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31
May

Foreclosure Laws in New York

In New York state, a bank can use either judicial or non-judicial foreclosures.   If a power of sale clause is written into the mortgage or deed of trust, this enables the bank to save the time and expense of filing a lawsuit with the court in order to proceed. A power of sale clause is wording that preauthorizes the bank with the option of selling the home without court approval.  Most deeds of trust or mortgages do contain a power of sale clause.  Even though time and money can be saved by using a non judicial process, most banks in the state of New York use judicial foreclosure.

In the absence of a power of sale clause, judicial or in court foreclosure begins in this state when the bank files a complaint against the home owner.  The purpose of this action is to obtain a decree of sale from the court.  When the court finds the home owner in default, the homeowner will then be given a period of time in which they are allowed to pay the amount that is past due, plus costs.  If they can accomplish this, then the sale of the house will be stopped, and the foreclosure on the credit history is avoided.  If, during this time, the home owner cannot come up with this money, then the house will be sold to the highest bidder by the county sheriff or a referee.

The sale date, time, and terms must be advertised in a newspaper with circulation in the county where the home is located for four to six weeks prior to the sale.  Anyone may bid at this sale.  After the winning bid has been accepted by the sheriff or referee, this officer is required to execute a deed to the person making the highest bid at the sale.  The sheriff or referee is further required to pay the bank and receive a receipt of that payment from the bank.

Sometime in the thirty days following the executing of the deed to the purchaser, the officer must file a report of the sale.  This report needs to include the receipt of the payment to the bank.  This report must be filed with the clerk of the court.    Generally, the sale cannot be confirmed for three months following the filing of this report.

Foreclosure in this state usually runs its full course, in 120 days.  The state of New York does not allow any rights of redemption to the borrower who loses their home to foreclosure.  That means the state does not give the former home owner anytime frame in which to regain ownership to the home by matching the winning bid plus costs and or interest.  Deficiency judgments are allowed.  This enables the bank to seek more money than was generated by the sale from the former home owner.  If the bank feels that the funds from the sale are not large enough to satisfy the loan they can seek more money from the homeowner.  Deficiency judgments only allow for the difference between what the house sold for and what was owed on the loan. 

Most people who lose their home at foreclosure, do not have any other resources from which to pay the bank any additional money.  Banks understand this.  So, unless they have reason to believe that the former home owner does have other properties or other resources to pursue, they will most likely not attempt a deficiency judgment.  It would be a waste of time, money, and energy.

Integrity 1st Consulting is your Foreclosure specialist- Kathy Swift

Integrity 1st Consulting is your Foreclosure ebook specialist- Kathy Swift

31
May

Tax Foreclosures Property Investment Could be a Nightmare Investment

The term “Tax Foreclosures” is a legal procedure or process that is expected to occur if a buyer defaults on a loan or the taxes applicable on the property, which he lends for mortgage. The lender or lending institution takes back the hold of the property because of irresponsibility of the borrower in paying off dues and applicable taxes or loan applied on mortgaged property for whatsoever reasons. Therefore it is in the best interest of the borrower to pay off all the dues and applicable taxes prior to agreed period of time so as to make sure that no legal action, such as auction of his/her property in public, is taken against him/her. The most notable thing for a borrower is to that he/she must keep all the documents with him/her meeting all the terms and conditions to avoid any Tax Foreclosures in dealing with other parties in future.

Tax foreclosure property procedures are different in every state. Many states follow an easy and simple tax foreclosure, whereby you only have to appeal the county court or maybe through processes of applications to obtain the deed to the property. Mean while, in other states, to go through the tax foreclosure property, you will have to spend most of your time in dealing with an attorney, which will consume lot of your time and waste your money.

In the United States, there are two sorts of property foreclosure in most common law states. Using a “deed in lieu of foreclosure,” the bank claims the title and possession of the property back in full satisfaction of a debt, usually on contract. In the proceeding simply known as foreclosure (or, perhaps, distinguished as “judicial foreclosure”), the property is exposed to auction by the county sheriff or some other officer of the court.

Other states have adopted non-judicial foreclosure procedures, in which the mortgagee, or more commonly the mortgagee’s attorney or designated agent, gives the debtor a notice of default and the mortgagee’s intent to sell the immovable property in a form prescribed by state statute. This type of property foreclosure is commonly referred to as “statutory” or “non-judicial” foreclosure.

