<?xml version="1.0" encoding="UTF-8"?>
<!--  generator="ewebcreator"  -->
<rss version="2.0">
<channel>
<title>Foreclosure tips Information and Resources | Stop foreclosure | Foreclosure help</title>
<link>http://www.myForeclosureTips.com/article.xml</link>
<description><![CDATA[Foreclosure Articles and Information  - Useful Articles related to Foreclosure: Foreclosure Listings, House Foreclosure and much more.]]></description>
<pubDate>Wed, 03 Oct 2007 09:49:14 -0400</pubDate>
<generator>http://eWebCreator.com</generator>
<language>en</language><item>
	<title>10 tips to flip!</title>
	<link>http://www.myForeclosureTips.com/info/Flipping/10-tips-to-flip.html</link>
<pubDate>Wed, 03 Oct 2007 09:49:14 -0400</pubDate>
<category>Flipping</category>
<guid isPermaLink="true">http://www.myForeclosureTips.com/info/Flipping/10-tips-to-flip.html</guid>
	<description><![CDATA[Buying, renovating and selling a house for profit, known as house flipping, is the latest buzzword in real estate. There is no magical formula to ensure success at flipping houses. However, there are essential tips to help investors earn more money.1. Do not get emotional about house flipping. It is after all a business. If the numbers do not work, proceed to the next property. Some investors commit the mistake of being too attached to the flip that they sell at a high price and end up holding the flip longer thus reducing profit.2. First impressions count. Pay attention not just to the inside of the house but the outside as well. You cannot show off all the upgrades done inside the house if potential buyers are turned off by the outside appearance of the house and its surroundings.3. Personal tastes are a no-no in a flipped property. Your flip needs to be attractive to buyers, not you. You should define who your target buyer is and what is his/her preferences. Color is a vital part of flipping houses. Stick to neutral colors especially when it comes to painting and laying the carpet.4. Spruce up the kitchens and the bathrooms. They will noticeably increase the price of a house. But be sure that fixtures and appliances match the target price range. If the kitchen and bathrooms look clean, sleek and updated, the house will sell faster and for a higher profit.5. In house flipping, time is money. After making a detailed list of renovations to be done, come up with a timeline. A timeline is an important way to let contractors know when the next group of workers needs to be in a specific part of the house. One rule of thumb is to work from top to bottom and tackle the big work projects first.6. Hire a good contractor. You cannot be at the job site all the time. This is where the contractor comes in handy. He can keep a close watch on your time line and also the part of the budget that is his responsibility. He can keep track of problems and readily find solutions. The easiest way to find a good contractor is through referrals.7. Be ready for paperwork. There are loads of paperwork that accompany house flipping. The most important paperwork you will have to attend to are permits. It takes time to obtain permits so you need to apply for them before work begins. Not having the necessary permits can cause work stoppage and this cost money. Contracts and receipts are doubly important. Be sure to keep them. You also need to obtain insurance coverage not only on the property but the workers as well.8. Keep track of your progress. Throughout the entire house flipping process, you have to constantly monitor your progress. That way, you will know at any given time where you stand on the project. This will help you keep focused. Time is of the essence in house flipping.9. Start small or simply, and then work your way up. Your first house flipping project should only entail cosmetic work. You may not get a huge return on your investment but you will surely learn valuable lessons and develop experience.&nbsp;10. As with any business venture, expect the unexpected. You will certainly encounter something that you simply did not expect. It may be a problem that appears hours before the transfer of ownership. You will almost always run at least a little over budget or hold the flip a little longer than expected. ]]></description>
</item>
<item>
	<title>New opportunities in a slow market</title>
	<link>http://www.myForeclosureTips.com/info/Foreclosure/New-opportunities-in-a-slow-market.html</link>
<pubDate>Wed, 03 Oct 2007 09:46:27 -0400</pubDate>
<category>Foreclosure</category>
<guid isPermaLink="true">http://www.myForeclosureTips.com/info/Foreclosure/New-opportunities-in-a-slow-market.html</guid>
	<description><![CDATA[While at the beach last week, I carefully watched the news regarding the major lenders like CountryWide and Thornburg Mortgage. Since the change in liquidity for mortgages, there's an opportunity for savvy investors.Everyone is talking about all the bargains to be found because of the rising number of foreclosures and the excess inventory. It's true that sellers are beginning to discount price and bargains are showing up. You can expect even larger discounts within the next 12 to 24 months. But today, I want to talk about another opportunity.
The new opportunity is on the backend when you sell the property.&nbsp; Since all the lenders are turning off the tap, it's time you step up and offer financing to qualified buyers. Wait there more...
Don't make the mistake and think I'm talking about those with C &amp; D credit. There are buyers with great credit scores that are getting turned down because the underwriters are drying up. In addition, the remaining lenders are asking for hefty down payments of 20%.Attract those with great credit scores and get at least 10% down, take back a note of 80% at 7.5% or higher and then take back a second of 10% at a higher interest rate of 9%+. Of course, factor in the credit score and adjust those rates accordingly. Buyers will become easier to find and you can upload your properties a little quicker. You will be surprised to find buyers with decent credit scores. So step up and start being the bank. More than ever is there a demand owner financing on the backend. 
Because the sub-prime lenders are gone.. I mean really gone. So if you want to fund those with C &amp; D credit, you canfind even larger pool of buyers that need financing. So while you are buying the bargains in foreclosure on the front tend develop a system to start funding your buyers to create a cash cow.You'll end up with selling properties faster and creating some excellent returns.Note: Be aware of the federal and state lending regulations when lending directly to consumers. ]]></description>
</item>
<item>
	<title>Foreclosure flipping</title>
	<link>http://www.myForeclosureTips.com/info/Flipping/Foreclosure-flipping.html</link>
<pubDate>Wed, 03 Oct 2007 09:42:51 -0400</pubDate>
<category>Flipping</category>
<guid isPermaLink="true">http://www.myForeclosureTips.com/info/Flipping/Foreclosure-flipping.html</guid>
	<description><![CDATA[In terms of mechanics, foreclosure flipping is very similar to regular property flipping. However, there is added risk when dealing with foreclosure flipping because there is often a heightened probability of unforeseen problems that have been cosmetically repaired and possibly hidden trust deeds that encumber a property. In addition, people who lose their homes to foreclosure sometimes do damage to a property out of frustration at having lost their home.
Buyers need to be particularly aware that fixes to the property could be cosmetic in nature where mechanical or structural problems could be present. These problems tend to show up after the home has closed escrow and the seller of the flipped property has moved on to another area, possibly out of state. In those circumstances, it is highly probable that the buyer will not be able to re-coup the losses they sustained. The key message is to know what you are getting into in terms of value, risk and unseen problems that property inspectors may uncover. Get the third party information you need about market values and risks. 
Pre-foreclosure flippers identify properties targeted for foreclosure usually because of a Notice of Default (on payments) that has been filed by a lender, due to non-payment of the mortgage. They want to be involved early in the foreclosure process because they want a &ldquo;good deal&rdquo; and do not want a real estate agent involved, usually because of the added commission expense. 
They generally offer the minimum amount possible to a distressed seller to get them out of the property. The offer will generally be just enough to get them out of the property (to protect their credit rating) and perhaps a few more thousand dollars so they leave the property with something. The market value of the property may be, and often is, considerably more than the pre-foreclosure flippers will offer. They understand the sellers in this situation are often desperate and they take advantage of that situation. Their objective is profit and their goal is to buy the home with minimal up front expenses. 
If owners find themselves in this type of situation, they should first contact their mortgage lender to see if there is a way to &ldquo;work out&rdquo; of the situation. If so, such terms should be discussed, as lenders are not usually excited about the foreclosure process. If a buyer has consistently paid their mortgage and has run into short-term problems, lenders will sometimes help them work through the problem. 
If that&rsquo;s not possible, the owner should consult with a local real estate professional (a broker or agent) familiar with the market to discuss listing the property and develop a specific plan of marketing and sale of the property. If there is enough equity, a broker can help expose the property to market very quickly. If a full service broker costs too much, there are several notable discount brokers that may be able to help. If you are in this situation, understand that a pre-foreclosure flipper may be a solution for you but that there are other means of addressing your situation. ]]></description>
</item>
<item>
	<title>Is a fixer upper a good idea?</title>
	<link>http://www.myForeclosureTips.com/info/Flipping/Is-a-fixer-upper-a-good-idea.html</link>
<pubDate>Wed, 03 Oct 2007 09:39:14 -0400</pubDate>
<category>Flipping</category>
<guid isPermaLink="true">http://www.myForeclosureTips.com/info/Flipping/Is-a-fixer-upper-a-good-idea.html</guid>
	<description><![CDATA[There are a number of decisions to make when looking for a new home. One of these is to determine whether you intend to purchase a home in good condition that can be moved right into or a fixer upper. There are a number of benefits and drawbacks to both of these options and, in the end, the biggest deciding factor is what&rsquo;s right for your family. Don&rsquo;t simply go with whichever falls into your lap, however. It&rsquo;s important for you to know what you&rsquo;re getting into by purchasing a home in need of repair. Make sure you&rsquo;re prepared for the effort it requires before being lured in by an attractive price.
The most appealing factor of a home in need of repair is the price. Sellers are usually aware of their home&rsquo;s flaws and don&rsquo;t expect to fetch market value. If they do, a home inspection usually cures them of this misconception. The more work there is to be done on a home, the more eager a seller often is to get it off of his hands and the less he&rsquo;ll charge. If a low price or saving money are high priorities for you and your family, you might want to consider buying a home in need of repair. However, saving money alone is not a compelling enough reason to buy a fixer upper. While the price might be right, you can&rsquo;t forget about the effort and energy involved.
One of the biggest mistakes that people make upon buying a home in need of maintenance and renovation is shirking the actual work. Many home buyers are attracted to a fixer upper&rsquo;s low price but then fail to follow through with the required work. This is a bad idea for many reasons. First of all, it&rsquo;s never a good idea to live in a home in need of major repair. More importantly, however, it&rsquo;s a waste of money because no matter how inexpensive the home was to begin with, it will make drastically less on resale if the necessary repairs are never made. Without the commitment to actually redoing an inexpensive home, a buyer might as well buy a home that&rsquo;s ready for move in.
One of the major benefits of fixing up an inexpensive home &ndash; aside from the price &ndash; is the ability to tailor your home to your family&rsquo;s needs. This luxury is usually reserved for people who can afford to build the custom home of their dreams. With enough hard work, determination, and drive, however, you can have a custom home for relatively little cost.
Don&rsquo;t forget that successfully renovating a home can be a very sound investment given that it&rsquo;s done properly in a good area. While fixing up an inexpensive home can be the perfect solution for many families, it can also spell ruin if you&rsquo;re not willing to put in the required effort. Take the time to evaluate if a fixer upper is right for you before diving in.]]></description>
</item>
<item>
	<title>How to flip a foreclosure?</title>
	<link>http://www.myForeclosureTips.com/info/Flipping/How-to-flip-a-foreclosure.html</link>
<pubDate>Wed, 03 Oct 2007 09:36:51 -0400</pubDate>
<category>Flipping</category>
<guid isPermaLink="true">http://www.myForeclosureTips.com/info/Flipping/How-to-flip-a-foreclosure.html</guid>
	<description><![CDATA[Flipping real estate is a perfectly legal, highly lucrative method of real estate foreclosure investing. Often mainstream media describes mortgage fraud in terms of flipping real estate, but this is incorrect. In a mortgage fraud scheme, multiple parties inflate appraisals, alter loan applications and institute other highly illegal real estate activities. 
Flipping a foreclosed home, however, consists of purchasing an undervalued property in need of work, repairing it, and placing it back on the real estate market for a higher price. The foreclosed home may be purchased at any time foreclosure investing seems optimal, and often the pre-foreclosure period yields the most lucrative results. This type of flip is known as a retail flip and can yield large profits. It is somewhat time consuming, however, as the rehabilitation phase of a home can last varying amounts of time. This method often requires more initial cash or financing to get it off the ground. For the most part, retail flips are best executed with homes that require minimal structural repair and benefit most from cosmetic home improvements.
Another kind of home flipping that results in faster profits is wholesale flipping. In this situation, the investor gets an undervalued distressed or foreclosed property under contract to purchase and then sells that contract for a fee to another real estate investor who actually closes on the flipped property. In this way, the primary investor acts as wholesaler by amassing undervalued properties that are then distributed among a number of other investors.
Real estate investment and flipping homes can have a positive effect on a neighborhood by encouraging the restoration and rejuvenation of a declining area. Newly remodeled homes also draw new populations to an area, encouraging economic increases and social fluidity. With all of the recent popularity of flipping &mdash; as many as a fourth of all home buyers never intend to live in the homes they purchase &mdash; a potential investor needs to take precautions. While flipping presents exponentially large profit potentials, it also poses large risks. A few simple steps, however, can help protect the aspiring real estate investor. 
Educate yourself on the neighborhood you want to buy into to understand how similar investment properties are selling. Then create a business plan to adhere to. This will help keep you close to your goals despite all the craze surrounding real estate flipping right now. If you feel compelled, you can put together a real estate business team to aid you including a home inspector, contractor, realtor, tax accountant and attorney to help guide your decision-making. Finally, prepare for the worst and think long term. Though these suggestions might seem bleak, those who are most successful in real estate flipping are the ones who are prepared if a house that only appeared to need cosmetic improvements actually needs a new foundation and can handle the financial interruption such a situation might pose. If you&rsquo;re prepared to handle the risks associated with real estate flipping, it can be a highly lucrative endeavor.]]></description>
</item>
<item>
	<title>Buying a pre-foreclosure</title>
	<link>http://www.myForeclosureTips.com/info/Flipping/Buying-a-pre-foreclosure.html</link>
<pubDate>Sat, 15 Sep 2007 21:55:39 -0400</pubDate>
<category>Flipping</category>
<guid isPermaLink="true">http://www.myForeclosureTips.com/info/Flipping/Buying-a-pre-foreclosure.html</guid>
	<description><![CDATA[The advantages to buying properties from homeowners in default can only be measured by the individual investor. Some do not see enough reward, some think it's too risky, while others are plagued by moral issues. Are you helping the troubled homeowner or taking advantage of his misfortune?Both the lender and the homeowner lose in a foreclosure action. Neither want it to happen. Both parties are motivated to resolve the situation. Motivated parties are key to the process.The investing window of opportunity opens the day the Lis Pendens, the notice that a legal action is pending, is filed. The window closes the day the property is sold at auction. The time between these two events enables an investor to work with the homeowner and lender to create a workout strategy or a purchase of the property from the homeowner before the sale date.The amount of time the window remains open depends solely on state and local laws, as well as the behavior of the property owner. Some states sell properties within 90-120 days from the first notice of default. In New York, the process can take a year or more.As for the moral question, keep in mind that by dealing with a homeowner in default, you not only help him, you generally rescue the loan and maintain the value of the property (and surrounding properties) as well. If there is enough equity in the property, there is the potential to work out an arrangement that satisfies all parties and allows for a handsome profit. That's what pre-foreclosure investing is all about: buying the equity in the property, working out an arrangement with the lender and the homeowner, then selling the property for a profit.Investors follow these basic guidelines to ensure a successful purchase and sale:

