http://www.simonvolkov.com/ Real Estate Note Investor | Note Promissory en Copyright 2008 Wed, 02 Jul 2008 22:28:42 -0800 http://www.sixapart.com/movabletype/ http://blogs.law.harvard.edu/tech/rss Real estate investing can provide monthly income or lump sum of cash to investors. While real estate investing is not a secret, many investors shy away from real estate with thoughts that it cannot be as easy as it seems. With research and patience, property investments can be a profitable addition to investment portfolios. Real estate investing can be long-term or short-term. Profits are made through rental properties, flipping houses, and seller carry back financing. Real estate investing is a profitable endeavor for investors who properly research real estate transactions and assess the amount of work required to upgrade the properties and return them to a livable condition. With the number of properties for sale in today’s real estate market many homeowners are selling below market value. Properties sold below market value offer great bargains for investing in rental properties. Rental properties can produce steady monthly income for real estate investors. Before purchasing properties for rental real estate investing, investors need to research the area. Knowing the area will help the investor determine the type of tenant the rental property will attract. This research will help investors ensure they are purchasing the right property for their real estate investing needs. When researching the area for rental real estate investing, investors should look at comparable rentals in the area. This will give real estate investors a good idea of the rent payments properties within the area can demand. By knowing the amount of rent that can be charged for the area, investors can plan their budget accordingly. To make accurate assessments on rental properties investors must look at the overall property; not just what can be seen with the naked eye. It is best to bring a contractor or inspector to the property. They have the ability to see what lies beneath the walls and floors. An overlooked problem with wiring or plumbing can cost thousands and quickly ruin the profit margin on investment properties. Rental properties provide the groundwork for flipping houses once the real estate market becomes more stable. Rental properties can easily be flipped into short-term investments and sold for lump sum payments in the future. The primary goal for real estate investing is to turn a profit on the property. By purchasing rental properties now and selling when the market stabilizes, real estate investors have the opportunity to produce larger profits from their investments. When the time comes to sell the rental property, offering seller carry back financing can produce a faster sale and additional profit to real estate investors. ]]> http://www.simonvolkov.com/real-estate-investing.html http://www.simonvolkov.com/real-estate-investing.html Wed, 02 Jul 2008 22:28:42 -0800 Investment property is property purchased to generate profit for the buyer. There are distinct and very different ways for an investment property to generate profit. Rental investment properties produce a residual monthly income, while buying property and quickly reselling produces a one-time cash payment real estate investors. Before purchasing investment property real estate investors need to determine which type of investment is right for them. To determine which property is the right choice, real estate investors must first decide the goal they hope to achieve with the property. Real estate investors with long-term goals for a residual income can prosper with rental properties. Rental properties supply monthly payments to investors. However, investments in rental properties require routine maintenance and upkeep to keep houses in good condition. Real estate investors seeking quick turnover and lump sum payment would do well by seeking out short-term investment properties such as house flipping. Real estate investors must be able to work within a budget and timeline to make house flipping a profitable real estate investment. By going over budget or timeline, real estate investors are cutting into potential profits from their investment property. In a buyer's real estate market, homes are oftentimes priced to sell well below market value. Unfortunately, for sellers this means less return on their investment. Homeowners and investors who hold on to their real estate until the market rebounds will see larger profits than if they sell their property today. What does this mean for real estate investors? Simply put, for maximum profits buy now and sell later. Investment property purchased in a buyer’s market can produce the perfect combination of a long-term and short-term investment. Investment properties should be purchased when prices are low. Properties can be rented out until the market regains stability, than sold for higher profit. To continue receiving monthly income after selling investment property, real estate investors should consider seller carry back financing. Seller carry back can be offered for the entire sale price or just a percentage with traditional lending financing the balance. Oftentimes, seller carry back financing can expedite the sale of investment property. Additionally, it provides an alternative to buyer's unable to obtain traditional financing. To determine the asking price on investment properties for sale or monthly rent payments for rental homes, be sure to include the entire cost of the investment. This includes the purchase price, closing costs, maintenance, repairs or upgrades, taxes, and