Achieve Real Estate Solutions Blog

  Selling FSBO in a Buyer’s Market

You don’t even have to watch the news to know about the lending/credit crunch. The lending of real estate loans has nearly come to a halt. There are many more houses on the market for sale than there are buyers. Supply is high and demand is low. This causes hundreds of houses to remain listed and with “for sale” signs in the yard.

To get a house sold in a buyer’s market will take some creativity. For sale by owner (FSBO) sellers have to find ways to make their one house stand out and be attractive among hundreds of others. One solution:  seller financing. FSBO sellers, who can figure out a way to offer favorable financing and terms, will almost certainly have a much better chance of selling than an seller relying on a buyer to locate financing. The last thing a seller wants to have is a home buyer lined up, a contract signed, and financing that fell through at the last minute.

There is a solution. The FSBO seller can finance the home buyer’s purchase and become the lender. The seller creates a promissory note which the buyer signs. The home buyer has to pay off the note in, say 10 years, and the buyer gives mortgage. The house for sale becomes the collateral for the loan. The buyer makes payments to the FSBO seller each month until the end of the 10 years. If the home buyer misses a payment, then the seller has the legal right to foreclose on the property (just like a commercial lender).

A bit of time goes by and a pressing situation arises where the FSBO seller needs access to some cash quickly. Enter Achieve Real Estate Solutions. The seller decides to call Achieve Real Estate Solutions for help. The seller explains his situation and gives some details. Achieve Real Estate Solutions agrees to buy the promissory note. The FSBO seller gets cash quickly. And the seller is very happy.

Achieve Real Estate Solutions has purchased the right to receive payments on this property. So we are happy too. The home buyer continues to make payments. The only thing that changes is where the buyer sends the payments and the name on the check. Everybody wins.

About the Author

Trinise L. Castro is an entrepreneur and published writer. She is CEO of her company Achieve Real Estate Solutions. As an investor, she buys and sells properties, notes, contracts, and mortgages. She is known for making connections and dealing in large commercial projects. Additionally, Trinise manages her active real estate investor’s group the DealMaker Network. Immerse yourself in Trinise’s positivity by reading her personal blog. For more information you can reach her at 888.789.FSBO. Or visit her website at:  AchieveRealEstateSolutions.com.

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YOUR NEXT STEP

You could just save yourself a lot of time and energy by selling your property to Achieve Real Estate Solutions. We are buyers not agents. So there are never any commissions or fees for the seller to pay. Call toll-free for our message to you. It’s recorded and available 24 hours a day at 888.789.FSBO.

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Why Commercial Beats Residential

By Trinise L. Castro

When most investors imagine buying real estate, they think of a single house with a tenant making rent payments. You know, you go out searching for a bargain property. You purchase it. Then you need to cover the mortgage payment so you put a tenant in your house. Just about anything your tenant does to the property will decrease the value. The tenant will never take good care of the property like you would. So what have you just created? That’s right a job.

Congratulations, you’re now a bona fide landlord. All you have do now is make sure your tenant keeps making those payments, takes decent care of the property, and you can keep on collecting those checks right? Not quite. Even if you have the perfect tenant in your property, you still have to spend considerable time and energy maintaining it.

Commercial Real Estate Takes The Stage

Enter commercial real estate. Commercial real estate is a broad topic that includes:  shopping centers, warehouses, industrial parks, office buildings, apartment complexes, motels, hotels, and resorts. The specific area that I will cover briefly is apartment buildings.

I get excited when I think about the type of lasting wealth a commercial property can produce. When you purchase an apartment building occupied with tenants, you are buying an income stream not just a building. The income is based on the occupancy rate and rents paid by the tenants.

The value of a commercial property can be determined in three ways: 

1.) by evaluating comparable sales (comps) and the sales price per square foot of the building,

2.) by calculating the property’s income, or

3.) by figuring the cost to replace the property.

 The comparable sales approach is the most common way to determine the value of a commercial property. If you can obtain accurate financial and operating data on the property, the income approach can be used. Or if the property is new or nearly new, and the other two methods do not provide you with relevant data, use the cost to replace approach.

