23. January 2012 by Kristian Alekov.

Just the sound of the word “foreclosure” leaves many people feeling uneasy. The idea of losing the place you call home, and your equity in it, is obviously concerning to many. For anyone who has experienced it, or has been close to having their house or condo foreclosed on, understands first-hand the implications that can occur, and the complex process that is involved in foreclosures.

Foreclosure occurs when a person who borrowed money to purchase a home, no longer makes mortgage payments. It is a legal action taken by the lender, or other lien holder, that allows them to take or sell the home, by first getting permission from the courts.

A mortgage is the most common way of obtaining money to purchase a house, condominium, or townhome. It’s a legal contract that offers the lender, or mortgagor, security that that person borrowing the money, or the mortgagee, will pay the loan back. The mortgage is a promise to repay with interest over a specified period of time, with the consequence of being foreclosed on, and/or sued by the moneylender. The lender is usually a bank, but mortgages can also be obtained through other secured creditors.

The process of foreclosure can be a lengthy one, and occurs in the result of default mortgage payments. However, just because a mortgagee misses their mortgage payment or is late on making it, doesn’t mean that they will automatically lose their house or condo. Lenders generally don’t want foreclose because the expense and time involved. Often, mortgagors will wait until mortgage payment are more than two to three months behind. During that time, they will send letters warning of their intention to foreclose if payments aren’t made. At this time, they will then follow through if the homeowner doesn’t respond in time, and also sue them.

Anyone who finds themselves in temporary financial troubles, like a layoff, should immediately contact their lender to explain the situation and make a deal that may include making smaller payments in the meantime, while paying more later. Many lenders will work with people on this to keep the mortgage in good standing, rather than initiate costly court proceedings.

Before a mortgagee finds themselves in a foreclosure hearing in court, they will be sent a legal document from their local court that states that their home is in threat of being foreclosed on by the lender. If this happens, a mortgagee should seek legal counsel, or pay the defaulted amount if possible. They must respond to the letter if they don’t want to lose their home.

In some cases where a homeowner knows they can no longer pay their mortgage, it may be more costly to simply let their home be foreclosed on. They must be aware that, they can still be sued if the value of the house or condominium is less than the amount owing. In this case, the lender can sue them, and they’d still be responsible for paying back the difference.

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23. January 2012 by Kristian Alekov.

Landlords are typically required to return security deposits within 14 to 30 days after you move out of the rental home. The landlord must send to your forwarding address, either your entire deposit (plus interest if applicable in your state) or a written, itemized statement describing how the deposit was applied to a pending issue in the homes for rent to back rent, cleaning, or repairs, plus the remainder of the deposit.

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22. January 2012 by Kristian Alekov.

Here are a few tips to help you keep your dealings as smooth and legal as you can when you deal with foreclosed homes and property.

Follow proper eviction procedures. As much as you would love to throw out the homeowner, there are definitely several other procedures you should follow. Recent laws have been passed to protect homeowners from illegal eviction. So even if you own the property, you cannot simply lock the door and expect them to leave. Not doing so could get you slapped with a lawsuit or worse.

Avoid increasing leases for current tenants. If the lease is valid during the period of foreclosure, the new property owner has to honor the existing terms and conditions. Breaking the lease or agreements could land you in trouble.

Avoid taking possession of personal property found in the home. Unless the bank has foreclosed on certain personal property to help pay the default, any personal property you find in the home belongs to the previous owner unless a 30-day period has passed. You are required to inform the previous occupant in writing that you have found or have their personal property. If there is no response within 30 days, you can dispose or sell it as you see fit.

Be aware of code violations. Many foreclosure investors often take on the repair work themselves and end up paying fines for neglected zoning or building codes. The most frequent violations include the fire code, smoke detectors or lacking railings for outside staircases. Fines will definitely results — and you will have to do it all over again.

Don’t fall victim to false claim flops. Never buy a home before inspecting it. Many scammers sell a home that has been “rehabbed,” but only has minute repairs. Indulging in this practice can get you slapped with a fraud charge.

