It is unfortunate, but true, that many foreclosure scam
companies trick homeowners into sending hundreds or
thousands of dollars to provde mysterious “foreclosure
assistance” services. The money is collected up-front, and
the scam company proceeds to do nothing for the client,
turning them down or recommending bankruptcy at the last
minute, with a foreclosure sale date quickly approaching.
When this happens, the homeowners may not have enough time
to stop the sheriff sale.

Scams like this and others are the most important reason
that foreclosure victims need to gain an awareness of how
the foreclosure process works and what can be done to stop
it. Blindly trusting someone they have never met to help
them will only ensure that the homeowners are taken
advantage of somewhere along the line, and may end up in a
worse situation than ever before. They will be in greater
danger of losing their money and their home after being
taken advantage of by a foreclosure scam company. And the
amount of time that is wasted can never be recovered and
used to pursue a legitimate solution to foreclosure.

Every family in danger of losing their house to foreclosure
should seek out as much foreclosure advice as they
reasonably can and research what options can be used to
save their home. Once they understand the process, they can
put together a plan to end it. Just a few solutions that
may apply in various situations are loan modifications and
hard money loans, among others. Homeowners also should not
trust their banks to make them aware of these various
options to stop foreclosure, as many mortgage company
representatives do not know about these solutions
themselves.

Missing a scheduled mortgage payment is a huge deal for
homeowners: they will receive collection calls incessantly,
foreclosure scammers will crawl out of the woodwork
offering magical potions, and the situation can spiral
downward from there. Homeowners, though, can take back
control of the situation and end their reliance on
receiving help from everyone else besides themselves. The
best way for any homeowner to stop foreclosure is simply to
learn how foreclosure works and what solutions are
available, and then work on a solution until the house is
saved or there are no options left.

Free foreclosure information may be found for victims of
foreclosure to save their homes on their own. The
ForeclosureFish.com website provides these homeowners with
important information to stop foreclosure and is located
on the web at http://www.foreclosurefish.com/

You need to find a house that fits several criteria in order to make a healthy profit at flipping. Some of the things you need to take into consideration include:

Is the neighborhood a growing or improving one that buyers will be interested in?

Are the improvements or repairs needed ones that you can do within a reasonable budget?

Can you pay for the needed repairs/improvements and still net a good profit?

Is the area one that will appeal to a wide range of buyers?

Are there any problems that just aren’t fixable (bad location, a foundation that is sinking and can’t be shored, etc.)?

How many other houses are for sale in the immediate area (too many, and the market glut will drive the price of your house down no matter how nice it is)?

Locating a home that fits your budget and criteria means research, and lots of it. Many people who have flipped successfully say the best way is to simply drive around mid-range neighborhoods and look for the slightly run-down homes with solid bones that have been on the market a bit too long. The owners are usually anxious to sell, and the most buyers avoid fixer-uppers, so you can negotiate from a firm position. Also check out Sheriff’s Sales, banks that handle foreclosures and online auctions.

Of course, even after you purchase the property you have plenty of work to do. Be sure you set up a budget in advance and resolve to stick to it when doing repairs and remodeling. Remember, the goal isn’t to turn this into your dream home, but a solid, saleable property that will net the highest possible profit for you. Have a complete home inspection and get bids for any repairs that you can’t handle yourself, such as upgrading wiring or dealing with dry rot. Next, determine what jobs you can do yourself or with the help of friends to save money. Finally, shop around for the best price on materials and haggle whenever you order more than one thing (say, tile and cabinets) from one supplier.

One of the most common mistakes a novice at house flipping makes is choosing top of the line everything, thinking that this is what will sell the house. Quality is always a good selling point, but only within reason. There is a bell curve to this – after a certain point, you start to lose money if you’ve purchased luxurious upgrades that aren’t necessary. For instance, if you’re remodeling a house in a mid-salary neighborhood with primarily starter homes for young families, buying granite countertops and solid cherry bathroom cabinets will mean you will end up pricing the real estate too high for the market to bear in order to get your investment back. Instead, consider attractive, durable laminate countertops and oak or pine cabinets.

