

Is that the constable I see driving up your street?

*** Tony Robbins Economic Warning ***

Been awhile…trying to make a few bucks AND take some vacations…

Why I Chose Real Estate As My Career…

Initially as a college student, I saw numerous real estate agents in my town in Orange County driving the nice cars, living in the nice homes, taking the nice vacations and I wanted that life.

I  got it.

But then, with all the greed and horrific things that happened over the last few years in our country specifically in real estate, my focus changed. Dramatically.

No longer was income the main reason to be still involved.

So many of my friends and neighbors and people I didn’t even know were suffering so greatly and turning to me for advice and help;  more than I had ever spoken to before in my career.

And the common thread they were seeking was “I’m scared that Im going to lose my house. What should I do?”

And there I stood. Dumfounded.

How was I supposed to answer their question?

What WAS the answer?

Was there an answer?

Could I learn the answer or answers and help people with it?

I HAD to.

And I did.

I spent countless hours late into the night researching everything available relating to Loan Modification, Foreclosure, Short Sales and blecch, Bankruptcy.

And the final result?

To help the distressed homeowner, it was my opinion that the Short Sale route is in fact, THE solution and quickest path back to wholeness.

The hardest part of the entire process is letting the homeowner know that it’s OK to let go…it’s necessary for the healing process…it needs to become a business decision.

This I do everyday with my clients. This is my promise to each and every one of them.

I’ve set up a toll free 24 hour recorded hotline for anyone needing help. By calling it you can also request a free copy of my new book, “Should I Short Sale My Home?”

Call today…1.866.876.3905

Getting Over the Fear of Money

For those investing in real estate, you may find that there are several unknowns that have to be accounted for that are related to money.  This investment relates to both home owners as well as those involved in the real estate business.  There are several common fears that are related to money in real estate. 

One of the major problems that are part of real estate investing is taking risks.  If you are investing in a property to own a home, you will have to take out a loan.  If you are unable to pay taxes or the loan at any time, you will be at risk of loosing the home.  This can cause several levels of fear to occur, which may lead to the wrong loan being purchased for security.  Knowing how much risk you are willing to take with your loan will define what type of loan you should get. 

Another common fear factor with money is in relation to investing in a property during the wrong time.  If the economy is at a low or if the market price is not good, investing in a certain property may mean a loss.  This is a risk factor that many real estate companies will decide to take in order to sell a home.  When deciding if this is a good investment or not requires some risk and can cause fear if you are unsure about the economy and sale of the home. 

Money in the real estate business means taking risks.  Whether you are a home owner or are in the real estate business, there will be several times where you will have to determine logical decisions without knowing if there will be money to back up the decision.  It is important to acknowledge these fears so that certain boundaries can be set in relation to them.  This means that you know when you are going too far with a purchase or investment or when the fears are holding you back from making the right moves.  By knowing the financial details of a home purchase, you can move past your fears and make the right investments.

To learn more about what properties are on the market TODAY, log on to my website: HowToBuyABankHome

Can I Trust You?

I, like most realtors and lenders have been working to save homes and help homeowners in distress for the better part of two years.  And while we have had some success most of the work is just a circular wheel to no where.  In the mean time more homeowners are losing their homes and the banks/lenders are getting richer and richer.  All at the expense of us, the economy and the country.

I have attended every workshop, webinar, seminar that I can about this issue and there seems to be no answers.  The longer we are engaged in this mess the messier it gets.

So how do we solve it?   To really get our lives back on track you have to fix your mortgage.  Right now the only solution is to walk away.  Modifications, chapter 13 BK’s and anything else just prolongs the pain.

But what do you do?  Where do you move?  How do you recover from the credit ding?

Your bank/lender will sell your home to a completed stranger for 30 cents on the dollar but not to you.  How unfair?

Lenders in my mind are so evil that many won’t even allow you to stay in your own home at all costs. 

So how do you get your life on track?

Sell your home to a complete stranger, have a complete stranger rent your home.  Have a complete stranger put all the utilities in their name.  And after doing all that maybe you could find a place to live (wink, wink).  And maybe just maybe in 42 months after the smoke has cleared and America moves onto the next big crisis coming down the pike you could buy your old home back.  So far I haven’t seen that restriction anywhere. (the buy it back part)

It really is the only solution right now.  Short sale your home; take the credit hit, rent at half of your old mortgage payment.  Never move, and maybe buy back your old home in 42 months.  You will have a new loan amount 1/3 the previous amount. And get on with your life.  If your current on your mortgage miss the payments while you short sale, no credit difference.  Take the mortgage money get three more credit cards, secured or unsecured use them and rebuild your credit.  Two years from now you will have the same life with better payments and loan basis.