    Locate loans in default 
    Evaluate choices and narrow selections 
    Contact homeowner 
    Inspect property and loan documents 
    Determine homeowner's needs 
    Calculate your selling price and profits 
    Negotiate with lender, owner and lien holders 
    Close the deal, repair as necessary and sell

Locating Loans in Default
The Lis Pendens is the first public notice (document) that announces a loan in default, so it makes sense to start there. Access these notices at the county courthouse, newspapers that routinely advertise these notices or through a reputable Foreclosure Service Provider.
Evaluate Selections &amp; Determine Potential
You know the default amount from the legal notices or service provider's information. Now you must estimate the property's market value. Subtract the default amount from the estimated market value to determine the gross equity in the property. This figure also reflects your gross profit potential. If there is little or no difference in the amount of debt and the market value, move on to another property. If there is a big difference, there may be enough equity in the property to make a sizeable profit.
Contact the Homeowner
This is easier said then done. The homeowner is probably being bombarded with letters and calls from attorneys and bill collectors and has creditors showing up at his door. The only way to contact the homeowner is by phone, mail or in person, and chances are you will have a difficult time getting in touch with him.Start with mailings. Indicate in your letter that you are a private investor looking for property in that part of town. Let the property owner know that you may be able to help him with his financial problems.Demonstrating an understanding the homeowner's dilemma will help your efforts. Indicate in your letter that you may be able to stop the foreclosure, save his credit rating and provide cash for use in paying his bills and/or for relocating.Be professional and gracious in your correspondence. Invite the homeowner to call you at his convenience. If you don't hear from him in a reasonable amount of time, say three or four weeks, follow up with another letter, perhaps worded a bit more urgently. As you get closer to the auction date you may want to send two or more letters per month.Follow up with phone calls if you can. Be courteous, never pushy. Never interview the owner on the phone. Merely state that in order to determine whether or not you can help him, you will need to meet with him at the property. Make sure he understands that the meeting will be more productive and less time consuming if he will have the loan, mortgage and insurance documents available, as well as the foreclosure notices.If you are going to make an offer on the property, you must have the loan, ownership, and debt or lien information. You must also assess the condition of the property and the property owner. Combined with the market value and the default amount, you have all the ingredients necessary to formulate your offer.If you feel comfortable with it, you can visit the property in person. You may be confronted by an angry homeowner. Be polite and leave if you are asked to. Never, under any circumstance, snoop around, inspect or generally trespass unlawfully on somebody's property.
Meeting the Homeowner
Use common sense and dress appropriately, something casual but not sloppy. Be sympathetic. Does the homeowner need cash? Is he waiting for a bailout? Will he go bankrupt? Find out. Review the loan and mortgage documents. Verify the loan amount, monthly payments, interest rates, taxes, etc. Review the insurance policies as well. Get all the pertinent information you can. Ask the owner if there are any other liens or judgments he may be aware of.Inspect the property with the homeowner. Never comment on the owners lifestyle, just the physical condition of the property. Point out the obvious defects or items in need of major repair. Use an inspection checklist and record your information and estimated costs of repair.Make no promises at this point. Make no offer or give the homeowner any money. Make an appointment to meet with him again if you think you want the property.
Preparing Your Offer
Determine the net equity in the property. This is the difference between the market value and the default amount plus liens and repair amounts.Negotiate with the lien holder. You may offer to satisfy the lien for 20% of the amount. Chances are the lien holder will lose everything when the property sells at auction. Buying out the lien puts more equity in the property and more money in your pocket.Remember to include closing costs in your calculations for the purchase and sale if you intend to flip the property. Also included the carrying costs, the mortgage payments and taxes and insurances, while you hold, repair, and then resell. Also include a seller's commission if you use a broker.Calculate every legitimate expense associated with buying, repairing, carrying and selling the property. If a large enough figure remains, you may have a very nice deal. This bottom line figure has to pay the homeowner for his property and produce a profit for you.How much do you offer the homeowner? Some investors itemize every expense, show their calculations to the owner and offer to split the profits. Some itemize the expenses and pay the owner the remainder on the bottom line. The investor then earns his profits by the reduction in lien amounts as negotiated, savings in repairs by doing them himself, negotiating a lower seller's commission, or selling the property himself. Others still make offers based on the bottom line, and negotiate from there.
The Purchase Contract
When the owner decides to sell, you will both need to sign an Equity Purchase or Real Estate Purchase and Sale Agreement. All parties recognized in the mortgage contract must sign.Check with your attorney before signing any contract and make ure he is knowledgeable in real estate equity purchases.Investing experts agree that the terms of the agreement must be clearly stated in the contract. Leave nothing to verbal understandings. Your best defense against future problems is the manner in which you present your evidence. Have everything documented properly.Make sure to include the following in your purchase agreement: 

    A &quot;Subject to&quot; clause that allows you to bow out of the deal if something is not as originally agreed upon. This could be for unknown damages, general condition of the property or loans, termite damage, etc. 
    A statement that allows you to show the property. 
    A statement indicating that the property has to appraise at a certain value. 
    The property must be vacant, all tenants and possessions out by the specified date. 
    An agreement between buyer and seller that the payments for the current loans equal &quot;X.&quot; 
    A statement indicating the sale is subject to the condition of the loan and/or encumbrances against the title. 
    A statement indicating the buyer shall pay all closing costs. 
    A statement indicating the seller shall: Deed the property to the buyer... Authorize the buyer to record said deed at the appropriate time... Be aware that the buyer may resell the property... Be aware that the purchase price may be below market value... Leave the premises in good condition and pay for damages incurred after the contract has been signed and before the seller has left... Agree to pay for any damages or repairs necessary as discovered by termite and roof inspections... Vacate the premises on the date specified. 
    A statement indicating all net proceeds paid to seller will be paid at closing.

