Category Archives: Real Estate

Swirling Around in the Financial Ocean Without a Paddle – How to Prevent Foreclosures!

Swirling Around in the Financial Ocean Without a Paddle - How to Prevent Foreclosures!

A big reason foreclosures can happen is lack of information. People every day do not possess the right knowledge or where to get it and they end up in a confusing mess of debt and get sucked under. Every problem has a solution, it just depends if you know the right place to look for it.

I am sure that most people in life do not want to go into crippling debt that can prevent them from getting credit or loans for an extended period of time and potentially cause issues even when it can be received once again. Denial of the urgency of the situation and just sitting around waiting for the solution to come to you are ways

In the end, you need to take action. You need to notice that the situation is getting critical and that you need to take action before it’s too late. Short Sales are one of your easiest and speediest options, which will keep your credit intact and not pile you up behind an insane amount of debt that would potentially cause bankruptcy.

Anything that can go wrong with Foreclosure and that can lead to it tends to when you are ill or misinformed. Lack of information can also lead you to being misled into doing something you wouldn’t normally do when you were given 100% of the facts.

Who Do You Go To For The Facts?

You go to the proper financial institutions that have on site professionals. If you want second opinions, go to one that is different from the current on you frequent. These days with the amount of information available in person, online, or by mail you would be best off taking advantage of the free information before you. Do not allow anyone to pressure you into something you are not sure of, if it makes you feel uneasy then do not do it. Find out all the facts and features about something you are going to do before it is too late to back track.

Also before signing anything, make sure you go over it and understand every single bit of the agreement. With Short Sales, you can find a business that will take care of it for you and if you check around and make sure its one with a good reputation, well then you will not need to worry so much because they will in fact help you through every step of the process and do everything possible to get the process done fast, but carefully, and properly. The proper Short Sale business can drive that monkey right off your back, and bring you back to the happy ways of old when you did not have to worry about things like foreclosure.

Buying Real Estate With No Money Down and No Credit

Buying Real Estate With No Money Down and No Credit

Yes, buying real estate with no money down and no credit is a possibility. And making money from real estate doesn’t have to be a pain in your a–. If you want to enter the business but don’t have a single cent to spend there are a whole lot of ways you can still make money. All you need to enter the business is true conviction; everything else comes apart. Here are a few examples to fill your head.

If you are planning to get a house and don’t have enough money for the payment why not consider swapping? All the things you own can be used as a substitute for money to be used as a trade. Imagine if you are buying from a seller that is retiring, he may prefer having the motor home you don’t use or any car, boats, or campers. Appliances can also be exchanged as a replacement for money. Furniture and other similar can be part of your investment to acquire a house for flipping. Whenever you consider the idea of swapping things for other when you are going to invest in real estate, the options are numerous.

However, in case you don’t have any unused motor home, or maybe you just don’t want to get rid of your car or boat, you can still use other things to swap for. If you are an accountant, contractor, mechanic, plumber, doctor, lawyer, or any other similar professional, you are more than capable to exchange your skills instead of cash. Doing services in exchange for money is widely accepted since you are paying with your skilled work. There is nothing wrong about doing this and you are able to exchange your services for real estate. This is a great idea if you have any professional skill or service you can offer.

If you have absolutely no credit and you don’t even dare to place a foot inside a mortgage lender or broker, then you can bring a partner into the business. Although this can become a great way to enter the market, things can get a little complicated when someone else is brought in. You can also simplify this by making a deal with your partner; as in they being the financers and you take part in assuring the deal. This way you manage all the contracts and the daily dealings while he is in charge of just taking care of the money. Additionally, they will feel comfortable of playing just a smaller role while you take the full responsibility of closing business and managing the investments. The best part of this option is you never have to exchange one of your belongings or any of your services since your partner is responsible for the money.

As you see, there are a whole lot of ways you can enter the business of real estate without having to put money down or a wonderful credit. You are capable of entering the business in many ways; all you need to succeed is your commitment towards the business.

