March, 2010

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20
Mar 10

Learning the ropes of online banking

The popularity of online banking is growing. The days when everyone made a visit to the bank for performing financial transactions has passed. Almost everyone who has a computer can take advantage of online banking. The ability to use the Internet for banking has changed our lifestyle and provides a great convenience.

Technology was once considered to be for young people some years ago; but according to statistics, the fastest growing group of users today are older than 65 years. Despite these statistics, I can’t imagine that my mother will ever use online banking. For people who are hesitant to join the ranks of those using online banking, it is often a matter of accepting change; everyone can work with a computer once they put their mind to learn. If you are one of those who are a little timid about technology, there are many courses available to help teach you the ropes of Internet applications. Today there is ample opportunity for all generations to take advantage and enjoy the benefits of online banking.

Everyone can learn the ins and outs of online banking, but there are advantages and disadvantages you should know about. Probably the most important advantage is you can make your payments or your investments at any moment you want. You will have access to the site of your bank 24 hours each day and you don’t have to pay attention to closing times like you would with a visit to your bank. Another advantage is you always have access to the site of your bank no matter which country you are in. Only a computer with an Internet connection is necessary but there are public places in every country where you can make use of these services and be assured of the security measures put in force by your bank to protect you.

There are not many disadvantages of online banking. It is just learning the ropes of this system and that takes some time. Trust is another thing and you need to feel comfortable with this system of banking; you need to be sure that you clicked the right button. It is important to pay close attention to make sure you clicked only once to transmit the transaction and make a print out of your transaction receipt until it shows on your bank statement. Transmitting the same transaction twice can have terrible consequences because you may end up making the same payment twice. Another disadvantage is sometimes there are new updates and you need to invest some time in learning the new features.

The fear of safety is often a reason that keeps people away from online banking but online banking is a safe system, if you pay attention to the necessary software for your computer like antivirus and antispyware software. Don’t underestimate the power of hackers and if you don’t share your password and the number of your contract with your bank you can execute your financial transactions safely. It is also wise to keep your security numbers safely in your home, rather than stored on your computer where they may be accessible to others.

Online banking requires a contract with your bank. Every bank has a different system but you will always need to sign a contract and you need this number for logging in. The second step is a password and often a security number or code, the sequence of which will change from log in to log in. Without these numbers nobody can perform financial transactions with your account.

Banks use a variety of names for their online services like PC banking, home banking or Internet banking. Learning the ropes of online banking depends on the software of your bank but the basics are quite similar for every bank, and some offer more services than others. Services include checking your account balance, transferring money between your accounts, paying your bills electronically and even with the possibility the payment will happen on a certain date is possible with almost every program of online banking.

Some banks also give you the possibility of trading mutual funds, shares, bonds and applying for loans. Sometimes it is even possible to follow up the value of all the mutual funds they offer and also the value of all the stocks in the stock exchanges worldwide. Learning the ropes of online banking can be done by everyone and is encouraged by almost every bank. This system saves you time and also money because many banks ask lower fees for transactions done through online banking.

If in doubt, always ask the Bank for reassurance of what protection they give their users. A reputable bank will be able to assure you of a satisfactory code of practice and protection for its members, and instead of thinking of Internet banking as being beyond your scope, escape the queues and visits to town, by learning that moving with the times is not always as difficult as you imagined.

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20
Mar 10

How Industry Analysis Affect Foreclosure Cleanup Businesses

RealtyTrac is the source for data when it comes to foreclosure real estate listings because they have the largest database of auction and bank-owned homes in the country for investors. You can get reports on detailed property, loan and home sales data to help those interested in buying, selling and investing. By evaluating foreclosure trends bank repossessions can actually be higher than the actual default notices sent out to borrowers.

This is key to setting up your business plan and working smart not harder for maximum return on investment when it comes to making a profit with REO foreclosure preservation. Competition in the industry makes it harder to get the contracts that you want in your local area, stay informed by utilizing the U.S. Foreclosure Market Report.

The backlog of distressed properties has many lenders swamped with paperwork for default notices, bank repossessions and foreclosure auctions for the states of Florida, Arizona, California, Utah, Michigan, Illinois  and Nevada which post the highest foreclosure rates in the nation.  

