Understanding Foreclosure

Document Sample
Understanding Foreclosure Powered By Docstoc
					Presented by Daniel Toriola
A foreclosure can stay on your credit report for 7-10 years. Not only does it affect your ability to get a home loan, car loan, or personal loan; but it also can cause you to have a hard to time finding a place to rent. Click here to know more

Register Your Domain For $7.99 Only! Further Discounts Available To Resellers. Also available - Linux Hosting, WebSite Builder, Reseller Plans, Private Label Hosting, and more. Click here to know more

Understanding Foreclosure By Emil Emilov

Hi, this is Emil from http://investing-in-property.com. I hope you're going to enjoy the following article on investing in real estate. If you want to know more visit my website. The recent collapses in the mortgage industry have left a large number of consumers scratching their heads in an effort to better understand the economics behind borrowing money. From the opposite side of the spectrum, this rash of foreclosures has left many savvy real estate investors scratching their heads trying to figure out how they can make money from the foreclosed properties. Though the processes can be lengthy and rather complicated, the best place to start is with a basic understanding of how foreclosure works, and what it actually means. Foreclosure is simply the act of a bank, mortgage company, or anyone else who loaned you money for your house saying, “We loaned you money and you aren’t paying us back in the way that we agreed. As a result, the loan is cancelled. Pay us now.” Most people cannot repay the loan immediately so the house is claimed as collateral. This process can take several different forms. The first is judicial foreclosure. Judicial foreclosure involves the court system. This is the most common type of foreclosure, and in many areas it is the only legal option of foreclosure available. The court system will oversee the sale of the foreclosed property and the money made from the sale will go to pay back the bank or mortgage company. If there is any money left over, it will be used to pay off any liens that may be held against the property. Liens are claims that other creditors may place against your property. The lien is a legal agreement that says. “Party A owes me money, so if they decide to sell their house then they don’t get any of the money until the debt to me has been paid in full.” After all the creditors and lien holders are paid, the original homeowner will get whatever is left. The second type of foreclosure is non judicial foreclosure. Also known as “foreclosure by power of sale,” this is the preferred method by most creditors because the process tends to move much faster than court supervised foreclosure. This method is not legal in every state. The distribution of funds follows the same schedule as the court supervised foreclosures, with the original homeowner finally getting whatever proceeds of the sale are left at the end. If you are an investor seeking to take a 2nd mortgage and buy foreclosed real estate, then you will
The Million Dollar Foreclosure System Generate Hefty Profits Using The Power Of Pre-Foreclosure Real Estate. Page 1

Presented by Daniel Toriola
quickly become familiar with the term, lis pendens. This is a Latin phrase meaning “pending lawsuit.” In the world of mortgages and foreclosures, it is a publicly recorded list of properties that are about to foreclose. Once the process has begun for judicial foreclosure, the municipal clerk in your county or town will publish the list of suits that have been filed. This is a great place to look for real estate investors who may be able to buy homes directly from people who are about to go through foreclosure. It is a chance to pick up property for a good price and for them to avoid going through the foreclosure process. Before a suit is filed, the creditor is required to issue a Notice of Default. This is a legal notice that informs you, the borrower, that your original loan is in default status and that the original agreement that was established for payment is no longer binding. Most lenders will place a mortgage into default status when the payment reaches the point of being 90 days late. By day 95, the Notice of Default will have been presented to you. If you have a default loan you may still be able to salvage your home, but you will need to act quickly. As a real estate investor, there are two different ways to buy distressed properties. The first is to purchase pre-foreclosure properties. It is pre-foreclosure because the property still belongs to the original homeowner. Though proceedings for the foreclosure may be underway, the homeowner may be willing to sell the property for just enough to satisfy the amount of the loan. This leaves the investor with a great deal on a piece of property and the homeowner avoids the traumatic experience of foreclosure. Foreclosure property sales that are not “pre” have already reached the point where the property is back in the banks name and they are selling it just to see how much they can recover. Again, this is a great opportunity to buy, as the banks often don’t push for higher prices at auction. They simply want to recover the outstanding portion of the loan. The increase in sheer volume of foreclosure is evidence that many people simply do not understand what they are getting into when they buy their first home. Having identified this as a problem, there are many government back institutions and even some private ones, who offer assistance to home buyers. While they can help you secure funding, organizations like VA/HUD, Freddie Mac, and Fannie Mae are also excellent sources of information. This is Emil from http://www.investing-in-property.com coming to you with this article on property investment. If you'd like to find out more please visit my website.