Thinking that is better than buying. It sounds like a good idea at first: squatting on abandoned property to earn adverse possession rights. Keep in mind that most states only grant this after a set period of years, sometimes as many as 15 or as few as five. And you have to live there full time.

Avoid working with a partner. Remember that in partnerships, especially legally binding ones, you will and can be held accountable for your partner’s misdeeds. You share the wealth (and the blame).

Letting yourself fall for occupant stories without proof. Remember that in court, papers mean everything. A homeowner in a bind will not hesitate to say that they paid a lien, judgment or even a water bill even if they never did. Always look for records and proof. If not, consider these unpaid dues as part of your responsibilities and future liabilities. A soft heart can mean no profit for you and it can also be a ploy to get you to stop eviction or let them live there for free.

Never invest in shady companies that claim to deal in foreclosure. Investing your money in a company that deals with foreclosure real estate can be one way for you to make money. Many so-called companies online are not companies at all, but carefully set up scams set up to bilk unsuspecting people of money. Before investing, confirm the company’s status with the Better Business Bureau or Department of Consumer Affairs. Search the company’s name online. A hint? If you see the same website with a dozen different names, but the exact same content, chances are the “foreclosure investing company that guarantees to make you rich now” is a scam.

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22. January 2012 by Kristian Alekov.

Talk about tax issues and you’d get a headache! There are tons of ways to fully claim deductions on your property investment. The sooner you claim them, the better. In Indiana, there are property tax deductions that homeowners can easily qualify. For example, taxpayers are eligible for a $35,000 deduction from the assessed value of property and 20 percent from the net tax amount. Senior citizens take a $6,000 reduction of the assessed value of property before taxes are calculated. Even mobile homeowners have a tax deduction eligibility granted to them.

Here is a clever presentation of paying less tax:

Completing the 1040 or 1040A for some people has gone really clever. Kiplinger.com lists the weirdest tax write-offs that you won’t believe the IRS has allowed. I’ve had the “why-didn’t-I-think-of-that” moment upon reading the last part of the article. Three cases are somewhat absurd to me:

Case 1: Relocating to a New Home With Fido
The article states, “The IRS says if you are changing jobs and meet a couple of tests, you can deduct your moving expenses—including the cost of moving your dog, cat or other pet from your old residence to your new home. Your pet—be it a Pekingese or a python—is treated the same as your other personal effects.”

Case 2: Landscaping has Always its Benefits
Right after writing this, I’d be hiring a professional landscape designer. The article states, “A sole proprietor who regularly met clients in his home office was allowed to deduct part of the costs of landscaping the property, on the grounds that it was a part of the home being used for business, according to the Tax Court. The court also allowed a deduction for part of the costs of lawn care and driveway repairs.”

Case 3: Take a Dip in the Pool
I wouldn’t be emulating this man. Kiplinger.com writes, “A taxpayer with emphysema put in a pool after his doctor told him to develop an exercise regime. He swam in it twice a day and improved his breathing capacity. Turns out he swam in the pool more than his family did. The Tax Court allowed him to deduct the cost of the pool (to the extent the cost exceeded the amount it added to the value of the property) as a medical expense because its primary purpose was for medical care. Also, the cost of heating the pool, pool chemicals and a proportionate part of insuring the pool area are treated as medical expenses.”

Clever, huh? But before you begin hatching a plan on your property to lessen your contribution to Obama’s revenues, be careful on what risk you’ll take. These cases are one in a million and the IRS is not composed of some gullible folks who just sit in their cubicles from 9 to 5. Your actions may backfire later on.

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22. January 2012 by Kristian Alekov.

At the time, the tenant moves in and the lease begins, the landlord must provide the tenant with the name, address, and phone number of who to contact with concerns and rental problems.

The landlord is responsible for making any repairs that are needed to comply with the local housing codes for the rentals area and to keep the rental safe. If the landlord refuses to make major repairs to the rental that are needed, you may report the defects and need for repairs to the local building or health inspector. The landlord may not retaliate by evicting you if you report them for un-repaired safety violations.

