Build A Real Estate Empire Around Foreclosed Homes

Posted on February 2, 2009
Filed Under Foreclosed Homes, Foreclosed Houses | Leave a Comment

By D.C. Fawcett, Business Building Coach to the Foreclosure Industry

When real estate investors evaluate their options for securing deals and making profits, there are several things that may come to mind. Whether its owning rental properties, fixing up properties in disrepair, or buying foreclosed homes, investing is still based on similar principles, such as seller motivation. After all, buying foreclosed homes at quality prices means working with sellers who are more motivated, be they homeowners or the bank.

Where do most people turn when they seek opportunities in buying foreclosed homes?  Sure, they might take a look at foreclosure listings that comes from free or fee-based sources. They can also market their services and attract opportunities to buy foreclosed homes. While these techniques may lead to productive and profitable deals, they also can be time and cash intensive.

Another option for investing in foreclosures is the world of bank owned foreclosed homes. When a property is lost via foreclosure it goes back to the bank and then becomes one of the now thousands of bank owned foreclosed homes (or REO properties) on the market today. How do you start buying foreclosed homes from the bank in your business?

One key piece of the puzzle is to work with a real estate agent who specializes in bank owned foreclosed homes. With the abundance of bank owned foreclosed homes out there, more and more realtors are realizing that investors are buying foreclosed homes and can provide you with foreclosure listings to aid in your own pursuit. A great realtor can dramatically reduce your commitment of time and effort, while still fueling the growth of your business.

Despite the leads you can generate from foreclosure listings and the opportunities that exist with bank owned foreclosed homes, I think buying foreclosed homes also can be risky for the investor because you need to know what you are doing. Whether you’re just curious how to make a little extra money with buying foreclosed homes or really want to pursue a serious business, you owe it to yourself to seize the current opportunity and pursue it the way a profitable business should be, which is with the proper training.

In today’s sluggish but opportunity-rich real estate market, buying foreclosed homes is as much as part of investing as any other part of the business. Make sure you have a steady and reliable source of foreclosure listings for buying foreclosed homes because the deals are out there. I also suggest that you commit yourself to real estate training, and your pursuit of buying foreclosed homes will be both more productive and more rewarding. In closing, I wish you the very best in success in all of your investing pursuits and in business as a whole.

dc fawcett

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Growing Up With Credit

Posted on March 13, 2010
Filed Under free foreclosure houses | 6 Comments

As a young adult, there are a few key moments in your life when you feel truly grown up. Graduating from high school, getting your first car, moving out on your own—these are the classics. But in the past few decades, another more dangerous (financially, at least) rite of passage has emerged–the credit card.

I got my first Visa at the end of senior year, which shouldn’t be surprising considering the card offers started rolling in as soon as I graduated junior high (nowadays, my friends say the offers start arriving for the kids when they’re still in diapers). Problem was, no one ever explained to me how credit worked. I remember my jaw dropping when I opened my first bill and found, to my delight, that I only owed $10–the minimum payment. I knew I had dropped at least a few hundred bucks on textbooks (and CDs and clothes and so on), but I only had to pay a measly ten! I felt like I had won the lottery…or at least stumbled upon the secret to living the good life.

Until a few years down the road, that is, when I left college with a degree–and more than $10,000 in credit debt. I had always thought of debt as something that only happened to wild spenders, the kind of people who buy a new, larger big-screen TV every Christmas. But now I know it can happen to anyone. We’re not in a credit meltdown because Americans are over-the-top greedy or materialistic. I think it’s because no one ever told us how to make good credit choices (or we were too stubborn to listen when they did).

Back when my parents were in high school, they had to take home economics. We poke fun at home ec today (between the sewing, cooking, and cleaning, it’s so 1950s homemaker), but those classes taught young adults how to survive in that time period. When I graduated, I couldn’t cook a meal to save my life, had to take my jeans to the tailor for hemming (which I still do), and didn’t really know what debt was.

We need to do more to help our kids handle today’s obstacles. And until the public school system picks up on the idea, it’s up to us to teach them–and ourselves–how to spend wisely.

If you swipe your cards in front of your little ones, they probably think you’re paying with magic, not money. Make sure they understand everything that goes on the card also goes on the bill–and that real money comes out of your checking account to pay that balance. With older kids, honesty is even more important. You probably tell them money doesn’t grow on trees, but if you treat your credit card like a money tree, they won’t believe you–and they’re likely to repeat your same mistakes.

Since you can’t really preach what you don’t follow, you might need to re-educate yourself. If you’re carrying credit card debt, stop. Don’t apply for any new cards or loans. Quit spending more than you earn. Can’t figure out how? That’s a sign it’s time to make a budget and identify places to cut back.