On the other hand, if the home you are flipping is in an exclusive neighborhood where most other homes have the best of everything, those granite countertops may be a must-have. How do you know what is best for the particular home you’re flipping? Go to several open houses in the area and see what the standard is, then talk to realtors about what they feel are the most sought-after features for buyers in the price range you are anticipating selling the house for. Generally, you don’t want to be the most expensive house in the neighborhood, but you should shoot for the upper end of the scale.

Being aware of what buyers want also means that you should remodel with in eye toward appealing to the greatest possible number of buyers. This means keeping things practical and neutral, not tailoring the house to your own personal tastes. You may love rich, bold colors in every room, but most home buyers prefer to see walls that are in a warm neutral shade such as eggshell or taupe. The same goes for fixtures – if you install fixtures that include color inlays or have elaborate detailing that either is extremely elegant or (at the other end of the spectrum) ultra-casual, you may put some potential buyers off. Sticking with what’s simple and classic is best and will multiply your chances of a quick sale.

If you plan to continue flipping houses, but sure to establish a rapport with your contractors, suppliers and the inspectors you deal with. You’ll need their help and goodwill in the future, and it’s always a safe bet they’ll return your calls more quickly if they like and respect you rather than if you are yelling and demanding things. In fact, if you find a good contractor or supplier, it can often pay for you to establish an informal agreement with them that you will use them for any future flips in exchange for some type of consideration on their part – after all, they want that steady work or those steady orders from you.

Finally, although some flippers will try to sell a house on their own when it is finished, a realtor can be your best friend. Realtors are professionals at getting the word out, generating interest in an open house, and talking up your property to other realtors. Again, if you decide that you want to flip other properties in the future, let the realtor know this. He or she may very well lower his or her commission in exchange for the promise of future listings from you.

Good luck and happy flipping!

Loan officers are actually employees working in a bank, a
credit union or lending institution who work to sell and
process mortgages and other loans. They offer a wide selection
of loan types, but all originate from that specific lender. It
is usually the job of the loan officer to take care of the
client’s application and look for a specific loan product that
would best suit their client’s needs. Once the client get
credit approval, the loan officer will then start with the
processing of the home purchase transaction.

On the other hand, mortgage brokers are people who match up
lenders and borrowers. They are freelance agents, usually
working with many different lenders. Mortgage brokers are the
scouts of the mortgage industry since they are the ones that
search and evaluate home buyers. They also analyze a client’s
credit situation in order to find the best lender for that
client. An expert mortgage broker is capable of finding various
types of lenders to suit diverse types of credit.

A mortgage broker earns by securing a client’s loan and is paid
according to the quality of the transaction. For your protection
as the client it would be best not to offer any interest rate
but rather wait for your mortgage broker to tell you what terms
they can secure. And then try to shop around in order for you to
make sure that the terms your mortgage broker has given you are
reasonable. Also, try to be cautious when searching for
mortgages advertised online since most of them are owned by
mortgage brokers.

The advantage of hiring an online mortgage broker is that you
make yourself available to lenders in other parts of the
country who may have better rates than the ones in your
hometown. However, there is a drawback to this, since most out
of town lenders won’t be familiar with the peculiarities of
where you live: local heating systems and septic systems, for
example, or the jargon and classifications used by the
appraisers in your area. All the above mentioned slows down
loans made by an out of town lender.

Local banks are the most common mortgage lenders but not always
the preferred choice. They have underwriters that basically
understand the local properties and compared to a distant
lender will not cause any delay on the processing of loan.
Moreover, banks are always much better and faster in closing
loans than any mortgage broker working with a lender. However,
this is not generally applicable to all banks since there are
some banks that really take a long time to process loans. On
the other hand, mortgage brokers are capable of finding lenders
who will grant loans that a bank would deny, which is especially
ideal if ever you have a bad credit history.

About The Author: Stu Pearson has an interest in Finance
related topics. To access more information on
http://www.westgazette.com/category/business/ or on
http://www.westgazette.com/2006/06/01/mortgage_lender2/, please
click on the links.

