According to the Mortgage Bankers Association, less than six percent of mortgage borrowers in the State, which total 3.1 million, are facing or about to face foreclosure. This figure includes big cities like El Paso and Dallas.
 
Compared with Arizona and Nevada, wherein 13 percent and 19 percent of borrowers are in foreclosure, respectively; Texas is actually doing really good. The state also has the lowest rate of foreclosure among its subprime borrowers in the whole nation except Alaska.
 
Several factors have been cited for the low number of foreclosures for sale in Texas; one is that the state had not experienced the high rate of run ups in real estate prices that other areas in the United States did.
 
State-wide statistics show that prices of El Paso foreclosures and other metro areas in the state rose by just an average of, more or less, 20%, and they barely declined since 2006. But the primary reason for the decent number of foreclosures for sale in Texas, according to analysts, is the state’s ability to control home equity lending and cash out refinancing.

 
According to real estate market analysts, the state has wisely put in place a policy wherein home equity and cash out loans cannot account for more than 80% of a property’s appraised value. Also, borrowers who use mortgage refinancing are not allowed to get a cent back. It also helped that very few borrowers in Texas use home equity as a source of cash.
 
This, according to market analysts, effectively lowers loan delinquency in the state and in turn, produces a small number of foreclosures for sale in Texas compared with other major states. The Federal Reserve Bank of Dallas also stated that the low unemployment rate in the area, pegged at 8.6%, contributed to the low percentage of foreclosures.
 
The number of El Paso foreclosures and foreclosed properties in other metro areas of Texas are relatively lower than those found in other big states. Market analysts have asserted that this is primarily due to the state’s restriction on cash out loans and its ability to impose discipline among real estate loan borrowers.

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With the many homes getting repossessed today, yours does not have to be one of them. Learn the ways to stop repossession by knowing what kind of homeowner you are. If you are heavily in debt, you should consult your financial advisor regarding your situation. However, if you only have arrears on your property, then you can refinance your loan.

Remortgaging to another lender gives you the opportunity to lower your monthly repayments. It also makes you get rid of your arrears. A low monthly payment allows you to budget your money well so you can pay off your other debts. Remortgaging wont even hurt your credit standing and is the usual way people take when faced with a possible repossession. However remortgaging is only a temporary way to stop repossession.

The first thing you should do when repossession is on its tracks is to talk with your lender. Usually, lending companies will give you some options rather than repossess your property. It is a long process for repossession to take place which is why most lenders will normally give you choices in order to prevent repossession happening.

If the lenders extend your mortgage, this can lower your monthly mortgage payment you have to make. With such an opportunity, you surely will be able to make your payments on time without having to sacrifice any other debts. A payment holiday can be requested which gives you a little breathing space as no payment will be required for that month. By agreeing to these terms, you will be able to make amends on your finances and get back up on your feet.

Financial lenders can even lessen the remainder of your mortgage. This might not be the best solution for them but they would rather do this than face having no payments at all. And as previously mentioned, repossession is a very hassle process which is why lenders will settle for less with this last option.

Selling your house is also an option if the ways mentioned to avoid repossession are not suited to you. There are firms that specialize in buying homes fast which will of course help stop repossession. With these, now you know what to do when repossession is impending.

Ways to Stop Repossession of Your HouseWays to Stop Repossession

When you get a loan from bank to buy a house, you sign an agreement giving an authority to the bank to take that house back from you if you miss payments.

Stop Repossession – Know All Your Options | DealFiles Success!

The bank is probably willing to help you keep your house because they often lose money when they have to repossess a house. They can’t help you, though, unless they know you need help.

How to Stop Repossession – Info Barrel

Even if you’ve tried everything with your finance company to try and stop repossession if you didn’t make the payments they’re going to issue a repo order. Don’t worry, there are still ways you can delay or even stop repossession.

Technorati Tags: Buying REO, stop repossession, ways to stop repossesion, What Are The Different Ways To Stop Repossession?