Closing
Inform your attorney that you have a signed contract and that you need representation at closing. Have him prepare a Release of Lien, to be recorded at or just prior to closing, if you have negotiated a settlement with a lien holder.Arrange your financing. If you assume the loan and have been in contact with the lender, make sure the foreclosure process is stopped before the sale date.Order your certified appraisals and inspections as required before closing. Order the termite and roof inspections as well. Verify from a title search that there are no other lien holders against the property.If all goes well, you probably just bought real estate well below market value.]]></description>
</item>
<item>
	<title>Real Estate agents and foreclosures</title>
	<link>http://www.myForeclosureTips.com/info/Flipping/Real-Estate-agents-and-foreclosures.html</link>
<pubDate>Sat, 15 Sep 2007 21:51:56 -0400</pubDate>
<category>Flipping</category>
<guid isPermaLink="true">http://www.myForeclosureTips.com/info/Flipping/Real-Estate-agents-and-foreclosures.html</guid>
	<description><![CDATA[Brokers and Agents should take a good look at the foreclosure marketplace for several reasons, not the least of which is to broaden the range of services they offer and enjoy increased sales.Consumers are fascinated with the concept of saving money on their home purchase. That's why they seek information about foreclosed properties.The perception is that they will save money. This isn't always true. Not all foreclosures are deals. Regardless, the same consumer has expressed an interest, need or desire to purchase a property, and whether they buy a foreclosed home or not, they still need to purchase a property. This creates several opportunities for the wise broker/agent.The plain truth is that most foreclosed homes are now sold by brokers/agents representing the lending institution that foreclosed the mortgage or trust deed. Why is this? Over the years, lenders have learned that the regular distribution channel for real estate sales is still the best. In other words, selling their foreclosed property inventory through brokers/agents is the fastest, most economical way for lenders to dispose of these properties.How does this help you? First, by letting your customers know that you can show them foreclosed properties only adds to your collection of real estate services offered. Second, many of these homes are listed and ready to be shown immediately. Because these are &quot;post-foreclosure&quot; properties, they have no liens, encumbrances or other issues that may cloud the title. Therefore, they are RTG (ready-to-go). As a matter of fact, these properties should be mixed in with your regular inventory and shown as such. The only difference between these properties and other resale's is that the lender had to force a foreclosure proceeding for non-compliance with the mortgage or trust deed. Typically, this means non-payment of the loan as stipulated in the borrower's agreement.Most foreclosures will be sold at market value. That's because the lender has authorized the repairs (typically, little more than paint, carpet and some cosmetic work) and through a broker's opinion of price and market value, has determined that the property, in good condition, will bring fair value. Other properties may need more work. The real dogs, the worst of the worst, will be wholesaled to investors. These properties rarely make it to the general public.The free real estate magazines available in supermarkets and convenient stores are filled with ads from brokers/agents offering foreclosed properties. These brokers/agents have learned the value of offering these properties long ago. If nothing else, these ads bring buyers into your office that you otherwise might not reached before. There is hardly a broker/agent alive today, that hasn't been asked about foreclosed properties from prospective buyers.There are no special requirements necessary for selling lender-owned properties. The seller's representative (a local brokerage) will offer these properties for sale and you will participate in the transaction as you would with any other home purchase/sale, new construction, resale, foreclosure or other.Regulations regarding the sale of government-owned properties have changed frequently in the last few years. To make sure you're up-to-date on the latest changes, please visit hud.gov for HUD-owned properties and va.gov for VA-owned properties.]]></description>
</item>
<item>
	<title>Improving Your FICO? Score</title>
	<link>http://www.myForeclosureTips.com/info/Stop-Foreclosure/Improving-Your-FICO?-Score.html</link>
<pubDate>Sat, 15 Sep 2007 21:44:37 -0400</pubDate>
<category>Stop Foreclosure</category>
<guid isPermaLink="true">http://www.myForeclosureTips.com/info/Stop-Foreclosure/Improving-Your-FICO?-Score.html</guid>
	<description><![CDATA[It&rsquo;s important to note that raising your score is a bit like losing weight: It takes time and there is no quick fix. In fact, quick-fix efforts can backfire. The best advice is to manage credit responsibly over time. See how much money you can save by just following these tips and raising your score.
Payment History Tips

    Pay your bills on time.Delinquent payments and collections can have a major negative impact on your score. 
    If you have missed payments, get current and stay current.The longer you pay your bills on time, the better your score. 
    Be aware that paying off a collection account will not remove it from your credit report.It will stay on your report for seven years. 
    If you are having trouble making ends meet, contact your creditors or see a legitimate credit counselor.This won't improve your score immediately, but if you can begin to manage your credit and pay on time, your score will get better over time. 

Amounts Owed Tips

    Keep balances low on credit cards and other &ldquo;revolving credit&rdquo;.High outstanding debt can affect a score. 
    Pay off debt rather than moving it around.The most effective way to improve your score in this area is by paying down your revolving credit. In fact, owing the same amount but having fewer open accounts may lower your score. 
    Don't close unused credit cards as a short-term strategy to raise your score. 
    Don't open a number of new credit cards that you don't need, just to increase your available credit.This approach could backfire and actually lower score. 

Length of Credit History Tips

    If you have been managing credit for a short time, don't open a lot of new accounts too rapidly.New accounts will lower your average account age, which will have a larger effect on your score if you don't have a lot of other credit information. Also, rapid account buildup can look risky if you are a new credit user. 

New Credit Tips

    Do your rate shopping for a given loan within a focused period of time.FICO&reg; scores distinguish between a search for a single loan and a search for many new credit lines, in part by the length of time over which inquiries occur. 
    Re-establish your credit history if you have had problems.Opening new accounts responsibly and paying them off on time will raise your score in the long term. 
    Note that it's OK to request and check your own credit report.This won't affect your score, as long as you order your credit report directly from the credit reporting agency or through an organization authorized to provide credit reports to consumers. 

Types of Credit Use Tips

    Apply for and open new credit accounts only as needed.Don't open accounts just to have a better credit mix - it probably won't raise your score. 
    Have credit cards - but manage them responsibly.In general, having credit cards and installment loans (and paying timely payments) will raise your score. Someone with no credit cards, for example, tends to be higher risk than someone who has managed credit cards responsibly. 
    Note that closing an account doesn't make it go away.A closed account will still show up on your credit report, and may be considered by the score. 
]]></description>
</item>
<item>
	<title>Sell your home before foreclosure</title>
	<link>http://www.myForeclosureTips.com/info/Foreclosure/Sell-your-home-before-foreclosure.html</link>
<pubDate>Sat, 15 Sep 2007 21:41:01 -0400</pubDate>
<category>Foreclosure</category>
<guid isPermaLink="true">http://www.myForeclosureTips.com/info/Foreclosure/Sell-your-home-before-foreclosure.html</guid>
	<description><![CDATA[
If you're selling your home this year, be prepared for a marathon, not a sprint.
In most places, those heady days of putting a property on the market, receiving multiple bids, getting more than you expected, and accepting an offer in just days or weeks are over.
Now, for most houses in most parts of the country, it's a buyer's market. That means that more houses are for sale, there are longer stretches on the market, and prices have slowed, plateaued or, in some places, decreased.
Sellers &quot;need to be prepared for a sustained effort,&quot; says Colby Sambrotto, chief operating officer of ForSaleByOwner.com.
Homes are staying on the market for about four months, according to the most recent averages from the National Association of Realtors.
If you plan to plant your &quot;for sale&quot; sign, here are 10 things you can do beforehand:
1. Recognize every market is different. Your state, town or neighborhood could dovetail with national numbers or buck the trend entirely. &quot;There really is no national market,&quot; says Sambrotto. &quot;There's a patchwork of regional markets.&quot; Never rely solely on one person's advice or opinion. Talk to a handful of professionals, do your own research and listen to your gut instinct. 
2. Get your home inspected. &quot;Before I would even call a real-estate agent, I'd have my home inspected,&quot; says attorney Diana Brodman Summers, author of &quot;How to Buy Your First Home.&quot; Some real-estate agents advise against spending the money (basic inspections range from $200 to $400, according to a 2004 survey from the American Society of Home Inspectors), because the buyers will get one anyway prior to closing. Others recommend it because it gives sellers an early warning on any repairs they might have to make. 
But in this market, says Summers, it's better to be proactive. &quot;I would rather know what the inspector is going to find and be able to fix it -- and pick who will fix it,&quot; she says. This method also allows you to shop around for the best price instead of perhaps paying an inflated price later on.

3. Shape up before marketing. A buyer's market means you've got more competition. &quot;You want to put your best foot forward,&quot; says Eric Tyson, co-author of &quot;House Selling for Dummies.&quot; If your home isn't appealing and in good repair, potential buyers won't even stop. Some sellers think it's OK to skip this step and take less, but if the house is not appealing, you may not get the chance to negotiate. &quot;Six weeks before you want to put it on the market is a great time to get it done,&quot; says Summers. You don't need to renovate, but make sure everything looks good and works well. Easy ways to make your home stand out:

    New paint. Paint the whole house, if it needs it, or just the trim, shutters and door to freshen up. 
    A clean entryway. Sweep or pressure-wash the front walk and porch. Polish the outdoor metalwork, clean the windows and glass, and replace any burned-out bulbs in outdoor lighting. And, if you can, add planters with flowers. 
    Lush landscaping. Think new mulch, sharp edging, a healthy lawn and beds of flowers. 

&quot;Maximize your chances of people being excited about your listing when it hits the market,&quot; Tyson says.&nbsp; 
4. Devise a marketing plan. Do you want to use a real-estate agent or would you rather sell it yourself? If you try doing it yourself, set a time limit after which you want to enlist the aid of a professional. Selling it yourself can save you the real-estate commission (usually about 6 percent), which can be an advantage in a tight market. But in a buyer's market -- or rapidly changing market -- it can help to have a little professional expertise to price, market and move your property. And don't forget, potential buyers may think that if there's no agent involved, the price should already be 6 percent less. Both buyer and seller can't save the same 6 percent. 
5. Check into company relocation assistance. Are you moving to take a new job? If so, the company might offer resources to make selling your house easier, says Summers. Some companies will even provide a list of real-estate pros who will work with you at a discount. If you're selling in a tight market, every little bit helps. Best source: Call your human-resources department.
6. Interview real-estate agents. If you're interested in using an agent, interview several early on about listing your home, says Tyson. &quot;Ask them for their advice,&quot; he says. &quot;That's a good way to select an agent.&quot; What would they highlight about your home? What would they change before it goes on the market? 
Ask to see an activity list -- a list of all the buyers and sellers they've represented, the areas of town and the price ranges. You don't want private details, says Tyson. But you want to see if they've worked in your neighborhood, in your price range and if they have a track record of successful sales. 
How old are the comparable sales (often called &quot;comps&quot;) they are showing you? A few years ago, you could study comps that were six months or a year old. This year, because many markets are changing, you want neighborhood comps that are no more than three months old, says Summers. 
And find out how long each has been a professional. Experience counts. &quot;If you're going to pay 5 to 6 percent, you might as well get the best your money can get,&quot; says Tyson. 
7. Set a price. The rules are different in soft markets. &quot;You don't overprice your house 20 percent to leave wiggle room for negotiating,&quot; says Tyson. That kind of strategy might never be a good idea, but it can really backfire in 2007. It's not a matter of being willing to negotiate. If your price is too high, potential buyers may not even look at it. And they may very well see a negative message in such a high price. &quot;Those who overprice their homes in this market are wasting everyone's time,&quot; he says. 
If you're not using an agent, get your own comps -- from the local paper, from sites such as Zillow.com and Realtor.com -- to see how similar houses in the area are priced. Also find out which newspaper in your area publishes notices when properties are sold. Sometimes it's the local daily or legal paper. Tracking those is a good way of learning actual sales prices, as opposed to asking prices. 
Then set a realistic figure. Your goal: to maximize the chances that the perfect buyer will actually see it, Tyson says. 
To get an idea of what's going on now, you want recent comps. But you may also want to look at comparables from the past six months. &quot;You will see trends,&quot; says Patricia Fitzgerald, broker/owner of Coastal Properties in Jupiter, Fla. Are properties moving? Are prices holding steady or are sellers dropping prices? 
Pricing is strategy. And much of it comes down to just how motivated you are to sell -- or how quickly you have to leave. 
If you plan to pad the price, it's &quot;an art, not an exact science,&quot; Tyson says. &quot;Five to 10 percent is one thing. Fifteen to 20 percent and you have a problem.&quot;
Two more points to consider: 

    Modern technology. Agents and buyers most likely are using computers to search for properties. If you want to sell yours for about $400,000, consider listing it at $399,999 rather than $400,500. That way, a computer search of anything between $350,000 and $400,000 will include your listing. 
    Commissions aren't add-ons. Don't add the real-estate commission to the value of the home to come up with your asking price, says Tyson. If you use an agent, the fee comes out of your share of the profits. Otherwise, &quot;you're going to get penalized for overpricing your house,&quot; he says. Instead: Try negotiating your commission with the agent. When the recent seller's market was in full swing, it was easy to get agents to list your property for as low as 4 percent (split with a co-broker). They knew the property would sell in days or weeks and their marketing costs would be low. Now it's reversed. Agents commonly are looking at four to six months to sell a property, which increases their marketing expenses. This makes them hesitant to offer a discount. 

