Has your number been called yet in the UK or are you just looking for a better overall mortgage rate? If so, now is the time to start looking while interest rates are still reasonable. The hardest part is finding the right person or loan broker to work with (at least in my experience) but with the internet at your fingertips, it’s much easier.

As I mentioned in my previous post about researching home insurance policies, using a search engine comparison site is the best way to compare and find deals catered for you. This is also true when it comes to just about anything these days. Before I order things online, I use shopping comparison sites like Froogle. When I’m searching for health insurance I’ve used ehealthinsurance.com. Now, if you’re living in the UK and looking for a remortgage, I would try a site like remortgage.org.

Remortgage.org makes it easy to speak with a mortgage professional for free advice regarding a remortgage in the UK. After completing 3 steps on their site, you’ll get access to one of their professional remortgage brokers. They will then answer your questions regarding advice on a mortgage or remortgage in the UK. I have yet to personally try them out since I don’t live in the UK but their site is pretty clean and useful which presumably means their staff is professional too.

If anyone has used remortgage.org, I would love to hear about your experiences by commenting below. Our goal is to help share knowledge and real estate information that is useful to all.

Let’s assume you found a property from one of the foreclosure sites I mentioned in my previous post “How to Find Foreclosures – Where Do I Start?” or in a legal notice from your newspaper. You’re excited with the information you read about the property and you’re ready to start doing additional research. At this point it’s a good idea to go look at the property before you spend any of your time processing the legal work. Until you do that, you don’t even know what the neighborhood looks like, the condition the property is in, and if it’s vacant or not. If you don’t know these simple things about the property, you’ll never know how risky of an investment it could or could not be.

What happens if the legal description or foreclosure notice you read doesn’t list the physical address? You have a couple options like contacting the title company and asking them to lookup the street address, calling the attorney that’s managing the foreclosure, or go down to the courthouse and look it up. Once you get the address, you can continue reading below.

Once you arrive at the property you’re only able to in most cases, view the outside of the home. You really need to see the inside if you are to properly make a decision and this is always extremely difficult because it’s not like an open house. There are several options here and it really depends on your judgment and comfort to be able to have a peek inside. Your options are to walk up the steps and knock on the door and see if anybody is home, if the house looks vacant or abandoned maybe take a quick walk around the property and peek through any windows without disturbing the neighbors, or just walk away and look for a different property. Now I’m not suggesting you trespass nor illegally enter a property and that’s why I said use your judgment. If it’s nighttime and you’ve got a flashlight it’s probably not a good idea to wander around the property unless you want the local authorities coming by to meet you.

Let’s say you were able to see the property and got a nice glimpse of the inside. You felt it’s a good prospect to bid on. Your next step is determining what it will appraise for. I’d recommend you hire an appraiser, realtor, or another investor who has more experience to help you pin down an approximate price on what it will appraise for. There’s a good chance depending on if you were able to get a glimpse of the inside in the previous step, that the appraiser will not be able to look at the inside and only give you a rough appraisal based on what he or she can see on the outside. Of course, there are exceptions, and you might not be too disappointed if you trust just the condition of the outside.

Stay tuned for step #2 – Contacting the Trustee

The timeline of the foreclosure process will depend almost entirely on the state laws, so homeowners in danger of missing more than one mortgage payment should look those up as soon as possible. Various time lines are determined by the state, including notices that must be posted or mailed, redemption periods after the sale, and the scheduling and confirmation of the sheriff sale. Even procedures for postponing a sheriff sale are determined by the state laws. All of these aspects will be taken into account for the actual time that foreclosure victims have available to save their homes.

However, in general, the mortgage company will start the foreclosure process about 3-6 months after the first missed mortgage payment. Even though they can start it after the loan is technically in default (after 30 days late), lenders understand that many homeowners face short-term financial hardships and will be able to get back on track quickly. If the homeowners are keeping in contact with the bank, working out a repayment plan or trying to sell, they may postpone the actual foreclosure filing for a number of months, depending on the success of the homeowners. The mortgage company will want to give their clients some extra time to pay the loan back if the lines of communication are open. Of course, if the homeowners do not call the bank and ignore the phone when the lender calls to find out why they are not making the payments, then the foreclosure will begin much earlier.

Generally, a few weeks to a few months after the foreclosure is filed, the sheriff sale will be conducted at the county courthouse. Again, homeowners can get this postponed for a while, if they are working on a solution to save the home. Keeping in contact with the bank, letting them know how the process is going, and asking for more time if it is needed are all actions that foreclosure victims can take to prevent losing the home at a hastily scheduled foreclosure auction. The homeowners will have to put something in writing to the bank to show what they are working on, but postponing a sheriff sale can be quite simple. All it takes is communicating with the bank and working on a solution to the problem.