Refinancing your mortgage can be a very hard and confusing
experience. When you’re making your decision, there are several
things to keep in mind.

First, even a small rate cut can pay off quickly.

Second, if you are planning to stay in your home for at least
three to five years, it may make sense to pay “points” (a point
equals 1% of the loan amount) and closing costs to get the
lowest available rate.

And third, you can avoid a cash layout and still get a low rate
by adding the fees and closing costs to your new mortgage. This
does not mean shouldering a lot of extra debt. If you’ve had
your current mortgage for at least three years, you’ve probably
reduced your balance by several thousand dollars. So you may be
able to tack your closing costs onto your new loan, lock in at
a lower rate and still end up with a mortgage amount that’s
less than your original one. More importantly, a lower monthly
payment.

Another factor to consider is how long you expect to stay in
your home? If your planning to move in the next few years, the
monthly savings may never add up to the costs that are involved
in refinancing.

You may have bought your home with a finance company mortgage,
or took out a second mortgage to pay for central heating or
furniture. Your payments are probably very high because some
finance companies charge interest rates of up to 50 per cent.
It is advisable that you look carefully at the small print to
find the true rate—most mortgage refinancing loans are over a
fairly short term, about 15 years at most.

HOMEOWNERS Please get the very BEST financing rates available
today

About The Author: Meleik Norman represents Mortgagewayz.com
where we have Great rates on new home mortgages, refinancing,
home equity loans, debt consolodation loans, and more for all
credit situations. If you wanna learn more just visit my
website at http://www.meleiksmall.mortgagewayz.com

In the United States, a contract has to be set in writing to become enforceable, according to the Statue of Frauds. Typically, an Offer shall have the following contents:

• Identity of the parties to the contract
• Identity of the real estate
• Purchase price of the real estate
• Signatures of the parties
• Should be for a legal purpose and not for any unlawful activity
• Parties to the contract should be legally competent to enact the contract
• There should not be any conflict in the minds of the parties to the contract
• The contract should be enacted for a consideration

Though it may not always be required, notarization of the contract may be necessary in some cases. In any case, the Offer requires that one party make an offer and the other party accepts the offer. To make the contract enforceable by law both the offer and acceptance should be in writing and be signed by all the parties concerned.

All alterations to the contract should be initialed by all the parties concerned. The type of deed that is used to convey title of the property should be specified. It may either be a warranty deed or a quitclaim deed.

In case the type of deed is unspecified then it may be assumed to be a “marketable deed” which implies that it is a warranty deed. All liens or other encumbrances on the real estate should be spelt out at the beginning to avoid the contract being voided either at the time of closing or before closure of the offer.

Furthermore, there may be present certain contingencies that must be complied with for the offer to be accepted and the contract be performed. These are:

• Contingency regarding mortgage
• Contingency regarding inspection
• Contingency regarding another sale
• Contingency regarding appraisal

In addition, the Offer to purchase real estate shall include the date of closing the contract and taking possession of the property. The condition of the property should have been ascertained at the time the real estate ownership passes to the buyer. Their may or may not be separate riders to the contract and their may be some amount of money to be deposited as earnest money along with the Offer.

Since this document is exhaustive, care should be taken in drafting it and most buyers/sellers of real estate would be well-advised to purchase pre-drafted offer documents to obviate the necessity of having to draft one for themselves. Since these documents have already been drafted, they form the ideal platform for prospective buyers and sellers to launch their Offers to purchase real estate.

Wade Anderson is a CPA and operates DigitalWorkTools.com, the premier internet site for Legal Forms and Business Documents. Find more information on using this document, contracts, forms, and spreadsheets by visiting http://www.DigitalWorkTools.com

When should you release equity?

Releasing equity should definitely not be your first choice for
generating credit. If you need money over a short period, then
try using credit cards or save up the money. You could also get
a personal loan. However, if you have a lot of equity paid for
in your property and you need a large sum of money, then equity
release could be helpful. Also, if other lines of funding are
not open to you because of poor credit or other reasons, then
equity release might be for you.