Unless otherwise agreed and written in the lease, tenants are usually responsible for routine minor repairs in the rental. Tenants are also required to comply with any maintenance and sanitation requirements by local housing codes. Tenants are also financially responsible for any damages that they or their guests cause at the termination of the lease.

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21. January 2012 by Kristian Alekov.

For a growing family and those who wish to start their own families, finding the perfect place to live in is such a stressful and daunting task. Some families have grown content in a rent a house set up; this is primarily because they equate buying their own house to having their pockets emptied and being dragged into a hole known as mortgage loan.

With the current condition of real estate market and the current trend of the economy property foreclosures are now considered as common occurrence. Given the number of foreclosed properties and homes, the prices have plunged to levels that have never been reached before. Prices for houses and properties have reached an all-time low.

Considering the low prices and several schemes that you can apply for in buying foreclosed homes, a house that has been foreclosed might just be the home that you’ve been dreaming of. Truth be told, everybody wants to find the perfect place that they can call their own, a place they can call home. So why keep on dreaming if you can make it a reality today? Why imagine your dream home if you can make it a reality?

Today, buying the house of your dreams does not mean putting a deep hole in your pocket. Purchasing the house of your dreams no longer means being buried to a pile of mortgage loans that contains amount that can turn having your dream home to a nightmare.

Having your dream home is now made easier and far less expensive given the current economy and the percentage of foreclosure activities throughout the world. The rising supply of properties and homes because of foreclosures are making the prices even lower.

Although it is true that foreclosed homes are not brand new, this doesn’t mean they are ransacked buildings or structures. With a careful review of the options that you have and a strict background check of the property you are sure to have the perfect place for your family. Review the neighborhood and check for damages or deteriorations on the property, these things can even be your bargaining chips towards getting a more favorable price through haggling.

Some foreclosed homes can even be considered as good as new, minor repairs are only needed and with some further refurbishing you can turn a foreclosed house to your dream home. So why settle for simply renting or buy a trailer for a home if you can have the home of your dreams? The number of foreclosed homes is growing by the number and they are all waiting for you.

If you are simply waiting for the perfect timing to purchase a house, now is the best time. Low priced homes are all over real estate markets, REO properties are crowding bank records and foreclosed houses can no longer be accommodated in every foreclosure listings. Help realtors and banks get rid of their piling records of bank owned properties, purchase a foreclosed home today and transform it to your very own dream home.

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21. January 2012 by Kristian Alekov.

When renting a home, a very common problem is the tenant’s privacy and entering the rental unit. There have been many problems of landlords and property managers entering rentals without permission of tenants. Landlords must give notice to tenant’s before they can enter a rental, except in the case of an emergency. A landlord must receive a tenant’s consent before they or people hired by the landlord can enter a tenant’s rental. A tenant cannot unreasonably deny access to the landlord. Below are the landlords required notice periods:

• A landlord must give tenant 24 hours advance notice if the landlord would like to show the rental to a prospective tenant or buyer.
• A landlord must give tenant 48 hours advance notice if the landlord wants to enter rental for an inspection or to do work or repairs.
• The landlord does not have to give advance notice if they must enter the rental for an emergency.
• If the landlord leaves a note on the door of rental or a message on the tenant’s answering machine and does not hear a “no” back from the tenant or receive a call to reschedule, the landlord may enter the rental.
• A tenant cannot “unreasonably deny access” to the landlord. It is a good idea to communicate with the landlord in writing when rescheduling.

Laws vary state-by-state, check with your state for specific laws and regulations on landlord notice periods.

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20. January 2012 by Kristian Alekov.

What happens to your home will depend on your circumstances, i.e. do you have dependent children or do you co-own the property? Do you own any equity in the property?

Individual Voluntary Arrangements:

To start with, it’s really worth merely mentioning IVAs. An IVA is an agreement designed with unsecured lenders as a substitute to bankruptcy. While it pertain only to unguaranteed credit, it’s going to have no impact on your property and it will not be repossessed as long as you will keep paying your loan. Actually, this is one method to keep you from losing your property. The reason being one particular alternative that could be oftentimes viable for an unguaranteed creditor in case you go into default on a credit agreement, is to get a charging order versus your property and then an order to sell, however once an enough part of creditors consent to an IVA, all of your lenders are limited by it and are prohibited from taking any further measures given that you keep to the settlement.

