Is your Adjustable Rate Mortgage Causing Financial Distress?

If your current adjustable rate mortgage has shifted, creating an escalated interest rate and mortgage payment, you may be experiencing financial distress. While you may be able to cover this higher mortgage payment over the short term, the situation may become challenging over time if your income remains the same. Are there options available?

Certainly you do have options available in the event that you are in a distressed financial situation. Some of the available options for your property are listing it for sale, letting the property go into foreclosure, or leveraging a short sale option with your current lender.

In the recent past, selling properties within the Virginia, Washington D.C. and Maryland areas was fairly easy. These geographic areas have traditionally experienced consistently increased property values and quick sales timelines. Today, the real estate market is much different.

With a current depressed real estate market, many distressed home owners are unable to determine how to liquidate their properties without destroying their financial lives. One option which many property owners are turning to is a short sale.

Snapshot of Short Selling Property

A short sale refers to selling a property for a price which is below the current amount owed to the lender. You may be wondering why a lender would be interested in participating in this type of transaction. Lenders are concerned with choosing the best financial option available for their portfolio of properties. In many cases, a short sale is a more attractive option than allowing the property to go into foreclosure. Your lender will be able to tell you if a short sale is an option for your property and your financial situation.

If you are approved for a short sale, you may be able to sell your property without it going into foreclosure! To learn more about short sales and whether this option is best for your financial situation, order your FREE Short Sale Report by visiting .

Orange County Foreclosure And Short Sale Advice

When faced with a possible Orange County foreclosure is very tempting to move forward with a short sale or allowing the foreclosure without much thought. This is usually tempting for a homeowner because a short sale can function as a preventative measure on a pending foreclosure. There are a lot of facts about foreclosures and short sales that homeowners need to know about before they ever move forward with either one.

The good news is that there are plenty of companies out there whose business it is to help homeowners keep the homes they’ve work so hard to obtain. The first thing you need to do before letting a foreclosure complete or moving forward with a short sale is to contact a trusted real estate agent. He/she will be able to advise you on the best course of action based on a great number of things such as the length of time in your home, how much is left on the mortgage, and your eligibility for a number of anti-foreclosure programs. You also need to contact your lender to let them know that you’re interested in pursuing a course of action other than foreclosure. If a short sale is what you’re looking at then you’ll want to see if your lender will qualify you for one.

After you’ve spoken with your real estate agent and your lender you’ll need to evaluate everything and consider all possibilities. Those homeowners who have no choice or decide on letting a lender foreclose on their home should still work closely with with a real estate agent to help guide them through the process and make sure that the treated fairly and according to law. Homeowners who are able to take advantage of short sale should also work with a trusted real estate agent for the same reasons. Moreover those homeowners who are eligible for one of the many anti-Orange County foreclosure programs will also need to work with a real estate agent who has experience and extensive knowledge about these programs. This person will be able to help the homeowner makes sense of the complicated processes involved in all these programs and help them navigate the murky waters that surround them.

Whether it’s a foreclosure, short sale, refinance, or some other program that keeps them in their home, it’s extremely important to work with a professional when faced with any of these things. This is because there are some lenders who are less than fair to homeowners and there also numerous scams out there that aim to take advantage of people facing these types of crises.

Real Estate Investing- Buying Properties at Auction

Foreclosure Real Estate Investing: How NOT To Lose Your Shirt At The Foreclosure Sale For real estate professionals, this past year has been one of the most painful in recent times — defaults are up, homeownership is down, foreclosures have soared and the poorly performing housing sector is starting to create negative ripple effects in the broader national economy. Since all projections indicate that 2008 will be equally as challenging, should property investors run for the hills, put all their money in AAA rated munis, and ride out the storm until the next boom? Absolutely not! There’s no question that 2008 will bring reduced housing demand, lower prices in some areas, and fewer loan options, yet 2008 looks strong for treasure hunters. At HMB, we’ve been seeing investors scoop up bank REO’s for 40 to 50 cents on the dollar and selling them off at nice profits. After all, people will always buy property if they can get a great deal, no matter what the market conditions. Your job is to simply find the best deals. Many great deals will most certainly come from foreclosures over the next 24 months.

If you intend to jump into foreclosure auctions, follow these tips to help insure a profitable transaction: A?????? Do your homework: I recently had one of my investors call me and ask me if he would be risking anything greater than his security deposit if he simply walked away from a house he purchased at auction. Because he was intimately familiar with the neighborhood, he didn’t bother to visit the property. After the auction, he learned the damage to the property was more extensive than he anticipated. In a aEoehotaE?????? market, price appreciation could have bailed him out but, in today’s market, he was sunk. Lesson? Never buy a property sight unseen, and make sure to get the best contractor estimates possible prior to auction day. A?????? Read the advertisement carefully: The devil is in the fine print. You could buy a lot of trouble if you don’t read and understand every word. Examples: Many auctioneers require a Buyer’s premium. In my area, it could be as much as 10%. If your bidding on a $120,000.00 property, that’s an additional $12,000.00 expense! Even worse, you may be required to pay interest on the prior owner’s defaulting Note from date of auction forward to the date of settlement. That’s an additional 30-45 days of interest expense (or more in some instances). Worst of all, in some cases the auction purchaser could be responsible for certain outstanding liens due at the time of sale, such as water, taxes, or even condo liens. Do you really want to be responsible for the prior owner’s $3,000.00 past due HOA bill because you didn’t read the ad? A?????? Be careful of flipping: Flips are still possible in this market but could be dangerous to the financial health of an unseasoned or careless investor. If you intend to flip to another investor, remember he or she will be leery of buying anywhere close to retail because of the likelihood of additional price erosion over the next few years.

