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Terms Associated with the Foreclosure and, Short Sale Process.

Published on 03/10/2010 in Real Estate. 0 Comments Tags: , , , .

Terms Related to the Short Sale Process and Foreclosure Process
- By Anthony J Phillips

All the terms and acronyms for short sales and foreclosures can be a little overwhelming. Here is a list of the most frequently used.

Pre-Foreclosure – the period beginning with initial mortgage default up to when a distressed property is sold. The length of which is considered Pre-Foreclosure and varies depending on state laws.

NOD – short for a notice of default. This is an official notice from the lender that the borrower has defaulted on the mortgage. The notice formally begins the foreclosure process. The notice of default also outlines the reinstatement.

Reinstatement Period – the time stipulated in the notice of default in which the borrower may reinstate the loan, making required payments and bringing the account and a good standing.

Short Sale – a situation in which the seller owes more money on the loan than the sale of the property will likely produce on the market and is unable or unwilling to bring money to closing. The seller may or may not be in Pre-Foreclosure.

Notice of sale – if, after receiving the notice of default, the borrower does not reinstate the loan, the notice of sale is recorded. The notice of sale explains when and where the foreclosure sale will be held.

Foreclosure sale – also known as the sheriff’s auction or trustee sale, is when the property is auctioned for sale to the highest bidder.

Redemption Period – the amount of time that the distressed owner has to redeem the real estate after the foreclosure sale. Redemption typically requires that the owner pay the sales price, interest, and other costs. Not all states provide redemption.

REO – the acronym for real estate-owned. REO as the status of a property when a foreclosure sale is not successful and when ownership of the property is transferred involuntarily to the lender.

As with any real estate transaction, it is highly recommended that you seek both legal and tax advice from qualified professionals.

Anthony Phillips is a Las Vegas Realtor and has received his National Association of REALTORS® Short Sales and Foreclosure Resource certification and the Executive Financial Management certification from Cornell University.

Visit my site at http://www.mylvhomesales.com

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Green homes face a red light

Published on 03/10/2010 in Investment and Real Estate. 0 Comments

Lots of people, especially those trying to battle high utility bills, believe in energy-efficient homebuilding.
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Helmsley Estate Sells Manhattan Hotel

Published on 03/09/2010 in Real Estate. 0 Comments

The Helmsley Carlton House is being sold to a partnership between private-equity firm Angelo, Gordon & Co. and Extell Development for about $170 million.
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General Growth Lines Up More Capital

Published on 03/09/2010 in Real Estate. 0 Comments

Mall owner General Growth Properties has bolstered its case for exiting from bankruptcy protection as a stand-alone company.
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Farkas Closes Deal to Buy Centerline

Published on 03/08/2010 in Real Estate. 0 Comments

The New York real-estate investor will buy one of the nation’s largest commercial-mortgage-servicing specialists for $100 million in new equity and assuming $180 million of Centerline’s debt.
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Can’t make your mortgage? Get an emergency loan

Published on 03/08/2010 in Investment and Real Estate. 0 Comments

Erin and Robert Smith had no problem handling the $2,000 monthly payment on their home … until they lost their jobs.
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Investing in Real Estate: Contract Clauses

Published on 03/03/2010 in Investment and Real Estate. 0 Comments Tags: , , , .

Understanding Real Estate Contract Clauses

Many people might argue that investing in real estate is one of the most interesting and exciting ways to save for your retirement and create a steady stream of current income today. Let’s face it, lots of people are addicted to real estate investing! I’ll admit that I’ve been swept up myself in the past.

One thing about real estate investing that makes it different than other forms of investing, such as the stock market for instance, is the fact that real estate investments are much more complicated especially when it comes to closing the sale. If you’ve ever been to a closing then you know what I’m talking about!

There is a sort of mad flurry of paperwork shooting out every which way. There’s papers on the table, there’s papers coming out of briefcases, there’s papers on the floor, there’s papers being passed around from you to the buyer to the seller to the broker to the lawyer back to you again. Initial here; initial there; sign here, and sign there… it can very quickly turn into a madhouse which is why you want to be as familiar as possible with real estate contracts before you go into closing.

That’s why I thought I’d write this article today and explain a few simple clauses that you should expect to see in a regular real estate contract. Hopefully you’ll be able to familiarize yourself with them here and therefore get a leg up when it comes time to battle during closing.

The first clause I want to talk about is the condition precedent clause. This basically says that the purchaser or the seller may want one of a few specific events to occur before a certain obligation becomes fixed. That may be confusing so let me try and give an example. Say the purchaser wants the town to approve building a new park next to your building and you refuse to purchase the building until the town has agreed to build the park.

Once the town has built the park, the purchaser will now be contractually obligated to purchase the building from the seller. You get the idea… these things will be spelled out in the condition precedent clause and obviously this clause won’t be present in all contracts.

The building permits clause is the next one I want to talk about. This is similar to the last clause in that you may require the seller to make sure the building permits are up to date or that the zoning is approved by the city before you purchase the building. These sorts of things will be spelled out in the building permits clause.

Brokerage fees clause. Most people don’t realize that brokerage fees are negotiable and not only are they negotiable between you and your broker but they can even be negotiable between you and the seller. They state which of you has to pay the fees or if you share the fees or any combination of the two. This will be spelled out in detail in the brokerage fees clause section of your contract.