Reports of documents filed in these states are entered into RealtyTrac database for notice of default (NOD), Lis Pendens, (LIS), Notice of Trustee Sale, Notice of Foreclosure sale (NTS and NFS), this will include real estate owned or REO properties that have been foreclosed on and repurchased by a bank.

More than 1.5 million default auction and bank owned listings can be found online in most foreclosure listing databases such as freeforeclosuredatabase.com, foreclosuredatabank.com, topforeclosurelistings.com, mortgagenewsdaily.com and propertytrac.com, many of these listings are of bank owned homes, government foreclosures, and tax foreclosures.

HUD homes and REO properties in California remain the most popular industry analysis for your foreclosure cleanup business. To find the exact type of list you are searching for it would be best to be as specific as possible, for example:

When you search online the best results come from using these terms, 

crn  foreclosure list

wachovia foreclosure list

citibank foreclosure list

bni foreclosure list

national foreclosure list

indymac foreclosure list

gmac foreclosure list

wamu foreclosure list

Foreclosed homes for sale is something that many first home time buyers are going to be looking for as well as those who want to flip and renovate them, you will be best advised to contact these buyers and sellers letting them know about your house cleaning service for foreclosed homes.  Start by putting together a introductory letter stating you’re the services you offer and the price points you are willing to do them for, become a contact for those who may not need your services now but will keep you in mind for the future.

Follow up on your letter and find out if their present circumstances have changed, keep in contact with asset managers and REO listing agents. Try getting non-foreclosure cleaning jobs to get your foot in the door. Build relationships with home contractors, appraisers and inspectors. Anyone who is providing services in the home renovation and home improvement industry will be surefire contacts.

Analysis and keeping up with the trends in the RE market will help your business stand out from the competition and help you earn more money from your investment for the long-term. Knowing which states to focus your primary business on will help you reach your goals no matter if the economy is good or bad.

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16
Mar 10

What is a short sale on a home

In a short sale situation it is important to remember you do not have a binding contract untill it is accepted by the 3rd party, the bank or mortgage holders. This does not mean don’t take your obligations seriously as a buyer. It simply means the home owner does not have a right to sell the home for that price if he cannot pay off the balance owed. If he has the ability to pay the bank will not allow the sale anyway.

I have had short sales where the bank had been aware of the situation get done in as little as 2 weeks. I have also had some take 6 months of negotiation and then need to close quickly. It may take months and be declined altogether. For that reason short sale house are often sold to investors. I have sold them as well to owner occupied client who were in a flexible rental situation and could close after it was aproved wether it was in a few days or 6 months. Basically it is hard to be in an emotional short sale situation if you are selling a home and can not guarantee thie short sale home will work.

The seller who is trying to short sale his home must cooperate with the bank. They must give the bank financial statements and account balances to prove they are not able to make the contracted payments. They are usually asked to provide a hardship letter to explain their situation. They can include anything like loss of job or death of a spouse or medical bills that have caused them to be in the situation they are in. If they are current on payments the bank is not very likely to allow a short sale. Likewise if they are so far into forclosure the bank may not allow it either. It is quicker and safer for the bank to forclose.

Basically what I am trying to get accross is that a short sale can get the buyer a good discount and save the seller from foreclosure, but will take patience and should probably be done by an agent who knows the process. Many banks require the home to be listed before looking at a short sale so they know the home has had exposure to the market and is not going to quickly sell for more.

 

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14
Mar 10

Short Sales Definition

What is a Short Sale? | Short Sales Definition

A short sales definition is best described as a sale of real estate by which the sale total falls short of the balance owed on the home’s mortgage. This often happens when a buyer cannot repay the home loan on their house, however the financial institution decides that offering the house at a reasonable loss is better than foreclosing on the home owner. Typically, the only technique to selling a house with little or no equity (and preventing a potential foreclosure) is by short selling the house to an investor or end-buyer.

Short Sales Definition | How does it work?

A Short Sale usually consists of an investor (buyer), working with the homeowner to negotiate with the homeowner’s mortgage company. The motive of these negotiations should be to delay an approaching public auction and also negotiate a reduced payoff for the home mortgage (or mortgages). Utilizing this kind of solution, the property or home might be purchased for a lower amount than is owed and a home foreclosure can be avoided.