Did you properly discount your bid price for this? Will the property cash flow at your proposed sales price? Many investors use the 1% Rule as the aEoegold standardaE?????? aE” a $100,000.00 purchase price should yield a renter at $1,000.00. If you don’t carefully account for these factors, you could get stuck in the property. If you are using short-term hard money and your credit is weak, you even run the risk of loan default because you won’t be able to refinance out of your hard money loan. A?????? Setting property values: In addition to recent comps, you may want to go back to 2004-05 tax assessment records to review pre-bubble pricing. Is it possible for prices to retrace back to those levels? Maybe yes, maybe no, but it doesn’t hurt to bid based upon worst-case scenarios. A?????? Keep your cool: Don’t get caught up in the emotion of the auction. Know your absolute high price going in. Once the bidding has exceeded that price, don’t even think about it anymore. Walk to your car and leave. There’s always another deal tomorrow. A?????? Get finances in order before bidding: You will be required to bring to the auction a cashier’s check for the advertised deposit amount. But you may also be asked to increase the initial deposit to 10% of total purchase price within a certain time period after the auction date.

Check with the auctioneer the day of auction. Also, get lender approval prior to the day of auction. A hard money lender can be your best friend in these situations, as an approval from a hard money source accomplishes 2 things: 1) you’ll know up-front whether you’ll be able to close on the property, thereby reducing any risk of losing your deposit; and 2) you’ll get a second, and often expert, opinion on the conservative value of the property. Even if you end up using conventional lending, the hard money approval can give you great peace of mind. A?????? Insurance: It is critical to get a hazard insurance policy in place the day of auction. Many times, the risk of loss is contractually passed to the successful auction bidder. If you don’t have insurance and the building burns down, you lose! A?????? Bankruptcy: Call the auctioneer the night before (for early a.m. auctions) or the morning of the auction to make certain the foreclosed-upon borrower has not filed a bankruptcy. A bankruptcy filing stops the foreclosure process, even if it is filed one minute before auction. Probably 90% of foreclosure auctions get cancelled this way, so you’ll waste a lot time if you don’t call beforehand. A?????? Default: Always remember that the re-auction of a property is almost always aEoeat the risk and expense of the defaulting ?????? This means if you bid on a property and don’t follow through, you could be sued for a lot more than just your deposit. Jeffrey Shiller, Esq. MD DC VA Hard Money Lender

Orlando Foreclosed Homes-The First Love of The Real Estate Investors

Orlando foreclosed houses especially in Orange county, have attained high amount of popularity in the America’s reality market. When it is about making a smart reality investment the investors foremost choice is the buildings in Orlando. One of the major reasons because of which the investors prefer to buy the property at Orange County is that they get high amount of benefits that are attached with the foreclosures and the top class residential amenities that are present across this amiable and vibrant city.

This place is highly popular throughout America for its adventurous theme parks, rocking entertainment areas and its bubbling nightlife. Different city attractions and various exceptional recreational activities have made this region a well- accepted destination for leisure travelers and families. The major attractions of this land include the well- known Science center, loach heaven park photo tour, museum of Art, Turkey Lake Park and Orlando Area Walking Tours. All these incredible features can be experienced by the moderate budget home purchasers as the foreclosed homes in Orlando are now available at an average reduction price of 25% which in turn makes them highly affordable and lucrative ventures.

One of the prominent aspects which makes these primers more affordable and ludicrous for the prospects are the availability of the large range of housing loans at low rate of interests that are offered under the Orlando Housing Authority’s Home Ownership Program. OHA has been working round the clock to create a strong support network to offer economical housing to the moderate budget purchasers. Since 6 years, OHA has been announced as the top performers by the United States Department of Housing and Urban Development.

With the passing time this city has bloomed from a farming land to a major tourism region. It has become a home for many popular adventure parks and leisure resorts in America. It has some of the world’s most renowned tourist attractions such as Walt Disney World, Universal Studios, Universal Resorts and Sea World. This region’s booming economy and prosperous tourism industry has also made it a sound reality market. All these features and attractions make properties at this area a much benefited long term investment for house purchasers.

On one hand this land provides a very thriving and vibrant lifestyle to its citizens and on the other hand its neighborhood areas are a beautiful fusion of health facilities, scenic beauty, and high profile education. Some of the most liked residential areas which are presently providing foreclosed homes at highly economical prices rates and these places include High end societies of Seminole County which comprises of micro and multifamily for sale. Other adjoining places with top ranked schools and a supreme quality living includes the hamlet of Longwood, Lake Mary, Sanford and Water Spring and these regions also serve as a home to the finest waterfront housing in US.

The grand combination of prime residential societies, prodigious city life and affordable housing are some of the major benefits of Orlando and Orange County foreclosed homes which make them an impeccable choice of the families, tourists and businessmen.