 Commercial Real Estate Simplified

The net operating income (NOI) of a commercial property is determined by subtracting the operating expenses from the rents collected. The cap rate is the interest rate you expect to make on your investment in a year. You can determine the value of a commercial property by dividing the NOI by the cap rate.

 Think of commercial property as a business and residential as a job. A business can take care of you now and for the rest of your life. But you always have to tend to a job. And how many jobs will you have over your lifetime? You really only need one big commercial deal to build significant wealth.

 The worse-case scenario is when a tenant stops paying rent. You would have to sue your tenant for the rents due and possession of your property. This can be lengthy and expensive. However, having one non-paying tenant in a 50-unit apartment building will barely affect your income. You can have management quickly evict the tenant, find a new tenant, and start collecting rent for that unit again.

 Would you rather be hoping and praying that your one tenant will send that check to you each month? Or would you rather have a bunch of checks coming at you on the same day every month? Commercial real estate gives you many more checks to cash. When you decrease expenses and raise rents for your commercial building, you are increasing your NOI which simultaneously increases the property value. Apartment buildings allow you to increase your income whenever you want. But with a residential property, the market may not be strong enough for you to justify a rent increase.

 To realize your profit in a residential property, you have to either sell it or refinance it. Both options are contingent on the market value of your property. However, to realize profit from a commercial building you can raise rents which will immediately increase the value of the property. Remember that a commercial property gets its value from its cash flow.

 Commercial real estate investing gives you five lovely elements to benefit from:

• equity build up – your tenants pay off your building for you.
• depreciation – you get to write off operating expenses.
• leverage – you can borrow money to increase your return on investment (ROI).
• appreciation – making improvements increases the property value.
• income – your commercial property pays for your lifestyle.

 Residential Financing vs. Commercial Financing

Investing in residential property means that the lender will look at the property and your financial background in deciding whether to lend to you. With a commercial property, as in an apartment building with paying tenants, the property itself is what provides security to a lender, not you. Try getting a non-recourse loan on a residential property without a personal guarantee. It would be like searching for a needle in a haystack.

 However, commercial real estate lenders allow creative financing in the purchase of commercial properties. The lender is more protected in loaning based on the condition of the property and cash flow it produces. Especially with the assistance of the seller, it is possible to finance the entire purchase of a commercial building. These are all things that make commercial real estate investing so appealing.

 Commercial financing highlights:

• Non-recourse loans
• Interest-only payments
• Seller seconds allowed
• 100% financing possible

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Trinise L. Castro is an entrepreneur and published writer. She is CEO of her company Achieve Real Estate Solutions. As an investor, she buys and sells properties, notes, contracts, and mortgages. She is known for making connections and dealing in large commercial projects. Additionally, Trinise manages her active real estate investor’s group the DealMaker Network. Immerse yourself in Trinise’s positivity by reading her personal blog. For more information you can reach her at 888.789.FSBO. Or visit her website at:  AchieveRealEstateSolutions.com.

How to Finance a House with Bad Credit

By Trinise L. Castro

Okay, you know your credit sucks. Your credit score is low. There were some bills that ran past due. And your credit history seems to be haunting you. It’s been a rocky road. With the gap widening between good credit borrowers and subprime borrowers, you’re definitely not alone.

Buying with Bad Credit

The real question is what are you ready to do about your credit situation? Are you willing to change your past thinking about finances? Can you demonstrate your ability to handle all of your current bills—along with the new ones that come with homeownership? You need to know, to the exact dollar, how much money you make and spend each month. To state the obvious, your income has to be higher than your expenses in order to finance a house.

Typically your mortgage payment should be no more than 30 percent of your monthly income. So if you make $3,000 a month, your mortgage payment shouldn’t be any higher than $900. This is why it makes sense to pay off as many debts as possible before buying a home. If you need more income to qualify, consider getting a roommate to help you cover the mortgage payment.

In purchasing a home you’ll have more to consider than just your mortgage payment. For starters, you’ll have to pay taxes, insurance, and maintenance. Additionally it’s advisable to have a “miscellaneous fund” set aside for those unknown expenses that will pop up. You don’t necessarily know what they all are. But you do know that other expenses will come along soon after purchasing a house; usually sooner than you think too.

