The Age Of Bank Foreclosed Homes

Bank foreclosed homes are a double edged sword.  With the recent downfall of the economy a glut of homes have come into foreclosure displacing 1000’s of families across the country.  This is an extremely unfortunate circumstance for these poor families who were allowed to purchase homes beyond their means.

Over Financed Mortgages

Many were allowed to finance 100% of their mortgages with interest only payments and with loss of jobs, refinancing coming due and other circumstances this has presented an opportunity for others to profit from these foreclosed homes.

Financial Institutions are anxious to recoup as much of the loan as possible and there is a unique opportunity to pick up both low income housing, middle class housing, upscale high end housing and vacation properties never available at these prices.

You hear alot about bank foreclosures in the news these day but unless you’ve been involved in a foreclosure you probably don’t know exactly how it works. Before you decide to get involved in purchasing and/or flipping foreclosures you should understand how the process works…

The Foreclosure Process

Did you know that if you miss even one mortgage payment you could be in danger of having your property entering foreclosure?  Generally it will take 2-3 months of missing payments before the process begins but it’s crucial you make all payments on time in full.

If you do miss a payment you will receive a letter from your banking institution requesting payment immediately, not a good sign and not good for your credit.

Step One: Notice To Accelerate

After you’re 60 days past due you will receive a “Notice To Accelerate”.  Once this happens you are required to bring the loan “current”  to prevent or stop the foreclosure process.  You are required to pay all past due payments and applicable late fees assessed and possibly attorney fees.


Step Two: The Demand Letter

Not responding to the mortgage companies Notice To Accelerate will result in The Demand Letter.  The Demand Letter involves an attorney, the attorney will send you The Demand Letter formally stating that if you do not bring the loan current immediately the foreclosure process will begin in the courts.

Step Three: Notice Of Default

Okay so you haven’t responded to the Notice To Accelerate or The Demand Letter now what?  Now the lender (usually their attorney) will file a formal foreclosure document notice with the court in your jurisdiction.  On this document will be listed the entire amount needed to be paid, you have anywhere from 15 to 30 days to take action to this judgement before Step Four…

Step Four: The Notice Of Sale

Now 15 to 30 days have passed with no action on your part i.e. settling your loan.  Now you will be served with a Notice Of Sale which simply states that your property will be put up for auction, it will include the sheriff’s auction date.

As you can see bank foreclosed homes for sale go through quite a process before being auctioned.  Buying foreclosed properties can be a lucrativeve business or a great way to purchase a home.  Foreclosed properties come as is so if you can have an inspection done ahead of time it’s highly advisable.

In future articles we’ll be providing  information on taking advantage of bank foreclosure sales, tips on stopping foreclosures, tips on buying foreclosures and more.   Buying a bank foreclosed home is a great way to get a bargain on your first home, upgrade to a house they may have previously been unobtainable or building a real estate business via the rental market.  Remember bank owned foreclosed homes represent a good opportunity but you still need to due you homework into the condition of the property, there are many websites that list free foreclosure listings and allow you to  bid online for the property, personally I wouldn’t purchase any property without inspecting it or having a company I trusted inspect it ahead of time.  There are many things that can be wrong with the property.

I recently traveled to Florida with the hopes of picking up a vacation property for a song, there are many advertisements and courses promoting this type of investment, what I found was that there are so many homes in foreclosure in Florida, California, Arizona and Nevada (just to name a few) that the banks can’t keep up with proper upkeep on the properties.  Many have been looted by thieves, particularly of things like air conditioning units etc as well as unkeep yards, pools etc.   Another large problem is the construction boom before the housing crisis led to contractors using inferior products such as drywall imported from China which is actually omitting toxic fumes that are even starting to rot the copper piping inside the walls, this will be a huge expense and may render the property inhabitable.  Do your homework, that bargain may not be such a bargain.