Bankruptcy Notices and Bankruptcy Restrictions:

Each time a bankruptcy petition, this really is an application to enable you to go bankrupt, is set, the land registry will register a notification regarding all your properties and assets expressing that it would appear that you are affected by bankruptcy procedures. This is done to safeguard the priority of the trustee in bankruptcy versus any dealings that are recorded later on, say for example a transaction or a loan guaranteed on the property or possibly a charging order. In addition, it puts anyone interested in the exact property cognizant that your bankruptcy is very possible.

After a bankruptcy order is created a limitation is going to be registered against the property which can prevent any additional transacting (such as a purchase or re-mortgage) from being recorded not having the consent of the trustee in bankruptcy or, if a trustee has not yet been appointed, the Official Receiver.

Bankruptcy In which the Insolvent is the Sole Proprietor of the Property:

Where the bankrupt could be the sole owner of a property, once a bankruptcy order is produced the title to the property vests in your trustee in bankruptcy (or the Official Receiver). The trustee is permitted to, and could, register himself as one who owns the property. Whether he actually does this, he remains the legal owner as the bankrupt has no more legal right to do any transaction with regard to the property.

The trustee may sell the home or property for the benefit of your creditors however if he does he have to pay any debts attached with property (such as home loans) that had been protected prior to the registration of the bankruptcy notice (hence the importance of the notice). Consequently he will only sell if there is acceptable equity to make a sale worthwhile.

Bankruptcy Where the Bankrupt is just one of Two or More Proprietors:

Where there’s two or more proprietors (even if both are bankrupt) the property or home doesn’t vest in the trustee in bankruptcy and therefore the owners remain the legitimate owners. The trustee will continue to be entitled to all of the equity within the property nevertheless as well as a selling or remortgage can’t commence without his agreement.

If the property is kept as shared property owners then bankruptcy delivers the impact of ending the mutual tenancy so that it can be thereafter presented as tenants in common. This means that if the bankrupt dies, his share in the equity nonetheless goes over to the trustee in bankruptcy rather than to the survivor. To provide the country notice of this a form A restriction (sometimes known as the “sole proprietorship” restriction) will be registered.

Where only one proprietor is bankrupt the trustee can still manage his share but just with the consent from the non-bankrupt, so as an example he may sell it off to a friend or relative.It should not be possible to evict the bankrupt provided the non-bankrupt wishes him to remain.

Where both homeowners are bankrupt the trustee might be able to compel a sale. It is because the owners in effect hold the property on trust for the benefit of the trustee.

Am I allowed to Continue Paying My Mortgage Although Bankrupt?

You can and should continue paying your mortgage while bankrupt. The truth is the trustee will probably promote this since your home is probably your best asset and by being repossessed its value will be diminished. Naturally in the event the trustee is ultimately planning to take possession then sell you may think about that it is not really worth spending any additional money on mortgage repayments.

Will I Have to Get out of My Home When I End up Bankrupt?

If there’s equity in your property and you are the sole owner, or there are actually joint owners and both of you are bankrupt, the trustee will most likely check out sell, either without delay or in the foreseeable future. Before he does so you will need to vacate. You’ll be able to depart on your own but should you be not ready to do so the trustee will have to obtain an order for possession then a warrant for eviction. The costs of any legal action will have to be deducted from the earnings of sale.

If there is no equity in the property at that time then the trustee is not going to sell right away.

What goes on When I am Discharged From My Bankruptcy?

If you are declared as bankrupt your assets (including your property) are owned by the trustee and just because you are released they don’t return to you. You possibly can pay a premium to ask the trustee to assign back your property to you. If the property or home is not re-assigned to you personally then the trustee may perhaps sell it without notice, even when you have been discharged.