Most people tend to spend more money than they make. Do some research and find out how much the utility bills will amount to each month. Do you plan to eat out and enjoy entertainment? A latte here and a candy bar there add up pretty quickly. Make sure you have enough money to do the things you really want to do while covering all your financial obligations.

To recap, you’re ready to buy if:

• You know how much money you make and spend month,
• Your expenses are lower than your income,
• You’ve added up the new expenses that come with a home, and
• The mortgage payment is no higher than 30 percent of your monthly income.

Finding the Financing

Caution:  Anyone willing to lend money to a person who cannot afford the loan, is doing a disservice to the borrower. Ultimately it’s the borrower’s financial status that takes a blow. But the lender feels the effects by losing the money loaned out.

So who’s going to finance you? Your best chance is to steer clear of traditional banks and lenders. Find a local private lender or private investor who will certainly be more lenient in evaluating your financial situation. Smart investors purchase homes well below market value, fix them up as a nice place to live, and then sell them to borrowers who may not otherwise be qualified through a bank.

In the meantime, work on improving your credit score so that you can obtain even more favorable financing terms in the future. Don’t use credit cards for impulse purchases. Only buy on credit if you know for sure you can pay off the charges by the end of the month. Get on a free bill pay system to help you remember when things are due.

Save at least ten percent of every dollar you make—no matter what. Spending 100 percent of your income will leave zero left over by the end of the month. If you focus on developing this saving habit for a few months, you’ll be able to consistently maintain a growing savings account. You’re not ready to buy a house until you’re willing to make spending less money, than you earn, a priority.

Ignore any offers to wipe out your credit history. I wouldn’t even waste time reading messages like those. Your credit history didn’t get built overnight. It won’t get cleaned up overnight either. Work on rebuilding your credit, not clearing it. Think baby steps. Be patient.

What To Do Now? Sign Up for the Dream Home Registry

Our exclusive homebuyer list is for individuals who dream of being a homeowner soon. It’s not about your credit score. We qualify our homebuyers by income and financial stability, not by credit score. As you can imagine, our homes are never on the market for long. With flexible financing like ours, you’ve got to be on our exclusive list to even be considered. It’s free to sign up. Hop on over there now to get into our Dream Home Registry.

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Trinise L. Castro is an entrepreneur and published writer. She is CEO of her company Achieve Real Estate Solutions. As an investor, she buys and sells properties, notes, contracts, and mortgages. She is known for making connections and dealing in large commercial projects. Additionally, Trinise manages her active real estate investor’s group the DealMaker Network. Immerse yourself in Trinise’s positivity by reading her personal blog. For more information you can reach her at 888.789.FSBO. Or visit her website at: AchieveRealEstateSolutions.com.

My First Fredericksburg REIA Experience

By Trinise L. Castro

It was my first time attending the Fredericksburg Real Estate Investor’s Association (FBREIA). Although I live in Fredericksburg, I usually drive up north to do my real estate networking. But, I was invited to this local meeting by one of my real estate investing partners. It was an intimate gathering. Just the right size crowd to network and talk about upcoming plans and projects.

We all gathered in a private room of the REMAX Bravo office on Courthouse Road. The format of the meeting kept it interesting and moving along. After the guests signed in and put on name tags, we had a chance to say a few “hellos” before taking our seats.

The host, in his friendly tone, welcomed us all to the meeting. Next he allowed each person to talk about any deals done in the past month. A few people spoke and told about deals they put together. The next order of business was for anyone to stand in front of the audience and explain what their company does.

 First a hard money lender gave a presentation of her lending services. The host called for anyone else that wanted to speak. Everyone looked around the room to see who would volunteer next. Then I said, “I will.” I grabbed my handout that I brought and headed to the front of the room.

I greeted everyone and explained to them that I own Achieve Real Estate Solutions. That I’m an investor and I put deals together. I discussed how I’m putting together a team of real estate investors who want to work on large commercial project together. This can be developing land for assisted living for seniors. It can be building and providing affordable housing for those who need it. Or it could be partnering up with local investors to rehab properties in our community.

Basically, I put deals together. Sometimes I broker real estate notes. Other times, I may put a property under contract and assign it to another investor. What has worked well for me is wholesaling profitable deals to other investors. For those who want to find out more, I’ve got this handout which I brought along with my business cards on the table in the back.