Beware of hidden financing costs. Not all financing is the same from a seller's point of view. With some types of financing, such as FHA and VA home loans, the seller pays the points on the loan. Understand the different types and what will be required of you as a seller, because that could affect how much you net in a sale. 
8. Understand your price. While you don't want to undervalue your house, many sellers today won't make as much as neighbors who sold last year, says Summers. If you have your heart set on a certain amount and find out that houses aren't selling for that, you may &quot;have to change your mind and sit on the house,&quot; she says. 
9. Get rid of the junk. &quot;This year, it's more important because buyers are going to be more fussy,&quot; says Summers. &quot;Buyers are going to come in with an attitude.&quot; Throw things out, ship them early or rent a storage locker. But clear out that clutter. Buyers look for space and light. To show it off, you need to be able to tour a group comfortably through the house, as well as actually walk into those &quot;walk-in&quot; closets. 
10. Stay on top of the market. &quot;You must be aware of market changes,&quot; says Summers. That's one reason she recommends using an agent. Stay on top of what is happening with mortgages and finance rates, keep looking at comps and &quot;see trends before they happen,&quot; she says. &quot;The real-estate market is still in a time of correction. You have to be so careful with both buying and selling.&quot;

]]></description>
</item>
<item>
	<title>The Due on Sale clause</title>
	<link>http://www.myForeclosureTips.com/info/Flipping/The-Due-on-Sale-clause.html</link>
<pubDate>Sat, 15 Sep 2007 11:42:09 -0400</pubDate>
<category>Flipping</category>
<guid isPermaLink="true">http://www.myForeclosureTips.com/info/Flipping/The-Due-on-Sale-clause.html</guid>
	<description><![CDATA[Investing in Foreclosure, my number one concern has always been the due on sale clause from the lender.
I recently find out a way to avoid that problem and can sleep better at night instead of trying to refinance as soon as possible, mainly when I get pre-foreclosure properties and &quot;assuming&quot; a 10%-12% interest mortgage.
My last buy was in a very nice and quiet neighborhood in Sevierville, TN.These owners have tried a business, which, unfortunately, didn't bring their expectations.They soon faced hard time to pay bills, mainly the mortgage.
So, with a pre-foreclosure in place, this is how I proceed.Owners have to provide me with mortgage back payments and all unpaid bills. In this case, they were 4 months behind and didn't pay their real estate taxes.
Paying the bank will probably bring a red flag somewhere. The big deal is the insurance though, when the insurance company send any change to the lender.I decided to assume the mortgage and quit claim the property with a &quot;leasing&quot; shield.So, we decide that the owners will &quot;rent&quot; the property to me and the rent is...the mortgage payment amount.
However, I don't want to give the payment to the owners, since I can't put my trust in them regarding money. So, I actually called the bank saying that I was the new tenant, but I wanted to pay them directly, since I know the owners have difficulties to pay and don't want to live in there for 2-3 months and then, they foreclose and kick me out...They seems to be happy to have the payment instead of foreclose.
We, then, have a &quot;12 months lease&quot;, so I have plenty of time to shop around for refinancing.I'm just avoiding the &quot;due on sale&quot; clause since it's rented and not sold, but I'm on the deed since the quit claim.]]></description>
</item>
<item>
	<title>Losing in foreclosure investing</title>
	<link>http://www.myForeclosureTips.com/info/Foreclosure/Losing-in-foreclosure-investing.html</link>
<pubDate>Sat, 15 Sep 2007 11:40:00 -0400</pubDate>
<category>Foreclosure</category>
<guid isPermaLink="true">http://www.myForeclosureTips.com/info/Foreclosure/Losing-in-foreclosure-investing.html</guid>
	<description><![CDATA[Last year was a record year for bankruptcies. Delinquent payments on mortgages, according to the Mortgage Bankers Association of America, reveal a coming wave of foreclosures on the horizon.
There's opportunity now for investors to step in and benefit from these properties that are about to hit the market. However, despite all the hyperbole, investors can lose money in real estate &ndash; a lot of money. If you have some cash itching a hole in your bank account and you're looking for positive cash flow and possible high returns on investment, be sure to avoid these pitfalls in the foreclosure investor field. 


    Paying too much for a foreclosure. Many VA and HUD foreclosure buyers have found themselves getting caught up in the excitement of auctioning up on properties and watch, without even knowing it, their supposed cash cow die right in front of them. I have personaly seen happy investors bidding on a property in Malibu Bay, Pembroke Pines,Florida up to $158,250. I met them the next day and asked them why they just overpaid for a property with a market value of $150,000-$152,000. By the way, next door was on the market for an asking price of $154,900. If you must have a 20 or 25 percent spread to make money on the purchase, then stop bidding when the price gets below that spread amount.
    In simple terms, if you're bidding on a property with a $150,000 value and you intend to sell it for a 20 percent gain, then stop bidding when the price gets above $120,000. In a hot market, even foreclosures will sell at market price, but then the new owner must move in and most likely fix up a dilapidated property that has been neglected by the former owners. (Usually, when an owner is headed toward foreclosure, fixing the leaky roof or basement is the last thing on his mind, leaving it up to the 'bank' to fix instead.)
    
    Getting a house without clear title. Since I'm not an attorney, I won't go deep into this point, but make sure you can get clear title to a property before you put your $10,000 earnest money deposit into the deal. Order a title search by an attorney to find out if you're going to have any problems taking title to the property. If you can't get title, you can't sell the property.
    Negative or unprofitable cash flows. The whole idea behind buying a foreclosure is to buy low enough so that rent checks will cover the investor's mortgage payment, taxes, insurance and fees each month and then leave the investor some profit at the end of the month. Unless the property is in pristine condition and all the systems will last repair -free years, you're setting yourself up for financial hardship if an air conditioner breaks or the refrigerator has a compressor attack.
    The monthly cash flow should include enough to finance any breakdowns or repairs while the tenant lives in the dwelling. Negative cash flows are not deductible expenses.
    
    Not taking care of little problems before they become big problems.
    Don't take the cheap way out on being a landlord. A house starts deteriorating from the day the builder completes its construction. Your new investment property is creating cash flow &ndash; take care of it. Keep it painted regularly, clean carpets and floors between tenants, fix broken windows, repair leaks promptly, replaced rotted wood, etc. If you let the property deteriorate until you can't rent it out any longer, you've waited too long to fix these items. In addition, to fix defects early on will save you money if you wait and the bill doubles or even triples.
    