Foreclosure Wizard Brand New Software Provides System For Foreclosure Investment Success. 4% Conversion Rate- Earn up to $88. Page 2

Presented by Daniel Toriola
5 Things You Need to Know About the Foreclosure Process By Jill Borash

What you do not know about the foreclosure process can hurt you and it can mean the difference between saving your home and losing it to foreclosure. There are 5 things that you must know about the foreclosure process in order to stop it. The foreclosure process can be a scary and emotional process. There are terms being thrown around that you do not understand and paperwork being mailed to you constantly that is just as confusing. The two most important things that you can do right now is get yourself educated and keep the lines of communication open with your bank. Here are five important things that you need to know about the foreclosure process in order to understand how to avoid it. 1. Know when your bank will start the foreclosure process. The best way to find this out is simply to call them and find out what their policies are. When the process will start depends entirely on your bank. Some will start foreclosure proceedings after 90 days of no payments. Some will take longer. Talk to your bank to know when that process will start for sure. It also depends in large part on your willingness to work with the bank. If they know that you are trying to work with them, they may not even start foreclosure at all. Some banks will work with you to help you figure out the best solution for your specific situation. If you keep them informed of what is going on with you, you have a much better chance of working something out with them. 2. Know how long the foreclosure process will take with your bank. It varies from bank to bank and again, the best way to find out this information is by calling your bank and talking to someone in the foreclosure department. And again, it depends largely on your bank on how quickly this process will move. Some banks will get it done as quickly as 6 months and some will take longer. 3. Know what alternatives you have to foreclosure. There are always ways to avoid foreclosure. What your alternatives are will depend on your situation. This includes things like whether or not the changes to your financial situation are temporary or permanent, if you want to stay in the house or not, how much money you owe on the house and many other factors. Talking to your bank and a foreclosure attorney will help you figure out what your options are and what the best solution is for your situation. 4. Know who you need to be talking with at your bank. This may change during the foreclosure process. If you start working with your bank before your home goes into foreclosure, then you will probably start by dealing with the workout department. If your home goes into foreclosure, your file may get transferred to a foreclosure department. Keep in contact with your bank and make sure that you have the correct contact at all times. Faxing paperwork to the wrong person or repeatedly calling the wrong person ends up wasting your time. And time is one thing that is never on your side during the foreclosure process. 5. Know what the legal paperwork you are getting means. During the foreclosure process, you will paperwork from the mortgage company’s lawyers. If you can, getting a foreclosure attorney so that you understand what the paperwork means is a good idea. If you cannot get a foreclosure attorney, do some research yourself to understand what the paperwork you are getting means. Understanding the paperwork is vital to understanding where exactly you are at in the foreclosure process.

Foreclosure Hunters Guerrilla Marketing Step-by-step, turnkey system, complete will all necessary software for the professional foreclosure investor! Page 3

Presented by Daniel Toriola
The foreclosure process does not have to be scary and confusing. All you have to do is keep yourself informed and educated about the process. For more help on understanding foreclosure, go to http://www.stopping-home-foreclosure.com/ForeclosureProcess.html

Stop Foreclosure Advice Kit Ebook kit with advice on how to stop the foreclosure of your home NOW! Page 4

Presented by Daniel Toriola

Related eBooks: 5 Things You Need to Know About the Foreclosure Process Making Every Moment Count In A Pre Foreclosure How to Buy Foreclosure Homes Tips For Successful Real Estate Foreclosure Investing Top 20 Real Estate Foreclosure Markets, Mid-Year 2007 Get more Free PDF eBooks at FreePDFeBooks.com Related Products: Understanding Acne: Causes, Cures and Myths Understanding Incontinence Obesity and Weight Loss About Niches Disaster Preparedness and Crime Protection Manual

Malamaal.com: A genuine resource center for Quality Ebooks and Softwares
This PDF eBook is for free Distribution only, it cannot be SOLD eBay Wholesale Product List Updated wholesale company list for products that can be sold on eBay or other venues. List updated monthly with new additions! Click here to know more

Powered By FreePDFeBooks.com ReBrand this PDF eBook with your Name / URL / ClickBank Affiliate ID for Free

Generate Huge Returns With Foreclosures Learn one of the best kept Secrets of all time. Pre-Foreclosure Short Sales. Page 5


				
Patricia Johnson Patricia Johnson Management Consultant
About Sharing ideas with others. The documents may contain basic information you already know. The documents are shared, also keeping in mind the people who don't know. Also, the documents might be useful to those who think they know buy they don't know that they don't know.