When I proceeded to walk back to my seat, the host stopped me and said he wanted to find out more. So, while I was still standing before the group, he asked a few questions. I answered them in my usual positive tone and headed to my seat.

The next portion was the host explaining about the history of the Fredericksburg REIA. He went over a few details. Then we watched a video of a talk Tony Robbins did for Technology Education Design (TED). I took some good notes off that talk as it was both inspirational and informative.

Several people were lined up to speak with me after the meeting. That was a tremendously great feeling. I enjoyed getting to hear specifically what each person was interested in. I actually would’ve liked more time to talk with each person.  I passed out a handful of my business cards and collected a handful too. Along with that, there are a few people I’m interested in partnering with. Networking really is my thing. So I listen for what drives each person toward their goals. I had a great time.

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Trinise L. Castro is an entrepreneur and published writer. She is CEO of her company Achieve Real Estate Solutions. As an investor, she buys and sells properties, notes, contracts, and mortgages. She is known for making connections and dealing in large commercial projects. Additionally, Trinise manages her active real estate investor’s group the DealMaker Network. Immerse yourself in Trinise’s positivity by reading her personal blog. For more information you can reach her at 888.789.FSBO. Or visit her website at:  AchieveRealEstateSolutions.com.

Factors to Consider when Applying for Bad Credit Home Loans

There are lots of companies that offer bad credit home loans nowadays. These lenders are more than willing to take the risk by accepting your loan application despite your bad credit history. But there are some who are greedy enough to take advantage of your situation. Better keep your eyes focused on the details in order to find the best services ideal for your current financial state. To help you out, there are factors to consider when applying for a loan. This is very important if you want to have a hassle free loan.

Your top priority would be determining your goal. It is fulfilling to buy a house that is roomy and elegant looking but make sure that it is not out of your league. Consider your monthly income first and leave some allowance just in case unexpected things happen – like sickness, abrupt unemployment and others. Always think of the future and the unexpected. You are not being pessimistic. You’re just making sure that your savings are enough to keep up with your monthly expenses. Just purchase something that is not too expensive but looks really good when using bad credit home loans.

The second thing you should consider is the reputation of the company that offers bad credit home loans. You should be cautious when it comes to choosing a lender because this is very crucial. You can find a mixture of reliable and phony companies online so you should always be on your guard. Thorough research can be of great help. Check each of the companies you think have justifiable services. If you’re still feeling a bit dubious then might as well ask around. Get opinions from your friends who have bad credit history and applied for new loans. This will surely help you make up your mind now.

The last thing you should deal with is the conditions offered by companies that give bad credit home loans. With the variety of companies out there, you might get lost and apply to scheming lenders. You need to read and absorb every word of their terms and conditions. If you have questions, ask them personally in order to have instant clarifications. You should avoid companies that have high interest rates and additional fees, a loan amount that is based from the value of your house and not on your monthly salary and other obvious signs.

During this time, you can find bad credit home loans anywhere. This business has spurted because of the high demand but there are some who are just interested in profiting from your fallibility. In order to escape that kind of trap, you should follow the three important things you should remember whenever applying for a loan. You don’t want to have additional debts and decrease your credibility so it’s a must to follow the simple tips mentioned above. Just don’t get easily lured by loans that are too good to be true if you want to have a successful transaction.

About the Author

Rachael Walker is author of this article on Bad Credit. Find more information about Debt Consolidation here.

Don’t Throw Your Money Away, Sell Your House OnlineTop of Form

Selling and buying a property is an emotional decision. Selling your own property can be very rewarding, stimulating, and lots of fun. It is a certain amount of work, but almost certainly not as difficult as you might believe. Real estate agents usually ask for a commission somewhere in the range of 6% of the total cost, which can quickly amount to $20,000 to $30,000 upon the sale of a nice home. However, when a property is sold, “house for sale by owner” (FSBO), you can offer a lower price because there are no agent commissions to be subtracted from the seller’s proceeds.

Homeowners are beginning to realize that they have the ability to sell their own homes and keep more money in their pockets. When considering selling your own property you must ask yourself some focused questions. Avoid getting emotionally caught up in the house, you have lived in as your home residence, no matter how long you have lived in that home.

