Estate Foreclosed Real

Online Real Estate – Time Limit Bidding

Time Limit Bidding – The next generation of homes for sale online

The residential real estate industry has taken quite a hit over the past few years from the recession since 2007. Much of the recession has come at the hands of corporate or even “Wall Street” not providing more transparency to “Main Street” in the real estate transaction. As homes were bought and sold, many home buyers did not quite understand the underlying home values, mortgage industry or complexity of the real estate transaction. For years to come the average home buyer will be very cautious entering into new real estate transactions and the increased demand for transparency and credibility with homes for sale will emerge.

What has changed in the market? Real Estate Owned properties (or Bank Owned Properties / Listings) in the recession have allowed more bidding to take place. The Real Estate Owned (or REO) properties provide a larger discount to home buyers as they were previous foreclosures. Given that the bank needs to sell the home at a discount, it offers a better opportunity to home buyers and/or investors. REO properties for sale have become very popular and will help transcend the paradigm of online home buying from an “offer” world to a “bidding” world. In a few years, all residential home buying will be open to this process and “Main Street” will be more comfortable with the new paradigm.

Online, the business models of buying and selling homes have not changed much over the years of the Internet. With web 2.0, the home buyer clearly has been provided more data but the businesses models still have remained very ad-based – delivering leads to real estate agents. Websites like Zillow and Trulia still just generate leads for real estate agents and produce other ad products or services. A new paradigm will soon emerge online where online bidding and time limit bidding becomes more of the norm. Time Limit bidding puts more trust back into the home buying transaction as it creates visibility to all parties as to bids on a residential home listing or ‘for sale’ property. Unlike our current system where a home buyer merely submits an offer to a real estate agent, it is up to the agent to work with the Seller. The Seller can view offers ‘behind closed doors’ and decide on its ‘highest and best’. However, with Time Limit Bidding online, the home buyer can view all the bids of all interested parties in a home – whether it’s an owner occupier bid or an investor bid. In addition, many REO web sites are beginning to provide more credible data to home buyers to place bids – whether it is the original loan amount, property details, scoring, etc.

Tips for Investing in Las Vegas Real Estate

The latest trend in Las Vegas real estate consists of hopping aboard a bus and viewing multiple foreclosure homes. With market prices plummeting, Realtors and private investors are being forced to develop unique and creative marketing tactics to lure in buyers for their ever-growing list of distressed properties.

It’s no secret that the Las Vegas real estate market looks bleak. Let’s face it, the real estate market is bleak everywhere you turn. In some areas, foreclosure rates have soared by 57-percent, leaving a trail of vacant properties and nearly ghost-town communities. It’s a sad state of affairs. However, it is also a real estate investor’s dream come true.

An interesting aspect of Las Vegas foreclosure home bus tours is they offer one-stop real estate shopping. Participants quickly view houses and if they are interested can schedule an appointment to return for a personal showing. Tours last about two hours and approximately six to eight homes are presented.

Typically, foreclosure tour organizers require participants to sign a contract stating they will use the company for all their real estate needs, should they decide to purchase a home. A loan officer rides along and provides information on monthly payments, interest rates, etc. of the various properties. Anyone interested in purchasing a property can have the loan officer draft an offer on the spot. It’s really quite convenient. Or is it?

While it might be convenient to board a bus and browse several homes at one time, foreclosure homes are not always the best deal. In fact, foreclosure homes are notorious for being in need of serious repair or renovation. Oftentimes, homeowners who have been evicted from their homes, vent their anger on the house. It’s not uncommon to find torn up carpet, broken windows and drywall that has been punched with a sledgehammer.

Few foreclosure homes are in perfect condition. Most are in dire straits both inside and out. When it comes to landscaping, people facing financial challenges aren’t usually too interested in curb appeal. Not only will the interior need refreshing, chances are considerable exterior repairs will be required as well.

A lesser known, yet better way to invest in distressed properties is to seek out real estate owned (REO) properties owned by banks or private investors. These homes arrive at the bank after being placed on the foreclosure auction block. The primary reason they didn’t sell at auction is because more was owed on the home than it was worth.

When the bank receives the foreclosed property, it eliminates the mortgage, reduces or eliminates any creditor or tax liens, evicts residents who may still be residing in the home, and occasionally will invest in repairs. In other words, much of the time-consuming paperwork and legal hassles have been eliminated. All investors have to do is spruce up the property and sell it for a reasonable price.

The best way to locate REO property is through a private investor who purchases bank portfolios. These investors are able to purchase homes at wholesale pricing because they buy in bulk. Since they purchase these homes for pennies on the dollar, they are able to pass the savings along to individual buyers. These properties are usually sold in “as is” condition. However, the buyer will already have 30- to 40-percent equity in the property because he was able to purchase at wholesale cost.

The trick to getting the best deal on REO properties is to purchase them with cash. This allows the buyer to close the deal in around 10 to 15 business days, as opposed to the 30-45 day timeframe imposed with conventional financing. This delay can significantly reduce investors’ bottom-line and slow down the process of selling the property for profit.