Now, after the sheriff sale, there are two possibilities, depending on the state foreclosure laws. First, the eviction process may begin right away. If this is the case, it can be another 2 weeks to a month or so between the sale date and the eviction date. The bank will have to ask the court for possession, the court will have to confirm the sale and order the county sheriff to evict the former homeowners and change the locks. But this is not a one-day process, with the sheriff kicking out the homeowners a few hours after the auction. Homeowners will still have a small amount of time to plan their future, find a new place to live after foreclosure, and move items out of the house.

The second possibility is if the state law allows for a redemption period, which is extra time after the sale that homeowners can work to keep their homes. During the redemption, they can try refinancing, selling, or paying the loan in full some other way, and keep the home in their names. After the end of redemption, though, the eviction process will start and it will be a few weeks after that that the sheriff shows up to remove everyone. But, if homeowners are unaware of the extra time they are given by state law, they may move out of the house before they have to. Redemption periods can be used by homeowners to begin a savings plan, pay off other debts to improve their credit, or begin to recover financially in other ways.

Without having the relevant information to understand how long the foreclosure process will take, many homeowners make mistakes that could otherwise be avoided. They may believe they have to move out before it is necessary, crippling their ability to start repairing their financial lives. Or, they may think that they have a lot of time left because of faulty assumptions about when the bank will start the foreclosure process, which can leave them staring at a sheriff sale before they even know it has been scheduled. Knowing how long foreclosure takes, and understanding that it is conducted differently in each state, is some of the most important advice that homeowners can receive, and will allow them the greatest chances to save their homes.

By Nick Adama

While these laws provide further regulations that reputable foreclosure experts must now follow, the foreclosure scam companies will continue to do whatever they can to take advantage of homeowners in foreclosure. Many of the worst of these companies do not even bother to research the relevant foreclosure laws and rely on homeowners to fail to gather their own foreclosure information. In essence, they rely on their own ignorance of the law and the foreclosure victims’ ignorance in order to prey upon homeowners. This presents a unique opportunity for legitimate foreclosure investors and companies to fill this void by educating foreclosure victims on what can be done to stop foreclosure legally and effectively.

The vast majority of homeowners in foreclosure would like to keep their home if a suitable solution was presented. The idea of being set out on the street with nowhere to live and no opportunities to improve the lives of their own children causes great anxiety and scares homeowners to the point of trusting a scam to take care of their problems for them. Investors who are able to educate homeowners and structure a deal that is in the best interests of all involved are able to provide these homeowners with local solutions to stop foreclosure that will give them the best opportunity to repair their financial lives and get out of debt. Obviously, this deal will have to be a win-win situation for both the investor and foreclosure victims, but any win-lose or lose-lose situation will not provide either party with a long-term solution to the problem. Being honest with homeowners in foreclosure about their options and educating them on what will happen before, during, and after the foreclosure process is often the most effective way to come to a mutual understanding of the benefits of any plan to save a home.

There are many possible solutions to help homeowners save their homes from foreclosure, including ownership partnerships, trust agreements, and land contracts, to name just a few. Structured correctly and reviewed by all parties and their legal counsels, these can be very successful in putting an end to the foreclosure process. The most commonly used solutions are rental agreements and leaseback options, which give homeowners the possibility of living in the property and making rent payments until they have significantly improved their credit and can qualify to purchase the home back. Sometimes, these options will result in lower payments for the homeowners, as investors can often qualify for lower interest rates and pass those savings along to the foreclosure victims, which provides them with the best chance of eliminating debt and starting a savings plan.

By carefully considering a legal and mutually beneficial method to stop foreclosure, both homeowners and investors can provide each other with important benefits. Investors will be able to acquire a new investment property, improve their own credit scores, and make income from helping the foreclosure victims. Homeowners, in turn, will be able to avoid foreclosure without the loss of their homes, be able to remain living in their house, have an opportunity to repair their credit, and eventually repurchase the property, completing the process of financial recovery. In addition, educating homeowners on how foreclosure works and what causes it will allow communities to learn how to prevent future foreclosures and build a knowledgeable local population on guard against various foreclosure scams, who will not rely on the government to protect homeowners in financial hardships.

The foreclosure rate in Antioch is seven times that of the region as a whole and nearly 1,000 percent higher than it was a year ago. They now have twice the bank repossession rate of greater Stockton, an area often cited as the No. 1 foreclosure spot in California.