other costs associated with the property. Oftentimes, real estate investors overlook the big picture when purchasing investment property. Overlooked costs can quickly decrease projected profit margin, making investment property less valuable than expected. Therefore, it is crucial to stay within the projected budget and work with reputable contractors who complete projects on time. ]]> http://www.simonvolkov.com/investment-property.html http://www.simonvolkov.com/investment-property.html Wed, 02 Jul 2008 21:58:28 -0800 Real estate forbearance agreements are used when a homeowner falls behind on mortgage payments due to temporary financial situations. Forbearance agreements are legally binding documents which must be agreed upon between the lienholder and delinquent borrower. A repayment plan follows the real estate forbearance agreement with the goal of helping the borrower become current on their mortgage payments over a specific period of time. A real estate forbearance agreement states the mortgage holder will not pursue foreclosure on the home for a specified period of time. The lienholder is legally bound to this agreement as long as the homeowner follows the conditions of the agreement. Real estate forbearance agreements are generally three to twelve months. Forbearance agreements either reduce mortgage payments or suspend payments for the time specified. Once the real estate forbearance agreement is complete, the repayment plan begins. The purpose of the repayment plan is to repay past due mortgage payments, accrued interest and other fees. The payments made on the repayment plan are in addition to the homeowner’s regular mortgage payments. Real estate forbearance agreements are used when homeowners have temporary financial hardships. Homeowners work with bank loss mitigators during the real estate forbearance agreement and repayment plan. Once the repayment plan is complete, the mortgage returns to good standing with the lending institution. In order for lenders to approve forbearance agreements, the homeowner must be able to prove their financial hardship is temporary. Communication between the homeowner and bank loss mitigator is vital to successful real estate forbearance agreements. Oftentimes, forbearance agreements are only offered at the beginning stages of delinquent payments. While a real estate forbearance agreement may seem like a good idea for the homeowner, it is important to understand what the process entails. After the forbearance period, when no mortgage payments are due or payments are a reduced amount, the homeowner will be paying the regular monthly mortgage payment along with the repayment of past due amounts. This can oftentimes add an additional $200 or more to the homeowner’s debt until the repayment plan is complete. For example, during the forbearance the homeowner defers paying a total of $10,000 in payments, interest, and fees. The repayment plan requires repayment of the $10,000 over a 24-month period. The homeowner would have to pay their normal mortgage payment and an additional $416.67 for 24 months. Real estate forbearance agreements have risks for the lender as well. If the homeowner defaults on the repayment plan, the bank will proceed with foreclosure proceedings adding additional costs to the mortgage note. These additional costs mean the lender will have to sell the property at a higher price or they will incur a loss on the property. ]]> http://www.simonvolkov.com/real-estate-forbearance.html http://www.simonvolkov.com/real-estate-forbearance.html Wed, 02 Jul 2008 21:36:22 -0800 Property investment can be a great addition to a real estate investor’s portfolio. It can provide a large onetime return or a continuous stream of income for investors. Many people do not realize it, but owning their own home is property investment. Without active cash flow coming from the investment, homeowners do not realize as their home appreciates in value their investment grows. Property investment can be residential, business, or commercial and can include buildings or vacant land. The most common residential property investments are house flipping and rental properties. Real estate investors often buy second homes with a rental property investment in mind. Vacation homes can pay for themselves by renting them out when not in use by the owners. These property investments are rented by the weekend, week, and sometimes by the month. Vacation homes such as beach houses in high tourist areas can demand a much higher rent than normal rental properties. Residential rental property investments can include houses, apartments, townhouses, and condominiums. Houses can be single-family rental property investments or can be divided into multiple apartments. The demand of the area will help the real estate investor determine the best use for the property. Buying homes to renovate and sell as a property investment offers a lump sum payment to investors. Although house flipping can be a profitable property investment, it can also be extremely risky. Distressed houses and probate properties oftentimes sell below market value and offer larger profits to real estate investors. However, investors must be able to assess the amount of work needed to repair the property. Commercial property investments are generally more popular with more experienced property investors. Commercial properties can include office buildings, strip malls, hotels, and self-storage units. Multi-family housing such as high-rise apartment or office buildings also fall under commercial property investments. When investing in commercial property it is important to understand the cash