    Failing to educate yourself on tax benefits of owning investment properties. If you're going to invest in rental property, talk with professionals in the field who know how to maximize your financial benefits form this new form of investment. Accountants, attorneys and real estate practitioners are all worth their fees as they help you avoid pitfalls, increase your gain and keep you out of trouble. 
]]></description>
</item>
<item>
	<title>Moral contingencies</title>
	<link>http://www.myForeclosureTips.com/info/Flipping/Moral-contingencies.html</link>
<pubDate>Sat, 15 Sep 2007 11:37:41 -0400</pubDate>
<category>Flipping</category>
<guid isPermaLink="true">http://www.myForeclosureTips.com/info/Flipping/Moral-contingencies.html</guid>
	<description><![CDATA[A new investor entering the real estate investing market can be very intimidated. That&rsquo;s why he is tempted to add contingencies to his purchase contracts that allow him to escape from an offer unharmed. Nothing wrong with this line of thinking. Protection is good and necessary. The mistake is found in the use, or should I say &ldquo;abuse,&rdquo; of these contingencies when the buyer uses false contingencies to secure his or her protection at the expense of the seller. For those of you unfamiliar with the concept, weasel clauses say things like, &ldquo;This offer is subject to the approval of buyer&rsquo;s partner,&rdquo; when the buyer doesn&rsquo;t really have a partner. Lots of books on the subject show the use for this contingency. The real reason for these contingencies is to provide the buyer with a bogus reason to back out of a deal by later claiming that their &ldquo;partner&rdquo; didn&rsquo;t approve of the purchase. The problem with these contingencies is that the buyer is deceiving the seller and, even worse, if the buyer exercises a weasel clause, other events in the seller&rsquo;s life may be significantly delayed when the settlement doesn&rsquo;t occur as expected.Just the description of &ldquo;weasel&rdquo; never sat well with me. My unique condition was that I had to be able to obtain sufficient funds in order to settle. Such funds would either come from lenders, my own bank account, or a combination of the two. My standard contingency (certainly nothing new or magical) read as follows:&ldquo;This offer is contingent upon the buyer obtaining financing from ABC Lenders.&rdquo;The difference between this financing contingency and a &ldquo;weasel clause&rdquo; is that it discloses truthfully to the seller upfront that I am dependent upon my hard money lender to provide me with enough money to purchase their property. I&rsquo;m not hiding anything or creating an escape hatch.But I also use the inspection clause. An inspection is probably the best investment you can do buying a property. This contingency read as follows:&quot;This offer is contingent upon the inspection being acceptable by buyer.&quot;I personally want to make sure there is no major problem with the property. Problems that can reduce my profit if it is a structural problem for instance. Should you tell your lender about bad structural problems, some lender won't get back from their promises to lend you the money. So in this case, if you had the only financing contingency, you'll have to close the deal. On the other hand, if you have the green light from your seller at the price you wrote on your offer and no major repair problem, you'll be happy with your contract and you'll feel comfortable at the closing table.You don't want to destroy your reputation on weasel clauses. Be fair dealing and keep in mind that you are there to help people facing hard time in a foreclosure situation. The deal is to construct a win-win situation. Double satisfaction will erect as making some money and feeling good helping people, using true contingencies.]]></description>
</item>
<item>
	<title>Making new notes for investment</title>
	<link>http://www.myForeclosureTips.com/info/Flipping/Making-new-notes-for-investment.html</link>
<pubDate>Thu, 13 Sep 2007 17:43:25 -0400</pubDate>
<category>Flipping</category>
<guid isPermaLink="true">http://www.myForeclosureTips.com/info/Flipping/Making-new-notes-for-investment.html</guid>
	<description><![CDATA[Turning papers into profitsAs seen on TV, but without to pay for the tapes, here is a good way to make money buying real estate with no money down.Let me show you how you can achieve this objective. There are a few pre-requisites. First, the property has to be free and clear. Next, the seller must be willing to carry back a note that is secured by the property.So, let suppose you have found a good property. Here are two methods:Method 1:You have found a free and clear single family home that is selling for $200,000. The seller wants $40,000 or 20% down.The terms of the note are:Length of the note: 30 yearsInterest rate : 10%Value of property : $200,000Monthly payment : $1755What you do now is create a note for the full purchase price of $200,000, due in 10 years. The balloon payment at the end of 10 years is $181,875.You explain to the seller that you can give him the $40,000 down payment, but he will have to agree to go without the first 30months of payments on the note. He agrees to this after you illustrate additional financial benefits that he will realize from your creative financing.Next, you are going to sell the first 30 payments to a note investor for $44,208, which will result in a 14% yield to the investor.You pocket the $4,208 difference between the amount the investor will pay for the note and the $40,000 you have to pay to the seller as down payment.After the 30 payments are received by the investor ( which you as the buyer will be making), the payments will revert back to the property seller.Using your financial calculator, the present value at that time will be $196,752, with 90 payments remaining. Remember the seller received a $40,000 down payment, so he actually makes $236,752, over the 10 years financing period, plus ongoing interest on the remaining balance.The results are that the seller gets $40,000 cash at closing. You purchase the property with no money down and keep $4,208 at closing.Make sure that when you sign the purchase agreement the contract states 'this agreement is contingent upon the buyer selling 30 monthly payments of $1755 for a minimum of $40,000.' Furthermore, you should have the note sale close at the same time as your real estate purchase.Method 2:Let create 2 notes on the same property and sell the first one. Here is one way of doing it:Create a first mortgage for $125,000, at 10% interest, amortized over 30 years with a monthly payment of $1,097.You will sell this mortgage to an investor for $100,000, or at a discounted yield of 13.8%. You will also create a second mortgage for$100,000, at 10% interest, amortized over 30 years, due in 15 years. The monthly payment is $877, and the balloon is $81,664. The seller will keep this second mortgage.You will give the seller $80,000 down payment from the sale proceeds of the first note and keep the remaining $20,000 difference. Your benefit is that you get the property with no money down, all the appreciation, and the $20,000 at the closing of the transaction. Yes, you are paying $5,000 more for the property ($125,000 + $100,000 - $20,000 = $205,000), but you will be paying for it over 30 years.The seller gets a larger down payment of $80,000 and a monthly payment of $877 for 15 years of $157,860. After 15 years he gets a balloon of $81,664.So the total amount the seller gets over 15 years is $288,024. Of course, you can give less to the seller and gets more in your pocket, depending on your negotiating skills.]]></description>
</item>
<item>
	<title>Preventing Foreclosure</title>
	<link>http://www.myForeclosureTips.com/info/Stop-Foreclosure/Preventing-Foreclosure.html</link>
<pubDate>Mon, 12 Jun 2006 16:09:29 -0400</pubDate>
<category>Stop Foreclosure</category>
<guid isPermaLink="true">http://www.myForeclosureTips.com/info/Stop-Foreclosure/Preventing-Foreclosure.html</guid>
	<description><![CDATA[A stitch in time saves nine. If you acted in time, Foreclosure Prevention is quite in your reach. But the action that you take needs to be a meticulously crafted one with such a recipe that is based on fundamentals of sound economics. I am sure it must have crossed your mind that so much of planning is not for you. It is only natural for you to say this given the fact you are already under enormous stress facing foreclosure. But come to think of it. No financial planning was ever easy in this world. And neither is planning to prevent foreclosure nor was owning that home.
Is it really Possible to Prevent Foreclosure?
Well, the answer to this lies in many factors and many of them bear on you after all it is your home you dreamt of. Your financial troubles have not started over night. You knew before hand that foreclosure was imminent. It is this time you need to treat as an opportunity if you want to get out of this slap. Here are a few steps you can take to help your self.
Keep cool. Panicking only does more harm. Do not vacate your home as long as there is no sign of an eviction order. This can deprive you of some qualifications like one time payment grant from FHA insurance. Visit your lender and talk to the officer that deals with your case. There is a fair chance of him seeing a point in your request if you have a plan of action to recovery. Lenders are not in the business because they foreclosed many a home in the past. They might agree to give you a chance.
You need to work out many options simultaneously. If you are sure your position recovers in a year or two you can seek a refinance and a real estate broker might just help you with this. You can work out a remodeling of the debt, you can do this with your lender&rsquo;s help. Both of you together can figure out a new practical budget with reduced monthly payment. Looking at your current financial position, the lender may even grant a grace period estimated on your frank admission and confidence level. You no longer need to pay during this period when you are attempting to turn around. They call it forbearance in their parlance. This is allowed at lender&rsquo;s discretion based on your mortgage delinquency being not more than 12 months.
United States Department of Housing and Urban Development can pay the lenders if they file for partial claims. You will be required to sign an interest free promissory note in order to availing this.
If you do not see you making a turn around or no help is coming your way, you can not keep your home. You have to recognize that financial assistances call for some path to recovery. If such a solution is far from sight then it is advisable that you sell off your home. Because it can at least prevent you from a foreclosure suit. A real estate agent from your local area with an impeccable record can not just sell it for you but fetch a good value to see you will not face a deficiency suit.
Ultimately your attorney may advise you to file for bankruptcy.]]></description>
</item>
<item>
	<title>How to Stop Foreclosure from Happening to You</title>
	<link>http://www.myForeclosureTips.com/info/Stop-Foreclosure/How-to-Stop-Foreclosure-from-Happening-to-You.html</link>
<pubDate>Mon, 12 Jun 2006 16:08:58 -0400</pubDate>
<category>Stop Foreclosure</category>
<guid isPermaLink="true">http://www.myForeclosureTips.com/info/Stop-Foreclosure/How-to-Stop-Foreclosure-from-Happening-to-You.html</guid>
	<description><![CDATA[One of the most dreaded things that can happen to anyone is getting behind in your mortgage payments and going into pre-foreclosure. Yes you heard me right, pre-foreclosure. What normally happens when people miss a few mortgage payments is the back sends them a legal notice that they are in breach of their mortgage. This is when the pre-foreclosure process starts. Basically the notice will tell you to either make up the payments immediately, or the bank will be forced to foreclose on the property. Remember, the last thing the banks or lenders want is a property to deal with, they only want their money.
The simplest way to keep yourself out of foreclosure is to pay your mortgage first before all your other bills. You are more likely to succeed dealing with a collection agency then you are with the banks and their lawyers. When you miss a mortgage payment or two, you are actually forcing the banks to start proceedings.
The worst part about being foreclosed on is what happens to your credit rating. It really takes a beating and it could take 7 years before your credit report is half decent. So what can you do to stop going into foreclosure. Some simple rules to follow are, if you miss a payment, call you bank immediately and set up an appointment to speak to a lending officer or the manager. The worse thing you can do is ignore their phone calls or letters. If you get in touch with them, they will know you are sincere about working out a plan that is a win win for you both. Contacting them immediately may also put a stop on the foreclosure. Remember, they want their money, not your house.
Most banks will be happy to work with you if you let them. Often what happens is people won&rsquo;t give them the chance and subsequently, they lose their home. In order to keep your self out of financial trouble, be careful not to extend yourself with a large mortgage. Only buy within your means versus what you really want. We all want a bigger home, but that doesn&rsquo;t necessarily mean we can afford one.]]></description>
</item>
<item>
	<title>Foreclosure Investing Business Tips</title>
	<link>http://www.myForeclosureTips.com/info/Foreclosure/Foreclosure-Investing-Business-Tips.html</link>
<pubDate>Mon, 12 Jun 2006 16:07:35 -0400</pubDate>
<category>Foreclosure</category>
<guid isPermaLink="true">http://www.myForeclosureTips.com/info/Foreclosure/Foreclosure-Investing-Business-Tips.html</guid>
	<description><![CDATA[So you want to start a foreclosure investing business? You want to work for yourself. You&rsquo;re convinced that being an entrepreneur will be fun, exciting and that you can do it. There&rsquo;s no fear of failure, right? Just go for it.
Well, guess what? It's hard $#%# work!
Make no mistake: putting together a foreclosure investing business can be overwhelming, especially if you've never run a business before. There are all sorts of questions that are going to come to you, like: &ldquo;Do I really have what it takes to start a new business and be successful?&rdquo;
I&rsquo;ll tell you right now--if you're a rookie, you have to have what it takes. Are you prepared to work hard? Are you prepared to fail and learn?
It&rsquo;s going to cost money. If you&rsquo;re not prepared to spend some money, don&rsquo;t do it. Go back and work 9-5 for a company that&rsquo;s got security, health benefits, retirement plans and all the things that Ward and June Cleaver had--a nice little home with 2.3 kids and two weeks of vacation each year. Not for me, thank you. I take one week off for every 6 weeks that I work. What does that have to do with running a business? That&rsquo;s how I stay refreshed.
When you start a business, you have to assume that you&rsquo;re going to be successful. However, statistics say that you will not. Approximately 80% of businesses fail within the first three years. And in the next two years, another 15% that made it past the three-year mark will fail. So you&rsquo;ve got a 5% chance of the business you started being in business five years from now. So be the exception and not the rule.