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20. January 2012 by Kristian Alekov.

Your particular job situation can have a major effect on your decision to find apartment rentals that you like versus a decision to purchase real estate. This consideration – or dilemma – is not related to money; neither your salary nor savings account. That issue is a simple one to resolve. Jobs and careers affecting why you should rent or buy are much more complex. Consider the following issues that may or may not have clear answers for you.

• At what stage is your career currently? Have you begun a real career or do you still have just a job? In the mid-term future (five to ten years) what do you foresee in your professional life?
• Do you work for a local company or a national/international firm? Even if you love your job and your company, does the future project that you may be moving to Los Angeles, Denver, Paris, or London? If you’re with a local company, with no projected geographical moves, are they financially stable? Will they exist five years from now? Might they be bought by a larger, national company?
• Do you project a possible career change in the short term? If so, might your new career require a major move or short term salary reduction?
• Does your job require frequent overnight travel, keeping you away from home often? Who will manage the homeowner responsibilities (lawn, cleaning, repairs, etc.) while you’re away?
• Do you work as an independent contractor or commissioned salesperson? Does your income fluctuate widely from month to month? Do you expect this trend to continue, get better, or worse?

These are but a few major factors that can influence your decision to find apartments for rent that suit you or take the step to own property. As usual, there is no right or wrong decision. The best decision is the one that fits your current and projected situation.

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19. January 2012 by Kristian Alekov.

Foreclosures are a good thing from an investor’s point of view. The previous owners of the property, however, view foreclosures quite differently. There is much anger, grief, frustration and other nasty feelings involved here. A movement is capitalizing on these emotions, and is slowly turning its attention to foreclosed properties around the nation.

That movement is the Occupy Movement

You as a foreclosure investor need to start watching out for it whether you sympathize with the movement or not. Here are a couple of the more important reasons you need to act fast and act smart if you want to make money from foreclosure deals:

Occupy Movement is starting to become a political machine

The Occupy Movement used to be a large, headline-grabbing protest movement without a solid direction as a group. Members would just sit down and protest myriad issues, from poverty to unemployment to homelessness. Then the groups were forced off the parks and streets and told to go elsewhere. This resulted in the movement becoming smaller and less prominent than it used to be. The movement, however, is now looking to become a political entity instead of an aimless mob of protestors. The new face of the movement has narrowed down its focus into four main issues: unemployment, household debt, student debt and foreclosures. The Occupy Movement itself does not hold much political clout at the moment, but it could gain enough traction in the future to make investing in foreclosed properties a bigger pain than it should be.

Occupy Movement is stirring up emotions against foreclosures

Foreclosures have always been a constant side effect of people who take out mortgages on homes, but don’t have the capability to follow through with their responsibility as homeowners. The recession of ’08 and its fallout have, however, caused foreclosures to hit the roof. It didn’t help that big banks and law firms resorted to robo-signing to hasten the foreclosure process, nabbing sevreal innocent homeowners in the process. This has put foreclosures in the spotlight, with almost all homeowners who foreclosed painted as victims of a faulty and greedy system and investors as heartless vultures who prey on the suffering of these victims. If this perception starts to become rampant across the country, you can expect to face more and more homeowners who are hostile towards the idea of foreclosure.

Occupy Movement encourages the “occupation” of foreclosed homes

As part of its campaign efforts, the Occupy Movement is taking the initiative to put some people back into homes they were forced out of. While the movement generally elects to support homeowners who claim to be current on their payments, the implications of such heavy-handed actions are quite easy to manipulate. How can the movement be absolutely sure that the homeowners being back by the movement are absolutely faultless and that the banks don’t have a legal basis to evict the previous homeowner? The worst-case scenario is you buy a piece of property with an “informal settler” occupying the property and refusing to budge thanks to the support of the Occupy Movement.

The Occupy Movement may be at best a good dose of reality for our stagnating government and at worst a collective rabble of troublemakers who are trying to get what they want by force. Whatever the case may be, foreclosure investors will need to act fast and keep a sharp eye out for the movement’s presence in the local communities.

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