The schedules for auctions of the tax foreclosures properties can be obtain by approaching the office of the Clerk of the District of the area in which the mortgager owns the property. However information on such listings can also be obtained from the courthouse.

The author is a writer to several Real Estate related topics and provide consultancy on Tax Foreclosures property and other Real Estate Investment services

31
May

Home Appraisal – Determining the Home’s Value for a Short Sale Package

One of the most important aspects of the short sale business is determining the value of the property you have under contract. It’s impossible to formulate your offer to the short sale lender without knowing the home appraisal value of the property you are interested in. Likewise, knowing the appraisal value of the property is just as important to the loss mitigator at the bank. The loss mitigator must establish an appraised value for the short sale property so he has a baseline price for negotiation. The appraised value of the property establishes the playing field on which we negotiate the short sale price of the property.

Getting Property Comparisons

The best way to determine the home appraisal value of a property is by using property comparisons (comps). Look at the properties in the same area of the short sale property.

You can get these comps with a little effort. There are a few ways to find market value comparisons for your area:

• Subscription programs (one is Haines, a subscription service on disc)
• Multiple Listing Service (MLS) if you have access
• Network with a realtor who can pull comps for you
• Free comps services on the Internet

It’s not recommended that you use the free market comparison services found on the Internet. These free services are worth about as much as you pay for them. If you have to spend some money getting comps, that’s a good thing. It means that someone is actually doing research behind the website or program.

Finding Home Appraisal Value: An Example

A busy real estate investor may outsource their home appraisal needs to another company or a certified FHA appraiser.

When a deal comes in the real estate investor will email the FHA appraiser, the address and owner’s name. In about 24 to 48 hours the appraiser will send back a limited desktop appraisal with three comparison prices on other similar sold properties and the market value that the appraiser has determined for the property that the company is interested in. The appraisal may also include some additional information and a map.

This appraisal gives an idea of the market value of the property in comparison with other distressed properties in the area. When looking for comps, don’t look for sales of well maintained properties, instead look for comparisons of other properties in foreclosure, REO properties, or corporate-owned properties.

Be Prepared to Pay for it!

Companies spend money getting their comps because they want good, accurate market value comparisons. When you are figuring the budget for your short sale business, remember to allocate some funds to pay a company or a certified FHA appraiser for that home appraisal. It’s well worth it to pay for a home appraisal so that you have accurate comps from third person parties or neutral parties outside of your short sale deal. You present their appraisals as objective evidence to convince the bank to accept your short sale offer.

Factoring in Cost Estimates for Repairs

The physical condition of the property is just as important as comps in a home appraisal. See if there are any repairs to be made on the short sale property. Make notes of what’s wrong, take photos, and get construction estimates for the cost of repairs.

When you do your cost estimates remember that the bank will be making the repairs, not you. Get cost estimates from a general contractor the bank would typically hire.

The best way to get cost estimates for your home appraisal is to hire a certified home inspector. You can look one up in the yellow pages. There’s also an organization called the National Association of Home Inspectors (NAHI). NAHI has high standards and finding a home inspector affiliated with this organization is a good way of making sure you get a thorough inspection.

A typical home inspection can take two and a half to three hours. The inspector gets up on the roof, checks the crawlspace and goes over the home with a fine-toothed comb. On completion of the home inspection the inspector hands over a report that can be 20 pages with detailed information about the property defects. Home inspectors may also takes photos and provide detailed cost estimates.

Paying a home inspector to get cost estimates is a great way to calculate the home appraisal value for your property. You’ll know exactly what’s wrong with that house because you’ve gone to a neutral third party expert.

Getting the Cost Estimates: An Example

Dan Shields is a typical home inspector. He’s a member of NAHI and does all of the home appraisal evaluations and repair estimates for many investors.

Dan states that a home inspector will start an inspection from the outside of the property to get a look at the big picture. He’ll check the roofing, gutters, siding, and windows to make sure they’re properly installed and flashed. He will also check out porches, columns, etc.

From there the home inspector enters the home for the interior survey, to document built-in amenities, appliances, and flooring. He will next go to the mechanical room and check the heating/cooling package and plumbing. Finally, the home inspector will check the attic and find the insulation factor for the short sale property, literally working from the ground up on the home inspection.

A Broker’s Price Opinion Value

When you complete your home appraisal and submit the short sale package to the bank you will be assigned to a specific loss mitigator who will want to determine their own estimate of property value.

