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Search Twin Cities Foreclosures

Use this link to find foreclosed homes in the Twin Cities:

http://www.foreclosure.mn/search-foreclosures/

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Possible Effects From The Foreclosure Halt

By Rob Minton & John Mazzara

In case you’ve somehow missed it, many of the largest U.S. mortgage servicing companies have halted foreclosures. Ally Financial’s GMAC Mortgage, Bank of America, JP Morgan and PNC have stopped foreclosures in many states – BOA has, in fact, put a moratorium on foreclosures in all 50 states.

Pressing the pause button on foreclosures came as the result of several states’ attorneys general inquiring into the validity of foreclosure judgments for which mortgage servicers did not properly handle documents.
The “blind stamping” of documents – signing off on documents without really reading them – has come under fire after one manager admitted to signing off on about 8,000 foreclosure documents a month without reading them to verify facts. The mortgage companies have halted foreclosures while they investigate practices in their foreclosure processes.

Of course, it being an election year and all, members of congress are calling for a federal probe of lender misconduct. In the short-term anyway, the halt in foreclosures might give some struggling homeowners a little extra time to get on their feet. It might finally lead to overworked employees at busy banks getting the help they need to properly handle foreclosures, and it should make banks a little more willing to work with homeowners to modify distressed loans. With fewer foreclosures hitting the market, home values in some areas might creep up.

There are some long-term effects, though, that can’t be ignored. And some of them are downright troubling.
First, the halting of foreclosures for any period of time by banks that hold as many mortgages as these firms do is going to stop up the pipeline. Tons of foreclosed homes hit the market over the past two or three years, but there are more coming. Stalling that flow of homes now is going to drag out the process for a longer period of time. That means, for one, likely longer pressure on home values. Most experts will agree: The inventory of unsold homes on the market, many of them foreclosures, has to get smaller before home values will stabilize completely.

The effect on the volume of homes sales could be staggering if the moratorium lasts longer than a month or two, and/or if more servicing companies join the party. Across the U.S., foreclosures make up about 30 percent of all home sales. In California, Florida, Nevada – the states that have been hit hard by foreclosure – they make up a considerably larger percentage of all sales.

It’s also safe to assume that title insurance companies are going to be reluctant to insure titles on homes that have been foreclosed. That could be a huge problem because no lender is going to make a loan on home without an insured title. And what happens if the bank has already re-sold homes that were invalid foreclosures? Are the title insurance companies going to have to pay the new buyers?

On top of all that, the whole mess is going to make potential real estate buyers even more nervous about the market, which is already dealing with a huge drop in demand since the federal government’s tax credits for home buyers expired. Perhaps the delay in the flood of foreclosed homes to the market will give time for demand to return, but more likely is yet another “doom and gloom” real estate scenario that will scare buyers and investors off.

Hopefully, the big lenders agreement to halt foreclosures was a gesture of good faith made to the attorneys general, a sign that the firms are taking seriously the matter of following proper procedure in foreclosures. Hopefully, investigations will determine that for the most part, the banks are doing things the right way and will be able to move on.

Because while the short-term effects of the halt might seem attractive, a long-term foreclosure problem would not be good for anybody involved in real estate. In Minnesota, the market has definitely slowed, but some of this is seasonal. I think that the foreclosure issue will put more pressure on all parties involved to pursue short sales. Short sales are generally less expensive-in terms of loss-to the lender. Also, a short sale generally is viewed more positively on your credit. So, why aren’t more short sales being pursued? Rather than give you my conspiracy theory and explain who makes money throughout the foreclosure process, I would simply encourage you to follow the money.

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Lenders Are Halting Foreclosures-Temporarily

Not all lenders, but a few of the largest-including Bank Of America- have recently suspended foreclosures in all 50 states.  What will be the outcome and when will they move forward again with the process?   It is all an unknown at this time.  What we do know, is that they may not have processed the paperwork properly.   Now, it appears they will be reviewing everything twice before they go forward.  Ultimately, the end result will probably end with the home being foreclosed upon if the homeowner is actually behind and there hasn’t been a modification.  But for many, this reprieve will probably be a nice relief in this tough economy.  Here is a link to a recent article from our local paper http://www.startribune.com/business/104612084.html?page=3&c=y

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Foreclosed Property Coupon-10% off

When you buy a foreclosed with me as your agent, I will be happy to sign you up for a coupon from Lowes.   It entitles you to 10% off, up to a predetermined purchase amount.  Currently I believe it 10% off of up to a $10,000 purchase.  Of course, this amount and the coupon’s terms and conditions are subject to change by Lowes at anytime.

Besides Lowes, RE/MAX has exclusive deals with Cambria and Pods-to name just few of the suppliers we can help you save money with.  We’ve got your back.  Consider me when choosing your team.

