Archive for October, 2007

Distressed Property Owners Stop Foreclosure Now!

stop foreclosure

If you are a home owner facing foreclosure, you have probably lost sleep at night wondering what, if any, options are available to you. Some homeowners adopt the unfortunate “ostrich syndrome” and bury their head in the sand.  When they do finally decide to take action, many times they find out that their options have been drastically reduced as the clock continued to tick. If you are facing a foreclosure, you do have options available to you, however you must take action immediately!

The sooner you decide to take action, the more options you will have available to avoid foreclosure.  So, what are the possible solutions to stop foreclosure?

1.  Forbearance:  A payment plan is worked out with the lender where the amount you owe is paid back over a period of several months. In order to qualify for this option you will have to be able to show the lender that you are now in a position to make the monthly payments.  Remember, your payment will likely be more than your current monthly payment and many lenders will usually require a substantial down payment before agreeing to a forbearance.

2.  Loan Modification: This option actually changes the terms of your loan.  This could mean a lower interest rate and/or extending the term of your loan resulting in lower payments. Each lender is unique in how they handle requests for loan modifications. You should seek expert professional help to assist and advise you regarding this option.

3.  Refinance existing loan: This option is usually quite difficult qualify for.  Most homeowners in foreclosure are anywhere from 3-6 months behind on their payments making it extremely difficult to qualify for a new loan. If they are able to qualify, the interest rate is very high leading to a more expensive mortgage payment than before.

4.  Deed in lieu of foreclosure: In this option the homeowner signs a deed giving up all rights to the property and the property is conveyed to the lender. This will not save your home but is less damaging to your credit and is an alternative to going through the entire foreclosure process.

5.  Sell the home: For many, this may be the best option if you can no longer make the mortgage payments. Remember, time is not on your side.  The foreclosure process does not stop when you decide to list your home for sale.  If you choose this option make sure you seek the help of a qualified real estate agent who understands your situation and time constraints.  If your home ends up sitting on the market and does not sell for several weeks or months, you may end up losing any equity you had in the property and the lender will proceed with the foreclosure sale.

6.  Short Sale:  If you owe more than what you could sell the house for then you may be able to negotiate a short sale with the lender.  This is when your existing lender(s) agree to accept less than the total amount owed to them.  A qualified buyer is required before the lender will agree to a short sale.  Negotiating a short sale is a complex process that requires in-depth knowledge of the forms and documentation the lender will require.  At Real Estate Investment Firm we have the experience and knowledge to help you through this process.

7.  Bankruptcy:  Bankruptcy should only be used as a last resort and after a consultation with a qualified attorney.  Remember, bankruptcy usually only delays a foreclosure proceeding, it does not stop it.  This is also the most damaging to your credit.

The key for any homeowner facing foreclosure is to act immediately. You do have options available to you but only if you act now.  Contact the professionals at Real Estate investment Firm today to discuss your situation and the options you have available.

Is Foreclosure Auction Investing Right for You?

If your a real estate investor or property flipper and are wondering how you can still make a substantial profit in today’s softening real estate market you should consider purchasing your next property at the foreclosure auction.  The dramatic rise in defaults and foreclosures nationwide and the general downturn in the real estate market have created a “perfect storm” for real estate investors to make substantial profits by purchasing distressed homes at the foreclosure auction.  Every week a small group of savvy investors throughout King, Pierce and Snohomish Counties are routinely buying these properties for 25-40% off market value. 

For most investors, however, the foreclosure process can prove daunting. Excellent buys are available, but they require research, preparation, patience and persistence.  Without the right experience and specialized local knowledge the process of finding and evaluating properties, bidding at auction and funding the purchase can be intimidating and costly.  There is an awful lot of information to know in order to avoid the potential problems and pitfalls one can run into when buying foreclosures.  It is extremely important for an investor to get up-to-date auction information and act on it as quickly as possible.  A solid tracking system must also be in place since the chances are an investor will be evaluating and pursuing several properties at once often over a period of several months.

 Some of the important items every investor needs to consider when evaluating properties are 

1.  What is the market value?  What can I turn around and sell the home for?
2. What is the condition of title?  Are there unpaid liens and judgments you may become responsible for paying?
3. What is the condition of the property?
4. What should my maximum bid price be?

With the proper knowledge and the right team and resources on their side an investor can greatly reduce the risk inherent in purchasing foreclosed homes at the auction and reap the rewards time and time again.

Large Profits Can Be Made Buying Foreclosure Property at the Auction

With the dramatic rise in foreclosures over the past year and no end in site to this trend, savvy real estate investors have an opportunity to realize substantial profit from buying property at the foreclosure auctions. Take the following example from last Friday’s King County, Washington auction.

This home, on Beach Drive in West Seattle, has spectacular views of the Puget Sound. The current market value of this home is between $810,000-$840,000.  You could have purchased this home, last Friday, for $623,311.00.  That amounts to an immediate gain in equity of between $186,000 – $216,000. 

That is just one example of many of the kind of deals you can get when you purchase at the auctions.  This type of investing is not for the novice or faint of heart, but the rewards can be tremendous.