Put yourself in the buyer’s shoes. If you were a buyer, would you buy your FSBO property in its current condition? If your answer is no, then you need to figure out how to market your house to make it more attractive to potential buyers.

Clean and polish all surfaces that might collect dust. Remove and store away any personal items that detract from the overall look. Clean the windows inside and out to bring in more light. Cleaning and preparing your house for a home visit is only a little bit of your work. First impressions count. Some potential buyers like to drive by to see the outside of the house.

Are you willing to throw away a year’s wages to an agent that has just turned up at your house walked around it, took a few photographs, and made a few measurements? Is it worth 6% of your home sale proceeds to pay an agent who just sat in an office and posted up some facts in the local paper and internet? You could do all of this yourself in a weekend. $20,000 or a weekends work?

I know which option I prefer. I will sell a house for sale by owner. Search the internet and make some informed decisions. By using search phrases such as “sell my house, “sell my property,” and “sell my home FSBO,” you can discover excellent resources to sell your house, for sale by owner.

About the Author:
If you have a House for sale by owner it may well be worth Homestaging to make your property stand out.

Tags: finance, real-estate-fsbo, house for sale by owner, homestaging

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Buying a House with Challenged Credit

By Trinise L. Castro

You can definitely buy a house with bad credit. There’s more to consider in purchasing a home than your credit history. What’s even more important than your credit score is your financial stability. Affordability will open up a lot of options for you to purchase a house. To learn if you can afford to buy a home, you need to know what your income and expenses are.

Your Income. It’s vital to have full awareness concerning your income. You should know how much money you make each week, every month, and even for the whole year. Find out how much you earn for each timeframe. Memorize these numbers and you’ll be on your way to being in better control of your finances.

Your Expenses. Very few people know exactly how much they spend everyday, month, or year. Tracking your expenses for a month will shock you. At least start jotting down how much you spend each day for just a week. Multiply that number by 4 and you’ll have a general idea of how much you spend monthly. For example, let’s say you added up your bills and expenses for one week and they total $350. You’ll discover that you spend $1,400 or more every month.

Since you pay for a number of different things all throughout the month, it’s best to use actual numbers. There are a few things you can do to make it easy to track your money. Whenever you buy something, get a receipt. Save those receipts. Then quickly jot down the total amount of money you spent that day. Writing down what you spend daily for a month will help you to accurately calculate your monthly expenses.

Income vs. Expenses

Once you know your exact income and expenses, you’ll feel more empowered and ready to consider buying a home. By now you should know your salary and the amount of money you spend. So it’s time to find out whether there is enough money left over to support you in buying a home. Is your income higher than your expenses? When you are ready to buy a home, your salary certainly needs to be higher than your expenses in order for you to be able to afford owning a home.

Renting vs. Buying

While there are many expenses you have to pay to rent a place, buying and owning a home brings on many more bills and financial obligations. When you rent, your landlord will take care of things like plumbing, broken air conditioning units, and mowing the lawn. However, as soon as you become a homeowner, you become responsible for your house, the land, and everything on it. You get to pay for repairs and maintenance on your home. Heating and air conditioning bills are higher. Electricity bills are higher as well. Appliances only last for a certain period of time. So they need to be repaired or replaced occasionally.

Before you decide to buy a home, you definitely want to find out how much owning a home will cost you overall. It’s not just the monthly mortgage loan payment that needs to be covered. Make sure you have more than enough money to live on before you set out to buy a house.

About the Author

Trinise L. Castro is an entrepreneur and published writer. She is CEO of her company Achieve Real Estate Solutions. As an investor, she buys and sells properties, notes, contracts, and mortgages. She is known for making connections and dealing in large commercial projects. Additionally, Trinise manages her active real estate investor’s group the DealMaker Network. Immerse yourself in Trinise’s positivity by reading her personal blog. For more information you can reach her at 888.789.FSBO. Or visit her website at:  AchieveRealEstateSolutions.com.

Become a Real Estate Guru by Using Real Estate Courses

At present Real Estate business is one of the fastest growing businesses. Day by day many people are experiencing success in this field. Have you ever thought of becoming a Real Estate Guru? If so, you can find many ways to become a successful Real Estate guru. There are some basic strategies you have to learn if you are a newbie.