Pay your credit card off in full each month, or at the very least, make more than the minimum payment. Maybe you signed up for the low promotional rate when you got your card, but most credit companies hike that rate up to 18-40 percent after the first few months. Ask yourself, would you pay $300 for something that was marked $100 in the store? Of course not! But that’s what you’re doing in the long run when you only make minimum payments that barely cover interest. Credit card companies aren’t giving you a break because they’re generous. They know that the less you pay each month, the longer you will have to keep paying, giving them more money in the process. Wouldn’t you rather keep that cash for your family?

All it takes to change your credit habits is motivation. Changing your past is not so easy. If you’re overwhelmed by credit card bills or facing foreclosure, you don’t have to go it alone. DebtStoppers can help. Contact one of our attorneys for a free one-on-one debt analysis and find out how to conquer your finances and keep your house. Just because you never passed Credit Card 101 doesn’t mean it’s too late to learn.

Debt Stoppers
http://www.articlesbase.com/credit-articles/growing-up-with-credit-671175.html

Freedom Debt Relief Offers Answers, Clarity for Those Struggling With Debt

Posted on March 13, 2010
Filed Under free foreclosure homes listing | Leave a Comment

As the nation’s economy has declined, Americans are feeling the pinch, with an average of more than $16,000 in debt per person among those who have a credit profile. Freedom Debt Relief co-founder and co-CEO Brad Stroh reminds those who are facing serious debt hardship that they do have options when it comes to getting help.

“If you have trouble paying the bills, are receiving calls from collectors, are struggling to pay off bills from a medical episode or an accident, or are starting to believe you might be better off not opening the mail, you are in too deep,” said Stroh, whose company has resolved debts for more than 50,000 clients over the past six years. “It’s time to re-assess — and the good news is, you can get help without resorting to bankruptcy.”

Debt Resolution firms, such as Freedom Debt Relief (FDR), negotiate on the consumer’s behalf with creditors. They settle on a lower amount that typically can reduce a consumer’s principal balance due — rather than just interest rates — and lower total payments by 40 percent to 60 percent with a repayment term of two or three years. Credit scores may be negatively impacted, but responsible credit use after completing a debt resolution program can rebuild credit relatively quickly.

Debt Consolidation rolls multiple debts into one loan or into a mortgage. It may or may not bring lower payments. Borrowers using a mortgage to consolidate put their homes at risk and might run up just as much credit card debt within a few years. Those considering debt consolidation must make sure they can afford the resulting payment. Those considering using a mortgage for consolidation must make sure that they are not putting their homes at risk of foreclosure.

Credit Counseling provides lower interest rates, with a repayment term of five to 10 years. Total debt principal is not reduced. Many credit counseling firms operate with creditor funding, so the debt management plans created for consumers may be more in line with interests of the creditors. In addition, credit profiles can prevent access to credit while a consumer is in a program, as many lenders view debt management plans similarly to bankruptcy.

Bankruptcy is a less-viable option for most consumers today, following the reforms of several years ago. Those changes included the institution of a “means test” to determine eligibility for Chapter 7 protection, which eliminates most consumer debt. Those whom the law deems to have enough income (as defined by each state’s median household income) to re¬pay at least a portion of their debt cannot obtain Chapter 7 protection. Chapter 13 filings – which re¬quire consumers to repay debt on a repayment plan – are still available, but generally offer less-favorable terms than found in debt resolution, and result in a significant black mark on a credit report.

Questions to ask a debt partner
People who are looking for a trustworthy organization to help win the battle against debt can ask Stroh’s seven questions to choose a reputable firm:

1. Compensation: Does the company get any form of consideration or compensation from the creditors themselves? Some firms receive funding in the form of what are called “fair share” payments from creditors. The payments are incentives to get consumers into debt management plans (DMPs), and could lead to a conflict of interest between creditors’ and consumers’ interests.

2. Professional memberships: Is the company a member of its industry associations, or does it hold itself to a quality standard verifiable by third-party accreditation? A “yes” answer means the company is willing to have its practices scrutinized and to respond to consumer complaints.

3. Individualization: Does the company provide actual consultations and provide advice/education to consumers free of charge? Or is the company simply directing every consumer into a debt management plan?

4. Free education: Does the company provide educational material, including budgeting and financial advice, free of charge? Many firms consider educational material an additional fee source, not a benefit to their clients.

5. Background: What is the background of the company’s management team? Look for good, relevant education and experience — not a team that jumps from opportunity to opportunity to make its fortunes.