This is very unfortunate for the owners but could be an opportunity for real estate investors who can buy and hold for the long-term. Some houses selling for $500,000 last year are now on the market for $400,000. I’m sure you could make a lower offer and get a stellar deal. Realistically though, to make a profit on something like this you’d either have to move into the house and wait for the market to correct itself (could take several years) or rent out the house. Chances are the rental market is tough because others in the same situation are trying to do the same.

Are there any investors or real estate agents out there who have experience in this sort of market? What is the best approach to making a profit on foreclosures in a downward trending market? Please add your comments below.

As the number of foreclosed properties continue to rise, new opportunities await for others. These are fast becoming ideal market conditions for a niche group of real estate investors called foreclosure gurus. They can deliver homeowners fast cash in return for their property which is inevitably sold at a nice discount. These type of foreclosure gurus used to post ads in the newspaper or staple ads to telephone poles but now there are several websites that make finding forclosures much easier.

Here are some beginner tips for those of you wondering where to start in the foreclosure market:

1. Check out a couple of the new online services like propertyshark.com and foreclosures.com (aff). These foreclosure listing sites provide the latest foreclosures in your area and often include the amount owed and the estimated value. The amount of time you save by using these sites versus having to find foreclosures the old-fashioned way is well worth the expense if you’re serious. Both of these websites provide a free trial so you can test the site out before you commit to their paid service.
2. Don’t even bother attending public foreclosure auctions unless you’re a pro. Despite what you may read in foreclosure books, typically these auctions are controlled by banks and other big lenders so the chances of you actually nabbing a foreclosed property are pretty slim. Instead, use an online service like the ones I mentioned above to find a property right after it goes into default. During that time there is a brief window to negotiate directly with the property owner which is your chance to get the property before it even hits a public foreclosure auction.
3. After spotting a property online right after it goes into default, you’ll want to get in touch with the property owner or their lawyer. Your goal here is to ask the owner if there is any way to negotiate a purchase of their property before it goes into auction. Most of the time especially if you speak with the attorney, the answer is going to be a firm no. If that’s the case, it’s best to go down to the property and find the owner directly. The lawyer is less likely to cooperate because there’s usually no additional benefits for them to work out a deal before it goes into foreclosure.
4. If the owner is willing to work out a deal then you’re in good shape and it’s time to negotiate a price and terms. If not, you might have to get creative and see if the owner is willing to become your partner. What you can do is promise to solve the owner’s immediate problem by paying enough mortgage-backed payments to get the loan out of default. In order for this to work you have to exchange for the deed to the property and potentially provide the owner with a temporary apartment if you need to refurbish their home. Then once you sell the house, you give the owner a check for a portion of the profit which typically ranges between 10 to 20%. If neither one of those strategies work, it’s probably best to move on to another foreclosed property.

These are just a few techniques to get you started in the foreclosure market. Being a newbie and dealing with a risky yet high reward investment you’ll want to be careful especially the first time. Don’t feel like you need to rush into things as the good news is forclosures are continuing to rise so there’s going to be a lot of inventory in the coming months. There will be plenty of opportunity for you to find foreclosures so don’t get frustrated if the first 5-10 properties you inquire about don’t end up the way you want it to. Keep reading articles on my blog and educate yourself so you’re comfortable before you make a move.

There’s a relatively new condo development (one of many) in San Francisco called 170 Off Third. I went down to check them out because they’re in a great South Beach location literally across the street from the San Francisco Giants baseball stadium. The units are on the smaller size but I really liked the modern art deco look and feel of the building and common areas. It would definitely be a nice place to live but I’m cringing for those who fall victim to their “last chance” offer. Here’s a portion of the e-mail I recently got from them:

Last Chance for 170 Off Third’s 5.625% Interest Rate!

This weekend is your last chance to take advantage of 170 Off Third’s Seven Year, 5.625% Interest Rate Offer! Hurry in – you must enter into a contract this weekend on either a two- or two-bedroom plus residence.*

This exciting program’s monthly savings have allowed our newest residents to afford a more spacious home. Come in and speak with 170 Off Third’s onsite lender who will work with you to explain this rate’s immediate and long-term benefits. The savings can help place you in a spacious two-bedroom residence in the heart of South Beach!

It’s a great deal and I must say it’s very enticing but here’s the sentence that worries me. “This exciting program’s monthly savings have allowed our newest residents to afford a more spacious home.” You know what that translates into? It’s telling me that someone who can’t really afford to live in this building now can because of this lower interest rate offer. That’s great but when the terms of this introductory rate are over, chances are this person is going to be hung out to dry because they can’t afford the increased mortgage payment.