The loss mitigator orders the bank’s appraiser to go look at the property and get a broker’s price opinion (BPO) or market value. Sometimes it’s done by a realtor, sometimes an appraiser. It’s your job to be the contact person that the appraiser goes through to get into that property. It’s very important that you meet the appraiser at the property to convince him your home appraisal value is about the same as the BPO value.

When you meet with the bank’s property appraiser let him know the property is in foreclosure and that you’ve been working with the seller to try to do a short sale with the bank. Get that point across immediately.

You don’t want the meeting with the bank’s appraiser to be a confrontation. This is first impression time, so just be yourself and let your personality shine. Shake hands with the property appraiser. Get to know him for the five minutes before you start shoving your material on him.

The whole BPO process will probably take less than 15 minutes. You have 15 minutes to let your personality shine so make it your best effort.

During the BPO

When you go out to these appraisals, take three things; a copy of the Real Estate Purchase Contract with your offer amount, your market value comparisons and a copy of your home inspector’s report

Try to present the material in a conversational tone. Ask if he’d like a copy of the offer you have made on the property and so on. If it’s an appraiser, he will always want a copy. Realtors are a different story—you can never tell what they’re going to take. Just ask and see what he’ll take from you. An appraiser will always take the property inspection report because it’s a good, neutral indication of property damage.

Let the appraiser know that your Purchase Contract has been at least preliminarily accepted by the bank and that’s why he is appraising the market value. You’d be surprised how often the bank’s appraiser doesn’t even realize the property is in foreclosure.

You also want to share comps with the home appraiser. Most of the time, appraisers have pulled comps before they go out to the property, so you may be able to share comps to get an idea of the BPO. Make sure the appraiser knows about specific problems with the property such as; mold, termites, or foundational problems that are not readily apparent. This is something the appraiser won’t spot during his 15 minutes with the property.

Once you get these three documents into the hands of the bank’s home appraiser chances are higher that the bank’s BPO comes in close to your home appraisal value. When you get a good home appraisal value and cost estimates on that short sale property. You’ll have armed yourself with the best tools in convincing the bank to accept your low short sale offer.

Pick up more information about real estate shortsaling at Real Estate Investor.com. This is the place to go for the latest real estate news and advice. You’ll find a network of other real estate investors ready to help you out, along with free articles, blogs, contracts and documents for your use.

Colin Egbert is an experienced
Real Estate Investor with plenty of short sale techniques to aid fellow investors in their quest to succeed and make huge profits. He’s the author of the ebook “Getting Started with Short Sales” providing the tools needed to start your own real estate investing business. Colin is also the CEO of Realestateinvestor.com a website dedicated to helping investors make the most of their business.

31
May

Free Listing of Foreclosure Houses|Free Foreclosure Lists Help & Information_ShortSaleOnlyUS.com

Free foreclosure information _ShortSaleOnlyUS.com

Free Foreclosure information has become a commonplace. What are foreclosures? A foreclosure is a legal projection whereby a lien-holder, often a lender, gets a court order to end redemptions rights equity of a mortgagor. There are various types of foreclosures. However, there is minimal information about them. The process of foreclosure involves the lender obtaining a security interest from the mortgagor who has put in an asset as a security for a mortgage. Defaulting on the loan results in the lender getting a court order from the courts of equity. However, the courts of equity can give this borrower right of redemption if he repays the loan. With the equitable right of redemption in place, the borrower is not assured if he can repossess his property. Both the lender and the borrower need to look for free foreclosure information to undertake their responsibilities in the process.

What is a foreclosure? Since the borrower is not sure about his right to repossess his property from a bad loan, the lender seeks legal redress to foreclose the courts of equities provisions of right of redemptions. It is not easy to find free foreclosure information in publications. Besides, to get consultation on the same could be expensive. One needs to understand that a foreclosure applies in the event of a borrower failing completely to repay a loan, which he/she secured through a property as collateral against the loan. In a foreclosure scenario, the borrower defaults the principals of a mortgage by failing to honor promissory notes secured by the lender on the borrower’s property. However, there are resources and comprehensive online journals that could provide adequately, free foreclosure information to either party.

How does the foreclosure work? A foreclosure, based on a mortgage preference is a lender repossessing the collateral, often a real property that the borrower attached as the security against the loan. However, this is only in the event of the borrower failing to pay the mortgage. A foreclosure allows the lender to repossess and dispose the property to recover his money and any legal costs accrued in the process. If the returns from the sale do not suffice, he can file a claim for a deficiency judgment in court compelling the borrower to accept liability and pay the deficits.