6. History: How long has the company been in business?

7. Success: What are the company’s dropout and success rates? Request these statistics. Leading credit card companies report that many credit-counseling firms have dropout rates as high as 90 percent.

About Freedom Financial Network (www.freedomdebtrelief.com)

Based in San Mateo, Calif., Freedom Financial Network, LLC (www.freedomfinancialnetwork.com) provides consumer debt resolution services through its Freedom Debt Relief and Freedom Tax Relief divisions. The company works for the consumer, negotiating with creditors to lower principal balances due that can often result in savings of up to half the amount owed.

Freedom Debt Relief (FDR) has served more than 50,000 clients since 2002 and currently has 28,000 clients working with the company to resolve their debt challenges. In the past month alone, the company resolved more than 3,500 cases for its clients, representing accounts worth more than $20 million. On average, FDR settles cases on behalf of its clients for 47 percent of the outstanding balance — a savings of 53 percent.

Company co-founders and co-CEOs Andrew Housser and Brad Stroh were named to the Silicon Valley/San Jose Business Journal’s “40 Under 40″ list in 2008, and are recipients of the Northern California Ernst & Young 2008 Entrepreneur of the Year Award. The company, with 475 employees, was voted one of the best places to work in both the San Francisco Bay Area and in Phoenix, home of a satellite office.

Mark Bowland
http://www.articlesbase.com/personal-finance-articles/freedom-debt-relief-offers-answers-clarity-for-those-struggling-with-debt-721342.html

First Time Home Buyer

Posted on March 13, 2010
Filed Under foreclosure home listing | 3 Comments

It’s not uncommon for a first time home buyer to say to me, “Gosh, just last week I called you about buying a home and now I’m in escrow! How did this happen so fast?”

The answer is it didn’t. First-time home buyers start the search long before most even realize it.

Here’s what you can expect from your home shopping experience.

Figuring Out the Benefits

You should buy a home. That’s what you’ve been hearing from friends and family, right? So, by now you have likely already weighed the benefits and decided that home ownership was the best decision for you. That’s a major hurdle now passed. You are focused and certain. Good.

Defining Search Parameters

Almost 80% of all home searches today begin on the Internet. With just a few clicks of the mouse, home buyers can search through hundreds of online listings, view virtual tours, and sort through dozens of photographs and aerial shots of neighborhoods and homes. You’ve probably defined your goals and have a pretty good idea of the type of home and neighborhood you want. By the time you reach your real estate agent’s office, you are halfway to home ownership.

How Long Should It Take to Find What You Want?

In seller’s markets, often I show only one home. After all, how many homes does one family need? A few buyers will look for years, but buyers who do that aren’t motivated. A motivated buyer will find a home within two weeks. Most of my buyers find a home within two days.

Good real estate agents will listen to your wants and needs and arrange to show only those homes that fit your particular parameters. Your agent should preview homes before showing them to you as well.

How Many Homes Will You See?

Studies show that the your memory dramatically improves after consumption of carbs and slows upon consuming sugar. So, layoff the soft drinks and have a hearty meal of carbs before venturing out to tour homes. The average number of homes that I show to a buyer in one day is seven. Any more than that, and the brain is on overload. Therefore, don’t expect to see 20 or 30 homes; although it’s physically possible to do so, you probably will not remember specific details about any of them.

The “Red Shoes” Experience

Women will relate to this. Say, you need a new pair of red shoes. You go to the mall. At the first shoe store, you find a fabulous pair of red shoes. You try them on. They fit perfectly. They are glamorous. Priced right, too. Do you buy them? Of course not! You go to every other store in the mall trying on red shoes until you are ready to drop from exhaustion. Then you return to the first store and buy those red shoes. Do not shop for a home this way. When you find the perfect home, buy it.

How to Rate Inventory

* Bring a digital camera and begin each series of photos with a close-up of the house number to identify where each group of home photos start and end.
* Take copious notes of unusual features, colors and design elements.
* Pay attention to the home’s surroundings. What is next door? Do 2-story homes tower over your single story?
* Do you like the location? Is it near a park or a power plant?
* Immediately after leaving, rate each home on a scale of 1 to 10, with 10 being the highest.

View Top Choices a Second Time

After touring homes for a few days, you will probably instinctively know which one or two homes you would like to buy. Ask to see them again. You will see them with different eyes and notice elements that were overlooked the first go-around.

At this point, your agent should call the listing agents to find out more about the sellers’ motivation and to double-check that an offer hasn’t come in, making sure these homes are still available to purchase.

Making the Selection

I’ll let you in on a little secret. I generally know which home a buyer is going to choose, and I suspect most other agents operate the same way. It’s an intuition. But I make it a practice not to steer buyers, and I insist that buyers choose the home without interference from me. It’s not my choice to make.