Real estate courses and real estate seminars are outstanding methods when it comes to developing your skills and profits in the real estate industry. Here, you will learn how these powerful resources can benefit you when it comes to sorting through homes for sale that draw in your interest.

In order to succeed in Real Estate business you have to learn all the tactics associated with it. If you regularly participate in some seminars, you can get the idea on how you can become successful in this field. So let’s discuss some of benefits of Real Estate Seminars…

The great thing about using real estate courses and real estate seminars to learn more about homes for sale is that you can study at your own pace. These courses and seminars are designed to be paced according to the individual’s comfort level when it comes to learning, not an educational facilities pace. Once you get into the actual career of real estate, you can be your own boss!

By making use of these seminars you can ensure that you are making money in real Estate investing. Interaction among the people is the important thing in this field. These are effective strategies in learning every single angle of this particular industry. You have to build a strong network in order to succeed in the Real Estate business.

The most important thing for a business to succeed is to build a successful relation among the clients. By building a strong network you are helping your business to grow more and more. This also helps you in acquiring smart deals on property and houses. Networking and building a relation is a very complicated skill, you have to learn the techniques to build a successful relation which helps you to succeed in your business.

Real estate seminars is a wonderful way to learn how to recognize property types, methods of using those property types, and how to maximize your earnings when it comes to selling those property types.

By making use of Real Estate seminars and courses you can be sure that you are on the path to success in your business. Because these kinds of seminars will help you keep yourself updated about the new techniques in this competitive field.

Article Source: http://www.articlesnatch.com

About the Author:
Matt Garcia’s workshop is the culmination of many years of hard work and practical experience in Real Estate market. Develop your skills on Real Estate investing by visiting www.mattgarciaseminars.com.

Tags: finance, real-estate-fsbo, real estate seminar, homes for sale, real estate courses, real estate gurus, making money in real estate investing, real estate investing tax

Smart Homes Get Even Smarter

First came the Post-It note. Then artificial intelligence. In the past decade, we have come to rely on programs like MS Calendar with its timely pop-up reminders to help us keep it all together: thanks to this discreet helper, we come prepared to important meetings, show up for dentist appointments and mail Aunt Wilma’s birthday card on time. Those of us with home automation systems get an additional AI memory boost: the house reminds us via speakers or touch screens that it’s time to replace the smoke detector battery or that today we need to pick up our girls at 4:30 from ballet class. As our lives become more complex and dizzying, these memory aids, like an efficient personal assistant, help us stay on task and follow through on our best intentions (“Of course I remembered our anniversary, Honey!”).

But HA systems can do more than simply remind us of upcoming tasks, like our PC’s Calendar program; they can also provide an extra set of eyes and ears when we are away from our house and take action, sending us an email or phone call to report that the kids have arrived home from school, or alert us and the police of a break-in. Home automation allows homeowners to be in two places at once; we can check live home security cameras from the office or hotel and change our thermostat, lighting or security settings with the stroke of a keypad. Home automation acts an invisible security guard/house sitter.

In addition, many homeowners use their HA systems as a virtual nanny. Dad can be alerted at the office if his teenager has arrived home with friends and whether certain cupboards (think liquor cabinet) have been opened or smoke has been detected. He can even talk to his kids, much to their dismay, via speakers throughout the house. If this sounds a bit creepy and reminiscent of Big Brother, just wait until your kids reach adolescence; Big Brother will be your best friend.

Recently, as announced on PBS, home automation has been taken to another level; it is now being used as a virtual full-time attendant for the mentally and physically disabled, allowing them to live independently in their homes. Carnegie-Mellon’s Robotic Department teamed up with the University of Pennsylvania to develop a Smart Home for people who need intensive memory aids and guidance. The brain of this smart home first learns the unique daily habits of the patients, and then guides them through voice recordings to complete actions such as cooking or taking their medication if they get distracted or forget the proper sequence.

In these Smart Homes, if the stove is left on or the shower not turned off even after a voice alert, the house will send a signal to a nearby relative to alert him of the problem. Relatives can go online to track the movements of loved ones in the house and view them via room cameras. In case of an emergency such as a fall, the house would immediately alert both the relative and paramedics if the patient failed to get up. In Pennsylvania these new Smart Homes are being installed for people with early Alzheimer’s, mental retardation, cerebral palsy, spinal cord injury and other disabilities, allowing them the luxury of living independently.