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Where can one find  free foreclosure information? Mortgage experts are the best sources of information. Lawyer who practice and specialize in such cases also are the best sources of information. However, the information will vary with the type of foreclosure one is seeking information about. There is a judicial foreclosure whereby the lender will foreclose the mortgage under the supervision of the court. In the event of the proceeds from the foreclosure settling every cost and the loan, the balance is remitted to the borrower. According to free foreclosure information available online, foreclosure by power of sale is another type of foreclosure. The mortgage holder sells the property without court supervision.

Other foreclosures are not considered highly. They are regarded as limitedly available. Strict foreclosure is also a type of these less highly regarded foreclosures. It is however available in Connecticut. Indeed a foreclosure is a proper and a legitimate way to settle a debt in case the mortgagor fails to pay the mortgage.

Joseph is the investor who help homeowners in foreclosures with the help of Realtors. We negotiate with the lender to discount the mortgage, than we purchase the property and sell it to end buyer. We guarantee the Realtor?s commission. Contact us for
Loan Mortgage Modification
Stop Foreclosure
Home Property For Sale

30
May

Foreclosure Laws in Nevada

Nevada allows both judicial in court or non judicial out of court foreclosures.  As with all states in which both methods may be followed, the determining factor as to which method will be used is the existence of power of sale.  If the deed of trust or mortgage contains a power of sale clause, this allows the bank to pursue foreclosure without petitioning the court to do so.  Most deeds of trust or mortgages do contain a power of sale clause.  This benefits the bank.  This also means that most foreclosures are done non judicially or out of court.  This is because it saves the bank both time and money to proceed this way.

If a power of sale clause is not written into the deed of trust or the mortgage of the home in question, then judicial or in court foreclosure must be followed.  This process begins with the bank filing a lawsuit against the home owner who is having difficulty paying his mortgage.  The bank does this to obtain a court order to foreclose.  Once this court order to foreclose is obtained, the process of moving toward the sale of the home is the same as in non judicial foreclosure.  The homeowner does receive a twelve month right of redemption when the judicial method of foreclosure is used.  In this type of foreclosure, for the twelve months following the sale of the home at auction the person that lost their home at the sale can regain ownership of the house.

When a power of sale clause contains specific instructions as to when, where, and how the sale of the home is to take place, then those specifications must be followed.  Most of the time, power of sale clauses are not so detailed, and the usual method of moving toward the sale date is followed.

The first step of that process is that a copy of the notice of default and election to sell the property is sent to the homeowner.  This letter must be sent by certified return requested mail, to the last known address of the homeowner.  This letter is to be mailed the same day it is recorded with the county in which the property is located.

The time line from the notice of sale to the actual auction of the house is usually one hundred and twenty days in Nevada.  The scheduled sale date cannot be sooner than three months after the date the notice of default and election to sell is recorded with the county and mailed to the homeowner.  The notice of default itself, specifies the time, date, and place the sale is to be held.

The process of curing the default, should the homeowner desire to do so, must be taken care of during the first thirty five days following the issuance of the notice of default and election to sell.  If the homeowner wants to do this, they must file a notice of intent to cure, not late than fifteen days prior to the scheduled sale date.  The money required to cure the fault and stop the foreclosure sale will be the amount needed to bring the loan current.  This dollar amount must be paid before noon the day before the scheduled auction of the home.  If the homeowner does not come up with that money by that time, the sale will proceed as scheduled.  The notice of default and election to sell will contain all the information about the sale; where and when it will occur.  Most often,  the beginning bid or the amount required to participate as a bidder on the home will be the amount of the first mortgage plus the fees and costs and interest the bank has incurred.

Being that most homes going to auction these days have very little if any equity in them, this opening virtually always too high for investors to take any interest in the home.  This means that at most sales the property is taken back by the bank.  This causes a lot of problems for the lender.

If the home is sold at auction for less than is owed on the loan, the bank has the right to seek the difference between what the sale generated and what they were owed from the former home owner.  The bank can exercise this option for three months following the sale.  After this amount of time, they can no longer seek that money.  This is called a deficiency judgment.  Most people who lose their home to a foreclosure sale do not have any other assets worth pursuing by the bank.  The banks realize that it is a waste of time to try and get blood from a stone in these cases.  So, unless the bank has reason to believe that the former homeowner has other properties worth equity or other assets they could take they will most likely not seek a deficiency judgment.  To do so would just be flushing money and time down the drain.