Real estate agents are required, however, to point out defects and should help buyers feel confident that the home selected meets the buyer’s search parameters.

gloconseo
http://www.articlesbase.com/mortgage-articles/first-time-home-buyer-671992.html

Owe More Than Your Home is Worth - Now What?

Posted on March 13, 2010
Filed Under foreclosure home for sale | 5 Comments

If you own a home in a declining market such as South Florida, then you may have a rude awakening when you find out how much your house is worth in today’s market, especially if you need to sell or refinance in the near future. Some home owners have the flexibility to wait out this declining market, while many more don’t, for such reasons as divorce, relocation, financial hardship or an adjustable rate mortgage that just spiked up a few hundred dollars and home owners can no longer afford their home and may possibly face foreclosure.

For many, the thought of owning a home that is upside has turned their dream of home ownership to a nightmare of home ownership. If you are a homeowner that is currently facing this situation, then you will be glad to know that this article will reveal several different options that are available today, as I reveal some of the lenders best kept secrets of a SHORT SALE if you want to see and a SHORT REFINANCE if you want to keep your home.

It’s important to understand what Lenders care about, before they are approached for a short sale or short refinance. They only care about the bottom line, which is how much do you owe and how much cash they will receive if they agree to do a short sale or a short refinance.

Now what exactly is a short sale?

This is the option that you would want to go with if you decide you no longer want your home and would just rather sell, than try to find ways to keep your home. A short sale is when the lender agrees to reduce the amount you owe on your mortgage to an amount less than the current market value and low enough where it will be more attractive for someone to buy in today’s market.

What exactly is a Short Refinance?

This is the option that you want to consider if you decide you don’t want to move and you would like to keep your home. The benefits of the short refinance is that you will get a new low, 30 years fixed rate mortgage, typically an FHA Mortgage Loan and you will owe less than the current market value of your home. Yes, you heard me right, there is a way to refinance, even if you are upside down, but you have to have the ability to qualify for an FHA Mortgage Loan. If your credit is shot, then you may need to consider other options such as a Loan Modification.

Now you may be wondering why a lender would even consider these options as it appears they will be losing a lot of money. Well, the reason lenders agree to do a short sale or short refinance, is that they believe that if the property ends up in foreclosure, then they stand to lose a whole lot more, as the average foreclosure will cost a lender anywhere from $50,000- $100,000.

Now everyone’s situation is different, some lenders will agree to either the short sale or short refinance, while other may just agree to a short sale. It is best to find a mortgage expert that can help you navigate this process and make an educated decision, and even if you lender doesn’t agree to a short refinance and you really want to keep you home then there are other loss mitigation options that are available today, such as a loan modification.

Marlon Baugh
http://www.articlesbase.com/real-estate-articles/owe-more-than-your-home-is-worth-now-what-741399.html

Available Loan Products During a Credit Crunch

Posted on March 13, 2010
Filed Under Foreclosed Homes | Leave a Comment

Businesses across the country are being forced to close their doors, due to the credit crunch that is preventing those companies from getting the credit lines that they require to maintain operating costs. Other businesses like the auto giants are suffering from lackluster sales, not because they produced a bad product, but because banks tightened the reigns on consumer auto loans, preventing consumers from buying those high-dollar products.

As we turn on the news each day or pick up our local newspaper, we are inundated with the bad news about the effects of the credit crunch on the larger economy. With so much bad news about the economy, it is easy to believe that the credit crunch is deep running and affecting every sector of the economy. But the truth of the matter is that the credit crunch is pretty much regional in nature and it is only affecting certain types of lending.

Strong Regional Economies

According to an April 2008 story by Forbes Magazine, “America’s Recession-Proof Cities”, some cities have shrinking unemployment, low foreclosure rates, and a growing economic base. The top ten cities were:

1. Oklahoma City, Oklahoma;

2. San Antonia, Texas;

3. Austin, Texas;

4. Houston, Texas;

5. Charlotte, N.C.;

6. Dallas, Texas;

7. San Jose, California;

8. Raleigh, N.C.;

9. Salt Lake City, Utah; and

10. Seattle, Washington.

In these strong regional economic centers, banks, savings and loans, and credit unions are still loaning money for cars and homes. I should know… I live near one of these top ten cities and we are able to go to our local credit union to get loans for anything we desire.

Strong Lenders

Banks are closing credit lines for some of America’s largest corporations, and in many locations, banks are withholding money for car loans and home loans. In locations where home foreclosures and car repossessions are high, lending is light. Banks that need to shore up their finances are withholding loans, even to top-rated borrowers. Other banks in a local area might be strong financially, but that strength is offset by an overabundance of caution in a weak economy.