If you understand what I am talking about then contact me.  If you know someone that may fit into this scenario, you can contact me for them and I will meet with them.  If you are a realtor with a short sale listing and you do not have a buyer, call me.  If you know someone that just wants out of their house let me know.  I have an investor that will facilitate these deals all day long.  Every deal we do is a cash closing with a 30 day close time.  We can close faster than the banks can approve them.  Most of the time we will buy the house on the spot, pay cash and you will have a 30 day closing.

If you’re a homeowner and would like to speak with an EXPERIENCED real estate attorney about your options with your home and mortgage, I offer ALL homeowners a FREE consult with my attorney group.

Please contact me for any help you need. Thanks!

MERIT Realty Reports GMAC Has Nearly 100 Foreclosed Properties In Las Vegas & Henderson

A search of the Greater Las Vegas Multiple Listing Service reveals super lender GMAC has listed nearly 100 properties with local real estate agents in its effort to liquidate it’s bank owned inventory. 

This number does not include short sale or re-sale properties but does include single family residences, townhomes and condominiums; some are in good condition while others are just plain ugly and need cosmetic and/or some degree of rehab. 

Listed prices are intimidating to many home buyers but rarely intimidate the true real estate investor. To a professional investor and his real estate agent, the list price is just a number. The method of creating a “deal” in any market is the fearless ability to write and present aggressive offers to sellers like GMAC of distressed properties; and not merely one at a time. 

The investment game is like any other business; a number of offers are needed to create the desired result – success in acquiring a home to live in or one to add to a portfolio. 

A highly effective tool used by MERIT Realty agents in selling GMAC properties is the automated client/property notification system. It allows a client to submit his criteria for acquisition which is then entered into the MLS system. Once a property match occurs, the client and agent are automatically notified. Many times, this is the catalyst for the investor that allows him to strike before anyone else sees the property. 

If you are a home buyer or investor and are looking for an edge in buying a GMAC short sale or foreclosure in Las Vegas or Henderson, then you need to request access to this advanced property notification system. 

Best part? It’s FREE. 

Access it 24 hours a day, 7 days a week at: HowToBuyABankHome.com

Bank Of America Has Nearly 300 Ugly Foreclosed Properties In Las Vegas & Henderson

What makes a house ugly? Essentially, they are properties that are in need of some degree of repair – from minor cosmetic to full on rehabilitation.  

Some ugly properties may lack such “amenities” as windows, doors, plumbing fixtures, flooring, cabinets, even entire air conditioning units and can become a popular hangout for drug addicts and vagrants. We have even seen instances where a disgruntled former homeowner has poured concrete down all the toilets! 

Some cities can and do, fine property owners (typically banks) thousands for numerous code violations.  

A particular ugly property in Sarasota, Florida was assessed $275,000 in outstanding fines from the city and $25,000 in code violation fines that the investor was able to have repealed to $375. He then purchased the property for $7,000 and resold it “wholesale” for $18,375 to another investor, who then sold the two-bedroom house for $30,000 to a “retail” (homeowner) buyer. 

The key to success in this facet of real estate investing is to help people stuck in ugly houses or people who find themselves in ugly situations like foreclosure, divorce or job loss that need to move.

Using your local MLS and a highly qualified real estate agent is the fastest method of locating such properties. Some may be listed and some real gems may be in their private inventory: aka, “pre-listed”. 

Before buying an ugly property, get it inspected by a certified inspector to reveal any hidden items that could lead to a HUGE evaporation of your investment dollar- making you an ugly investor. 

You can access the entire Las Vegas MLS to find your next property at NO COST and with NO personal information needed at: HowToBuyABankHome.com

Short Sale and Foreclosure Values For Ugly Houses In Las Vegas And Henderson

2009 update – The bubble has popped in the highly appreciated coastal markets and some of the inland markets related to them. Where will values end up? That will depend on area, but 30-40% drops from the peak prices are probable, with lenders losing 50% or more of their loan amounts on some properties. June, 2009 is seeing increased activity in Las Vegas and Henderson in the lower price ranges, it’s likely to be a couple of years before there is significant price appreciation. Look for specific under priced properties, do not count on appreciation to make a profit.