Integrity 1st Consulting is your Foreclosure specialist- Kathy Swift

Integrity 1st Consulting is your Foreclosure ebook specialist- Kathy Swift

30
May

The Pro’s and Con’s of Foreclosure and Pre-foreclosure Investing Every Smart Investor Should Know

Before you dive into the exciting world of property foreclosure investing, you should probably be aware of the pros and cons of buying a pre-foreclosed or foreclosed home…

Pros

1. Lower price and higher profit

Pre-foreclosures and foreclosures usually always sell for less than their actual market value – sometimes 20 to 50 percent below the market cost. Among other things, this means that if you turn around and sell the property, you should make a sizable profit.

Nowadays, you can use a short sale to negotiate a lower price with the lender. This is an extremely powerful technique for building equity out of thin air.

2. Rehab potential

Many pre-foreclosures and foreclosures need repairs and renovations. If you know how to rehab a home without spending too much money, you may be able to substantially and cost-effectively increase the value of the home.

3. Lower settlement costs

Since you are often dealing with vendors wanting to get rid of the pre-foreclosed or foreclosed property as soon as possible, you can often get them to agree to lower down payments, better financing options, lower closing costs, and reductions on other settlement costs.

4. Access to the property

Most foreclosure homes are vacant, which means you can often get access to a foreclosed property as soon as you buy it.

Either that or the homeowner knows he/she needs to move out in a short amount of time.

5. More attractive financing

If you’re buying a foreclosure from a bank, they may offer you attractive financing to make the deal more appealing to you.

So what are the cons to investing in pre-foreclosures and foreclosures?

Cons

1. Hidden liens and liabilities

It’s not uncommon for pre-foreclosed and foreclosed homes to carry liens and unpaid taxes. As the new owner, you’ll have to pay these. Sometimes a home owner or seller may not reveal these liens and liabilities to you. However, the good news is that you can find this information relatively easily with a title search and, if necessary, some other research.

2. Poor condition

Just as many pre-foreclosures and foreclosures are ripe for rehabbing… you can also expect many of these to be in extremely poor condition. Unless you’ve budgeted for the required repairs and/or renovations, you may be in for a nasty shock. On the other hand, if you inspect the property or (if buying the property unseen at auction) budget for the worst, such repairs may be well within your budget.

3. Learning curve

Buying pre-foreclosures and foreclosures requires an understanding of the legal foreclosure process. You also need to be familiar with how to locate potential investment properties and, ideally, discover them when they first enter the pre-foreclosure stage of foreclosure proceedings. This can be a hassle for some property investors who prefer the relatively straightforward process involved in buying regular properties. However, once you’re familiar with how to buy pre-foreclosures and foreclosures, you may discover that it isn’t really all that burdensome at all.

Overall, pre-foreclosures and foreclosures are a great investment… provided you’re willing to understand what buying such homes involves, and are prepared for the educated risks. You need the proper education such as with http://www.ForeclosuresUnleashed.net. Most importantly, you need to apply the information that you learn!

Robert Lam is a successful real estate investor and author of http://www.ForeclosuresUnleashed.com which teaches investors how to maximize the profits from the booming foreclosures in the marketplace today without using your money or credit.The PRO’s and CON’s of Foreclosure and Pre-Foreclosure Investing Every Smart Investor Should Know

30
May

What is a short sale?

A short sale is one way that people are still making money in the real estate market. It is hard to imagine anyone making money in real estate right now, but with short sales the opportunity is still there. The definition of a short sale is when there isn’t enough equity in the home to cover the loan payoff. Lenders agree to short sales to avoid a larger potential loss that can come as a result of foreclosure or bankruptcy.

When the home is sold by a short sale, whatever the person who owned the property receives for the sale will go to the bank. The lender is agreeing to take a loss so the seller isn’t allowed to receive proceeds from the sale. Of course the lender will get to choose whether or not they will accept the short sale.

In most cases the real estate short sale will be done so the people who own the home will not lose it to foreclosure, but many times a homeowner can be current but have a valid financial hardship. When a bank does accept a short sale it will be because they deem they will lose less money that way, than following through with a foreclosure or bankruptcy. One thing that has made lenders more likely to agree to a short sale is the losses they have taken during to the crash in the housing market. Many people had loans that were worth much more than the house; it was too hard for them to keep up.