Foreclosure Definition Terminology and Meanings Explained

If you are having financial problems and are confused by the foreclosure definition and terminology be used in letters or when dealing with lenders or lawyers I hope you find the meanings below useful.

Glossary of Foreclosure Terms:

Adjustable Rate Mortgage
These are known as ARMs, and are mortgages that have rates of interest that alter on a periodic basis. The rate of interest is commonly nailed down to some basic rate when you assume this kind of loan.

 

Appraisal
This is a typewritten justification that explains the cost that is to be given for a particular piece of property. The appraisal is generally established on the comparison of like dwellings that are in the near region, or upon sales which are comparable inside the residential area.

 

Assets
Assets are items that possess value and that are owned by one person. There is a diversity of various kinds of assets that could be changed over instantly into hard currency. These assets are named liquid assets since they could be easily liquidized into hard currency. Liquid assets include banking accounts, bonds, stocks, and many others. Other types of assets include debts that are owed to an individual by other individuals, mutual funds, property, and real estate.

 

Assumes and Agrees to Pay
This is a clause that may be established in a number of distinct kinds of deeds and corresponding documents. This states that when the purchaser chooses to assume the payments that in the first place belonged to a seller’s previous real estate loan, he or she agrees to pay off the previous loan entirely. The purchaser is generally accountable for getting the title, then bearing all payments which need to follow. This clause may also appear in the segment of the document concerning the transfer of the title of the material possession to the purchaser from the seller. This clause might or might not entirely liberate the marketer from any and all indebtedness.

 

Balloon Mortgage
A balloon mortgage is a mortgage on which you pay an agreed upon rate of interest on the loan, for a pre-determined timeframe. At the end of this pre-determined timeframe, the entire total of the mortgage is owed. This constitutes a feasible lending alternative for some individuals, only those looking at foreclosure best not explore this special alternative.

 

Bankruptcy
After filing in a federal courtroom for the bankruptcy procedure, individuals can either alleviate or restructure their indebtedness through the bankruptcy procedure. There are really numerable types of bankruptcies, but the most prevalent are Chapter 7 Bankruptcy which is no asset bankruptcy, and Chapter 13 Bankruptcy.

 

Chapter 7 Bankruptcy
Chapter 7 bankruptcy is able to alleviate nearly all types of debt that the borrower is confronting. Borrowers cannot commonly become eligible for loan papers for at minimum two years following bankruptcy, and individuals are expected to re-establish their power to pay back debt, meaning that they must build up their credit once more prior to qualifying for a mortgage loan. Chapter 7 is a chapter in the Federal Bankruptcy Code that demands settlement (by liquidation). What this signifies, is that all assets that belong to the debtor that are non tax-exempt will be relinquished, or sold off for the welfare of whatever debt creditors are still owed. This is done in the order of priority. In Chapter 7 bankruptcy, the debt is never actually completed. Secured creditors continue to obtain their payments or assets to pay off the monetary value which they are still owed. Unsecured creditors take in very little if anything in return for their loans once Chapter 7 bankruptcy is filed.

 

Chapter 13 Bankruptcy
Chapter 13 is a chapter of the Federal Bankruptcy Code affording earners the power to bring down debt through court orders following prearranged conditions that permit debtors to pay a great deal of the original sums of money due, if not the full sum due.

 

Deed in Lieu
This option may allow you to voluntarily “give back” the property to your lender. Thus, further damage to your credit will not occur. Lenders can decide from this point whether they want to stop the foreclosure activity if the borrower asks for this option.

 

Deed of Trust
In nearly half of all of the United States, deeds of trust are used rather than mortgages. However, like mortgages, deeds of trust are recorded in public records in your county courthouse so that anyone could know that a lien is on your property. Three parties are involved in the deed of trust: You (the homeowner) are the trustor, who acquired the loan; then there is a beneficiary, which is the lending institution providing the revenue for the loan; and lastly, there is an impartial third party called the trustee.