Most everyone will agree real estate markets that have had huge price increases for many years in a row cannot keep rising in price at the same pace as in the past. Other real estate markets have seen appreciation, but at a more moderate pace. A slowly appreciating market is far less likely to suffer a “bubble burst” than a market that has seen huge gains in just a few years time.

So, without relying on statistics provided by media sources, how do we find the appreciation rates in the area you are considering purchasing real estate in? The Office of Federal Housing Enterprise Oversight, or OFHEO, provides statistics based on the sales, or refinances, of individual properties. By using individual properties, OFHEO eliminates statistical variations caused by strengths in either higher end properties or lower end properties in any given market.

You can get to OFHEO’s House Price Index by clicking the link. You can compare individual state’s appreciation rates, review different Metropolitan Statistical Areas (MSA), or use their House Price Calculator to estimate the current value of an individual property based on a past purchase price and sale date. It’s good stuff.

If you are thinking about buying in an area that has had very aggressive appreciation for several years, you’ll probably want to be able to either re-sell the property fairly quickly, or hold onto it for many years. The fast resale approach, which shouldn’t exceed 6 months, will avoid any major downward price movement as long as you are paying attention to current market conditions. The long-term “buy and hold” approach is always going to be based on the property’s ability to cash flow. If you have a positive cash flow, market pricing cycles do not matter, you know in the long run that the loan will be paid down, and your property will eventually appreciate again. Buying a property to hold for a few years, then sell and make a bunch of money probably isn’t the best approach right now. However, if you are in an area that hasn’t seen explosive price growth, there isn’t really any bubble to burst, just invest any way you feel comfortable doing.

For more information on buying short sale and foreclosure properties in Las Vegas and Henderson, visit HowToBuyABankHome.com

Courtesy:AllForeclosure

Tips On Finding Distressed Property To Buy In Henderson And Las Vegas

Foreclosures occur when payments aren’t made on a loan that is secured by real estate, and the lender takes the security(real estate) because those payments have not been made. Understanding the process, and what steps you need to take at different parts of the process, is essential to successful investing in distressed property.

Property Values and Foreclosures

While it’s certainly possible to find properties selling for 50% of their potential fixed-up value, most people will find it easier, and more efficient, to focus on properties selling in the 65% to 80% of value range. Some of the value seasoned investors seek when buying these homes can come from the normal terms of the loan, such as very old loans that have been paid upon for many years. Some can come from price appreciation in a “seller’s market” where homes are appreciating rapidly in price. Some can come from the lender not wanting to deal with the property due to damage or necessary repairs, where the lender will accept less than they are owed on the property. So, how do you find these properties and what steps do you take? Let’s start at the beginning.

The First Step

When payments aren’t being made on a loan secured by real estate, lenders will often initiate default proceedings when the third payment is missed. The owner still has possession and the right to sell or refinance the real estate, these properties will usually be called a pre-foreclosure property by many investors. Since lenders cannot release information about their distressed loans due to privacy concerns, and homeowners often do not want to publicize their situation, you need an alternate way to find these properties, along with owner contact information. That source of information is your county recorder.

The County Recorder

Virtually all documents regarding real estate transactions are recorded and filed by the county recorder, and because they are public documents, you can access and search those documents. Most properties in default can be identified by the initial foreclosure document, which in most states, will be a Notice of Default or Lis Pendens.  A Notice of Default, or NOD, is used in non-judicial states, while the Lis Pendens is used in judicial states. Because a judicial foreclosure is a court proceeding, you may have to search court records for the Lis Pendens instead of the recorder’s office, local procedures vary throughout the US. Also keep in mind that all Lis Pendens are not loan defaults, Lis Pendens means there is a legal action pending, and many Lis Pendens will not be anything of interest to you.

In a simple world, you’d be able to find your target properties by asking your county recorder for a list of all the NOD’s or Lis Pendens recorded that week, and they’d give you the list, with names, addresses and phone numbers along with other information you might want. It doesn’t work that way. But, since many recorders have established searchable websites, you can do something similar. Use the online recorder’s site to find properties by searching for those document types. That should get you a list of owner names and document numbers. If you can’t view the actual documents online, you’ll then have to physically go to the recorder’s office with your list, search by owner name or document number, and look at the document (Notice of Default, or Lis Pendens) which will reference the original loan, the property address and the default amount.