Also, what are the terms? If you notice the “*” at the end of the first paragraph there is the fine print which is located at the bottom of the e-mail. Here’s what it says:

* Interest rate based on 7/1 ARM Interest Only and is fixed for seven years. No buy down fees to be paid by borrower. This is NOT a negative amortization loan. This is NOT a temporary buy down loan. First loan amount assumed to be 80% of purchase price, or less, with a minimum down payment of 10% of purchase price, full documentation of assets and income, and a credit score of 720 or above. Interest rate and payment on second loan will be based on prevailing market rates and amount of down payment. Rates are subject to current market conditions and may change at any time. Valid only for owner-occupied homes. Valid only for loans originated with The Murray Team at Triton Funding Group. Other terms and conditions may apply.

This is really what worries me and the lending industry as a whole because builders have already invested in developing the condos but with the slowdown in the housing market they just can’t fill them fast enough (or at all) to recoup their original investments. So instead they offered these amazing low interest rates to lure naive home buyers just to get them in the door and then the builder can cash out and go along his merry way.

I think it’s gonna get much worse before it gets much better. These promotions of low interest rates for home buyers of course look great and they are… for the first couple of years. And for some it may work out fine as they make more money each year or end up selling before their ARM actually adjusts. If that’s the case, great. But for the majority it’s unfortunately not going to play out this way because they either aren’t thoroughly educated by the lender or broker or they have unrealistic expectations in the future of how much more money they will make by the time their ARM adjusts.

Why is this happening?
It’s because home buyers were spending more money on new properties than they can afford and because loan brokers and mortgage companies were allowing them to overextend themselves. These brokers (in my opinion) were taking advantage of home buyers by giving them great deals on 3-5 year ARM loans or interest-only loans which allowed them to buy bigger houses they couldn’t really afford. Brokers of course get paid commissions from lenders they match you up with but that’s a different story.

So what’s happening now?
All those 3-5 year ARM loans are now starting to adjust and homeowners are unable to cope with their mortgage increase and have to foreclose on the property. This is even more so true for homeowners who took out an interest-only loan. So in my opinion the next few years is going to be prime time to pick up deals on foreclosures. So what I am studying now is how to take advantage of this cycle in the real estate world by examining how to find houses in the pre-foreclosure stage. So pre-foreclosure real estate investing could mean lots of opportunity and moneymaking potential. At the same time, it requires that investors be on their toes and careful in their decision-making. It also takes a lot of time since real estate investments take longer to liquidate that and other investments meaning you cannot always get your money back quickly.

Pre-foreclosures are beneficial to the seller and to the buyer. It means the seller doesn’t have to go into foreclosure with the banks and their credit doesn’t get affected. The buyer essentially bails out the seller and takes over the property. The seller will most likely lose all equity built up (if any) and will have to sell their home usually at a discount which is all good news for the buyer.

I will talk more in detail as I learn about pre-foreclosure real estate. Once you understand the foreclosure process, you can take advantage of a situation that you did not create and one in which the homeowner cannot fix. It will allow you to build a wealthy future for yourself by investing in this type of real estate.

So you’ve stumbled on a piece of property and the owners invite you to come over and during the second cup of coffee they make a deal that can’t be beat. The only bad thing is that they are leaving town tomorrow and won’t be back for a closing for three weeks. Being desperate, you reach into your bag, pull out your laptop and printer and do a self-prepared deed and close the deal right in the kitchen.

After all, you’ve seen it done on television ads for years and you know a few folks who have acquired hundreds of properties and saved in closing costs for each of them. Here’s what you should think about
the ‘kitchen table closing’.

• DO not do them as a standard way of business. You will be deemed the scam artist of the real estate world.
• DO not do them as a way of saving on closing costs. You probablywon’t save much anyway with this method.
• DO not make your kitchen table closings part of your spiel to buy property. They DO NOT hold in court in most cases
• Some people will refute them if they change their mind.

Now that you have a great view of this style of real estate closing, let me tell you a few more things about kitchen table closings.

• Do them. If you feel that a seller may be flaky, do the closing at the home right there. It’s better than nothing.
• Don’t use them. Have these documents as a backup in case your seller fails to show for the ‘real’ closing at the title company.
• Keep those documents handy. Most sellers are willing to understand them as a legal contract and will follow through, if not, you’ll at least have something to show in court.

It’s always good to get something in writing from a seller when an agreement is made. I have seen too many deals go down the drain over a hand shake and five days between the deal and the closing. All-in-all, be honest and don’t get greedy. If one deal flakes, keep walking the streets and find you another property to invest in.