Real Estate and Real Estate Investing Articles on Promissory Notes, Short Sales, Pre Foreclosures and other Cash Flow Investments
June 11, 2008
Bank Owned Homes
Bank owned homes are houses which have been returned to the bank due to foreclosure. Before real estate is returned to lending institutions there must first be an attempt to sell the property through a foreclosure auction.
Oftentimes, bank owned homes are worth less than the balance due on the mortgage note. This frequently stems from the fact that previous homeowners have creditor or tax liens attached to the property. In some instances, there may also be second or third mortgages financed against equity the borrower had accrued through their home.
Real Estate Investing article on "Bank Owned Homes"
June 05, 2008
Annuity Payments
Annuity payments provide a series of payments over a specific period of time. These structured payments typically evolve from an insurance settlement or lottery winnings. The person who receives the payments is referred to as the Annuitant.
Annuity payments paid to the Annuitant through an insurance company are called Structured Settlements. Payments from a structured settlement are not subject to income tax as long as the money received is the result of a personal physical injury or illness.
Real Estate Investing article on "Annuity Payments"
June 01, 2008 | Comments: 1
Investing in Foreclosed Real Estate
Investing in foreclosed real estate can be quite profitable if you play your cards right. While it's not always as easy as the late-night infomercials suggest the following tips can help you understand the facts and get prepared for what lies ahead.
When real estate is foreclosed, it first goes up for sale at auction. In order to buy foreclosed property, individuals must place a minimum bid equal to the amount of the loan balance, along with any accrued interest, attorney fees and other costs associated with the foreclosure process.
Real Estate Investing article on "Investing in Foreclosed Real Estate"
May 25, 2008 | Comments: 1
Houses: Is Now a Good Time to Buy?
Houses have a long-standing record of being a smart investment. Even when the real estate market experiences swings, house values generally even out within a few years and nearly always create a profit for the owner.
In today's market, houses are taking a beating and prices are on a downhill spiral. Industry reports claim house values have dropped nearly 10 percent nationally. Add in the explosion of foreclosures and you can easily see how this bleak situation makes for a buyer's market.
Real Estate Investing article on "Houses: Is Now a Good Time to Buy?"
May 22, 2008
Century 21 Real Estate: Buying Bank Owned Foreclosure Properties
Century 21 Real Estate is the world's largest real estate sales organization. They work with both buyers and sellers not only in the United States, but worldwide. Century 21 agents are Independent Realtors and many specialize in bank owned foreclosure properties.
Several Century 21 Real Estate agents list bank owned foreclosures directly on their website. It's important to realize that bank owned foreclosures are different than foreclosure properties sold through auctions.
Real Estate Investing article on "Century 21 Real Estate: Buying Bank Owned Foreclosure Properties"
May 19, 2008
Florida Real Estate Investing
Florida real estate is making headline news. With a reported 198-percent increase in foreclosure rates during the first quarter of 2008, this once hot real estate market is in a hurricane-strength downward spiral. South Florida residents have taken a hard hit, with nearly 1,300 foreclosure filings last month. Default Research, Inc., provider of nationwide foreclosure statistics is reporting an average of 220 foreclosure filings per day across the Sunshine State.
Experts suggest investing in Florida real estate now could result in massive profits when the real estate market bounces back. And, bounce back it will. Real estate is a necessary commodity. People need a place to live. Private investors, who purchase distressed Florida real estate properties now, can make a fortune in rental income over the long-term.
Real Estate Investing article on "Florida Real Estate Investing"
May 17, 2008 | Comments: 1
Foreclosure Hardship Letter
The foreclosure hardship letter is an important part of any loan modification or short sale package. These types of financial arrangements are available to individuals facing foreclosure. Loan modifications are used when homeowners want to save their home from foreclosure and have the financial means to get back on track with delinquent payments. Short sales are used when the homeowner does not have the ability to become current on payments. When lenders accept short sale offers they allow homeowners to sell their home for less than the amount owed on the mortgage note.
For most people, the foreclosure hardship letter is the most difficult thing to write. Unless you are a professional writer, it is challenging to sit down and express the circumstances that have caused you to fall behind on your mortgage payments. Keep in mind the hardship letter will be read by a Loss Mitigator who works for the lending institution. Loss mitigators read several hardship letters every day, so you will want to keep it short and to the point.
Real Estate Investing article on "Foreclosure Hardship Letter"
May 11, 2008
Short Sale Approval
Short sale approval can be a long and complicated process. In essence, when lenders engage in this type of real estate transaction they agree to accept less than is owed on the mortgage note. There are many steps involved, along with a trail of paperwork.
In order to obtain short sale approval, you will be required to contact your lender's Loss Mitigation Department. Typically, a Loss Mitigator is assigned to your account and will review your situation to determine if you are eligible for a short sale.
Real Estate Investing article on "Short Sale Approval "
May 09, 2008
Seller Carry Back Mortgages
Seller carry back mortgages are an agreement where a property owner provides financing to a buyer. The owner may finance the entire amount or a percentage of the purchase price. If the seller finances a percentage, the balance is usually financed through an assumable mortgage.
Engaging in seller carry back strategy can be beneficial to both seller and buyer. The seller benefits by being able to sell his property quickly and the buyer benefits by being able to purchase property he might not otherwise have been able to finance.
Real Estate Investing article on "Seller Carry Back Mortgages"
May 07, 2008
Pre Foreclosure
Pre foreclosure is the process instituted by mortgage lenders when borrowers default on their house payments. Most lenders take pre foreclosure action when the borrower fails to remit their mortgage payment for two or more consecutive months. Occasionally, lenders will wait three months before filing pre foreclosure notice; however, this is rare.
The pre foreclosure stage gives borrowers an opportunity to work with their lending institution to rectify the situation and avoid foreclosure. If the borrower is able to get their mortgage payments current the lender will generally reinstate the loan and no further action will be taken.