Remortgaging

One way to release equity in your property is to remortgage.
You simply have to get a new mortgage, borrowing more than you
currently owe on your property. This way you can make use of
some of the capital you have already paid back into your home
to consolidate debt or make home improvements.

Mortgage for life

Another way to release equity using your mortgage is to change
your mortgage to a lifetime mortgage. This means that you take
out a mortgage that will allow you to get a lump sum that you
can spend as you choose. The interest rates on the loan will be
high, and will be allowed to accumulate for your lifetime. When
you die, the loan is repaid through the sale of the house. If
the value of the loan and interest is more than the house is
worth, the lender absorbs the loss. If the loan amount is less
then the extra money is distributed to heirs according to your
will.

Home reversion

Home reversion is another method of equity release. Home
reversion means that you sell a proportion of your house to a
company, who will give you a lump sum in return. When the house
is eventually sold after death then the company receives the
proportion of the house that they paid for, whether that is
more or less than the loan that was given out.

Problems with equity release

Although equity release can free up much needed funds, there
are a number of flaws with the concept. The major problem is
the risk involved. You might be giving up a lot of home equity
that has taken you years to build up for a relatively small
loan amount. Equity release should be looked at as a last
resort, but if you know what you are getting into then using
your mortgage to generate credit can help you pay for items
that you need or to consolidate high interest debts.

About The Author: Peter Kenny is a writer for creditcards-gb
For additional articles and an extensive resource for
everything about credit cards, please visit us at
http://www.creditcards-gb.co.uk and
http://www.thriftyscot.co.uk/Mortgages/

1. Getting prequalified, but not pre-approved for a home
mortgage. No matter whether you are seeking a home that will be
conventionally financed or one requiring a jumbo loan, getting
prequalified by a realtor is a waste of everyone’s time, while
getting pre-approved by a Texas mortgage broker is many times
better. Prequalification really does nothing, while pre-approval
means that you have a loan in hand. Better yet: get pre-approved
and have a letter of approval with you when shopping for a home.

2. Letting credit problems continue unabated. Did you know that
you could get free copies of your credit report from each of the
three major credit-reporting bureaus? That’s right, on an annual
basis you can get one free report each from Experian, Equifax,
and Trans Union and find out what is on your credit report. If
there are errors or things that need improvement, you can address
these problems ahead of time. For approximately $5 – $7 you can
get your credit score too. The higher your score, the lower home
mortgage interest rate will be. You could save hundreds of
dollars per year with this little bit of extra knowledge.

3. Too much house, too little money. Perhaps you could get
approved for a more expensive home, yet after calculating all of
the other expenses in life, you learn that you will be stretching
making monthly Texas mortgage payments. Don’t jeopardize your
future; if you cannot repay your conventional or jumbo loan, your
home could be repossessed. Instead, purchase a home within your
means.

4. No rate lock for your conventional or jumbo loan. As Texas
mortgage rates rise, you can be assured of a low, fixed rate if
you lock in the rate. Imagine getting a great rate only to see it
get kicked up a half of a percentage point before you close,
costing you hundreds of dollars extra per year! The higher rate
could even cost you your loan.

5. Excessive closing fees. You may be able to afford monthly
Texas mortgage payments, but can you afford the closing fees? If
you aren’t careful, you could pay thousands of dollars in extra
fees before your home mortgage closes. Get a good faith estimate
to find out the fees in advance of your closing.

6. No residual funds leftover. After buying a home, do you have
enough money on hand to pay for maintenance costs? Utility bills?
Other unforeseen expenses? With no cash on hand, you could soon
see yourself running up big credit card fees to pay for
expenses.

7. Not using a professional inspector. In some jurisdictions,
using a home inspector isn’t required. While tempting to not
rely upon the services of a trained professional, you may miss an
important structural problem and have little or no recourse at
closing. Ultimately, by not using a professional inspector it
could be one of the costliest mistakes that you make.