For more assistance on buying a short sale or foreclosed property in Henderson or Las Vegas, visit our website at: HowToBuyABankHome.com

Courtesy: AllForeclosure

MERIT Realty Advice On Buying Henderson Or Las Vegas Property At Trustee Sale Foreclosure Auctions

TRUSTEE SALE PROPERTIES ARE SOLD “AS-IS, WHERE-IS” FOR CASH OR CASH-EQUIVALENT. USE EXTREME CAUTION WHEN BUYING AT TRUSTEE’S SALE.

Information is everything! Up to date accurate information is essential for investing in foreclosures. You will need a source for knowing what properties are going to sale, for how much and when.  Foreclosure sales are commonly postponed for many reasons, some because owners are trying to save the property, others because the lender needs more time for proper processing. You will need to track properties you are interested in, making sure to record postponement dates and reasons for postponement. KEEPING AN ACCURATE DATABASE IS ESSENTIAL. When a property has postponed many times, other investors will sometimes lose track of properties you are interested in, thus reducing competition at the actual sale.

Properties are tracked using a Trustee Sale Number (TS#). This number is generated by the trustee when a property enters foreclosure and is used by the interested parties. When you are seeking information regarding a property, this number is usually used to reference the property. Trustee’s are the ones usually processing a foreclosure, typically the only information they will give out regarding a property will be the date, time and location of a sale along with a bid if it is available or a postponement date and reason if the sale postpones.

Bids are available shortly before the sale, this can range from the day before up to the actual time of sale. When a bid is available, there is a good probability the property will be going to sale instead of postponing. Be aware that published bid amounts will differ from the actual bid amount at the sale. Sometimes they will be slightly higher to cover actual costs and sometimes the lender will reduce a bid making a property an attractive purchase.

Posting companies handle the publication and posting of foreclosure notices along with acting as the auctioneer at the sale site. Typically cancellations of sales are announced, then postponements followed by properties going to sale. Again, everything is referenced by TS#, pay attention so you don’t miss properties you are interested in.

THE TRUSTEE SALE

The auctioneer will ask if anyone wants to qualify, either before all properties are announced or before individual properties are announced. To qualify, you will need to show the auctioneer cash or cashier’s checks sufficient to cover any bids you will be making. Some Trustees specify checks are to be made out to them, usually you can get cashier’s check made payable to you, then if you are a successful bidder, you endorse them payable to the Trustee. Common practice is to have large checks to cover most of the expected bid, with smaller checks to cover increases in the bidding. You really do not want to have one check for $300,000 if you are going to be bidding on a $150,000 house or if you will want to buy more than one property. Once you sign your check over, you will not have the surplus funds available for a while. When bidding and qualifying, keep in mind that anyone around you is a prospective bidder, if you allow them to see the maximum amount you can bid to, you have weakened your position. The same holds true for notes you have written or numbers, keep your information private!

BIDDING.

The auctioneer will ask if anyone would like to bid when they are auctioning a property. If it is a property you are interested in, your bid should be a penny over the opening bid. The property will not sell until the third call and some people like to wait and see if anyone else is showing an interest. Relax, wait to see if other bidders are going to jump in, if no one does put your “penny over” bid just before the third call. If other bidders are intersted in the same property, bids will go up usually in hundred dollar increments. Know the maximum bid you are willing to place and do not exceed that number. It’s very easy to get involved in a contest of who’s going to win the bid, if you are investing, you need to make a profit, not prove you can bid higher.

THE SUCCESSFUL HIGH BID

If you are the successful bidder, you will need to sign checks over to the Trustee. Usually, after all sales are complete, the auctioneer will write you a receipt, ask how title is to be held and you’ll be done. The Trustee can record the Trustee’s Deed for you or they will send you the deed along with any excess funds from your checks. Sales are sometimes invalidated by legal reasons, if so, you will receive your funds back. Expect to have everything done one to two weeks after the sale.

For more information on buying properties, whether short sale or foreclosure, visit HowToBuyABankHome.com today!

Courtesy: AllForeclosure.