The lenders who have traditionally been large and strong are now weak, and the lenders who have traditionally been smaller and more conservative are tending to be much stronger financially.

The smaller finance companies that tend to loan smaller amounts of money are also strong. Since those companies typically do not loan money on the big-ticket items such as cars and homes, they have managed to retain a stronger financial position in the marketplace.

Even payday loan and cash advance loan companies remain strong in an economy where big loans are hard to find.

Finding The Right Loan Product

When you are looking for a loan, it is never recommended to figure out where you can get the money first. Instead, one should figure out exactly how much money is needed, for what purpose, and what terms are acceptable to acquire the money.

For example, if one needs money to buy a car, a payday loan company will very likely be unable to loan the amount of money needed to actually buy that car. If you are buying a used car for under $3000 or $1500, you might be able to find a payday loan company to give you the money, but you have to honestly ask yourself if you could definitely have the money available to pay that loan back within two weeks. Since payday loans are loan products for people who need emergency cash for two weeks, one should use a regular finance company, bank or credit union to acquire the loan that you need months to pay back.

You might think that the easier-to-get payday loan might be your solution for a used car loan, but once you roll that loan over a few times, the cost of that money starts to become very expensive. In states like Oklahoma, you would not even be permitted to roll that payday loan over, by state law.

When you are borrowing money for two weeks or one month, a payday loan is usually a pretty affordable option for getting that emergency cash, but once you start rolling that payday loan over several times, then the cost of the money becomes such that it will easily exceed the cost of money from a finance company or credit union.

As this example shows, more important than finding a loan is finding a loan that has payment terms that are acceptable and affordable for the borrower. Any loan that cannot be paid back on schedule is a loan that should not be taken.

Responsible Borrowing

You owe it to yourself and your family to be responsible with your personal finances. Even when you are looking to borrow money, you should take the extra effort to make sure that the decision you are getting ready to make is one that will not hurt your and your families’ financial future.

This means that you should never borrow any amount of money you cannot afford to pay back on schedule. And while it might be nice to drive a new car, one of those used cars might make better financial sense to buy.

This is the reason so many families lost homes to foreclosure. People bought more house than they could afford to maintain, and they borrowed so much money that they could barely afford the monthly payments. Their homes suffered because they could not afford to keep up with repairs, and when an emergency expense came up, they found that they could not make all of their bills in that month. Once someone gets behind on payments, it is hard to get caught back up, so the homeowners’ finances continued to get worse and worse.

Eventually, homeowners found themselves so far behind that the bank was threatening foreclosure, and the homeowner was so far behind that foreclosure seemed the best option to them.

Foreclosed homeowners lost all of the equity that they had managed to build up in their homes, and after struggling for years to keep their homes, they found themselves renting an apartment or a house once again, and their credit ruined.

Sadly, most foreclosed homeowners could have prevented the loss of their homes, had they only made better decisions when they bought the home. If only they had purchased smaller homes, with smaller monthly payments, they could have prevented the problem, before it became a problem.

Only borrow what you can afford to pay back, and when you are looking for a loan, make sure that you can live with the terms of that loan.

In Conclusion…

With this having been said, there are loans out there available to the consumer. So if you need money for a purchase, there is a chance that you will be able to find the money you need.

But, you should be careful to only borrow money you can afford to pay back in a timely manner, with terms you are comfortable accepting.

As the last several years have proven, the only person out there that is going to look out for your best interests is you. So don’t let yourself down. Take the time to understand what you need, what you can afford, and the loan terms that are acceptable to you, and then make a responsible decision about what you can and cannot do.

Invest the effort to look out for your own best interests, and at the end of this current recession, you will find yourself in a better financial position than your neighbors who did not look out for their own best interests.

Fred Vanhoosen
http://www.articlesbase.com/finance-articles/available-loan-products-during-a-credit-crunch-688508.html

Growing Up With Credit

Posted on March 11, 2010
Filed Under free foreclosure houses | 6 Comments

As a young adult, there are a few key moments in your life when you feel truly grown up. Graduating from high school, getting your first car, moving out on your own—these are the classics. But in the past few decades, another more dangerous (financially, at least) rite of passage has emerged–the credit card.

I got my first Visa at the end of senior year, which shouldn’t be surprising considering the card offers started rolling in as soon as I graduated junior high (nowadays, my friends say the offers start arriving for the kids when they’re still in diapers). Problem was, no one ever explained to me how credit worked. I remember my jaw dropping when I opened my first bill and found, to my delight, that I only owed $10–the minimum payment. I knew I had dropped at least a few hundred bucks on textbooks (and CDs and clothes and so on), but I only had to pay a measly ten! I felt like I had won the lottery…or at least stumbled upon the secret to living the good life.