Short Sales Definition | Who should short sell?

How do you determine if a short sale needs to be done on a home?  Below are a few simple steps for determining whether or not a short sale is a viable option.

Determine your property’s value – To know if your property is upside down or if there is enough equity in your home you will need to figure out what your house is worth.  Typically you can have a REALTOR or real estate broker look at comparables (comps) to get an idea of what your home is worth in today’s market.
Add in closing costs – Once you have determined how much your home would go for, you will need to subtract the REALTOR commissions, closing costs, seller concessions, and possibly repair costs from the estimated property value.  This number can be as high as 15% of the total value of your home.
Calculate your equity- By taking your home’s current market value and subtracting the closing costs listed about you will arrive with a number that you would be walking away with if you were to sell your home with a REALTOR.  Now, take that number and subtract the amount that is owed on your mortgage (or mortgages) and any other liens on the property.  This is your equity.  If it is positive, congratulations!  If the number is negative then that number is the amount you would have to pay at closing to sell your home with a REALTOR right now.
Figure out your financial situation – If you are already behind on payments or will be soon and you have no equity or negative equity on the home then you are likely a good candidate for a short sale.

Phill Grove has conducted approximately 0M in real estate transactions – using non-traditional investing methods such as mortgage assignment, short sales, equity partnering, auction-options, wraps, swaps, and other methods – many of which he invented and/or pioneered for the industry. Phill has invented a new strategy called the Mortgage Assignment Profits System. Phill Grove has personally trained and coached hundreds of Real Estate Investors on the “12 Ways to Buy and Sell Real Estate”, as well as marketing and lead processing strategies that actually work. Find out more about Phill at http://www.REIMaverick.com

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10
Mar 10

How to Write a Hardship Letter for Chase Bank

Step1
First brainstorm about your hardship. Sit down, and write down every idea that pops in your head about why you can’t afford your house. Why are you having financial difficulties. Loss of job, medical bills, increased property taxes, child’s college education tuition, divorce, credit card debt, etc. Write every possible thought that has any affect on your financial situation or your wanting to negotiate some kind of loan modification with Chase Bank. It doesn’t matter what you write down. Don’t think too much, just write whatever pops in your head. Sit and write until you have at least 5 ideas. If you don’t have 5, you’re thinking too much. Just write whatever pops in your head.

Step2
Now look at your hardship letter brainstorm list and pick the most obvious ones that have the most affect on your financial situation and ability to make payments on the home. Look at the list as if you were Chase Bank, or your specific bank. Which hardships would you look at as the most crucial? Once you select 3 or 4 hardships, focus on them and explain exactly why they are affecting your ability to make payments on the loan. (For example: I was laid off on Sept. 27 and as a result, my monthly income has decreased by ,100.)

Step3
Now you’re ready to begin writing and putting together your hardship letter. Rule # 1, make your hardship letter less than one page paragraph form. Loan modification or mortgage loan workout department reps look through many letters. They don’t want to be reading a novel to find out why you can’t afford your mortgage payments.

Step4
Line 1: At the top of the hardship letter type Chase Bank, or your bank’s name that you are requesting the deed in lieu from. Line 2: put their address. Line 3: type their phone number and fax number. Skip a space. Line 4: type the date. Line 5: type “RE: Request for deed in lieu – (Your Loan # and Property address).” Skip a line and start your letter with: “Dear (Chase Bank or Bank’s Name) Representative:”

Step5
First paragraph: State a change. Mention what change took place why you can no longer afford your payments. Keep it brief and simply let them know that some change happened between the time you bought the home and now which has affected your ability to pay your mortgage loan. Ex: “There has been significant changes in in my financial situation since I purchased my home in October 2001.”

Step6
2nd paragraph: State why your area is bad. Ex: “My property is located in ______ town. The taxes have increased, property values have declined, there are 5 foreclosures on my street, etc.” List any bad circumstances for your specific location that support your case for a loan modification or short sale , etc.

Step7
3rd and or 4th paragraph: List any of the following and explain using details and specific numbers as best as you can such as: wrong doing by mortgage loan broker, bad adjustable mortgage loan on the property, hardships (income I depended on is no longer available, increased bills, inability to work due to health or disability, etc. – from your brainstorm list).