8. Waiting on home insurance. Before you can close on your home,
you must have a home insurance policy in place. Don’t wait until
the last minute to get insurance as you could run into delays
that may push back the closing date of your home.

9. Signing documents without reading them. Don’t assume that the
verbal agreements you made are the same as the written agreement
you sign. If a problem arises, the written agreement will trump
the verbal agreement, no matter how well intentioned either of
the parties may have been.

10. Relying on a set closing date. Life happens and closing dates
can shift. If you are renting and seeking to move on the same day
that your home mortgage close, you could find yourself homeless
if the closing date shifts. Build in a buffer of several days to
a week to protect yourself.

There are other deadly mistakes that can occur after you have
already moved into your home. Chief amongst them is bad mortgage
refinancing where owners leap for a lower rate without
calculating the closing costs. You may find yourself eligible for
mortgage refinancing but learn too late that with all of the
closing costs added in, your savings could be wiped out. Better
to make certain that your mortgage refinancing plans are checked
by an accountant specializing in mortgage refinancing options
before agreeing to a new loan.

If you are looking for additional articles on mortgage and real
estate for your web site or your newsletter, go to:
http://groups.yahoo.com/group/Free-Reprint-Articles for the best
selection.

The next thing to do is research. Find a couple of mortgage
brokers that specialize in people with credit issues. You can
find a specialist in local real estate newspapers and (free)
magazines. There advertisements are usually announce the
following: We can help you buy a home regardless of credit
history – bad credit, no credit and foreclosures.

There are also programs such as ‘purchasing a home with the
option of buying’. The homeowner or landlord will make a fair
arrangement with you. You will be required to leave a down
payment between the amounts of $3000 – $8000 (the higher the
deposit, the less you have to pay monthly).  If you pay
consistently without any late payments, they will place a
percentage of your monthly rent towards the purchase of the
home that you will be renting. After a 12 to 24 month period,
the landlord or homeowner will turn your lease into a mortgage.
This will not only make you an official homeowner but it will
help your credit rating. Make sure that all transactions are
done in writing. Hire a lawyer to review the terms and
conditions of your ‘rent with option to buy’.

If renting with the option of buying is not your cup of tea,
there are other options. You can buy foreclosed homes at annual
tax sales. In most states, you do not have to have good credit
to purchase a home. The county or city tax office is only
concerned about one thing: a cashier’s check or a money order
for the full amount of the sale. The tax office could care less
if you were unable to keep up with your monthly cable bill for
the Showtime Movie Channel. If the tax bureau had to keep score
of who has good or bad credit, they would have a difficult time
selling houses.

You can find out further information on how to buy a home with
bad credit on the Internet. To find out how to get a listing of
yearly tax sales, contact your county or city’s tax claim
office. You can also find out further information on a credit
specialist on the Internet.

About The Author: Connie Barker is the owner of several
financial websites including
http://www.badcreditloandirect.com/how-to-buy-a-home-with-bad-credit.html

Single-Purpose Reverse Mortgages

A single purpose reverse mortgage is the lowest-cost type of reverse mortgages to obtain, but as the name indicates it can only be used for one specified purpose. They are typically offered by state or local government agencies. These loans a great for individuals who need cash for a specific purpose like paying property taxes or fixing up there homes. Here are descriptions for several different types of single purpose reverse mortgages:

Property tax deferral (PTD) mortgages are reverse mortgages that provide loan advances for paying property taxes.

Deferred payment loans (DPLs) are reverse mortgages providing lump sum disbursements for repairing or improving homes.

Federally Insured Reverse Mortgages

A federally insured reverse mortgage is the only reverse mortgage insured by the Federal Housing Administration (FHA). These reverse mortgage are one of the lowest-cost multipurpose reverse mortgages currently available. Overall they typically provide the largest total cash benefits of all the reverse mortgage options. The proceeds from a federally insured reverse mortgage can be used for any purpose. These loans are also known as Home Equity Conversion Mortgages (HECMs).