With the market in its current condition more and more investors find that they are coming across hordes of motivated sellers. Unfortunately, all of these potential prospects tend to share one thing in common. They don’t have any equity! This little dilemma is causing many investors to turn their efforts toward bank-owed foreclosures.

The single biggest advantage associated with REOs is the fact that equity can be created instantly either by finding a hot deal or through shrewd negotiation. There’s nobody telling the bank that they owe too much on a property and can’t lower the price a bit. In theory…any house could be sold for as little as a dollar.

In fact, there is only one downside to wholesaling REO properties. Non-assignability. When an investor gets a bank owned property under contract it always comes with multi-page addendums that make the deal non-assignable.

A lot of new wholesalers will consider this one obstacle to be the end of the line where flipping bank owned homes is concerned, never knowing that there are four ways to maneuver around this bump in the road.

Method #1 – Add to Contract, Then Quit Claim

Most banks do not have an issue with adding an additional party to a contract, they just do not want the ORIGINAL parties removed from it at any time. So Ivan Investor can get an REO property under contract for $50,000. Ivan gives Louie Landlord a call and after going over a few details they agree on a price of $60,000 between them.

Ivan calls the bank up and requests that an addendum be drawn up that adds Louie to the contract and title. The Bank agrees and everyone shows up on closing day.

Louie brings TWO certified checks. One for $50,000 for the purchase of the property, and one for $10,000 made out to Ivan. All parties then show up for closing and both Ivan and Louie then own the home. Louie hands Ivan the $10,000 check and Ivan signs a quit claim deed removing him from title on that property. Pretty simple, right?

Pros: The advantage to this method is that there is only one set of closing costs. It’s a rather simple and straight-forward method that works for most deals. It works around the 90-day deed restriction that comes packaged with many Fannie/Freddie properties.

Cons: Here are the negatives that come with this method. This does NOT work for HUD properties because HUD does not allow any changes to the parties that are on the original offer and the end buyer usually cannot be getting a mortgage because a mortgage company won’t allow you to be on title if they are lending someone else money against the home.

Method #2 – Simultaneous Double-Close

The simultaneous double-close (also known as a simul close or a "dry" close) is actually two transactions. An investor is buying from the bank and then instantly reselling to a third party in a separate transaction. It follows a typical A-to-B-to-C deal flow.

The "twist" that comes with this method is that the wholesale investor never actually brings any money into play. The end-buyer’s funds are used to fund BOTH transactions. This is possible because, as long as both closings take place on the same day, it doesn’t matter which one closes first for the title company’s accounting purposes. The second transaction (B-to-C) could take place a 9am with all the paperwork for that transaction taken care of at that time while the first transaction (A-to-B) doesn’t close until 2pm.

What really matters is that the deeds are RECORDED in the proper order when filed with the county. It’s important at that time to have the A-to-B deed filed first with the B-to-C deed following on record.

Pros: This works well for those who have zero cash as long as they have a good title company that will still do these types of transactions. It still works even with end buyers that are getting conventional financing if the end buyer is getting their financing through the right lender.

Cons: This method is NOT an option if the end buyer is getting FHA financing. This method also does NOT work for Fannie/Freddie foreclosures in most cases because these super-banks put a deed restriction in place that prevents you from reselling the property to ANYONE for a full 90 days.

Also, with all double-close deals there are two sets of transfer taxes, recording fees, and other closing costs that cut into your profit. Of course you can just build that into the deal by lowering your offer price in order to circumvent this small annoyance.

The biggest roadblock to getting these transactions closed is the fact that fewer and fewer title companies are comfortable with the "dry" simultaneous close where the wholesale investor brings in no cash to the deal. In fact, they are often refusing to close these deals at all!

Method #3 – True Double Close

The true double close (also known as a "wet" close) is the same as the simultaneous close in that the investor is buying the foreclosure property and instantly reselling it to the end buyer for a profit. However, the wholesale investor is actually bringing in his own cash to fund his end of the deal.