Step8
Final paragraph: Clearly state that you “cannot pay” and need to negotiate some kind of modification or change to your mortgage loan with Chase Bank. You don’t have any other options available. Leave your contact info or your agent’s contact info if they require further information. Sign, date, and give to your agent, attorney, or bank. (See warnings below)

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9
Mar 10

Timeline For Foreclosure – All U.S. States

As mentioned, each state will typically have a different set of rules and a different timeline for foreclosure.

20 states utilize only “Judicial” Foreclosures.
5 states and the District of Columbia utilize only “Non-Judicial” Foreclosures.
25 states utilize both Judicial and Non-Judicial Foreclosures.##

## Of the 25 states utilizing both types of foreclosure, Non-Judicial Foreclosures are more common. In fact, Non-Judicial Foreclosure is the most commonly used form of foreclosure nationally.

JUDICIAL FORECLOSURE PROCESS vs. NON-JUDICIAL FORECLOSURE PROCESS:

The primary difference between the two classes of foreclosure is the involvement or non-involvement of the court system. As you might have guessed, Judicial Foreclosures are processed through the courts. Non-Judicial Foreclosures are not.

Regardless of the type used, the timeline for foreclosure is always preceded by a borrower defaulting on their mortgage payments. Most lenders typically won’t threaten homeowners with foreclosure until two or three payments have been missed. However, once the lender concludes that the mortgage is in default and the homeowner is not going to catch up on their overdue payments, a legal filing is made by the lender and the timeline for foreclosure begins.

JUDICIAL FORECLOSURE PROCESS:

In a Judicial Foreclosure, the lender files a formal complaint with the court and records a legal notice of “Lis Pendens”. The complaint must state the details of the debt and why the lender should be allowed to foreclose on the property. The Lis Pendens gives public notice that the house is the subject of foreclosure proceedings and implements the legal timeline for foreclosure.

If the court rules that the debt is legitimate and in default, it will send a notice to the homeowner demanding payment of the amount owed (plus penalties and foreclosure costs). The borrower is typically given 30 days to respond and satisfy the debt. If they do not, the court will tender a judgement in favor of the lender, instructing that the home will be sold at a “Sheriff’s Sale” auction.

After the judgement is entered, in most states that utilize Judicial Foreclosures, the homewner has about 90 days prior to the Sheriff’s Sale to pay the entire amount owed and stop the mortgage foreclosure process. There are other alternatives that could stop the timeline for foreclosure during this 90 day period:

Negotiate a “Forbearance Agreement” with the lender that revises the loan terms to the satisfaction of both parties. (Most lenders do not want to foreclose because it can cost them a lot of money.)
Sell the home.
Refinance the loan.
Declare bankruptcy.

If the mortgage foreclosure process isn’t stopped, the property goes to a Sheriff’s Sale auction where it is auctioned off to the highest bidder and extinguishes all rights of ownership of the defaulting homeowner. If noone purchases the property at the auction, the title to the home reverts to the lender and it becomes what is known as an “REO Property”. This stands for “Real Estate Owned” (by the bank or lender).

How long does the Judicial Foreclosure process take?

This is almost impossible to predict. The judicial timeline for foreclosure is entirely driven by the court schedule and literally “at the mercy of the court”. However, most experts will agree that Judicial Foreclosures can often take more than a year to complete.

Important Note: Even after a home has been sold at the Sheriff’s Sale, some states will allow an opportunity for the homeowner to regain ownership of their home. This is known as a “Redemption Period” and is a period of time after the mortgage foreclosure process has been completed. Even though the property now will have a new owner, the former homeowner can still reclaim title to their home by paying off the full amount of their original home mortgage plus penalties and foreclosure costs.

NON-JUDICIAL FORECLOSURE PROCESS:

Also known as the “Power of Sale” Foreclosure Process, the Non-Judicial Foreclosure Process is conducted outside of the court system by either a third party “Trustee” or an attorney. This mortgage foreclosure process is used when a “power of sale clause” exists in a mortgage or deed of trust. This clause states that the borrower agrees to the sale of their property to pay off the balance of their home loan in the event of a default.