flow required to maintain the investment. There are costs to consider that are not involved with residential property investments. Commercial properties require employees such as maintenance workers and rental agents. There are utilities, taxes, and association fees. To accurately assess the value of a commercial property investment, all costs and fees must be considered. When choosing land as a property investment, it is all about location. The location of the land can turn your property investment into a gold mine or a landfill. Land can be purchased, held onto for a couple years and sold for profit without investing additional money. Land can also be leased for a steady monthly income for the investor. ]]> http://www.simonvolkov.com/property-investment.html http://www.simonvolkov.com/property-investment.html Thu, 12 Jun 2008 21:43:37 -0800 Deed in lieu of Foreclosure or DIL is when the borrower gives back the secured property to the lender. When a homeowner is in danger of losing their home to foreclosure, they will offer the lending bank the deed to the home to stop foreclosure proceedings. The bank is not obligated to accept the Deed in Lieu of Foreclosure but, oftentimes it is a mutual agreement. Before a Deed in Lieu of Foreclosure can be approved, eligibility of the homeowner must be determined. The homeowner will be working with the Bank Loss Mitigator and must provide information explaining the situation that caused default on the mortgage. Eligible situations include death, loss of income, job transfers, or divorce. Proof of these circumstances must be provided to the Loss Mitigator. The mortgage payments must be 31 days or more in arrears and the property must be the borrower’s primary residence. Before entering into a Deed in Lieu of Foreclosure, all other avenues must be exhausted. Try consolidating debts to reduce monthly payments. Negotiate with the bank holding the mortgage note for reduced payments or loan modification plan. Refinancing at a lower interest rate will extend the length of the loan and may reduce payments. When a compromise cannot be reached, ask the Bank Loss Mitigator about Deed in Lieu of Foreclosure. Before accepting a Deed in Lieu of Forlosure the lending bank will perform a title search on the property. The title search shows the lending bank if there are tax or creditor liens, second mortgages, home equity loans or outstanding judgments attached to the real estate. The priority of liens on real estate is determined by the date they were recorded. Generally, the first mortgage on a property is the senior lien and others are considered junior liens. When property is foreclosed upon, junior liens are wiped out unless it is an Internal Revenue Service (IRS) lien. However, this is not true for a Deed in Lieu of Foreclosure. When the bank accepts a DIL and the property reverts to bank ownership, the liens follow and become the responsibility of the bank. These liens can add up to much more than the current market value of the property. Oftentimes, a private real estate investor is an overlooked option for the homeowner. A private real estate investor might be able to purchase the property saving the homeowner from foreclosure or the need of a Deed in Lieu of Foreclosure. ]]> http://www.simonvolkov.com/deed-in-lieu-of-foreclosure.html http://www.simonvolkov.com/deed-in-lieu-of-foreclosure.html Thu, 12 Jun 2008 21:06:55 -0800 Investing in real estate can be profitable financial investment for a knowledgeable investor. There are long-term and short-term real estate investing options. Some basic research and understanding of real estate investing will help select which choice is right for the investor. Research for real estate investing is done before the property is purchased. Assess current market values are the area. Evaluate the neighborhood. Confirm the amount of time and number of properties on the market. Determine the type of people drawn to that neighborhood. Build relationships with carpenters, electricians, plumbers, roofer, drywallers, and painters. After assessing the amount of work needed, set a time frame and budget. Is the budget and time frame feasible? Does it leave a sufficient profit for the investment? This research and guidelines will ensure the realestate investing is a success. Real estate investing in house flipping would be considered a short-term investment. The primary goal for house flipping is making the maximum amount of profit in a minimal amount of time. In essence, time is money. Before you purchase a property, gather information that will help your investment run smoothly and in a timely manner. In real estate investing, rental properties are a long-term investment. Rental property investing provides a steady stream of income for the investor. However, there is continual work that is needed to sustain rental property investments. Prospective tenant needs screened. Upkeep of the properties requires maintenance. Owner financing or seller carry back trust deeds are oftentimes an overlooked real estate investing option. These options can add a constant flow of income over a set period of time. Owner financing investing can be beneficial to both the buyer and seller. The buyer who cannot be financed through traditional lending institutions is able to purchase a home. The investor has the opportunity to earn cash flow through interest and payments as well as profits made from house flipping. The owner financing may also for a quicker turnover of the investment. A promissory note is the contract used between the buyer and seller. The note contains vital information to the real estate transaction such as