Of course, being excited and ambitious is a good thing. Never be scared. Remember, FEAR is False Evidence Appearing Real.
With a small amount of effort, anybody can put together a solid business plan which when followed will produce predictable results. You don&rsquo;t need previous experience in business to be successful. But if you have some experience it definitely helps. To do this without any experience you need to commit yourself to it and work your butt off for the next five years.
How does a business start? A business starts with an idea and a business plan. When it comes to foreclosure investing, I can show you a business system that produces measurable results. If you're serious about starting any business and getting out of the &quot;rat race&quot;, I've got three words for you: &quot;MAKE IT HAPPEN!&quot;]]></description>
</item>
<item>
	<title>Foreclosure Investing Legal Structure</title>
	<link>http://www.myForeclosureTips.com/info/Foreclosure/Foreclosure-Investing-Legal-Structure.html</link>
<pubDate>Mon, 12 Jun 2006 16:06:49 -0400</pubDate>
<category>Foreclosure</category>
<guid isPermaLink="true">http://www.myForeclosureTips.com/info/Foreclosure/Foreclosure-Investing-Legal-Structure.html</guid>
	<description><![CDATA[As a real estate investor specializing in foreclosures, the type of legal structure you select for your business largely depends on what your business is going to do. In this article I give you guidelines you can follow to help you select the appropriate legal structure for your business.
Firstly, you need to estimate how much business volume you are going to do. Are you planning to do two to three homes per year? If so, then you probably should just file a simple LLC or a simple limited partnership.
If you&rsquo;re doing anything more than four homes a year, you should consider a corporate entity. Corporate entities offer the most personal protection to the real estate investor by far.
LLCs are good to use if you were to buy a home with somebody and have it on a short-term basis. LLCs protect their members from personal liabilities and they give the flexibility of a partnership. In many cases, the particular real estate deal as well as the advice of a tax attorney or CPA will determine what entity you choose.
One of the things that you don&rsquo;t want to do with a foreclosure investing business is take any properties in your own name. So it&rsquo;s critical to get good tax help and good legal help when forming your business structures.
We incorporated. We started with Rocky Mountain Real Estate, Incorporated, which is now Colorado Realty Solutions. And the reason is simply asset protection. You take houses over and you want to put them in the name of the corporation instead of your own name. That way, if someone decided to sue the purchaser of the house they would have to sue the legal entity, not you.
Many investors will work in what is called a limited partnership or a liability company. Whatever the case, use a legal structure so that your business assets and liabilities are not tied to your personal fortune.
My best advice is, when it comes to selecting the best legal structure for your situation, always consult a competent tax attorney or CPA.]]></description>
</item>
<item>
	<title>Why Foreclosures?</title>
	<link>http://www.myForeclosureTips.com/info/Foreclosure/Why-Foreclosures.html</link>
<pubDate>Mon, 12 Jun 2006 16:05:46 -0400</pubDate>
<category>Foreclosure</category>
<guid isPermaLink="true">http://www.myForeclosureTips.com/info/Foreclosure/Why-Foreclosures.html</guid>
	<description><![CDATA[Some might ask, why invest in foreclosures? You have to have money, a good job, and good credit, right? It is so saturated out there with investors, there is no way I will find a foreclosure, right? First let&rsquo;s get rid of all these fallacies, and focus on why you will love investing in foreclosures.
The beauty of foreclosures and real estate in general, is that you do not have to have money, a good job, or even good credit to start investing. Don&rsquo;t get me wrong, it is easier to structure deals if you have money, however, real estate is a very creative business. So creative in fact that you can structure your deals &ldquo;nothing down&rdquo; or no money out of your pocket and anyone who tells you differently probably does not know much about investing. I would like to encourage you, even if you have money, to structure your deals with &ldquo;No Money Down&rdquo;. This doesn&rsquo;t mean no money is required when purchasing properties, it means you will be using other methods of getting money, other than your own, to purchase these properties.
There are huge profit margins in foreclosures. You can purchase properties anywhere from 20 &ndash; 40% under market value. This is what makes foreclosures so attractive, because you can still sell the property to a buyer under market value and make a substantial profit.
At the time of this writing, interest rates are among the lowest they have ever been since the 1960&rsquo;s allowing many individuals to qualify for a loan. This is great for you as the investor, because you need buyers looking for great deals.
On the flip side of that, one reason for the low interest rate is because there have been a tremendous amount of economic hardships. People are losing their jobs and forced into foreclosure. Therefore, foreclosures are at an all time high right now, and there are plenty of them to go around for everyone. You just need a little knowledge on where to find them and a strong desire.
Even though at the time of this writing foreclosures are at an all time high, it seems that the foreclosure market is one that will always be around. Even when times are good, and the economy is flourishing, there will still be homeowners who fall behind on their payments forcing them to look for a way out. History shows foreclosures have been around many years ago, and will continue for many years to come.
Finally, one of the best reasons to invest in foreclosures is because it can give you the freedom to do what you want, when you want, with whomever you want. You are your own boss. You can spend as much or as little time as you want and there is no cap on your income. You can choose to quit your job or if you enjoy what you are doing, this could be another source of income for you. If you have a spouse that works, he or she can invest with you full time. If you have a family, this can free up your time to spend with them, and even give you the lifestyle you've always wanted.]]></description>
</item>
<item>
	<title>Buying Foreclosures</title>
	<link>http://www.myForeclosureTips.com/info/Foreclosure/Buying-Foreclosures.html</link>
<pubDate>Mon, 12 Jun 2006 16:02:17 -0400</pubDate>
<category>Foreclosure</category>
<guid isPermaLink="true">http://www.myForeclosureTips.com/info/Foreclosure/Buying-Foreclosures.html</guid>
	<description><![CDATA[Foreclosures have not been touched by the black plague; many are good options to look at when shopping for a home. Sometimes they do need to be fixed up, but other times you can move into them right away. Despite the negative impression many buyers have, foreclosures can be a great way to buy a home and gain instant equity.
First, it is valuable to understand how a home becomes a foreclosed property. A simple definition is that someone borrowed money to purchase the home, and then stopped paying the money back (a.k.a. going into default on their mortgage). This allows the lender to take legal action and obtain ownership of the home to recoup their losses; and in turn causes the homeowner who was in default to lose any equity they had built in the home. You would think that banks would be happy to take the home to cover the money they loaned out; however it is bad for them to keep foreclosures on their books. To alleviate the problem lenders typically try to auction or resell the house as quickly as possible.
HUD (Housing and Urban Development) homes are also foreclosed properties. They are different from normal foreclosures because the lender for the loan was a government lender such as FHA (Federal Housing Administration) or VA (Veterans&rsquo; Affairs). When owners with government loans go into default, HUD steps in to take over the property and try to resell or auction it.
Now you know what a foreclosure is, and you can consider foreclosed properties that catch your eye without fear of the unknown. Keep in mind that you should still go through all of the appropriate channels to check out the house structurally and functionally before you make a buying decision. This includes getting a proper home inspection. An inspection will point out any existing or potential problems and will allow you to factor in estimates for repairs that will need to be made to the home right away. These repairs may include plumbing or wiring, the roof, flooring, paint and so on. Making these calculations will help you figure out the amount of equity you will really end up with, and allow you to make the best decision financially.
As you continue your search for a home, remember that foreclosures can be a good investment for your family. By doing your research you can find and entertain more options then you might have realized that meet both your price and living space needs.]]></description>
</item>
<item>
	<title>Foreclosure Investing and Economic Cycles</title>
	<link>http://www.myForeclosureTips.com/info/Stop-Foreclosure/Foreclosure-Investing-and-Economic-Cycles.html</link>
<pubDate>Mon, 12 Jun 2006 16:01:27 -0400</pubDate>
<category>Stop Foreclosure</category>
<guid isPermaLink="true">http://www.myForeclosureTips.com/info/Stop-Foreclosure/Foreclosure-Investing-and-Economic-Cycles.html</guid>
	<description><![CDATA[In real estate, the worst of times for most people are often the best of times for real estate investors. Smart real estate investors buy in bad times, because they see days ahead that they know are going to be strong and will give them the best return on their investment. In this article I explain how to spot and profit from economic cycles.
Real estate runs in cycles of anywhere from seven to 10 years. Buying low and selling high is one of the oldest axioms for financial success. Many real estate investors have built their fortunes by starting their businesses when times were very, very bad. When times are bad, it&rsquo;s easier to get financing, and it&rsquo;s easier to get people to work with you on your terms, instead of theirs.
One thing I can tell you for sure is things are going to be always about the same. It&rsquo;s just the cycles and length of cycles that they go through. Yes, times are rougher and tougher. Things are more competitive. The business environment is very competitive. And for some real estate operations, it&rsquo;s very, very competitive to the point that they&rsquo;ll be out of business in two to three years. In some major metropolitan areas, office space is way overbuilt, with a huge product of 15 years&rsquo; supply on hand.
But in the same area, moderate-rent residential real estate is in short supply. In some areas, single-family homes are in short supply. There are some areas of the country where demand has never been greater for such units. People want to live in nice, well-maintained properties. They want to live in decent neighborhoods, where they can raise their children, have their families, and enjoy their lives.
Don&rsquo;t forget riches can be generated in good times and bad times, by following your plan and your timetable. Remember, real estate always comes back. It has after every downturn in history. You can count on it.
So prepare your timetable to reflect the rise and fall in real estate values. You need to understand your network of lenders, the people who have the money. This is important to building wealth in real estate.]]></description>
</item>
<item>
	<title>How To Stop Foreclosure</title>
	<link>http://www.myForeclosureTips.com/info/Stop-Foreclosure/How-To-Stop-Foreclosure.html</link>
<pubDate>Mon, 12 Jun 2006 16:00:27 -0400</pubDate>
<category>Stop Foreclosure</category>
<guid isPermaLink="true">http://www.myForeclosureTips.com/info/Stop-Foreclosure/How-To-Stop-Foreclosure.html</guid>
	<description><![CDATA[Foreclosure is not a word that any of us wants to even hear, let alone think about the process happening to us. But, financial hardships may befall the most responsible people and the foreclosure process may look more and more like it may happen in your life or the life of someone you love. Thankfully, there are some things that you can do to stop from being foreclosed on. Foreclosure isn&rsquo;t easy, and stopping foreclosure isn&rsquo;t easy, but if you are well informed you can keep from losing your home.
Stop the process in its tracks
The best thing you can do is to stop the foreclosure process in its tracks. As you may or may not know, foreclosure is a long, drawn out process that gives the owner of the home plenty of chances to stop the process and deal with their debt .&nbsp;The first interactions that the bank or lender has with you is not part of the formal foreclosure process, and that is a good time to get a handle on the situation and really keep it from going any further. If you have missed a handful of mortgage payments, don&rsquo;t write it off as too late to save your home and your current lifestyle. If the bank has not yet sent you a notice of foreclosure, the process is not yet official and you still have plenty of time to turn it around.
The first thing you should do is respond to the phone calls and the letters that are coming in the mail for you about your late payments. This may be painful and something you don&rsquo;t feel like doing, but it will be less painful than having your home taken right out from under you. Call the bank your lender; you may be surprised to learn exactly how willing they are to work with you. If you explain what your financial situation is, your bank will likely be willing to work with you and will just be happy to hear from you. Sometimes, all it takes to stop the process from becoming a formal one is a response from you.
Once you contact the bank or lender you need to be prepared to set up payment arrangements that will get you back on track. Let the bank know exactly how much you can pay each week. Even if you can only pay a couple hundred dollars each week, this will eventually get you back to where you should be and the bank will consider it a good faith effort to keep your home and as long as you keep up with these scheduled payments, you&rsquo;ll find that the bank is willing to work with you as long as you need them to so that you can keep your home as well as keep them off your back. It might take awhile, but you can get on top of your late payments. Remember, your bank doesn&rsquo;t want to foreclose on your home, so you should take all of the chances you are offered and communicate with the bank about the issues you&rsquo;ve had paying your mortgage, and then arrange payments, and be sure to make them.
Show the bank you mean business
Once you&rsquo;ve received a notice of intent to foreclose, you still shouldn&rsquo;t lose all hope. Most of the time you can still keep your home and reconcile the debt with your bank. You might have to make a larger payment or the bank may actually try to demand that you pay the debt in full, but if you get a foreclosure attorney involved you may be able to undo these issues. Most of the time if you can pay a portion of the missed payments on the spot you&rsquo;ll be able to proceed normally and set up new monthly payments so that you don&rsquo;t have to lose your home. An attorney can often step in and help you set up payments that will not leave you broke, but will also satisfy the needs of the bank. Sometimes it is easier to have an attorney present to sort of act as a middleman since this is a very stressful situation for most owners, and it can be difficult to keep emotions out of it. Attorneys will also be able to ensure that your rights are protected and that you have every chance possible to save your home from being foreclosed on.