This little difference makes the title companies happy but it doesn’t work so well for beginning investors that don’t have piles of cash sitting around to make the deals work.

Then came Flash Funding. There are "transactional funding" lenders will lend you all the money you need to do these same-day double-close deals…for a price. Most will never run a credit check or request an appraisal on the property.

The pros and cons to this method are pretty much the same as the simul close, except that on the good side more title companies are willing to do business with you if you go this route and on the bad side you have additional costs in the form of Flash Funding fees chewing away at your profits.

Method #4 – Sell The LLC

This last method has been popularized by Steve Cook who’s said that he swiped it from commercial real estate investors who have been using it for years to avoid paying transfer taxes.

The idea is that an investor would submit an offer in the name of an LLC. If the investor was placing an offer on 1221 Sycamore, he may send it in with "Sycamore Group LLC". Once the bank accepts the offer, the investor quickly submits his LLC start up paperwork to to the state making sure that it properly matches with the real estate contract.

From there the investor finds his end buyer and they agree that on closing day the end buyer will purchase the entire LLC from the original investor for the amount of the wholesale fee. From there, as the new owner of the LLC, the end buyer is empowered to close on the original transaction and purchase the property.

Pros: The upside to this method is that you workaround the extra costs in the form of transfer taxes and/or Flash Funding fees that come with the two Double-Close methods, and for those who are concerned about guarding their privacy, your name never goes on the deal.

Cons: The major obstacle to this one is that the end buyer has to pretty much be paying cash. Banks do not loan traditional mortgages (either to owner occupants or investors) in company names. You have to buy it in your own personal name to get a mortgage. Other concerns are that if you do this often enough you may attract the attention of state regulators who are confused as to why you start and sell 5-10 LLCs each month.

Armed with these four workarounds, investors nationwide are able to successfully wholesale flip REO foreclosures. None of these methods require the wholesaler to bring his or her own cash into play other than the initial earnest money deposit and none require a credit check. One of these methods will work for pretty much any situation you will come across when flipping bank owned homes.

By: Brian Kurtz

Buy, Fix & Flip Bank Owned Homes | HENRY PLASCENCIA real estate

I wanted to talk to you about what a few of my clients are doing in this 2006-like real estate market. I’m sure you’ve heard or have experienced, if you are.

Flipping Bank Owned Property Foreclosure

Taking this measure could possibly stop the bank from selling your property in the name of bank owned property foreclosure. (ArticlesBase ID #1218150). Learn more about how to flip bank owed property foreclosure.

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InetGiant Florida: Flip Bank Owned Homes Nationwide with Private Money classified ad on InetGiant.com. Free Flip Bank Owned Homes Nationwide with Private Money advertising & online classifieds.

Technorati Tags: Buying REO Property, Four Ways To Flip Bank Owned Foreclosures

Purchasing a foreclosure property, whether it be a pre-foreclosure, short sale or bank owned real estate is not for everyone. You have to do your homework, get representation and be prepared. After this financial crisis, when the smoke clears, thousands of smart investors are going to come out ahead because they seized the opportunities that were available to them.

Here are some of the pros and cons of purchasing a foreclosure property:

Pros

– It’s a great opportunity for getting a bargain on a home. Especially if you don’t mind putting in a bit of work to fix it up. In some cases, properties have been sold for as much as 50 percent below market price.

– If you’re looking a property at the pre-foreclosure stage, your bargaining power may be increased by the seller’s sense of urgency. You can also request inspections and perform title research at this stage.

– Foreclosed properties can be lucrative investments as rental properties to be sold when the market picks up.

– If purchasing the property at an auction, required cash payments reduce the competition.

– If purchasing an REO (real estate owned by lender), the title will be clear and the buyer does not assume any liens or back taxes. REO’s also allow inspections to be conducted within a pre-determined contingency period.

– Property is listed on MLS and the bank will pay the real estate commission.