Instead of riding around town on a bus and engaging in speed-viewing foreclosure homes, consider working with a private real estate investor who specializes in REO bank portfolios. Doing so, could potentially save you a considerable amount of time and money.

How to Price Foreclosure Cleanup Jobs For Profit Using HUD’s Guidelines

A foreclosure cleanup business does everything from lawn maintenance, to trashouts, to cleaning, pressure washing, gutter cleaning, repairs and more.

The foreclosure trashout industry is proving to be a lucrative business option for hardworking entrepreneurs. With one in every 25 homes in foreclosure, per Michael Williams, Fannie Mae CEO, and with millions of adjustable-rate mortgages poised to reset in the coming years (creating the prospect of a new round of foreclosures), foreclosure cleaning startups are perfectly situated to have evergreen enterprises for years to come.

Though foreclosure cleaning is a burgeoning industry, due to the sheer number of jobs available, foreclosure cleanup can be a business with thin profit margins if entrepreneurs aren’t pricing their services for profit.

Pricing for profit can be tricky for new property preservation business owner who don’t know the ins and outs of how contracts are won, who gets paid first, where they are on the totem pole in getting paid, etc.

A good tool to use in pricing foreclosure and trashout type jobs is HUD’s pricing guidelines for property preservation type companies — BUT, to use this tool alone can be a grave mistake.

When using HUD’s guidelines to price jobs, business owners should be aware that the tables list the maximum amount HUD will generally pay the PRIMARY contractor of a foreclosure cleaning job.

As a smaller company, business owners should know where they are on the totem pole in actually getting paid to know how to charge using the tables. They should also learn how to figure out whether they are the primary subcontractor, number two in line, number three, etc. This will not only help them figure out how to price, but will also guide them in figuring out the best strategy to use in winning jobs.

Foreclosure cleanup business owners cannot simply look at the HUD pricing charts and use those figures for bidding, or they’ll certainly overbid a job and lose out. The tables have to be dissected effectively

Remember, the HUD pricing guidelines for foreclosure cleaning are what HUD will pay, maximum, for a service (though certain scenarios will permit them to go higher with substantiating information). The amounts listed in the charts are really for that primary contractor.

Anybody can price, but pricing “for profit” in the burgeoning foreclosure cleaning industry is an art. New foreclosure cleanup businesses should plan to do their research so they can learn how to dissect the HUD charts and price effectively for profit to win more cleanup business.

Cassandra Black is the author of Pricing Guide for Foreclosure Cleaning Businesses, and the Owner of Foreclosure Cleanup, LLC, and Real Estate Cleanup, Atlanta, GA

When Will You Need a Real Estate Lawyer?

Whether you are buying a new home or trying to deal with a foreclosure, you may find yourself needing legal aid. Learn how a real estate lawyer can assist you in many ways so you can successfully navigate your financial trials.

Buying a House

A real estate lawyer is needed whenever issues arise regarding the purchase of a home. Common issues include:

– Buying a foreclosed home
– Back taxes owed by the previous owner
– Issues with contracts
– Signing documents
– Negotiating prices

You don’t want to be stuck with the responsibility for a previous owner’s back taxes, or to have your agreed-upon contract go sour. If you are purchasing a foreclosed home, you want to make sure you meet all of the deadlines, so that the bank or financial institution holding the property does not cancel your purchase. Having an attorney by your side can help ensure that everything runs smoothly when you are buying a new house, particularly when unexpected financial issues arise. They can help you with documents, help with any court cases that may arise, and protect you throughout the home-buying process.

Dealing with Your Own Foreclosure

A house is foreclosed when the homeowner fails to make several mortgage payments in a row. The bank or financial institution that holds the title to your property will do everything they can to recoup their loan, which can leave you, as a financially struggling homeowner, without a place to live. This can be frightening and frustrating to deal with on your own, which is why a real estate lawyer can be so helpful.

An attorney can review your past payments and credit responsibility, and talk to your bank about working out a payment plan that could end a foreclosure that’s already in progress. If a foreclosure is already underway, they can help you establish a time frame in which to vacate your home, giving you a chance to find a new place to live. They can also help you find new properties to purchase, even if you have a negative mark on your credit report due to a foreclosure.

When to Seek Help

Anytime you experience financial issues or feel overwhelmed purchasing or selling a property, you should contact a real estate lawyer for assistance. They can ensure that all legal regulations are followed when processing money, signing documents, and meeting deadlines. With an attorney at your side, you will have the protection you need.

This type of legal aid can be beneficial to you in a variety of ways. If you find yourself with monetary or legal trouble while trying to protect your current home or buying a new place, you can use an attorney to get the assistance you need. Contact a real estate lawyer as soon as possible to address any future frustrations that can come your way.

Why Should First Time Home Buyers Opt For Nashville Foreclosed Homes?

If you are a first time home buyer looking for a reasonably priced property in Tennessee, nothing can be as suitable as investing in Nashville foreclosed homes. With its incredibly diverse range of foreclosures for sale which are available at highly reduced asking prices, home buyers can now fulfill their dreams of owning a property in a prime location without overshooting their budget.