If you miss the boat on this type of thing, you can actually show up at the auction for your home. As long as you are the highest bidder, the bank doesn&rsquo;t care who buys the home just that the home sells. If you are intent on saving your home, the auction is a great place to be because there may only be a handful of people there that bid on the home and if you are able to put down a large sum of money, you might just win your house back! Don&rsquo;t dismiss every chance possible to win your house back, as you may figure out how to come up with the money just in the nick of time.
As you can see, there are many ways to keep from being foreclosed on. Many people simply sell their homes, sell belongings, stock, or take money from savings accounts to pay off their debts and get back on track. Foreclosure does not only mean the loss of your home, it means damaged credit and the need to look for a new place to live. If more people would realize that the bank really does not want to foreclose on their homes and that they can take advantage of these offers by just picking up the phone and getting in touch, fewer homes would be foreclosed on. Banks will often help you refinance if you are just not able to make such big payments each month, or they&rsquo;ll make payment arrangements for you to get on top of the debt. Don&rsquo;t be afraid to ask questions, get help, and get aggressive about keeping your home because you can stop foreclosure.]]></description>
</item>
<item>
	<title>How to Avoid Foreclosure</title>
	<link>http://www.myForeclosureTips.com/info/Stop-Foreclosure/How-to-Avoid-Foreclosure.html</link>
<pubDate>Mon, 12 Jun 2006 15:59:33 -0400</pubDate>
<category>Stop Foreclosure</category>
<guid isPermaLink="true">http://www.myForeclosureTips.com/info/Stop-Foreclosure/How-to-Avoid-Foreclosure.html</guid>
	<description><![CDATA[Foreclosure is something that we all strive to avoid. No one gets a mortgage with the intention to default on it causing the lender to foreclose. But the thing is that life happens and sometimes you just cannot pay the mortgage payments. This could be due to any number of factors, job loss, death in the family or even an accident of some sort.
It is not only you that want to avoid foreclosure the lender doe not want this to happen either. They make their money off of the interest you have to pay on the mortgage and if they need to foreclose they will not be getting this interest so most lenders will be willing to work with you and your circumstances to keep your mortgage moving along.
If however they do not see you getting through whatever trouble you seem to be having at the moment then they probably will not bother even trying to help you but if they think you are worth the risk they will take it.
The only way to get your lender working with you is to let them know what is going on. If you are having trouble meeting your payments tell them right away and tell them why. If you wait until you get way behind on your payments then you will lose all credibility and any trust that the lender had in you will be lost.
As soon as your mortgage payments gets behind by as many as 16 days then they will give you a call to see what the hold up is and if there is any way that you can get the account paid up to the right amount.
Once a month has past and they have not heard from you and you have not made a payment they are going to put more effort to get in touch with you. The first time they may have got you or may not have but now they will keep calling until they get you on the phone. After 90 days you could be dealing with foreclosure.
Throughout this time frame the lender will have sent you letters letting you know what is coming and that you have broken the terms of your contract. The first of these letters will go out around day 45. Your house would actually be sold as soon as day 150. This will happen at auction. Just when this will take place depends where you live as different states go about foreclosures in different ways. It is important to note that some states will even let you purchase your home back from them after foreclosure. There will be a period called a redemption period.
If you are having trouble paying your mortgage payments on time talk to your lender about a repayment plan. This is especially handy if you only missed due to a temporary problem like an accident that cost you a lot in medical bills. Some lenders will allow you to pay off the missed payment over two or three months so ask.
A flexible mortgage lender might even be willing to rework the terms of your mortgage in order to lessen your monthly payments. To do this they will have to lengthen the amortization schedule. Lenders can even roll the missed payments back into the loan and lower your interest rate. This can go a long way to make paying your mortgage possible even for those having financial difficulties.
There is another rather unpopular option and that is a hard money loan. These loans do not have great terms, in fact they have high interest rate and tons of fees but the can be your saving grace. These types of loans can give you the time that you need in order to sell your home before the lender forecloses on it.
A somewhat less likely scenario is that you sell your home and even if you get less than the amount of money that you owe the bank will allow it and accept the money that you get an forgive the rest of the loan]]></description>
</item>
<item>
	<title>Investing in Foreclosures</title>
	<link>http://www.myForeclosureTips.com/info/Foreclosure/Investing-in-Foreclosures.html</link>
<pubDate>Mon, 12 Jun 2006 15:43:01 -0400</pubDate>
<category>Foreclosure</category>
<guid isPermaLink="true">http://www.myForeclosureTips.com/info/Foreclosure/Investing-in-Foreclosures.html</guid>
	<description><![CDATA[Foreclosure - for too many people, it's an unfortunate reality that they haven't made the payments on their home, and the bank is selling up. For investors, however, foreclosures represent an opportunity to build a property portfolio quickly and cheaply.
Even better, it's not necessary to have a great job, great credit, a bank manager begging to lend you money - it's possible to start investing in foreclosures without any of these things. Having said that, one or all of those things certainly make it a lot easier! However if you're willing to be creative and think a little differently, it's still possible to find great deals with options such as no money down. Don't waste your time thinking it can't be done - it's done every single day.
In fact, if you can, it's worth looking for creative deals even if you do have the money for a deposit - the less money you spend buying a deal, the more money you'll have available for the next one, and the one after that. In fact, accessing money from places other than your own pocket helps you to continue buying properties indefinitely.
The profit margins in foreclosures can be huge. Many properties sell for 20-40% under market value. This is the main reason foreclosures are so attractive - you have little or no risk. Even if you need to sell up the property immediately, you can sell 10% under market value to get a quick sale, and still make a sizeable profit. That's great investing!
Interest rates help make investing in foreclosures more profitable at present. It's been a long time since interest rates have been so low, and although at some point they will go up again, right now it's possible for a lot more people to qualify for a loan. That means there are more people available to buy your property, if you choose to onsell it again quickly.
It's also important to realise that interest rates are low for a reason - a lot of people have been doing it tough. Unemployment regularly causes foreclosure to occur, which means that right now the levels of foreclosure are high - meaning there are plenty of bargains out there for an investor willing to do the groundwork. You need to learn where to find them, and have the persistence to put in the work required.
Perhaps you now find yourself saying, yes, well, foreclosures are really high right now, but that's going to change. Yes, it probably will. At some point foreclosure rates will undoubtedly lessen. Remind yourself, though, that foreclosure have been around for many, many years - and will continue to happen. If you've taught yourself the steps to finding a great foreclosure deal, you will continue to find them. That's true even when the economy is strong. People still fall behind on their mortgage payments and have to find a way out.
In the end, though, investing in foreclosures is all about choices. Building a large property portfolio, or regularly making solid profits by onselling foreclosure properties quickly, means that you can make choices about how you want to spend your time, and what you want to do. That's the real benefit from finding out about foreclosures - you are your own boss. You choose the hours you work, and how much you're going to earn. You can do it full time or part time around your current job. It's a great opportunity for a parent to stay at home with small kids but still bring in an income. It's all about lifestyle - investing in foreclosures gives you the freedom to make your own choices.]]></description>
</item>
<item>
	<title>Contacting Homeowners In Foreclosure</title>
	<link>http://www.myForeclosureTips.com/info/Foreclosure/Contacting-Homeowners-In-Foreclosure.html</link>
<pubDate>Mon, 12 Jun 2006 15:42:36 -0400</pubDate>
<category>Foreclosure</category>
<guid isPermaLink="true">http://www.myForeclosureTips.com/info/Foreclosure/Contacting-Homeowners-In-Foreclosure.html</guid>
	<description><![CDATA[In most cases, when homeowners have defaulted on their loans, and have been issued with some sort of notice of default, they will be bombarded with letters, phone calls and knocks on the door from investors, attorneys and real estate agents. You can use whatever approach you feel comfortable with, it's really up to you. Some investors will knock on their door or call them. I like to send them letters with a business card.
Students always ask me, how do I find the homeowners phone number? One of the best resources you can use is the internet. There is a website called infospace.com. It's database has millions of names and phone numbers of people across the country. I have used them several times when I'm trying to find individuals. It's a little scary in a sense when you see how much information is on there. You can also use next door neighbors. Most of the time they have friends in the area. Ask the neighbors who their close friends were in the neighborhood. There is always someone close by they gave their new phone number to.
When you send out letters to homeowners, which is what I personally like to do, it's a good idea to imagine if you were in their shoes. Keep in mind they've received several letters from attorneys, banks and possibly other investors or real estate agents. So knowing this, you've got to be different. People in this situation are usually embarrassed. So keep that in mind as well.
First let's talk about the letter itself. You should always come across as non- threatening. You never want to appear as though you are looking down on them or they will just throw your letter away. You are sending this letter to them because you want to help them. Your letter should come from the heart and be sincere. It's a good idea to personalize your letters inserting their first name. Let them know who you are. As far as length, it doesn't matter as long as it's not boring to read and you get your point across. I like to always include the line &ldquo;If this is not true, then I apologize for any inconvenience this may have caused by sending this letter&rdquo; because there will be mistakes.
Now, when you send these letters you need to stand out, you need to be different. So don't put your letters in a standard envelope. Get creative. Go out and buy the multi-colored envelopes that look like wedding announcements or invitations. Anything that looks like another letter from the attorney will probably be thrown away. Personalize the front so it looks like it's coming from a friend. And don't forget to throw in your business card with the finders fee on it. This will typically generate a few more calls for you. It's also a good idea to add testimonials of all the other people you have helped.
One strategy that works well is to set up a 1-800 number. It's free to use for them and on every 800 number it captures the callers phone number, even if it is a blocked number. So you can set up extensions with answers to questions homeowners face when in foreclosure. Then you can follow up with each one who calls your 800 number. For a sample of how this is set up you can view some of my sample letters.
If time permits, I like to send at least 2 and sometimes 3 letters. Homeowners go through many stages when they are faced with this situation. First they are angry so they may through your 1st letter away. They they are in denial so maybe they will throw your 2nd letter away. Then they become desperate so they begin digging through the trash trying to find your letter and then the 3rd one arrives and they call.
If you would like to see examples of letters you can send to homeowners in foreclosure, I have collected a few to give you ideas or you can use them as a template. If you go to Sample Letters you will find a few different samples of letters. Remember to be creative. There is no right or wrong letter, however it is important to test different ones to see which ones have a better response.]]></description>
</item>
<item>
	<title>Mortgage Foreclosure - How to Get Back on Your Feet</title>
	<link>http://www.myForeclosureTips.com/info/Stop-Foreclosure/Mortgage-Foreclosure-How-to-Get-Back-on-Your-Feet.html</link>
<pubDate>Mon, 12 Jun 2006 15:41:52 -0400</pubDate>
<category>Stop Foreclosure</category>
<guid isPermaLink="true">http://www.myForeclosureTips.com/info/Stop-Foreclosure/Mortgage-Foreclosure-How-to-Get-Back-on-Your-Feet.html</guid>
	<description><![CDATA[If you are an individual that has recently lost a home to foreclosure, you might be surprised to know you can get a new mortgage in as little as three years. Here is what you need to know to get back on your feet.
Mortgage Foreclosure or bankruptcy can be a difficult financial barrier to overcome. It is not an impossible task, you simply need to do your homework and avoid common mistakes including predatory lenders. Here are tips to help you find a mortgage after foreclosure or bankruptcy.
Having a bankruptcy or foreclosure on your record can be an embarrassing situation. It is important to realize that nearly half of Americans today are in a similar situation to you; bad things happen to everyone at some point or another, you simply need to rise above it and get back on your feet.
Your obstacle to getting approved for a new mortgage is your credit rating. You need to concentrate on rebuilding your credit in order to be approved for a new mortgage loan. In order to rebuild your credit you should focus on making all of your payments to your remaining creditors in a timely manner. Building a history of on-time payments in your credit records will boost your credit score. Maintain low balances on all of your credit cards and avoid opening new accounts or financing large purchases.