Real Estate Investing 101 – Capital Gains and Flipping Houses

Real Estate Investing 101 - Capital Gains and Flipping Houses

Flipping houses is a great way to add to your current income. House flipping can be done in less than a week if you know what you are doing. This makes the earning potential completely limitless. If you put the time and the effort into it you could literally flip 52 or more houses a year. A lot of investors set out to supplement the income from their full time job and end up giving up their nine to five careers and making their flipping hobby their primary source of income.

Anytime that you supplement your income with any form of investing you have to carefully monitor yourself. Once you reach a certain cash flow from investments you than have to figure your capital gains into your taxes. While this will not be something that most investors have to deal with personally because they have accountants that do their taxes for them, the first time house flipper usually does not think about the capital gains. If you neglect to report the investment you could be heading for trouble.

If you are going to take house flipping seriously, be sure to take the time to talk to someone about capital gains. It is better to be prepared than it is to be surprised. If you are not ready to get an accountant just yet, take the time and learn all that you need to about capital gains. The more you know the less likely you are to make a mistake that could derail all of your progress. Flipping houses is an exciting experience and you should take the time to enjoy every moment of it. Do not let the worry of taxes keep you from playing the game there are people that will work with you to help you make sure all of your finances are in order.

Preventing Foreclosure – Understanding the Concept Behind Fast Selling!

Preventing Foreclosure - Understanding the Concept Behind Fast Selling!

Today’s housing market and financial crisis has thrown many people into a stormy set of waters. The complications that have arisen from the downward spiral in values of the properties themselves has left both home owner and lender in a bad position. This causes panic on both sides of the coin and leads to potentially drastic and poorly thought out decisions being made on either side of the fence.

The home owner may try to wait things out and hope things improve, while the lender may initiate foreclosure proceedings or even try to back the home owner into a corner with a loan modification that unrealistically promises to be the solution to all the problems. These “quick fix solutions” that promise instant relief to all your problems and guarantee a brighter outlook are nothing more than scams.

They prey on people that believe that just pushing back a deadline or changing a few words in an agreement will make issues just disappear. These agreements are nothing more than ways for banks to grab every single solitary penny out of you and milk you for what they can get before you walk away empty handed after foreclosure with bad credit and no loan potential for many years after.

If you are on the brink or see signs pointing towards potential foreclosure you need to seek help immediately. Waiting too long to set any of these plans in motion and get the proper advice and methods in place to get the situation to turn out best for you, can cause very negative results.

Read, Research, React! This is an important mantra to remember when you are working through any financial difficulty. You need to read everything, from information, to anything people want you to sign. You need to know the fine print and how it can affect the very things you are working towards fixing.

Fast selling is a very good method for avoiding foreclosure. If you think fast selling is the solution for you after you have read up on your choices, than you should consult the internet or your local phone guide and find a local business that can assist you with your needs. There is a huge advantage to getting help in dealing with this and getting it dealt with promptly and professionally. It will be done properly the first time and you will have a huge monkey off your back!

Prevent Foreclosure – Can You Bypass the Perils of Foreclosure With Short Sales?

Prevent Foreclosure - Can You Bypass the Perils of Foreclosure With Short Sales?

Short sales are a blessing in disguise and a solution not to be taken lightly. Well it will potentially save you from foreclosure and from falling into a large amount of debt; it can pull you out of that abyss. Only if done in a timely and professional manner while using professionals with experience in these types of dealings. Now is not the time to be trying new or no name people to save a few dollars or cut some corners.

Delays of any sort can cause irreparable damage to both your reputation and your chances of coming out of this intact. Your key is efficient use of time. The better and faster you are prepared, the more time you will gain for finding a business that will handle your short sale, and the easier your life will become the moment it happens. The short sale was developed to keep folks from foreclosure. It is one of the last measures that can prevent it and can only prevent it if the business assisting you can successfully negotiate with the mortgage lender. These negotiations are absolutely key and are a reason you need to find someone local to your area to assist you with issues or questions that may arise from the proceedings.

Are There Any Ways To “Do It Yourself”

Well you certainly could attempt to short sell on your own, but much like representing yourself in court, you will not achieve as much success or even as much progress as a true trained professional in the field would. You in fact could more than 75% of the time if not higher do severe harm to it and cause a potential rift that would certainly doom you to failure. In this circumstances you cannot risk the chance of failing when you have to act fast.