Until a few years down the road, that is, when I left college with a degree–and more than $10,000 in credit debt. I had always thought of debt as something that only happened to wild spenders, the kind of people who buy a new, larger big-screen TV every Christmas. But now I know it can happen to anyone. We’re not in a credit meltdown because Americans are over-the-top greedy or materialistic. I think it’s because no one ever told us how to make good credit choices (or we were too stubborn to listen when they did).

Back when my parents were in high school, they had to take home economics. We poke fun at home ec today (between the sewing, cooking, and cleaning, it’s so 1950s homemaker), but those classes taught young adults how to survive in that time period. When I graduated, I couldn’t cook a meal to save my life, had to take my jeans to the tailor for hemming (which I still do), and didn’t really know what debt was.

We need to do more to help our kids handle today’s obstacles. And until the public school system picks up on the idea, it’s up to us to teach them–and ourselves–how to spend wisely.

If you swipe your cards in front of your little ones, they probably think you’re paying with magic, not money. Make sure they understand everything that goes on the card also goes on the bill–and that real money comes out of your checking account to pay that balance. With older kids, honesty is even more important. You probably tell them money doesn’t grow on trees, but if you treat your credit card like a money tree, they won’t believe you–and they’re likely to repeat your same mistakes.

Since you can’t really preach what you don’t follow, you might need to re-educate yourself. If you’re carrying credit card debt, stop. Don’t apply for any new cards or loans. Quit spending more than you earn. Can’t figure out how? That’s a sign it’s time to make a budget and identify places to cut back.

Pay your credit card off in full each month, or at the very least, make more than the minimum payment. Maybe you signed up for the low promotional rate when you got your card, but most credit companies hike that rate up to 18-40 percent after the first few months. Ask yourself, would you pay $300 for something that was marked $100 in the store? Of course not! But that’s what you’re doing in the long run when you only make minimum payments that barely cover interest. Credit card companies aren’t giving you a break because they’re generous. They know that the less you pay each month, the longer you will have to keep paying, giving them more money in the process. Wouldn’t you rather keep that cash for your family?

All it takes to change your credit habits is motivation. Changing your past is not so easy. If you’re overwhelmed by credit card bills or facing foreclosure, you don’t have to go it alone. DebtStoppers can help. Contact one of our attorneys for a free one-on-one debt analysis and find out how to conquer your finances and keep your house. Just because you never passed Credit Card 101 doesn’t mean it’s too late to learn.

Debt Stoppers
http://www.articlesbase.com/credit-articles/growing-up-with-credit-671175.html

Freedom Debt Relief Offers Answers, Clarity for Those Struggling With Debt

Posted on March 11, 2010
Filed Under free foreclosure homes listing | Leave a Comment

As the nation’s economy has declined, Americans are feeling the pinch, with an average of more than $16,000 in debt per person among those who have a credit profile. Freedom Debt Relief co-founder and co-CEO Brad Stroh reminds those who are facing serious debt hardship that they do have options when it comes to getting help.

“If you have trouble paying the bills, are receiving calls from collectors, are struggling to pay off bills from a medical episode or an accident, or are starting to believe you might be better off not opening the mail, you are in too deep,” said Stroh, whose company has resolved debts for more than 50,000 clients over the past six years. “It’s time to re-assess — and the good news is, you can get help without resorting to bankruptcy.”

Debt Resolution firms, such as Freedom Debt Relief (FDR), negotiate on the consumer’s behalf with creditors. They settle on a lower amount that typically can reduce a consumer’s principal balance due — rather than just interest rates — and lower total payments by 40 percent to 60 percent with a repayment term of two or three years. Credit scores may be negatively impacted, but responsible credit use after completing a debt resolution program can rebuild credit relatively quickly.

Debt Consolidation rolls multiple debts into one loan or into a mortgage. It may or may not bring lower payments. Borrowers using a mortgage to consolidate put their homes at risk and might run up just as much credit card debt within a few years. Those considering debt consolidation must make sure they can afford the resulting payment. Those considering using a mortgage for consolidation must make sure that they are not putting their homes at risk of foreclosure.

Credit Counseling provides lower interest rates, with a repayment term of five to 10 years. Total debt principal is not reduced. Many credit counseling firms operate with creditor funding, so the debt management plans created for consumers may be more in line with interests of the creditors. In addition, credit profiles can prevent access to credit while a consumer is in a program, as many lenders view debt management plans similarly to bankruptcy.