One of the foremost reasons which make Nashville foreclosed homes an ideal choice for first time buyers is their highly reasonable prices which are nearly half of their market rates. According to the latest news reports, 85% of properties that have been sold over the last two months through Nashville foreclosed homes where picked up by first time home buyers at 30-45% of their real value. Moreover most of the properties that have been foreclosed in this area are located in high end communities and therefore have become extremely popular amongst real estate investors and individual buyers alike.

Although the number of foreclosures in Nashville has been much lower than other parts of the U.S, home buyers can choose from a wide range of REO properties which are mainly homes that have been foreclosed by banks. The reason for the low number of foreclosures in the city is due to its robust economy which makes purchasing a property through Nashville foreclosed homes a very viable venture indeed as the region has recorded one of the best appreciating values when it comes to its real estate properties.

Another reason why first time home buyers should opt for Nashville foreclosed homes is the availability of a large number of bargain priced estate homes which have been foreclosed by banks and are now being sold at highly reduced rates in the market. Some of the prime residential areas where home buyers are vying for these foreclosures include the neighborhoods of Belle Meade, West End and Green Hills. By investing in one of these posh estates through bargain priced Nashville foreclosed homes, first time home buyers can avail the golden opportunity of owning a lucrative property which would otherwise be out of their reach in the standard real estate market.

Apart from making a highly lucrative property deal through Nashville foreclosed homes, the city offers one of the best environments for raising a family to first time home buyers. The region is home to some of the most beautiful parks like the Centennial Park which houses the Greek Parthenon and the Warner Park which includes race courses and interesting hiking trails. Other recreational spots include the popular Hickory and Percy Priest Lake which is the hub of various water activities like skiing, sailing, boating and fishing.

Another unique benefit which makes Nashville foreclosed homes an ideal purchase for first time buyers is the Homeownership Assistance Plan (HAP) launched by the Tennessee Housing Development Agency under which first time home buyers interested in buying a foreclosure in Nashville can avail various tax credit incentives as well as get support for making a down payment for these properties.

Being the largest metropolitan area in the state of Tennessee, buying a property through Nashville foreclosed homes for the first time home buyers, makes for a very sound investment option as well as an ideal residential choice for your family.

Foreclosure Cleanup Company – Why Winterization is a Lucrative Service to Offer on Foreclosed Homes

If you’re a property preservation, real estate services, plumbing or foreclosure cleanup company, winterization is a hot service to offer to banks and other lenders who have foreclosed homes. This is especially true right now.

Winterizing More Than a Hundred Homes

According to the October 2008 KAALTV article, Winterizing Foreclosed Homes, in Austin, MN a local plumbing company winterized more than 100 homes, and expected things to get busier as foreclosures continue to escalate.

Why Banks Like for Foreclosed Homes to be Winterized

When a home is foreclosed on, it can sit vacant for months – even over a year in this economy. When a home sits vacant, especially during the winter season, pipes can burst causing water to flood.

Even if the water is turned off, the water that sits in the pipes can cause floods or damaging leaks. And, what follows floods and/or water damage? Mold.

Now imagine this sitting for weeks or months with no one being aware of it.

This is why lenders pay plumbing companies, property preservation companies, real estate services enterprises and/or foreclosure cleanup companies to winterize properties. In the long run, it costs them less money.

If you’re a foreclosure clean up company, winterization is an easy service to offer. And, it can be quite lucrative because it is one of those services that banks don’t hesitate to pay for, unlike some other services.

So, you may be wondering, exactly . . .

What Is Winterization?

Basically, winterization is protecting a home while it is unoccupied for long periods of times. A lot of this has to do with preventing water from entering a home and pipes from bursting. Another equally important component is dealing with the heating and cooling system.

Following are some things that should be done to a home during the winterization process.

Shut Off Water: This should be done at the main valve or at the inlet to the meter. Once the water is shut off, the meter should be capped – preferably by a professional – so that it can’t be turned back on.

Drain Water Heater: Remember, even if the water is turned off, if something happens, water left in pipes or a water heater can still cause flooding.

Drain Pipes: For the same reason as above, this should be done.

Open Faucets: This allows them to drain completely.

Drain Toilets: Be sure to get rid of any excess water left in the tanks; wipe them dry.

Turn Off Heating System: If you have an electric system, make sure it’s turned off at the circuit breaker. This prevents the burning up of heating elements.

Turn Off Gas & Electric: Call your local electric company to make sure this is done.

Check for Faulty Faucets and Broken Pipes: If damage is found, make sure it’s repaired so that when water is turned back on, there are no leaks.

This is by no means an exhaustive list, but it gives you an idea of what goes into winterizing a home.

HUD Payment Guidelines: Home Much Do Banks Pay for Winterizing a Foreclosed Home

If you’re a foreclosure cleaning company and want to offer this service, what you will be paid depends a lot on what HUD pricing guidelines are in many cases. This is because many bank-owned properties fall under HUD.

For example, in the state of Georgia, HUD will pay anywhere from $100 to $460 for winterizing a foreclosed home, depending on the type of heat it has (ie, dry heat, steam heat, wet/radiant heat).

As you can see, this can be a very lucrative service for any foreclosure cleaning company to offer – and it shouldn’t take more than a few hours (or less) for a skilled professional to do.