When you are ready to apply for a new mortgage, try qualifying for assistance from the Federal Housing Agency. An FHA insured mortgage can have you back on your feet in as little as three years. To learn more about finding the best mortgage and avoiding common mistakes, register for a fee mortgage guidebook.]]></description>
</item>
<item>
	<title>Foreclosure Real Estate Sales</title>
	<link>http://www.myForeclosureTips.com/info/Foreclosure/Foreclosure-Real-Estate-Sales.html</link>
<pubDate>Mon, 12 Jun 2006 15:41:24 -0400</pubDate>
<category>Foreclosure</category>
<guid isPermaLink="true">http://www.myForeclosureTips.com/info/Foreclosure/Foreclosure-Real-Estate-Sales.html</guid>
	<description><![CDATA[One of the most straightforward ways to find a discount home or other property is to scout out foreclosure sales in the area you are interested in.
A foreclosure occurs when a homeowner cannot afford to satisfy a major (usually a mortgage), and can no longer afford to live at their current residence. In the event of a foreclosure, properties are generally liquidated to cover the homeowner's obligations.
Although unfortunate for the former owner, foreclosures can offer an interesting opportunity for young homebuyers or low income families looking to buy their own homes. Because most foreclosures are priced for quick sale, it is often possible to get these properties at below market rates, and make it possible to enter a previously unattainable market.
The most important thing to consider, however, before buying one of these properties is the long-term expense involved. You need to think about why the former homeowner couldn't make the payments, and how you will avoid making the same mistakes.
Ultimately, it is a good idea to come up with a budget or long-term spending plan before making an offer, so as to ensure that you won't be facing a foreclosure of your own in a few months or years.
For more information about the U.S. real estate market, and how to buy homes at below market value, please refer to Cheap Real Estate.net.]]></description>
</item>
<item>
	<title>Foreclosure Loans</title>
	<link>http://www.myForeclosureTips.com/info/Foreclosure/Foreclosure-Loans.html</link>
<pubDate>Mon, 12 Jun 2006 15:40:06 -0400</pubDate>
<category>Foreclosure</category>
<guid isPermaLink="true">http://www.myForeclosureTips.com/info/Foreclosure/Foreclosure-Loans.html</guid>
	<description><![CDATA[With rising interest rates and a softening housing market in states such as California and Florida, the number of foreclosures and notice of defaults has risen steadily over the past 12 months. Facing a foreclosure on your home can be a scary and unsettling prospect for a borrower. There are steps that homeowners can take to protect their most important asset from foreclosure proceedings. One note: if you are a homeowner and are in serious financial difficulty, you need to find a professional attorney to help you keep your home.
The most important step is to act &ndash; don&rsquo;t put your head in the sand and expect it to all go away. Be ready to discuss your financial situation honestly and open.
A great first step is to get in touch with your mortgage lender. Borrowers often assume that the person or institution that is funding their loan wants them to default on their loan so that they may repossess the home. Banks and other lending institutions are typically large corporations that based their businesses and revenue projections on specific income levels each month. Foreclosures disrupt this process and may be seen as more of a headache than anything for these lending institutions that simply want to recoup their initial investment.
Prepare a series of questions for the lender that shows that you care about the situation and want to resolve it as easily as possible. A great source for this information is entitled, &ldquo;Getting Out of Debt, Virginia Cooperative Extension publication 354-027&rdquo; and can be found online at www.vt.edu. This paper can help you formulate the right questions to ask and also has useful suggestions for how to handle your financial difficulties.
A foreclosure loan or emergency loan is simply one that helps you avoid foreclosure. It may be structured to help you reduce your debt down to a manageable level. Talk to your lender to find out the most appropriate loan to help you avoid foreclosure proceedings.]]></description>
</item>
<item>
	<title>The Ins and Outs of Bank Foreclosures</title>
	<link>http://www.myForeclosureTips.com/info/Foreclosure/The-Ins-and-Outs-of-Bank-Foreclosures.html</link>
<pubDate>Mon, 12 Jun 2006 15:39:18 -0400</pubDate>
<category>Foreclosure</category>
<guid isPermaLink="true">http://www.myForeclosureTips.com/info/Foreclosure/The-Ins-and-Outs-of-Bank-Foreclosures.html</guid>
	<description><![CDATA[The term bank foreclosure is one which may seem mysterious to many individuals, especially if they have never experienced one and/or are unfamiliar with real estate terms. Bank foreclosures occur when a current homeowner can no longer pay their mortgage, is deemed to be in default and the bank repossesses the home. There are certain things which all individuals should know about bank foreclosures so that they can be more familiar with the term and prevent this from happening to them.
What the Lender Gains from Foreclosures
The lender will profit in various ways from foreclosing on a borrower&rsquo;s home. The first profit is repossessing the home and putting a stop to any future losses that may occur as a result of the homeowner&rsquo;s nonpayment from that point forward. Another way the lender profits from foreclosing on a home is that they will be able to sell the home and try to reclaim what was lost such as loan balance, attorney&rsquo;s fees, court costs and more.
Condition of Title in the Home
When an individual purchases a home in a foreclosure sale, the prospective buyer wants to ensure that title in the home is good and that there will not be any issue with such a thing should they purchase the house. A good tip to keep in mind is that the lender will bid on a home at a foreclosure auction if title is good but may not do so if title is cloudy. Lenders often bid on foreclosure homes at Sheriff&rsquo;s sales in order to obtain the property and sell it for a greater amount down the road. They will be less likely to do so if title is at issue.
How Lenders Dispose of Foreclosure Properties
There are a variety of ways with regard to how lenders dispose of foreclosed properties. Some lenders advertise foreclosure sales in newspapers while others retain real estate agencies to advertise the properties for them. The lender wants to choose the most effective yet least timely manner when it comes to disposing of foreclosed properties. With regard to the larger lenders, many of these companies have a department within their financial institution which deals exclusively with handling sales of this type.
Investing in Foreclosed Properties
Some individual investors make their living by investing in foreclosed properties. These individuals scan the market for possible goldmines and try to obtain the property for the least amount of money possible thereby making a good profit when they later sell the same property. A beneficial way for investors to find that perfect foreclosed property for sale is to do some independent research at the local courthouse or peruse the newspaper for possibilities. Once the investor has located some potential properties, that individual should calculate the profit margin by subtracting the default amount from the estimated market value. If the property is a good deal, the investor should go about pursuing the purchase of the property.
There are a few tips for investors who are looking to buy foreclosed property. The first is to always include relevant costs and expenses in the calculations when determining profit margin. Secondly, the investor should inspect the property to be sure that they are getting what they are paying for. Third, make realistic offers as those which are not so will be quickly rejected or bid out by another investor. Lastly, once the offer has been accepted by the lender try to sign the purchase and sales contract as soon as possible to ensure that the property will indeed be yours.
Advantages and Disadvantages to Purchasing a Bank Foreclosure Property
There are certain advantages concomitant with purchasing a property that was foreclosed upon. The first advantage is that the price of the property will be much less than many other types of properties which will allow investors to make a good profit when they resell the property. Another advantage to purchasing a home that the bank has foreclosed on is that many of the problems have been remedied by the lender and should not present an issue for the buyer. Lastly, a lower price obtained on the property will mean a lower monthly mortgage payment and accompanying costs.
As for the disadvantages, there is always a chance that an investor who purchases a property in this manner will have difficulty selling it at a later time. Another disadvantage to buying bank foreclosure properties is that the property may be sold as is and lead to the completion of multiple repairs by the new owner.
Conclusion
Bank foreclosure properties are ones which the bank is anxious to sell and the investor is more than willing to buy. With this relationship in existence, it is easy to see how foreclosure properties get sold as quickly as they do.]]></description>
</item>
<item>
	<title>Mortgage and Foreclosure Rates Rise Together</title>
	<link>http://www.myForeclosureTips.com/info/Foreclosure/Mortgage-and-Foreclosure-Rates-Rise-Together.html</link>
<pubDate>Mon, 12 Jun 2006 15:38:38 -0400</pubDate>
<category>Foreclosure</category>
<guid isPermaLink="true">http://www.myForeclosureTips.com/info/Foreclosure/Mortgage-and-Foreclosure-Rates-Rise-Together.html</guid>
	<description><![CDATA[With mortgage rates on the rise and home prices leveling out, foreclosures are becoming more common, especially in the American Midwest.
The rate of foreclosures is closely watched by real estate analysts and investors because it can be an indication of market distress.
In the last five years, home prices have risen by almost 50%. Both interest rates and foreclosures have been historically low. Any homeowners having trouble paying their mortgage were able to easily sell their homes, eliminating the need to default.
A recent survey by RealtyTrac shows that there is a increase of foreclosure rates and delinquent mortgage payments across the country. Even though the rates are high compared with the last few years, they remain low when compared to the last few decades.
The number of mortgage loans in foreclosure rose to 117,259 in February, an increase of 68% from February 2005.
Delinquent accounts are up by 2.84%. LoanPerformance, a subsidiary of First American Real Estate Solutions, reports that 3% of the most risky loans were 90 days delinquent in February. Ninety-day delinquencies were up 0.76% for borrowers with good credit.
Doug Duncan, chief economist of the Mortgage Bankers Association, says that the rise in delinquencies isn't surprising. The MBA reports that there was an increase of .26% in delinquencies and a 0.01% increase in the foreclosure rate in the last quarter.
Three states in the Midwest are proving to have the highest rates of loan foreclosures and delinquencies: Indiana, Ohio and Michigan.
The cause of mortgage problems can be found in many places. One factor is family economic distress, such as job loss or severe illness. The slowing pace of home appreciation also factors in. The states leading the foreclosure list have had relatively low home price appreciation when compared to the rest of the country. They also have a below-trend job growth rate.
The national level of foreclosures for the end of the fourth quarter of 2005 was 0.99%. Ohio had 3.22% of loans in foreclosure, Indiana had 2.75% and Michigan had 1.75%. The East North Central region had a 2.05% foreclosure rate for mortgages, the highest regional level in the nation, according to the MBA.]]></description>
</item>
<item>
	<title>Avoiding Foreclosure</title>
	<link>http://www.myForeclosureTips.com/info/Stop-Foreclosure/Avoiding-Foreclosure.html</link>
<pubDate>Mon, 12 Jun 2006 15:38:00 -0400</pubDate>
<category>Stop Foreclosure</category>
<guid isPermaLink="true">http://www.myForeclosureTips.com/info/Stop-Foreclosure/Avoiding-Foreclosure.html</guid>
	<description><![CDATA[Foreclosure rates have been on the rise lately. If you find that you are having trouble making ends meet, what can you do?
There are many homeowners that find they can no longer afford their mortgage payments. It may be due to illness, job loss or a death in the family. Others have adjustable-rate mortgages that have adjusted upwards to an unaffordable amount.
The best way to avoid foreclosure is to avoid the circumstances that bring it on. Too much debt, adjustable or exotic mortgages, little to no emergency savings and lack of insurance can often make foreclosure more likely. Stretching to buy an expensive home is also a large risk.
But the fact is, no one knows the future. You can make the right decisions and still face losing your home due to facts outside of your control. It happens. If you find that you are having trouble making your mortgage payments and are risking defaulting on your loan, you need to take action right now.
The key is to keep an open discussion going between yourself and your lenders. Take action immediately. If you think you are going to be late on a mortgage payment, contact your mortgage company immediately. Don't let them just wonder what happened to you.
In many cases, your lender will be more than willing to discuss your financial options with you. Lenders do not want to foreclose on properties. It costs them money and drives down the home values in the area around your property.
Get your bills and debts together. Form a budget and a plan of action. If you need to notify all of your lenders, do it. Let them know you are having financial problems, but fully plan on paying all of your debts and bills. Many will be willing to work with you on a plan of payment. Don't just write checks hoping that they will be covered. The late fees and bounced check fees can cost you a lot.
Protect your credit score if you are able. You don't want this one crisis to hurt you for years to come. Make your payments on time, or according to new agreement. Once you have an agreement with a lender, stick with it. If you default on this second chance, you will probably be called to task for it.
Don't get desperate and look for the first help that comes along. There are a lot of predatory lenders out there looking for the desperate. Before you sign any paperwork dealing with your home, have your lawyer or mortgage company check it out.
Don't just sit back and wait for things to get better. Take action. Doing nothing gets you nothing. You can avoid foreclosure if you put a little effort into it. Start saving and getting yourself back on track. If you can't afford the home you have, sell it and buy one that you can afford. Don't let your pride keep your from starting over. A fresh start in a new place is better than staying in a place that is draining you, financially and mentally.]]></description>
</item>
</channel>
</rss>