 

Equity
This comprises a household owner’s fiscal interest in a specific piece of property. Equity is measured as the actual difference that exists between the fair market value on a property, and the sum of money that is actually owed on the mortgage plus any additional liens that are tied to the property.

 

Fixed Rate Mortgage
This is a mortgage in which the rate of interest is set as you first acquire the loan; the rate of interest continues to be the same through the full duration of the loan.

 

Forbearance
This happens when the lending institution voluntarily accepts to take lower payments than what was earlier agreed to in the paperwork of the loan, only for a specified time period in order that the borrower can recover financially from a job release or another fiscal problem.

 

Foreclosure
Foreclosure is defined as the action or procedure through which a borrower who has defaulted upon a real estate loan is stripped of their ownership rights to the mortgaged real estate. What this usually calls for is the coerced sale of the real estate property at a trustee’s sale or public auction. The yields of the sales event are then utilized to pay on the debt that has been accumulated by the mortgage.

 

Interest Only Mortgage
These are mortgages where you solely pay the interest component of the loan, and your defrayal does not include any percentage of the principal component of the mortgage loan.

 

Lender
This term refers to the financial institutions that lend revenue and other persons that represent the business firm that establishes the loan. Financiers and lending institutions are both typically named as lenders.

 

Lien
Liens are lawful claims that are fixed against real estate holdings. Liens must be paid-up entirely if at any point the property is sold. Mortgages and first trust needs are regarded as liens.

 

Mortgage
A loan used to buy a piece of real estate is called a mortgage. The property being bought is used as a guarantee for the sum of money being loaned. This lien works as a guarantee against the purchase amount for the purchased real estate.

 

Principle
The principle part of a loan is the sum of money that is borrowed, or in other words, the sum of money that was borrowed but that is yet unpaid. The principle is likewise viewed as the division of a monthly defrayal that actually cuts down the balance of the mortgage. This does not include the rate of interest or the interest that was accumulated.

 

Real Estate Agent
A real estate agent is an individual who has gotten the proper licensing to manage and to transact in every step typically related to the selling of real estate property. Realtors can conduct business selling residential properties, commercial properties or a combination of both.

 

Real Property
In principle, the description of “real property” comes into the range of any items which possess concrete ownership potentiality. This includes dry land, and including anything that has a permanent nature like trees, rocks, structures, landscaping, etc.

 

Realtor
Realtors include real estate associations, real estate agents, real estate brokers, and real estate associates who hold a participating membership in one or more local real estate boards. The real estate board has to be accredited and affiliated with the National Association of Realtors to qualify.

 

Second Mortgage
Second mortgages are mortgages that have lien positions that act as secondary mortgages to the first mortgage. Second mortgages may be used to cut down or to improve the conditions of the first mortgage, or to draw an sum of money out of the original mortgage based in the equity in the dwelling. If foreclosure occurs, the lender with the first mortgage always has priority over the lender handling the second mortgage.

 

Short Sale
This is a particular procedure that involves the lender taking less than the entire balance owed on the loan. This is an alternative taken by householders who wish to sell their house promptly and for less than the fair market value of the holding in order to avert the actions associated with foreclosure.

 

Title
The title is a legal instrument which exists to clearly attest to a person’s right to the explicit ownership of a holding. Titles are most typically used for vehicles and real estate property.

 

Two Step Mortgage
Two step mortgages are changeable rate mortgages, or ARM mortgages that have a single rate of interest for the beginning five o seven years of the mortgage term, and then allows the rate of interest to switch for the balance of the amortization term. The two very distinct mortgage rates make this a “two step” mortgage.

 

Wage Earner’s Plan
The Wage Earner’s Plan is merely a different name for the Chapter 13 section of bankruptcy proceedings.

 

Warranty Deed
A warranty deed of conveyance of land requires the grantor guaranteeing the title of the property to the grantee.

 

Without Recourse
These words are most generally used in the procedure of backing either a note or a bill. The note or bill is backed to announce that the future holder of a real estate property is not permitted to turn to the endorser in the case that there is a problem with making payment on time.