These advances raise the question: has artificial intelligence gone too far? When we start replacing our loved ones’ flesh and blood caregivers with security cameras and voice recordings have we lost something innately human? In cultures with extended families living under the same roof, care giving was rarely outsourced, and never to a machine. But in our society where independence is prized over familial closeness and relatives cannot afford to either quit their jobs or hire full time caretakers, Smart Homes offer a welcome solution. Moreover, in our doggedly self-reliant culture, our sense of self worth hinges on our ability to fend for ourselves and not depend on others. Artificial intelligence allows us to do exactly that – to keep it all together, whether we are managing a busy office, an active family or caring for ourselves in our later years.

Article Source: http://www.articlesnatch.com

About the Author:
For more information on Home Automation and Smart Homes please visit Mile High Automation.

Tags: finance, real-estate-fsbo, home automation, home creators, home developers, home builders, smart homes

Why Do Banks Mistreat People in Foreclosure?

If you are in foreclosure and have spoken to your bank, you may feel you are being mistreated. This mistreatment comes in the form of not returning calls, short answers on the phone, and advice that may not be in your best interest. The problem is that the bank feels you are in default because of something you did and under the terms of the mortgage, or deed of trust, it is your problem. This sometimes arrogant attitude permeates the banking industry and makes it difficult for a simple resolution to your foreclosure. This is sometimes why homeowners believe that banks want to steal their homes, especially when there is equity in them.

Actually the bank does want to get the equity out of your home if there is any. In the recent real estate market declines, this is not very often the case. The sub-prime crisis has caused the demise of many banks that were uncooperative with borrowers who were sold homes they couldn’t afford by using Adjustable Rate Mortgages (“ARM’s”). The bigger issue is that the banks have to deal with so many people who have so many stories that they have become numb to the homeowners’ personal situations. More importantly, the banks are in business to make a profit, so unfortunately that means helping foreclosure victims is only secondary to what is in their best interest.

The banks make money from both interest differential on their loans, also on the points charged at closing, or the selling of their loans for a profit. How many people do you know who have had their lender changed after they got their mortgage? The number is very high because there is a great deal of money to be made in selling and repackaging these small loans into multi-billion dollar bundles.

If a bank has to take a property back from a foreclosure or a “deed in lieu of foreclosure” it becomes a Real Estate Owned (“REO”) property for the bank. This is a problem because of the huge jump in the cash reserves the bank must have by Federal Reserve requirements. So generally speaking, the banks don’t want your home unless they can quickly sell it and make a profit. As soon as a homeowner is 90 days late the banks use computer programs to determine if your home has equity and they even send out a realtor to do a Broker’s Price Opinion (“BPO”) to determine its value. If it has equity that the bank believes makes it able to sell quickly, you may be treated differently than a homeowner that has no equity. This “equity stripping” of the home is not a predictable source of revenue for the bank, but when it becomes available, the bank has an “obligation to its stockholders” to take advantage of the situation. In the southeastern states and California, this was a common practice for years when there were rapidly rising markets.

Some banks have become pro-active in trying to help homeowners by sending out field reps to review their personal situation and offer solutions. However, the programs we have seen required the lender‘s agent to be a licensed realtor which caused a conflict with his wanting to list the property for the higher commission versus the small fee for having the homeowner fill out a form and getting a solution from the bank that allowed the homeowner to keep his home.

In summary, the bank has motives to mistreat the homeowner. Most banks are not in the business to try and steal homes from foreclosure victims but if the opportunity avails itself, it is a real possibility. Banks will not give homeowners legal advice especially if it is not in their best interests. Therefore, the homeowner must be aware of what questions to ask his bank regarding what programs are available as solutions for his foreclosure problem. Never sign any documents either from a bank or anyone else without getting the documents reviewed by an attorney.

Article Source: http://www.articlesnatch.com

About the Author:

Dave Dinkel is the author of “32 Ways to Quickly Stop Foreclosure” and has helped thousands of foreclosure victims for nearly 33 years. If you are facing foreclosure, visit StopMyForeclosureMess.com for guaranteed solutions.