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Foreclosure Real Estate Investment Strategies

Foreclosure Real Estate Investment StrategiesBy Simon Volkov

Foreclosure real estate investing can be a profitable niche for those who take time to learn the strategies. Foreclosed realty encompasses a variety of properties including residential homes, vacant land, and commercial real estate.

When buying foreclosure real estate, investors must be financially prepared to invest in property repairs or renovation. While foreclosed properties are priced below market value, homes requiring substantial repair can quickly deplete home equity.

Investors must engage in due diligence by reviewing comparable sales reports and obtaining home inspections, property appraisals, and repair cost estimates to determine the true cost of buying foreclosure properties.

Several options exist for locating foreclosed properties at discounted prices. The most common is to attend public foreclosure auctions. All properties presented through auction are sold in “as-is” condition. Buyers must be prepared to submit payment in full within 24 hours once their bid is accepted. Once realty is transferred, property owners are responsible for removing creditor and tax liens and making necessary repairs.

Another option is to seek out foreclosure short sale homes. These properties are in the midst of the foreclosure process and purchase negotiations take place with lenders’ loss mitigation department.

With short sales, lenders agree to accept less than the full amount owed on the home loan. Properties are listed through realtors or sold directly through the bank. The short sale process can be complex and lengthy; taking up to four months or more to complete. Buyers must obtain prequalified financing prior to submitting an offer. It is important to note that banks rarely accept offers lower than the asking price unless property inspections reveal major problems.

Short sale houses can provide investors with a good deal, but may not be the best option for investors who participate in house flipping or plan to use the home to generate rental income. Buyers willing to wait out the process can generally purchase homes at 10- to 20-percent below appraised value.

One way to obtain the best price on foreclosure properties is to seek out private investors who specialize in wholesaling. Some investors and investment groups purchase entire bank portfolios consisting of dozens of bank owned foreclosure properties.

Also known as real estate owned (REO) homes, these properties are houses that did not sell at auction. One of the biggest advantages of REO property is houses are sold with a clean title. When banks regain ownership of foreclosure real estate they remove attached creditor and tax liens and commence with eviction action when foreclosed homeowners refuse to leave the premises.

Investors who buy homes in bulk obtain wholesale pricing and pass savings along to individual buyers. REO homes can often be purchased at 20- to 30-percent below market value and provide investors with instant home equity.

It is crucial for real estate investors to become educated about all facets of buying foreclosure properties. Many newbie investors are tempted by the low price tag of foreclosures, but fail to realize the costs associated with rehabbing the property.

Foreclosures, short sale and bank owned real estate nearly always require some level of repair. Investors must take time to calculate the true cost of the property before making an offer to buy. Otherwise, investors could hold title to a money pit which could take years to financially recover from.

Simon Volkov is a California real estate investor who specializes in buying and selling foreclosure real estate, bank owned properties, and short sale homes. His website offers real estate investing articles and resources to help investors develop strategies to build solid investment portfolios. Learn more at www.SimonVolkov.com.

Article Source: http://EzineArticles.com/?expert=Simon_Volkov
http://EzineArticles.com/?Foreclosure-Real-Estate-Investment-Strategies&id=4594915

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How A FEW Are Profiting HUGELY From A Government Sweetheart Deal

If you haven’t been getting much success with a modification and wonder why-maybe this video will help explain things.  As an agent who works really hard to keep people in their homes FIRST, I found this very upsetting.  I can tell you many many people who would have stayed in their homes, albeit at a reduced payment if they had some payment relief.  Instead, lenders foreclosed or forced a short sale and ultimately lost a lot more than the interest differential.  It is sad to think that even one family might have had to leave their home because of a profit incentive that encourages it.  Here is the video:  http://www.thinkbigworksmall.com/mypage/archive/1/29027

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Foreclosure Secrets-Watch-Listen-Learn Webinar On Buying Foreclosures The Right Way

As a Twin Cities Realtor, I work and market homes within the area of distressed homes as well as the non distressed home marketplace. I work with a group of banks, investors and Realltors that market, sell and invest in foreclosed homes. Many people approach me to buy a foreclosure property as either a primary residence or as an investment. I would like to make one thing perfectly clear-BUYING DISTRESSED PROPERTIES IS NOT LIKE BUYING A REGULAR HOME FROM A REGULAR SELLER IN A NATURAL MARKET. Now that we are clear on that point, I’d like to strongly recommend you watch this webinar. This webinar will explain what to expect and the entire process. When you become a client, I will walk you through this information as well. Having this knowledge upfront is INVALUABLE. My advanced training and experience in this area of the market will help you navigate the process.

PLEASE take an hour of your time and view this webinar:
http://www.xiosoftpresenter.com/Default_xpv2.asp?eventid=7231737

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