Proprietary Reverse Mortgages

A proprietary reverse mortgage is a mortgage product owned by a private company. These type of loans are more expensive then the other reverse mortgage types and should be approached with caution. Anyone looking into these type loans should get a comparison with a similiar HECM. One benefit of proprietary reverse mortgages are the higher home value limits. So, if you live in a home that is worth a lot more than the average home value in your county, a proprietary loan may give you greater loan advances than a Home Equity Conversion Mortgage (HECM). As with any financial decision, you should get professional help to help you decide which option is best for your situation. Reverse mortgage counselors can help you evaluate each of your options and help you make an informed decision.

Charles Kirkendall writes about reverse mortgages and other senior financial issues. Visit http://www.reverse.settle-today.com or http://reverseannuity.blogspot.com for more information and resources.

according to them,is rooted in the fact that building a secure financial future is more difficult than

ever.The rules are changing and perhaps the old practices need to be revamped.GEL calls its new

philosophy, “Harnessing The Power of Your Mortgage”

 

In 2004,credit card debt accounted for over half of the $2.1 trillion of consumer debt in the U.S.,

quadrupling over the last decade.Today,the average American household has $9,000 of credit card

debt at 16% interest.To pay that average off,at that interest rate would take ten years,totaling over

$8,000 in interest when all is said and done.The financial impact of this,which is virtually unrealized

is devastating.GEL claims to have a better way.Their thinking is that since you must borrow money

over the coarse of life,why not borrow it as inexpensively as possible.Credit cards,auto loans,and

personal loans are all high interest and non deductable.So why not harness the power of your

mortgage?

 

 

According to GEL,Americans operate under a mindset,when it comes to personal finance,that

has been burned into our country’s psyche from the days of the great depression.That philosophy

is as such:First get the lowest rate mortgage,then,set up a bi-weekly payment plan,and,whenever

possible send in additional payments.This way you pay off your mortgage as soon as possible.

Sound good to me,right?Well,much to my suprise,this company claims that is exactly what we

should NOT be doing!On the contrary,their idea is one which is echoed by New York Times Best

Selling author of “The New Rules Of Money”,Rick Edelman,who says,”You should get a big,30

year mortgage and never pay it off.”Edelman and GEL put rules forth which read like this:

 

 

1.Never send extra money to your mortgage

 

2.Stay away from bi-weekly plans.

 

3.Make the smallest payment with the biggest tax break.

 

4.Putting extra money toward your mortgage is like putting it under the matress.

 

 

To back up his claim,Edelman offers five distinct reasons why you should carry a long loan:

 

 

1.Mortgages don’t lower your homes value.Your home will grow in value whether or not you

have a mortgage.

 

2.Your mortgage is the cheapest money you’ll ever buy.Why pay credit card at 18%,when

you can borrow at rates under 7%.

 

3.Your mortgage is the best way to lower your taxes.There aren’t many tax breaks left.

Mortage loans,unlike credit cards and car loans are fully tax deductable.

 

4.You should get cash out of you house while you still can.You may find it difficult to

get a loan if something like a loss of job comes up.

 

5.Mortgages become cheaper over time.Most times your payment will stay the same

over the years while your income rises,making it easier to pay over time.

 

 

To further illustrate their beliefs,GEL presentations include a case study called,”The Tale of Two

Brothers”, where they do a financial comparison of two fictional brothers.In the story,Brother A,as

he is called follows the “old” way of thinking,while his brother(yes,you guessed it,brother B)uses

GEL and Edelman’s theory.The results of the study find Brother B with almost a one million dollar

advantage over Brother A.The full hypothetical can be viewed on http://yourbighouse.com, but the

jist is that the second brother used the money he saved carrying an interest only loan,or GEL’s

famous “power option”loan to invest in other places.That,combined with the mortgage tax breaks

lead to the million dollar separation after 30 years.

 

 

So,if you believe in this new way of thinking,and are ready to follow the model(in other words,

REALLY, put that extra money to work for you),then I believe an interest only loan or GEL’s power

option loan is the way to go,but be careful.

 

 

For more info on this new philosophy,go to http://YourBigHouse.com