Bankruptcy is a less-viable option for most consumers today, following the reforms of several years ago. Those changes included the institution of a “means test” to determine eligibility for Chapter 7 protection, which eliminates most consumer debt. Those whom the law deems to have enough income (as defined by each state’s median household income) to re¬pay at least a portion of their debt cannot obtain Chapter 7 protection. Chapter 13 filings – which re¬quire consumers to repay debt on a repayment plan – are still available, but generally offer less-favorable terms than found in debt resolution, and result in a significant black mark on a credit report.

Questions to ask a debt partner
People who are looking for a trustworthy organization to help win the battle against debt can ask Stroh’s seven questions to choose a reputable firm:

1. Compensation: Does the company get any form of consideration or compensation from the creditors themselves? Some firms receive funding in the form of what are called “fair share” payments from creditors. The payments are incentives to get consumers into debt management plans (DMPs), and could lead to a conflict of interest between creditors’ and consumers’ interests.

2. Professional memberships: Is the company a member of its industry associations, or does it hold itself to a quality standard verifiable by third-party accreditation? A “yes” answer means the company is willing to have its practices scrutinized and to respond to consumer complaints.

3. Individualization: Does the company provide actual consultations and provide advice/education to consumers free of charge? Or is the company simply directing every consumer into a debt management plan?

4. Free education: Does the company provide educational material, including budgeting and financial advice, free of charge? Many firms consider educational material an additional fee source, not a benefit to their clients.

5. Background: What is the background of the company’s management team? Look for good, relevant education and experience — not a team that jumps from opportunity to opportunity to make its fortunes.

6. History: How long has the company been in business?

7. Success: What are the company’s dropout and success rates? Request these statistics. Leading credit card companies report that many credit-counseling firms have dropout rates as high as 90 percent.

About Freedom Financial Network (www.freedomdebtrelief.com)

Based in San Mateo, Calif., Freedom Financial Network, LLC (www.freedomfinancialnetwork.com) provides consumer debt resolution services through its Freedom Debt Relief and Freedom Tax Relief divisions. The company works for the consumer, negotiating with creditors to lower principal balances due that can often result in savings of up to half the amount owed.

Freedom Debt Relief (FDR) has served more than 50,000 clients since 2002 and currently has 28,000 clients working with the company to resolve their debt challenges. In the past month alone, the company resolved more than 3,500 cases for its clients, representing accounts worth more than $20 million. On average, FDR settles cases on behalf of its clients for 47 percent of the outstanding balance — a savings of 53 percent.

Company co-founders and co-CEOs Andrew Housser and Brad Stroh were named to the Silicon Valley/San Jose Business Journal’s “40 Under 40″ list in 2008, and are recipients of the Northern California Ernst & Young 2008 Entrepreneur of the Year Award. The company, with 475 employees, was voted one of the best places to work in both the San Francisco Bay Area and in Phoenix, home of a satellite office.

Mark Bowland
http://www.articlesbase.com/personal-finance-articles/freedom-debt-relief-offers-answers-clarity-for-those-struggling-with-debt-721342.html

First Time Home Buyer

Posted on March 11, 2010
Filed Under foreclosure home listing | 3 Comments

It’s not uncommon for a first time home buyer to say to me, “Gosh, just last week I called you about buying a home and now I’m in escrow! How did this happen so fast?”

The answer is it didn’t. First-time home buyers start the search long before most even realize it.

Here’s what you can expect from your home shopping experience.

Figuring Out the Benefits

You should buy a home. That’s what you’ve been hearing from friends and family, right? So, by now you have likely already weighed the benefits and decided that home ownership was the best decision for you. That’s a major hurdle now passed. You are focused and certain. Good.

Defining Search Parameters

Almost 80% of all home searches today begin on the Internet. With just a few clicks of the mouse, home buyers can search through hundreds of online listings, view virtual tours, and sort through dozens of photographs and aerial shots of neighborhoods and homes. You’ve probably defined your goals and have a pretty good idea of the type of home and neighborhood you want. By the time you reach your real estate agent’s office, you are halfway to home ownership.

How Long Should It Take to Find What You Want?

In seller’s markets, often I show only one home. After all, how many homes does one family need? A few buyers will look for years, but buyers who do that aren’t motivated. A motivated buyer will find a home within two weeks. Most of my buyers find a home within two days.

Good real estate agents will listen to your wants and needs and arrange to show only those homes that fit your particular parameters. Your agent should preview homes before showing them to you as well.

How Many Homes Will You See?