purchase price, interest rate, payment amount, and end date of the financing. Although owner financing investing is fairly simple, it is recommended to secure advice from an attorney. This ensures the documents are correct and legally binding. ]]> http://www.simonvolkov.com/investing.html http://www.simonvolkov.com/investing.html Thu, 12 Jun 2008 20:45:16 -0800 Heir apparent is an heir who will inherit from a family member’s estate as long as they outlive that person. An heir apparent cannot be displaced from inheriting unless they are specifically disinherited in the decedent’s Last Will and Testament. The term heir apparent is also used for the obvious successor of a throne or title. An heir apparent is generally a lineal heir to the decedent. The decedent’s child is the first heir apparent. However, if the decedent did not have a child or the child has already died the grandchild would become the heir apparent. Once lineal heirs have been exhausted, the next heir apparent would be the closest living relative of the decedent. The heir apparent is legally entitled to the estate of a deceased family member who dies intestate (without a Will). When a person dies, their estate goes into probate. The Probate Court appoints a Trustee to pay the creditors and debts associated with the estate. The Trustee then divides the remaining assets to the heir apparent. If there are multiple heirs apparent, the estate is divided equally among them. When a person disinherits an heir apparent, they must do so by specifically stating their wishes in their Will. For example, a decedent has two children both are considered by law as heirs apparent. The decedent had disinherited the second child and wishes to leave them nothing. The Last Will and Testament must specifically mention the second child has been disinherited and is not to receive a part of the estate. When an heir apparent is simply omitted from a Will, they are considered a pretermitted heir. Pretermitted heirs are heirs that have unintentionally been left out of a Will. When this occurs, the heirs apparent would receive equal portions of the estate as if the decedent had died without a Will. ]]> http://www.simonvolkov.com/heir-apparent.html http://www.simonvolkov.com/heir-apparent.html Wed, 11 Jun 2008 22:26:14 -0800 Foreclosure process varies from state to state. It is the process used by mortgage holders to retrieve property on which they have a lien. The foreclosure process is an emotional roller coaster for the homeowner and timely and costly for the mortgage holder. Before the foreclosure process begins, delinquent accounts are in pre foreclosure. Once a mortgage payment is 30 days late, the lender sends out a notice of a past due payment. When the second payment is missed, the account becomes 60 days past due another letter is sent to the homeowner. During the pre foreclosure process after the second past due letter is sent and the homeowner does not respond, the mortgage holder can demand payment in full. The final step of the pre foreclosure process is a letter demanding payment in full. The letter may include payment options such as paying the entire balance due on the mortgage or paying the past due payments along with accrued late charges, interest, and other fees due to the lender. Action is required within 30 days to stop the bank foreclosure process from proceeding. This letter is also called a breach of contract letter during the pre foreclosure process. When these attempts to contact the homeowner prove unsuccessful to the mortgage holder, they begin the foreclosure process. When the account is 90 days past due, the mortgage holder will contact the courthouse and record a Notice of Default (NOD). During this step of the foreclosure process, the notice of default is published in local newspapers as a pending public auction to sell the home. When the homeowner does not pay the required amount or make other arrangements with the bank loss mitigator, the foreclosure auction will take place. The foreclosure auction can take place at the courthouse or at the property being auctioned. If there are no bids on the home, the property reverts to the ownership of the bank. When the bank regains ownership through the foreclosure process the home is now a bank owned or REO property. The foreclosure process is lengthy and very demanding on both the homeowner and mortgage holder. It is in the best interest of both parties to work out an agreement before the foreclosure process begins. A forbearance agreement followed by a repayment plan is an option for homeowners in temporary financial situations. However, a loan modification is a better choice for a homeowner with permanent financial changes. ]]> http://www.simonvolkov.com/foreclosure-process.html http://www.simonvolkov.com/foreclosure-process.html Wed, 11 Jun 2008 22:00:10 -0800 Forbearance Agreement is an agreement that is made between a mortgage holder and homeowner whose account is delinquent. Forbearance agreements reduce or suspend the homeowner’s payment for specific amount of time, generally between 3- to 12- months. During which the mortgage holder agrees not to pursue foreclosure proceedings against the homeowner. Forbearance agreements are followed by a payment plan to bring the account up to date. The homeowner and bank loss mitigator agree on a plan that is in the best interest of both parties. Generally, the repayment plan includes the normal monthly payment along with a payment to repay the delinquent amount. The delinquent amount will include any past due payments, accrued interest, or other fees charged by the mortgage holder. This repayment plan usually