 

Workout
A workout is a procedure by which a borrower or home possessor comes to a reciprocally accepted agreement on a fiscal basis with the financier of a mortgage or deed as a means of averting a foreclosure in the future. Not all lenders provide workout programs, only some are more than inclined to assist borrowers defeat their fiscal problems to avert foreclosure.

 

Wrap Around
This is a particular type of mortgage that calls for the responsibility to bear subsequent liens including the responsibility to likewise bear former lien mortgages. In essence, the subsequent mortgage is enclosed around the first mortgage, and any non-payments that are ordered on the first lien or mortgage are automatically defaulted on the subsequent lien mortgage.

 

Wrap Around Loan
A wrap around loan is a more current type of loan, and it covers any and all active loans, giving defaults from older loans onto the new loans in the procedure.

 

Wrongful Foreclosure
This is a mode of foreclosure that in fashion or another was lawfully inappropriate. Wrongful foreclosure is a foreclosure that made a borrower to needlessly endure unjust and strictly needless wrongs.

Las Vegas Foreclosures Make Great Retirement Homes

One of the best kept secrets for retirement is the city of Las Vegas.  While over ¾ of the population of this major city are under the age of 55,  Vegas has many features that make it an ideal place for retirement.  Among these features are the great weather, ample entertainment opportunities, many excellent hospitals and of course, affordable housing.  Like the rest of the nation, there are many foreclosures in the city that make housing even more affordable for the retirement years.

There are a wide variety of Las Vegas foreclosures and can be found in single family homes as well as in multifamily housing.  Homes are available in all sizes, from the modest cottage to the expansive mansion.  Regardless of the size or style of home selected or even the neighborhood desired, bank foreclosures in Las Vegas offer some of the hottest deals in housing for seniors.

Many seniors prefer the convenience of condo living.  Most condos offer homes that are maintenance free on the outside.  Buying a condo in Vegas is not only ideal for those who will  live here  part of the year as well as year round residents, the homeowner’s association is responsible for lawn care as well as such tasks as painting and maintenance of the roof.  There are a number of condo foreclosures in Las Vegas that make these maintenance free homes a great value.

In addition to affordable housing, Las Vegas offers many entertainment and recreation opportunities.  There are hundreds of casinos for those who enjoy gambling.  Whether playing the machines of enjoying live card or dice games, there are plenty of establishments offering a chance to try your luck.  In addition, most of the hotels offer other forms of entertainment, including comedy as well as music entertainment from all different areas and featuring practically any type of music from blue grass to rap.

If your preferred recreation, there are seventy five golf courses in the area.  The desert weather with only 4.5 annual inches of rainfall and 1.2 annual inches of snowfall allows the individual to visit the greens almost any day of the year.  The weather is also ideal for tennis played at one of the 33 public tennis courts or for enjoying over 5,000 acres of land that has been set aside as park land.

The casinos also offer lots of dining opportunities.  Most feature at least one buffet but today there are also smaller restaurants that feature a wide variety of foods that can be enjoyed.

While much of the action is featured downtown on the strip, Las Vegas is a major metropolitan area and features many of the same facilities one would find in any other city.  There are lots of opportunities for shopping in the many malls and shopping centers located within the city.  Many retirees and their families enjoy shopping in the numerous outlet malls that are located in the city.  In addition there are 28 movie theaters located in the city.

The city has plenty to offer in medical services as well.  There are numerous doctors that specialize in practically all diseases from arthritis to zoonotic disease, when the health concerns that accompany aging become a problem, there will be a doctor that is able to offer assistance.

The many great feature of Las Vegans are the reason that the city has been named as one of the best places to retire by both Money Magazine as well as US News and World Reports.  With the numerous foreclosures in Las Vegas Nevada, persons looking for an excellent city in which to retire will find affordable housing is just one of the bonuses to selecting this city for their retirement years.