As withthe  Judicial Foreclosure Process, most lenders will not begin the Non-Judicial Foreclosure process until several payments have been missed and they are convinced that the homeowner is not going to catch up on their overdue payments. However, once the lender determines the borrower to be in default, a legal filing is made by the lender and the timeline for foreclosure will begin. This filing is known as a “Notice of Default” (NOD).

After the NOD is filed, the homeowner typically has a 90 day “Reinstatement Period” to catch up on missed payments and stop the foreclosure before the lender can take further action. There are other alternatives that could stop the timeline for foreclosure during the Reinstatement Period:

Negotiate a “Forbearance Agreement” with the lender that revises the loan terms to the satisfaction of both parties. (Most lenders do not want to foreclose because it can cost them a lot of money.)
Sell the home.
Refinance the loan.
Declare bankruptcy.

If the borrower remains in default at the end of the Reinstatement Period, a “Notice of Trustee’s Sale” will be filed with a date and time posted for an auction sale of the property. After the Notice of Trustee’s Sale is recorded, the homeowner typically has another 21 days before the auction date. During this period, the borrower can still stop the timeline for foreclosure with any one of the alternatives mentioned above in the Reinstatement Period.

If the foreclosure process isn’t stopped, the property goes to a “Trustee’s Sale” where it is auctioned off to the highest bidder and extinguishes all rights of ownership of the defaulting homeowner. If noone purchases the property at the auction, the title to the home reverts to the lender and it becomes what is known as an “REO Property”. This stands for “Real Estate Owned” (by the bank or lender).

Important Note: Similar to the Judicial Foreclosure Process, after a home has been sold at the Trustee’s Sale, some states will allow an opportunity for the homeowner to regain ownership of their home. This is known as a “Redemption Period” and is a period of time after the mortgage foreclosure process has been completed. Even though the property now will have a new owner, the former homeowner can still reclaim title to their home by paying off the full amount of their original home mortgage plus penalties and foreclosure costs.

THE BOTTOM LINE:

Regardless of the foreclosure process used, it is very important to know the laws and procedures for your particular state. To help with that, here is a link to the Foreclosure Process: All States.

For additional information click on:

The Foreclosure Process

Foreclosure Property Investment

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8
Mar 10

Short Sale Scholars Help You Avoid Foreclosure

Foreclosure  is not a happy situation for any home owner who faces this and this has increased in this economic crisis. There are ways to avoid Foreclosure  and Short Sales  is the best option which can be avoided with the assistance and guidance of Short Sale  Agents. Short Sales agents will guide you the way to list your property in Flat Fee Listing  as Short Sale  and there are hundreds of Short Sales  buyers who look around to invest in Short Sale  properties. To get out of Foreclosure  situation this is the only best option left with many of the home owners.

Short Sale  agents help owners with Flat Fee Listing and get the maximum exposure of their Short Sale listing. If you look around in this economic crisis period cases of Foreclosure  have risen and this is a worrisome situation for many. Foreclosure  is not something property owners would like to face in their lifetime. The current economic scenario has compelled many of them to skip the mortgage installments resulting in the lenders to send them Foreclosure  notice. This is a very embarrassing situation for a reputed and honest person and they need the ways put to come out of this situation. So who are the ones and in what way one can avoid Foreclosure.

Everyone these days is aware of Flat Fee Listing, if we briefly define, Flat Fee Listing  is a MLS database wherein owners looking to sell their property can list their property to get the best market price without taking much time and paying thousands in commission. For Foreclosure properties Flat Fee Listing can be a boon with added advantage of Short Sale agents. They charge small upfront fees to list the property as Short Sales  which can be around 9. All they need to provide is the details about the property and some images. Investors and buyers looking to invest in Short Sales  properties will definitely look around for your property and you can get the best price and this avoiding Foreclosure.

Short Sale agents will always try to get your property the best attention from Short Sales  investors and you get a good price. Flat Fee Listing  do get your property a good price which let you pay the balance mortgage sum to lenders and avoid the embarrassing situation of Foreclosure. When your property is sold you might be left with enough amount of money to lease a new home or even get a new home on mortgage. Many a times the situation develops when lenders send a Foreclosure  with short period to think of next step to avoid Foreclosure. In these circumstances agents try to make lenders understand the benefits of Short Sales  and this will also benefit them as well.