Doing it yourself just is not feasible. I’m sure you could find a few people that would claim they have done it, and sure maybe some of them have in fact. Really though with something this important in your life that has lasting affects that will be felt for years to come, either positive or negative, would you want to leave it up to someone who doesn’t really know a thing about what they are doing. I know I would not put any gambles on my future I’d want a short sale specialist in my corner helping me every step of the way.

Preventing Foreclosure Via Short Selling – Empowering You to Take Control of Your Future!

Preventing Foreclosure Via Short Selling - Empowering You to Take Control of Your Future!

Taking control of your situation is one of the hardest things you can attempt to do. When things are spinning out of control it’s very easy to do nothing but curl up in a little ball, hide like a hermit and just wish things were better and your problems would go away. All this time you spend hiding, and denying the severity of the issues can cause even the smallest of problems to rage like wild fires. People like to hide, and it’s really easy these days. It’s harder for someone to admit that there is a problem and stand up and attempt to do something about it.

Every day you hear online about the newest ways to cut costs. The newest ways to making six figure incomes almost instantly, or the biggest stock market tips that made the author of the book famous, yet with all these tips, tricks and schemes, is it not slightly odd that they are still selling this method off to you in books and various other formats for ridiculous fees? Their six figure incomes come from selling materials peddling the latest get rich quick schemes. They pray on peddling false hope and empty promises of a brighter future.

Short Selling is no scam, has no empty promises, and will guarantee you nothing except for a brighter outlook and that elusive financial monkey off your back. That monkey has made a home there and been perched since the start of the world wide multi-market meltdowns that affected just about every aspect of our living. Since that precise moment you have been worried sick about how you will make payments, while missing some and realizing you are close to foreclosure and maybe even bankruptcy.

Working with an experienced short selling business provider will provide you with ease and peace of mind. Once the ball starts rolling, it will all seem like a tornado that was put into motion to suck up everything bad in your world and take it away. Short selling provides the general public with a viable option to avoid foreclosure, and provides potential investors in real estate with some of the best bargains they will see. The Short seller acts like a middle man hooking up the mortgage lender with a buyer, and negotiating the debt forgiving and lowering the cost so that both parties will not walk away empty handed and the matter resolved. Some people think it undervalues real estate, which it does not. It allows banks to recoup a fair share of what they are owed, which it also allows the home owner a way out which not being foreclosed upon!

Marketing Real Estate Online That Will Get You Traffic

Marketing Real Estate Online That Will Get You Traffic

With the housing market being as competitive as it is these days you will want to use any marketing tool available in order to gain the advantage. I don’t know of any agents who use the principles I’ll be sharing with you for marketing Real Estate On-line that will get you traffic. Using these techniques will get your web site or listing on the first page of giving you the best On-line exposure possible. Right now you have enough computer knowledge to implement the process. The out of pocket expense is minimal and you can get this going in your spare time.

Marketing Real Estate On-line

What will get you traffic? We are going to use the same principles Internet Marketers use to build their businesses. First off, you have to have a web site or listing On-line to drive the traffic to. Most of you have your own web page already. Now the secret is using keywords people enter when searching for Real Estate. I’ll use my town for the example here. A person Google’s…Antioch Illinois Real Estate listings, and several thousand article listings come up. (See where it says results above the listings?) Now do the same keyword phrase in “quotes” and you will see about 2300 article listings for that phrase. Any number under 5000 means low competition for that phrase.

Using the same example you will write a informative article about Antioch Real Estate, writing 300 to 500 words making sure you use the keyword phrase…Antioch Illinois Real Estate listings 3 to 5 times through out the article. Now you must use the keywords in the title of the article as well. The title could look like this…Brown’s Realty-Antioch Illinois Real Estate listings. This strategy is excellent for marketing Real Estate On-line that will get you traffic.