Cons

– The condition of the home is always a concern. Some homes are missing appliances, have been vandalized, or poorly maintained. Take into account that there may be hidden costs associated with your purchase.

– If you’re buying a house at an auction, it’s generally offered "as is". Try to arrange a viewing of the property before the sale.

– Banks won’t negotiate the sales price, but may take a lower offer if it contains fewer conditions.

– There is usually additional paperwork for an REO sale and depending on the stage of foreclosure can take longer than a normal sale. Short sales can take up to two months. You have to be patient, understand the process and go with the flow.

– In a pre-foreclosure situation, if the purchase price does not cover the mortgage and closing costs in full, the buyer may be subject to the lender approving the offer.

Foreclosure Auction

– In a auction purchase, the home must be paid for in cash, usually without a mortgage. As the buyer, you are responsible for title searches and would also assume any liens, back taxes and mortgages.

– If the bank thinks they won’t get their price, they may buy the property at the auction.

– The buyer must pay for their own legal representation.

By: Mike Taylor

Getting Foreclosed Properties. @ arieftheo.com

There are many such profitable houses which worth to buy and then flip profitably. I’m going to enumerate all the pros and cons regarding purchasing foreclosed homes. May be you relish an idea of reselling foreclosed properties…

Purchasing Foreclosed Properties. | My DIY Home Tips

It’s a promising matterfor you, buying a foreclosed home. There are a lot of such profitable houses which worth to purchase and then flip profitably. I’m going to illustrate all the pros and cons concerning buying foreclosed properties.

Buying Foreclosed Properties. | Business Blog

I’m going to illustrate all the pros and cons regarding buying foreclosed homes. May be you have an idea of flipping foreclosed properties or you are just searching for some better place to live.

Technorati Tags: Buying REO Property, Pros And Cons Of Buying A Foreclosure Property

The appropriate use of realtor websites is really a prerequisite for the production of real estate leads from the Internet. If you fail to establish an online presence, you would not be able to attract a large number of leads because very few people would be able to discover your website. A vital technique that you can apply is to design a landing page that is for investors who want to buy foreclosure, bank owned, and REO properties because you might want to serve the specific needs of this group. For example, this landing page would feature these kinds of properties and its search tool may already be preset for this particular segment of the real estate market.

However, the IDX MLS solutions are the primary parts of your site that could be established in such a way that they could stimulate the development of the visitors’ trust in you and thereby generate leads. These are search tools that have been specifically developed to let the users browse through the database of the Multiple Listing Service (MLS) that holds different listings from various real estate brokers who have agreed to cooperate and help each other in marketing their listings. This would be of great value to them because they are able to conduct all of their searches right there on your website and they do not need to look at other realtor sites. This has the advantage of proving to the investors that you are really prepared to serve and that you are not just out to make a profit. You can have an online form on the landing page that is specific for these investors and they can fill it up when they want to get updates on the different properties they are interested in or if they want to contact you. You will then have new leads once they have decided to fill up the form and have sent you their contact details.

Strengthen Your Online Visibility with Realtor Websites | Creative

Realtor websites can help improve your online visibility when you desire to enhance your lead generation capabilities. If people are not informed that you. … Hopefully, the articles in your blogs would be able to provide investors with guidelines and reliable information regarding REO and foreclosure properties.

Realtor Websites Wizards – Are They Necessary? | Creative Real

Realtor websites wizards are vital tools that make it easier for you to market to prospects, produce more leads, pump up sales and profits, and enhance. … To motivate some visitors, such as those who are interested in foreclosure properties, to do some activities, such as entering their contact details into an online form, another wizard would be needed.

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Home Buying in Jacksonville, FL – how do i find short sales or foreclosures.

Foreclosure Process- a RealEstate Glossary | Real Estate Opinion

Better brush up: Foreclosure has many stages and all of them are very litigious. When listing a property in danger of foreclosure or selling one to a buyer.

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