Most lenders have pre-set criteria that a short sale must meet in order to accept the short sale. Depending on whether the mortgage note is owned by a private investor or a large financial institution dictates the size and likelihood of a short sale offer getting accepted.

Make sure if the lender has agreed to the short sale, and agreed to wipe the balance, that you are aware of the negative credit consequences or deficiency judgments that can be issued against you. Lenders can many times try to get you to agree to sign a promissory note to pay back the forgiven debt. A good short sale negotiator can help you negotiate your way out of this.

Real estate short sale expert negotiator.

30
May

Great Buys in FHA Foreclosures

FHA foreclosures have been steadily rising in the last three years and the number of new homes getting on the selling block keeps coming by the day. A dominant market is taking a new form today and that is FHA foreclosures.

Real estate market forces have pushed the price tags of homes down nationwide but the number of FHA foreclosures has continued a sustained increase in rate up to this point.  Market analysts are even predicting a new wave of foreclosures.  This time, it will hit the prime mortgage sector.

At face value, this means more homes priced cheaper will be available for potential homeowners as mortgage lenders are pressed to dispose of FHA foreclosures to ease their liquidity problems.  The prospects seem to be attractive for those with sufficient equity.

Words of Caution on FHA Foreclosures

Buyers of FHA foreclosures should be wary with their buying of homes from the FHA foreclosure listing.  As would be expected, most of the foreclosure homes for sale are results of default of sub-prime mortgage loans.  In this case, a lot of these real estate properties have not sufficiently built on its equity from payment of mortgage from the original homeowners.  You might end up with a home with a price tag that is almost equal to its actual value or at best with only 10% off from the original cost.

Buyers of FHA foreclosures are forewarned of these types of foreclosure homes for sale which investment experts term as “land mines.”

Buyers of FHA foreclosures are strongly advised to do a thorough title search.  Study the structure of mortgage on the foreclosure homes for sale.  In some instances, there might be a second mortgage on top of the principal mortgage.

These types of FHA foreclosures are not the “best buys” we are looking for.

Another aspect to consider when buying foreclosure homes for sale is that the real estate properties are being sold “as is.” It is then imperative on your part to factor in at least an additional 25% on the price tag of the property you are buying.  This amount should cover all the unforeseen costs involving repairs and defects on the home which may not be apparent on initial inspection.  You don’t want to end up spending the 30% savings you thought you got from buying FHA foreclosures for repairs and defects you only discover after you move in to your new home.

Another practical tip for would-be buyers is to avoid foreclosure homes for sale that were already on the listing for quite a while already.  On inspection you would most likely find out that these homes have significantly deteriorated as most mortgage lenders are hard pressed to maintain an even increasing number of foreclosed properties.

A final reminder to buyers of foreclosed homes; most of the FHA foreclosures were originally owned by people who would have surely gone into serious financial troubles.  With this situation in mind, expect these former owners of not being able to have done some decent maintenance and care of the now foreclosed property.

Expect to face some serious house repair of practically all aspects of the entire property.  Don’t be surprised to find some punched holes in doors and wall panels courtesy of the former owners of the home.

Once these are sufficiently covered by the would-be buyer, then it is safe to move on to the next phase, and that is to commence the buying of FHA foreclosures.

http://www.RealEstateBusinessWealth.com Claim your FREE video Webinar right now and Discover Otto Ruebsamen’s simple yet extremely powerful techniques to enjoying passive income even in a tough real estate market.

29
May

Foreclosure Laws in Oregon

In Oregon, both judicial or in court and non judicial, or out of court foreclosures are followed.  As with all states in which in and out of court foreclosures are allowed, the determining factor as to which one is used, is the power of sale clause.  The power of sale clause appears in the mortgage or deed of trust.  Most documents today have this clause, because it protects the bank.  The power of sale clause allow the lender to avoid the extra time and expense required in a judicial or in court foreclosure process.

In the rare occasion when a power of sale clause does not appear in the mortgage or deed of trust, judicial or in court foreclosure process must be followed.

The in court foreclosure starts with the bank filing a lawsuit against the home owner.  The object of this lawsuit is to obtain a judges order to foreclose.  Once this order is obtained by the bank, the process will move on to scheduling and auctioning the home.