last for one year. A forbearance agreement is for homeowners that experience temporary financial situations. The homeowner must prove that their situation is temporary to show that a forbearance agreement is in the best interest of both parties. The bank loss mitigator reviews the information provided by the homeowner to make a decision. After a successful forbearance agreement and repayment plan, the homeowner’s mortgage is current and converted back to a regular account. The homeowner keeps their home and the bank is able to avoid the time and money needed to foreclose on a home. When the homeowner’s situation is not temporary, a forbearance agreement and repayment plan is not in the best interest of either party. Although a foreclosure might seem like the right thing for this situation, foreclosures are costly when there is little to no equity in the real estate. In situations where a foreclosure agreement is not an option, the bank loss mitigator might suggest a loan modification. Loan modifications can include a longer term on the mortgage, lower interest rate, or possibly a different type of loan. The goal of the loan modification is to create a lower payment to fit the new financial needs of the homeowner. While the forbearance agreement and loan modification are intended for the same result, the circumstances for each are very different. A forbearance agreement allows for a win-win situation between a temporarily struggling homeowner and mortgage holder. When situation arise that prohibit a homeowner from making timely payments, they should contact the lending bank as soon as possible. Foreclosure proceedings cost the mortgage holder time and money that can be avoided by a forbearance agreement between the two parties. ]]> http://www.simonvolkov.com/forbearance-agreement.html http://www.simonvolkov.com/forbearance-agreement.html Wed, 11 Jun 2008 21:35:36 -0800 foreclosure process. After an unsuccessful foreclosure auction, the property reverts back to the bank. Real Estate Owned or REO is another name used for bank owned properties. Bank owned properties are not always the bargain people expect. Real estate that has been foreclosed upon oftentimes has more money due on the mortgage note than the value of the home. However, there are benefits to purchasing bank owned real estate. Real estate owned or bank owned properties are complete packages. The foreclosure process has been completed so there are no outstanding loans or liens on the home. The bank has handled the evictions so the properties are empty. Any outstanding tax liens, creditor liens or other fees are negotiated by the bank and the property is given a clean title. When purchasing bank owned property, research is of the utmost importance. Current market values and how long the homes have been for sale in the area is crucial information for real estate investors. Before the property reverts to the bank, there is an auction to sell the property. The starting bid generally includes the amount of the mortgage note and other accrued costs. These costs can include interest, late fees, attorney fees and foreclosure costs. When the property is open for bids at the auction it is common that no bids are placed. This is because the minimum bid is generally close to current market value and the home being sold in "as-is condition." There may also be someone still living in the home that real estate investors would have to evict. With minimal savings and extra hassles on the foreclosure home, investors are without motive to purchase the home from the auction. Once the auction is closed and the foreclosure is finalized the home becomes bank owned. Lenders have different ways in which they sell bank owned properties. Generally, an interested investor will make a bid. The bank will counter-offer with a much higher amount. The real estate investor and bank will counter-offer back and forth until an amount is agreed upon. The bank is trying to recoup as much money as possible on Real Estate Owned properties, so do not be surprised if they counter with a higher than expected amount. Bank owned properties are oftentimes a better investment choice, other times they are not. The proper research of the area and property will help investors make the right choice for their real estate investment. Market area selling prices, assessing the amount of work needed and average time spent on the market are vital pieces of information that gives investors the knowledge necessary to make the right decision. ]]> http://www.simonvolkov.com/bank-owned.html http://www.simonvolkov.com/bank-owned.html Thu, 05 Jun 2008 21:16:12 -0800 pre-foreclosure, foreclosure and short sale transactions. Loss mitigators are specifically trained to mediate with lenders to help homeowners facing foreclosure. Although a loss mitigator is oftentimes employed by banks and lending institutions, they can also be independent agents who work on behalf of either the lender or homeowner. The job of a loss mitigator is to help Borrower's determine if they are financially able to reinstate their mortgage note and maintain their financial obligation. If the Borrower has the financial means to pay regular mortgage payments, the loss mitigator will usually offer a loan modification or special forbearance. Loan modifications result in a permanent change in the Borrower's mortgage loan terms. This might include temporarily reducing or suspending payments. Loan modifications or forbearance agreements can be arranged to suit the needs of the Borrower and satisfy the Lender. Therefore, not all loan modifications will be the same for each homeowner who applies for one. If