Studies show that the your memory dramatically improves after consumption of carbs and slows upon consuming sugar. So, layoff the soft drinks and have a hearty meal of carbs before venturing out to tour homes. The average number of homes that I show to a buyer in one day is seven. Any more than that, and the brain is on overload. Therefore, don’t expect to see 20 or 30 homes; although it’s physically possible to do so, you probably will not remember specific details about any of them.

The “Red Shoes” Experience

Women will relate to this. Say, you need a new pair of red shoes. You go to the mall. At the first shoe store, you find a fabulous pair of red shoes. You try them on. They fit perfectly. They are glamorous. Priced right, too. Do you buy them? Of course not! You go to every other store in the mall trying on red shoes until you are ready to drop from exhaustion. Then you return to the first store and buy those red shoes. Do not shop for a home this way. When you find the perfect home, buy it.

How to Rate Inventory

* Bring a digital camera and begin each series of photos with a close-up of the house number to identify where each group of home photos start and end.
* Take copious notes of unusual features, colors and design elements.
* Pay attention to the home’s surroundings. What is next door? Do 2-story homes tower over your single story?
* Do you like the location? Is it near a park or a power plant?
* Immediately after leaving, rate each home on a scale of 1 to 10, with 10 being the highest.

View Top Choices a Second Time

After touring homes for a few days, you will probably instinctively know which one or two homes you would like to buy. Ask to see them again. You will see them with different eyes and notice elements that were overlooked the first go-around.

At this point, your agent should call the listing agents to find out more about the sellers’ motivation and to double-check that an offer hasn’t come in, making sure these homes are still available to purchase.

Making the Selection

I’ll let you in on a little secret. I generally know which home a buyer is going to choose, and I suspect most other agents operate the same way. It’s an intuition. But I make it a practice not to steer buyers, and I insist that buyers choose the home without interference from me. It’s not my choice to make.

Real estate agents are required, however, to point out defects and should help buyers feel confident that the home selected meets the buyer’s search parameters.

gloconseo
http://www.articlesbase.com/mortgage-articles/first-time-home-buyer-671992.html

Short Sales Vs. Home Loan Modification

Posted on March 11, 2010
Filed Under foreclosure home for sale | 4 Comments

Short Sales are when a lender is “shorted” on the balance of the mortgage that they are holding.  The client can’t afford their monthly payment and have to find other means on getting out of their current financial situation, by selling their home.  Doing a short sale could be like wrestling with a Tiger and trying to win.  There are so many stipulations on doing short sales and most of the lenders won’t even talk to you about doing one. 

Lenders are leery about the short sale process; they’re going to lose money on the sale itself.  Lenders will determine if the short sale is a good step for the client and also for them.  Short Sales are a case by case process, which is only determined by the lender themselves.  Most lenders are losing anywhere between 40k-100k per sale; which is going to affect their bottom line.    

  The work on the part of the seller and buyer on a short sale is overwhelming.  The lender doesn’t have a specific department dealing with short sales directly, like with Home loan modifications (loss mitigation department).  The seller could be making a lot of phone calls to the lender just to get to the specific person.  Here is some basic information that is needed on a short sale, bare in mind that every lender is different.


·         Call the Lender

·         Submit Letter of Authorization

·         Preliminary Net Sheet

·         Hardship Letter

·         Proof of Income and Assets

·         Copies of Bank Statements

·         Comparative Market Analysis

·         Purchase Agreement & Listing Agreement

·          

Home loan modifications are in essence the restructure of the original contract with the lender.   Many adjustments can be made on the contract to bring it to a current status, if delinquent.  Lenders will be able to restructure the current loan by lowering the interest rate, lowering the monthly payment, reducing the principle balance or changing the terms to a fixed rate, (if current loan is an ARM, adjustable or interest only loan). 

Currently lenders are gearing towards home loan modifications.  Lenders are feeling “safer” doing a loan modification because they are not going to lose money.  The process for a loan modification is easier for the owner.  There is a specific department with the lender that you can speak with (loss mitigation department) when wanting to do a loan modification. 

The economy being in the situation that it is currently, and from my experience, home loan modifications are the way of the world.  It is actually a “win/win” situation for the home owner and for the lender.  The home owner gets the relief that they are searching for, and the lender get to bring the delinquent contract to a current status, showing profit. 

If you are feeling the pinch of a delinquent home loan and stressed about losing your home to foreclosure, we are here to assist you.  We offer a money back guarantee if we can’t get your delinquent home loan modified.  For further details on how to obtain a loan modification please visit www.swdebtrelief.com.

                                                                               

George Tucker
http://www.articlesbase.com/mortgage-articles/short-sales-vs-home-loan-modification-669434.html

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