Power of sale clauses can contain language which specifies when, where and how the trustees sale or auction is to take place.  If this is the case, then those instructions must be followed.

In most cases, however, the regular process continues at this point with a notice of default being recorded in the county where the property is located.

The home owner must be notified of the sale date a minimum of one hundred and twenty days before the scheduled trustee’s sale.

A copy of this notice must be placed in a local paper with circulation in the county where the home is located.  This advertisement of the upcoming trustee’s sale is required to be run once a week for four consecutive weeks.  Sometime before the scheduled sale date, the last of these advertisements must be placed no less than twenty days before the scheduled sale date.

This notice of sale must include a description of the property, the deed of trust recording information.  It must also describe the amount of the loan and the time, place and date of the scheduled sale.

The sale will be an auction.  The home will be awarded to the highest bidder.  The winning bidder must be prepared to make that offer in cash.  The sale must take place between 9:00 am and 4:00 pm on the scheduled date and at the  location stated in the notice of sale.

Postponements of this sale can be made at the discretion of the bank.  Such postponement can be as much as and additional one hundred and eighty days.  However, the postponement must be arranged by advance written notice no less than twenty days before the scheduled sale date.  This written notice must be sent to all of the original recipients of the notice of sale.

If the bank chooses to save time and money by going for an out of court foreclosure, then they cannot choose to seek additional money from borrowers if they do not feel that the money generated from the trustee’s sale was satisfactory.  Pursuing the former home owner for additional funds is that is referred to as seeking deficiency judgment.  This option is only available to the bank if they go through the judicial or in-court foreclosure process.

In Oregon the home owner who loses his residence in foreclosure has a right of redemption period.  This redemption period is only allowed when a judicial or in court foreclosure process was used.  In such a case, this gives the borrower on hundred and eighty days following the sale to redeem their house.

Integrity 1st Consulting is your Foreclosure  ebook specialist- Kathy Swift

 

Integrity 1st Consulting is your Foreclosure specialist- Kathy Swift

29
May

Where To Find and Buy Foreclosures

When looking for information pertaining to foreclosures, you will find a lot of information for homeowners who are on the verge of losing their homes.This is nice, but you may be on the other side of the fence.Instead, you may be looking for information and tips on buying foreclosure properties. If so, you have come to the right place.


Those unfamiliar with real estate and foreclosures often wonder how they can find foreclosures available for sale. After a quick examination, many are pleased and surprised with their options. One of the easiest ways to find foreclosure properties listed for sale is online.


Many foreclosure listing websites come with a free trial period. Foreclosure properties can also be bought through an auction. These auctions are usually advertised in local newspapers, but town and village offices should have the information posted as well.


As an added bonus, if you are new to buying real estate and foreclosures, you will want to examine homes that are referred to as REO (real estate owned). You may still find affordable asking prices on these types of properties, but they aren’t always classified as foreclosures.


This is because the original lender, who now may be referred to as the investor, has regained control of the property. This occurs when bids are low at a foreclosure auction. The lender steps up and buys the property themselves. You can find REO properties available for sale online or by visiting your local bank branches.


As it was previously stated, foreclosures can be purchased at an auction. Many bargain hunters like this approach, but know that it may not be in your best interest. Many states do not allow you to place a bid unless you can show proof of available funds upfront. Since it is rare for a lender to grant you a mortgage loan on a house that both you and they have never seen, not everyone is the perfect candidate for foreclosure auctions.


In keeping with foreclosure auctions, it is first important to determine what protection your state offers homeowners going through foreclosure. Some states have redemption laws. When these laws are in place, homeowners have a set time frame in which they can reclaim their home by getting their mortgage back in good standing. What this essentially means is that you could win a foreclosure auction, but later walk away without the property. This cannot occur with REOs, as the seller is already out of the picture.


If you are interested in buying a foreclosure, it is recommended that you do the proper amount of research first. Although you may not be able to inspect the property in question, you may be able to drive by the property. Foreclosure listing websites and local government offices will have the address listed. Use your best judgment. If the property doesn’t look cared for on the outside, chances are the inside is just the same. Of course, you can remodel, but be sure to take those costs into consideration when placing your bid.


As a reminder, it is easy to find information on foreclosures both online and locally. To make sure that you are well informed, consider consulting with a professional, such as lawyer who specializes in real estate law. At the very least, purchase a guide on how to buy foreclosures from your local bookstore or online.

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