Google loves information, and with the low competition you will be sure to rank first page. Once you write the article you will point the reader using a link at the bottom of the page to either a web site or a Real Estate listing page that you want to sell. Simply look over the format of this article and it will give you a good idea on how it’s done. There are several “free” article directories to submit the article to. The power of this method becomes clear when you repeat the process over and over again using different keyword phrases related to Real Estate. At first it will appear awkward as you work through it. But once you get it down it will take less than an hour to dominate marketing Real Estate On-line that will get you traffic.

My purpose here was to give you an overview on just one of the marketing methods. You will need to educate yourself on the details of this strategy. The information you learn will open your eyes to numerous opportunities regarding marketing real Estate On-line that will get you traffic. There is nothing more exciting that seeing your work on the 1st page of Google.

Real Estate Foreclosure – Dispelling the Myths About Short Selling!

Real Estate Foreclosure - Dispelling the Myths About Short Selling!

Some people think that short selling is a scam and nothing more than a way that another business sector tries to steal your hard earned money. There is nothing painful about short selling except for delaying. Short selling with the proper assistance of a business in that field will bring you out of the darkness and into a light you so sorely desire in these dark financial times.

People sometimes forget especially at banks the kinds of pressure that people go through daily especially with the dropping across the board of investments, savings and such. These have caused both cash and credit crunches that were unplanned and unknown even just a few years ago.

Short selling will provide you with relief from your mortgage and even if you are not close to foreclosure and need to move fast for personal or job related reasons, short selling can accommodate that. Speed and proper method are vital to getting these done absolutely proper. You cannot afford to make a single mistake or cause any unnecessary delays that could potential derail the entire process. The process is absolutely key on speed, without the rapid dealing going on than you could risk the foreclosure or in the case of a fast move, you may end up paying two mortgages.

One big reason people avoid short selling is they believe they can get more money elsewhere. When you are facing foreclosure and you cannot come up with the money via other means, your best option is to have someone negotiate with the mortgage lender on your behalf and sell before the foreclosure happens and causes you to lose your credit rating, and your ability to gain loans or other forms of financial backing that you may need in the near future.

With today’s markets dropping every day and making very little to no head way. Savings dwindling and investments devaluing at alarming rates, you need to put stock in every single dollar you have and use them wisely. Misuse of your funds or credit in this current dark financial time could cause some very harmful and long lasting effects that you do not want to deal with. When putting your financial and personal future on the line, it’s absolutely NOT worth gambling on, take the road that provides the best comfort and can be done with causing you little to no pain.

The Homeowner Recovery Plan – Simplified

The Homeowner Recovery Plan - Simplified

The President’s Homeowner Recovery Plan encompasses not only financial stability in credit markets, but tax incentives and credits to buyers to stimulate the economy and the housing industry.

Financial Stability in Credit Markets

The Treasury Department has implemented a series of programs to help our economic recovery including refinance plans to lower interest rates for homeowners, a capital program to provide banks with safeguards to allow them to start lending again and to help borrowers avoid foreclosure and a new lending program with the Federal Reserve regarding the securitization markets.

Financial Products and Securitization

Treasury Secretary Geithner wants the government to have authority over all financial products that are marketed to consumers including mortgages and credit cards. The government also wants tighter standards for mortgage lenders and stricter enforcement of lending rules. The government would like the Federal Reserve to have authority over monitoring extremely large hedge funds.

The plan also calls for changes to require that lending institutions hold more capital as reserves to avoid credit freezes in recessionary times, and stricter laws allowing regulators to take over any financial institution that may collapse and could threaten the entire financial market.

Also called for are tighter standards for U.S. mortgage lenders and stricter enforcement of mortgage lending rules.

In addition, an overhaul of the way the government monitors the procedures of clearing how banks lend and borrow money from each other is expected to avoid repeating the Bear Stearns and Lehman Brothers fiascos that took place last year when those companies ran out of funds to keep their businesses running.

The Home Affordable Refinance Program

Under the new Home Affordable Refinance Program millions of homeowners who were not eligible to refinance can now take advantage of lower interest rates as a result of the new plan.

Eligibility Requirements

· The property must be an owner occupied of one to four units. Investment properties or vacant properties are not eligible under the program.

· The loan must be owned or securitized by Fannie Mae or Freddie Mac.