the Borrower does not have the financial means to pay regular mortgage payments and become current on delinquent amounts, a loss mitigator might offer a process known as Deed in Lieu of Foreclosure. Although this arrangement does not allow the homeowner to retain their property, it is less detrimental to their credit than foreclosure. The Deed in Lieu process requires Borrower's to sign two legal documents. The first is the Agreement in Lieu of Foreclosure, which outlines the terms and conditions of the real estate transaction. The second document is a Warranty deed, quit claim or grant deed, which transfers legal ownership of the property to the lender. When ownership is transferred to the bank, the lender will attempt to sell the property. Generally, this is done through auction or may take place directly through the bank. If the property sells for less than is owed on the mortgage note, the lender may file a deficiency judgment against the homeowner to collect the difference in the amount due on the note and the amount the property sold for. A skilled loss mitigator will negotiate with lenders to waive the deficiency judgment and not pursue the homeowner for any balance due. However, it is imperative that homeowner's fully understand the potential ramifications of Deed in Lieu of Foreclosure prior to signing any contracts. Loss mitigators can assist in the negotiation of short sales. In this type of real estate transaction, banks allow Borrower's to sell their property for a lesser amount than owed on the mortgage note. Short sales are generally offered as a last resort and after all other options have been exhausted. The professional loss mitigator possesses finely honed-negotiation skills to help all parties involved reach a fair and equitable agreement. They can present a variety of options to both banks and homeowners to develop a win-win situation for all. Although a bank loss mitigator is not authorized to accept or deny loan modification plans, deed in lieu of foreclosure or short sale agreements, they can guide homeowners down the right path that best suits their needs. Keep in mind a loss mitigator can be your best friend or worst enemy, so always treat them with respect and provide them with accurate information in a timely fashion. ]]> http://www.simonvolkov.com/loss-mitigator.html http://www.simonvolkov.com/loss-mitigator.html Thu, 05 Jun 2008 20:54:07 -0800 Chapter 13 payments are established when individuals file Chapter 13 bankruptcy. There are six chapters of bankruptcy including Chapter 7, 9, 11, 12, 13 and 15. However, Chapter 13 and Chapter 7 are the two most common chapters filed by Americans. Chapter 13 Bankruptcy allows individuals to keep real estate, property and other valuable assets as long as the debtor abides by their repayment plan. Once bankruptcy is approved, Chapter 13 payments are typically paid over a period of three to five years. Depending on the debtor's employment history, Chapter 13 payments can sometimes be made through payroll deductions. This arrangement must be approved by the Bankruptcy Court and the debtor's employer. There are three categories of Chapter 13 payments including: secured creditors, unsecured creditors and post-creditors. Secured creditors include mortgage lenders and lending institutions which have provided a loan for large purchases such as automobiles. Secured creditors are typically paid "outside" the Chapter 13 repayment plan. What this means is the debtor will have to make regular payments to lenders in order to retain possession of their assets. If the debtor fails to make payments, lenders can petition the Bankruptcy Court and ask for relief of stay. Once permission to remove the stay is granted by the court, lenders can proceed with foreclosure proceedings or repossession. Unsecured creditors are paid "inside" the Chapter 13 repayment plan. These payments are made directly to the Chapter 13 Trustee for distribution. Unsecured creditors include companies or individuals who provided goods or services to the debtor. This might include credit card or department store loans, physicians, dentists, hospitals or other medical care providers. Post-creditors include companies or individuals whom the debtor owes money after filing Chapter 13 Bankruptcy. This can include any incurred debts including utility bills, credit cards, rent or mortgage payments. Debts incurred after the debtor files bankruptcy receive no protection from the Bankruptcy Court. If the debtor fails to make Chapter 13 payments according to their repayment plan, the Bankruptcy Court can summon the individual to liquidate their assets under Chapter 7 Bankruptcy Code. In some instances, the court may dismiss the case and withdraw bankruptcy protection altogether. ]]> http://www.simonvolkov.com/chapter-13-payments.html http://www.simonvolkov.com/chapter-13-payments.html Sun, 01 Jun 2008 21:49:57 -0800 avoid foreclosure. Loss mitigation specialists can offer multiple options to individuals facing foreclosure. First, bank loss mitigators must review the Borrower's financial situation to determine which option would be in their best interest. This requires the debtor to provide documentation of their income and expenses, current year tax return, checking, savings and retirement accounts. The most common option offered to homeowners facing foreclosure is Loan Modification. Bank loss mitigators can help Borrowers develop a repayment plan and extend the terms of their loan. Loan modifications can be exceptionally helpful for individuals who have fallen on hard times, but have the ability to get back on track. Typically, loan modifications require