Tags: real-estate-fsbo, real estate, foreclosure, lenders, mortgage, deed of trust, federal reserve, foreclosed property, realtors, closing points, points, deed in lieu

The Most Used Methods of Resolving a Foreclosure

The three most frequently used methods to resolve foreclosure are loan reinstatement, forbearance agreement, or loan modification. While there are numerous other specific ways to stop foreclosures, these three are used most frequently.

1.) Loan reinstatement is where a lender has started the foreclosure process and the homeowner finds a way to pay back or “reinstate” the entire deficiency owed. The deficiency amount includes back loan principal and interest payments, accelerated interest costs, attorney’s fees, assorted processing and collection expenses, and late penalty charges. This technique requires the maximum amount of money all at once. Ironically, lenders recently indicated that pre-payment penalties may be included into final judgments in the near future.

When the homeowner’s reason for the delinquency is resolved, he usually asks the lender to take partial payments because he can’t get the entire deficiency amount together. However, the lender will not accept partial payments and the foreclosure will proceed if the full reinstatement amount isn’t paid. The reason for this is simple, the lender knows that the homeowner’s chance of getting out of, and staying out of foreclosure is less than 1 in 8. So the lender does not want to drag out the inevitable, the loss of the home to foreclosure.

2.) A forbearance agreement between the lender and the homeowner stipulates that the homeowner must make additional monthly payments for a specific period to make up the reinstatement amount that he couldn’t pay in full. As simple as it sounds, it may be unaffordable for the homeowner who could barely afford the original loan payment. The lender will usually ask that the homeowner pay the reinstatement amount over a three or six month period. If the monthly loan payment was $2,000 per month and he was 3 months in arrears, the new monthly payment for a three month period would be at least $2,000 + $6,000/3 = $4,000 per month. For a six month repayment schedule the new monthly payment would be $2,000 + $6,000/6 = $3,000 per month. In some instances the lender may ask for an additional cash payment before they will start the increased monthly payments. After the 3 or 6 months, the loan payments revert to the original amount or $2,000 in the above example. The foreclosure does not stop with the signing of the forbearance agreement but simply is put on hold until the homeowner completes making all the increased payments.

When you speak to your lender try for 12 months and don’t accept less than 9 months unless you can truly afford it! Ask them to review your financial statement, which they should readily send you and remember that the lender has already pulled your credit report and knows where you work, possibly how much you make, how many other monthly payments you have, and other information in the public records. They have also done a price analysis on your home and probably had a Broker’s Price Opinion (BPO) completed. Essentially they know what answers you should be giving them, so be forewarned. This method of reinstatement takes as much money as the loan reinstatement except it is spread over 3 – 6 months or, hopefully, more.

3.) A loan modification program was the most common method of foreclosure resolution for decades. It involved the lender issuing a new loan agreement where the deficiency amount was added to the loan balance and paid in identical monthly payments but for many more months, at the end of the loan. The monthly payments remained the same and if the home was sold, the balance of the reinstatement amount was paid from the proceeds of the sale. This method of resolution requires no up-front cash and the same monthly payment as before the foreclosure.

Another type of loan modification was to very slightly increase the monthly payments over the remaining term of the loan. So the homeowner has a choice of either extended but identical payments (as above), or slightly higher payments for the original term of the loan. Either option repaid the lender his money back plus interest. It was an affordable win-win for the lender and the homeowner, but is seldom offered anymore unless the lender knows the property is not worth taking back by foreclosure and he hasn’t sold the loan into a mortgage pool.

Loan modification programs are usually not available unless there is a hardship involved such as a job loss, death or illness. But it is worth asking your lender about it if you are in foreclosure because the market conditions and massive loan defaults puts pressure on the lenders to be more cooperative with homeowners. Your best option is to talk to your lender and as early as possible so you have time to resolve your problem.

Article Source: http://www.articlesnatch.com

About the Author:

Dave Dinkel is the author of “32 Ways to Quickly Stop Foreclosure” and has helped thousands of foreclosure victims for nearly 33 years. If you are facing foreclosure, visit StopMyForeclosureMess.com for guaranteed solutions.

Tags: finance, real-estate-fsbo, foreclosure, loan reinstatement, forbearance agreement, loan modification, foreclosure process, reinstatement amount, loan deficiency