When you list your property as Short Sale  in Flat Fee Listing  you are sure to get queries from Short Sales  investors very soon. There are many agents and people who look to invest in properties which they understand they can get for much lesser price than other properties. Listing the property as Short Sale  in Flat Fee Listing  is a win-win situation for both, who is looking to avoid Foreclosure  and the other one who is looking to invest in Short Sales  properties.

Nobody ever wants to face the Foreclosure  and Short Sale  is the best option to go with. To make this happen and guide the best way forward visit http://www.shortsalescholars.com and http://www.flatfeelistingnow.com

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4
Mar 10

How To Buy Foreclosed Home Tips

Introduction

With the current economy there are a lot of homes on the market. Many of these homes are sitting empty because of bank foreclosures. There is believed to be more than 1.5 million homes currently on the market due to foreclosures alone. With that number of homes available and many of them at a much lower rate than you would have paid only a few years ago, its not wonder many people are trying to purchase as many of these homes as they can. This is a great way to increase your personal worth and income if you use these foreclosed homes as a rental property. These homes are not always the best deal though. In many situations people get in to a foreclosed home and find out there are a lot of expensed they did not take into consideration. These things add up quickly and can make that great deal turn into a rotten egg real quick. Before you think about buying a foreclosed home you should make sure you know the right way to buy a foreclosed home. These tips will help you buy the right foreclosed home at the right price and not end up with a money pit.

Instructions

Step 1

Say no to bid wars

With so many people looking for a great deal in the housing market and everyone is aware of the millions of homes currently available it can be very easy to run into competition for the home you have your eye on.

When you look at a foreclosed home make sure you have a maximum bid amount in mind and stick to it. Getting into a bid war for a home will not lead to the best deal for you; sometimes it can lead to you paying more than the home is worth.

Step 2

Let lenders know you’re interested

Bank foreclosed homes are listed through banks so it makes since to contact your bank and let them know you are looking into purchasing a home that has been foreclosed. Not only can they give you a list of homes available through their bank they can also help you with getting pre approved financing. This will give you an inside look at the properties on the market and getting pre approved does not limit you to that lender but it does give the lender a new customer to try to sway to barrow through them.

A lot of these great opportunities lead to quick sales before other potential bidders realize the property is available. It’s a win for you getting a great deal and a win for the lender getting the house off the market before it starting costing them money.

Step 3

Consider all the Cost

When you are looking at a foreclosed home to buy make sure you take into consideration all the money you will need to spend on the home. With bank foreclosed homes the home is typically sold as is so any money needed to bring the home to a livable condition will need to be included in the cost of the home. Foreclosed homes are usually the result of the homeowner not being able to make the payment, if they are struggling to make the monthly payment they will most likely have neglected the upkeep that should have been done during that time also. There are also people that are resentful for loosing their family home and will make an effort to leave the home in the worst possible condition when they leave. It will be your responsibility to correct all the problems with your new home and this cost can quickly add up.

Most times these homes will be your best bargain to start out with but after your done it could end up costing more than a new built home.

Step 4

Seek Legal Help

If you are not familiar with all the lending and homeowner ship terms and paperwork it may be best for you to seek legal help. On foreclosed homes the bank wants to get them off their hands as soon as possible. Many times when it comes to closing a home sale there can be lots of paperwork and terms and figures that can make even the most experienced home buyers head spin. If you are not sure what you are signing or feel like a trained eye would be helpful in your situation you should follow your gut. The cost of good legal advice will definitely pay off in the end since they know all the ways to help keep your good deal a good deal.

Step 5

Sneak attack

If you find a foreclosed home to purchase that is already well advertised or has interested buyers already looking into it you may want to use the sneak attack method. This allows the current bidders to set the price of the property. You just sit back and wait for them to get comfortable with that price then make your bid. A lot of times the current bidders will place the starting bid at the top of what they are willing to pay. If you are willing to pay more than the current offer than place your bid. This can lead to a good deal with you paying less than if you would have started with your maximum bid that was much higher. This also shows the seller what the bid market is for the home, they will be pleased with the higher bid you have to offer and ready to close before they loose the offer.