Well fortunately I’ve only touched on three clauses today in this article but hopefully at least they will give you a heads up so that you understand a little bit what to expect when it comes to real estate contract clauses.

Jason Markum has been an article writer online for well over 13 years. When he’s not writing articles, he has a good time running a dinnerware pfaltzgraff web site where he also reviews stoneware dinnerware sets for your home use.

Article Source: http://EzineArticles.com/?expert=Jason_Markum

Homes for sale? or Lifestyle for sale?

Published on 02/27/2010 in Investment and Real Estate. 1 Comment Tags: , , .

Marketing and Selling Your House is Easy!

Whoever said that, couldn’t have tried selling a house in the 2008-2009 recession. House prices, dependent on buyer confidence and the availability of mortgages, tumbled; the market stagnated and both supply and demand fell off a cliff. We put our house on the market in autumn 2008, pricing it below the estate agent’s valuation. There were some viewers but we didn’t think they were serious prospective buyers. Some were looking for a bargain at distress prices, others were just plain nosey. We rejected a rock bottom offer.

And so it went on, through the winter and into spring 2009. More viewers, no buyers. We dropped the price, twice. Still viewers came and still we had no success. We reached the point where we’d rather stay put than reduce the price again. Then we did what we should have done a year earlier. We put some money and thought into the property. We applied marketing principles. Dark carpets were replaced by new ones, in neutral colours. Dated wallpaper was replaced with a light pastel paper. Pictures came off the walls, treasures were put away. We allowed potential buyers to see the house as a backdrop for their own tastes, not ours.

By this time we recognized that you don’t market a house, you promise a lifestyle. A new front door, slate house name sign, neatly trimmed hedges and lawns, well-tended flowerbeds all gave our house kerbside appeal. We decided that our eagerness to sell was having an adverse effect on viewers so we resolved to focus even more on lifestyle rather than the property itself.

We didn’t put the coffee pot on. Instead, we trusted the next viewers to wander round unaccompanied. They stayed longer and as if by magic, phoned back later to say they’d like to look again. This time I sat in a shady part of the garden, empty mug and Saturday supplements strewn untidily across the table. Our buyers commented that I’d found the perfect place for some peace and quiet. I agreed and they wandered, all the time thinking themselves into our leisurely lifestyle.

We didn’t sell to that couple but they did increase their offer and within two weeks we had another viewer. We did the same thing, depicting a lifestyle instead of trying to sell a house. This couple viewed again the next day, made an offer and we sold. Without the use of simple but effective marketing measures, we probably would even now still be looking for that elusive buyer. I have no idea why it took so long for us to pick up the tools that had been there for us from the very first day.

Footnote:

Contrary to perceived wisdom, we were entirely happy with our estate agents. They were professional and reliable, and went out of their way to help. Fenn Wright, thank you!

Ian Thurgood

http://www.sixtonant.co.uk

Article Source: http://EzineArticles.com/?expert=Ian_Thurgood

Real Estate Value can be influenced by Property Tax

Published on 02/26/2010 in Investment. 1 Comment Tags: , .

Property Taxes Affect Real Estate Value

If you are venturing into the real estate market, you need to be able to accurately determine the value of real estate. Many things can affect the value of real estate, and one of those things is property tax.

Evaluating the value of any property you want to sell is important because this determination will help you to decide if it is going to be profitable to sell your real estate interests at the present time. Some people think you can get an accurate idea of a property’s worth by doing comparables. Comparables are properties similar to yours within the same basic location. You can check county records and see what these homes have sold for recently, and gain an idea of what yours may be worth. Comparables, however, are tricky. They are an educated speculation, but they are a speculation.

Two properties, with relatively similar attributes can have widely varying values depending on many factors. One property might be located in what is considered a good neighborhood, while the other might be in a bad neighborhood, even though they are within mere blocks of one another. One of the properties might have a new heating system, while the other’s is old and outdated. One might have a one-car garage, while the other has a two-car garage with an apartment above it. The property taxes on these houses might also vary widely.

A change in the property tax will result in a change in the property value. The basic way to affect change in your property tax is to do improvements to your real estate property. Some people hold off on these improvements for fear of a property tax increase. The increase usually does not come until a number of years after the improvements. So, if you are going to sell a real estate property, you could greatly increase the value of your home through certain improvements without raising the property tax.

Improving things in a residential property like the kitchen, the bathroom, and installing insulated, maintenance-free replacement widows can increase a real estate property value dramatically. Even if such improvements were to increase the property taxes on this real estate, you may have raised the property value enough to make the tax increase inconsequential.

So, while property taxes are a consideration in determining the value of your real estate property, you do not want fear of property taxes to inhibit you from substantially increasing the market value of your real estate property.

When you make improvements in your property, you have the fear that it will lead to an immediate increase in property taxes. However, this is not true. What is the relation between property improvement and property taxes? Chintamani Abhyankar provides useful advice.

Chintamani Abhyankar, is a well known expert in the field of finance and taxation for last 25 years. He has written many books explaining inside secrets of the magic world of personal finance. His famous Tax eBook “Stop donating your money to IRS” which is now running in its second edition, provides intricate knowledge and valuable tips on personal finance and income tax.

Article Source: http://EzineArticles.com/?expert=Chintamani_Abhyankar

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