the Borrower to pay a higher mortgage payment for one or two years. When the delinquent amount has been paid in full, the mortgage payment is then reduced. Other loan modifications reduce or suspend mortgage payments for a short period of time. Experienced bank loss mitigators possess the ability to present a variety of options and create a win-win situation for all. When circumstances prevent Borrowers from paying any portion of their mortgage debt, bank loss mitigators can assist in the negotiation of a short sale. Using this option, banks allow Borrower's to sell their home for less than is owed on the mortgage balance. This option is usually reserved until all other options to save the home from foreclosure have been exhausted. Bank loss mitigators are not authorized to accept or deny loan modification or short sale agreements. Instead, they are the middleman who works with both parties in an attempt to keep losses to a minimum. Simon Volkov real estate short sale experts offer a shortsale solution that make sense. Individuals facing foreclosure that needs to sell short sale real estate quickly, submit your information via our Short Sale form. A representative will contact you within 48 hours ]]> http://www.simonvolkov.com/bank-loss-mitigators.html http://www.simonvolkov.com/bank-loss-mitigators.html Sat, 31 May 2008 18:21:11 -0800 house flipping. Although house flipping isn't quite as easy as it was a short while ago, there is still money to be made. Flipping distressed properties isn't for the faint of heart. It requires considerable real estate knowledge and the ability to make repairs quickly and affordably. House flipping is best for those who possess the skills to make repairs on their own or those who have sufficient funds to hire contractors. Investing in distressed properties requires knowledge about the real estate market and the area where the houses are located. It is important to locate distressed properties which are affordable enough to cover the mortgage payment with rental income. Rental properties can be rented long- or short-term. Many investors prefer renting on a long-term basis to ensure consistent income. However, investing in distressed properties located in areas where people vacation can yield a tidy profit as well. Investors who prefer long-term tenants will usually receive a better return on their investment if they purchase distressed properties located in family-oriented communities. Families generally rent houses for longer periods of time, as they prefer to keep their children in the same school system. Therefore, it is important to research schools in the area when renting to tenants with school-aged children. Although vacation rentals are usually seasonal, the amount of rent charged is generally much higher than when renting on a long-term basis. Investors who purchase distressed properties as vacation rentals should be prepared to offer furnished houses equipped with cooking items, linens, telephone, cable and Internet services. Keep in mind, vacation rentals will require cleaning after each renter vacates the premises. Factor in the cost of utilities and cleaning services and include the costs in the rent. Overall, investing in distressed properties can be quite profitable, but is not without risk. Investors must engage in due diligence and thoroughly understand the market where houses are located. A well-kept investment secret is to purchase distressed properties from private real estate investors who specialize in purchasing bank portfolios. Real estate owned bank foreclosures can oftentimes be purchased at 30- to 40-percent under market value. ]]> http://www.simonvolkov.com/distressed-properties.html http://www.simonvolkov.com/distressed-properties.html Fri, 30 May 2008 22:07:49 -0800 House-flipping can involve purchasing a fixer-upper, making repairs and renovations, than selling the house within a short period of time. Or, it can involve purchasing bank foreclosures from private investors and re-selling them to someone else. In some cases, real estate investors purchase bank foreclosures in bulk from banks. These savvy investors are able to pick up distressed properties for pennies on the dollar. Since they possess a large inventory of homes it is not uncommon to buy bank foreclosures for seventy to eighty cents on the dollar. That interprets into instant equity of 20- to 30-percent. Buying bank foreclosures from private investors is a smart investment strategy. Both private individuals and investors can purchase bank foreclosures from private real estate investors. If you are looking for a personal residence, bank foreclosure homes can save you a considerable amount of money. Additionally, buying a home under market value can help you obtain traditional financing through a reputable lender. Investors who want to fatten their financial portfolios would be wise to purchase bank foreclosures with cash. Bypass bank financing and you can buy and sell bank foreclosures at a much faster rater than the average guy. While others are awaiting approval, you can make repairs and renovations and place your house on the market. Investing in bank foreclosures is not without risk. Engage in due diligence and thoroughly inspect the property before you buy. If you are unfamiliar with purchasing bank foreclosures through a private real estate investor, consider using the services of Simon Volkov. He offers a wide range of investment opportunities available for free through his Real Estate Investment Club. ]]> http://www.simonvolkov.com/bank-foreclosures.html http://www.simonvolkov.com/bank-foreclosures.html Tue, 27 May 2008 21:16:54 -0800