· Homeowner must not be in default on their payments and all payments must be current.

· The balance owed on the borrower’s first mortgage must be approximately the same or slightly under current market value of the home.

· Borrower must show proof of income that they can make the new mortgage payment.

· Program is available now until June 10, 2010.

Home Affordable Modification Program

These program is strictly for homeowners who are about to be in default or who are already delinquent on their mortgage payments. It is designed to help homeowners save their homes from foreclosure by modifying their existing loans by decreasing the interest rate, increasing the loan term and possibly forgiving the arrearage on their loans so that the homeowner can afford their mortgage payments.

Eligibility

· Property must be owner-occupied one to four units. Investment or vacant property is not eligible.

· The unpaid first mortgage must be equal to or less than $729,750 (note that there is a higher limit for two to four unit properties.).

· Only loans that originated on or before January 1, 2009, and are first liens are eligible. Second lien mortgages do not qualify.

· If your mortgage payment including insurance, taxes and any homeowner association dues is more than 31% of your gross (pre-tax) monthly income you qualify.

· Borrower has a financial hardship such as a job loss or wage reduction, illness, etc. which will not allow them to make their current mortgage payment because it is no longer affordable to the borrower.

· Loans can only be modified once under the plan.

Tax Stimulus and Credits

With the President’s stimulus plan that was recently passed in February, first time home buyers can qualify for a tax credit on their federal income tax returns of up to $8,000 for qualified buyers who purchase homes between January 1, 2009 through November 30, 2009. The credit can be taken on the 2008 or 2009 tax return. There are some other requirements such as the homeowner must purchase the property as their primary residence and stay in the property for 36 months after the sale in order to avoid having to repay the money back to the government. A first time home buyer is considered anyone who has not owned a home in the past three years.

Potential Problems For Passive Landlords

Potential Problems For Passive Landlords

Larry the Landlord has owned this property for more than 20 years. In the last 10 years the same tenant (Tina the Tenant) has been the occupant.

Since Tina the Tenant paid relatively well, Larry the Landlord hasn’t kept pace with all the allowable rental increases available from the Landlord Tenant Tribunal.(LTB)

Larry has been watching the real estate market in west Toronto rather actively and finally felt the time was right to part with the challenge and obligation of looking after a rental property. He struck up a conversation with Tina about whether they might be interested in purchasing the property as they had been there 10 years.

Tina the Tenant, was interested in NEGOTIATING for the property but there were so many repairs that were required, including the MOLD in the basement.

MOLD When did that happen?

Larry the Landlord was shocked at the comment about mold in the basement and made further inquiries about what had happened to cause the mold to occur. Well… the laundry tub has been leaking for a few years now in the basement and the mold is forming around the base and studs of the bathroom wall so [we] removed that dividing wall that led to the drain so the water would run off. This could have been avoided with a 30 odd dollar laundry tub replacement or a 3 dollar washer plus the related labour cost.

Out of concern for the family and mold in the home; combined with potential liability; as well as continuing damage to the property Larry the Landlord, arranged for Certified Air to attend the property with a Mold Specialist. Steve Herzog from Certified Air, an indoor air specialist arrived with moisture sensors, Infra Red Readers and sample of Liters of air samplers for the labs to analyze.

The mold has indeed proven to be the toxic variety that needs to be removed by gutting drywall and framing in the basement, rewiring, removal of broadloom and flooring and baseboards. The repair will require the removal of the tenants for the duration of the repairs. That would constitute an eviction and actionable for damages. LTB Tribunal Form N5

Let’s Have the Home Insurance pay!

UMMmm … No. There are specific riders that are required in your insurance riders that must stipulate damage or liability by/of tenants. The Insurance company’s mission is to deny coverage of a claim wherever possible (to protect shareholders).

“Most currently written policies contain exclusions to any mold claims except where caused by flooding. There must be a sudden damage event” said Dmytro Badiwsky with Humberview Insurance. He continued to add “should have specifically declared as in a tenant liability package.”

Will the Landlord and Tenant Board protect the Landlord?

Will the Courts?

Who will indemnify the Landlord for loss of income during the repairs and ultimately the repairs expenses?