Home sellers in New Jersey should be aware that because their homes are old they might require some remodeling before they can be sold on the New Jersey real estate market. Because the age of homes across the state are between forty to eighty years old upgrades to plumbing and electrical systems may be required before a seller can successfully market their home. By taking a proactive approach to the sale of their home and remodeling or updating older systems home sellers using the services of a New Jersey real estate professional will be able to attract buyers and sell their home quickly.
Article Body:
Buying a home in New Jersey is a little different than buying a home in any other state. Because of the established areas of the state new home developments are few and far between. The majority of homes for sale in New Jersey are older can range anywhere from forty to eighty years old depending upon the neighborhood that they are in. Due to the age of homes for sale in the New Jersey real estate market homebuyers are cautious when it comes to making a decision about buying a house.
While many resale homes in New Jersey have been updated and remodeled to make them more convenient and user-friendly to the residents there are some homes that are in need of upgrades. Because turn of the century plumbing and electrical systems have changed dramatically over the past one hundred years older homes being listed for sale by New Jersey realtors may have to undergo a facelift before they are ready to be put up for sale. Home owners that have been in the same house for a number of years would be well advised to bring their home into the twenty-first century before the put their home on the market.
Remodeling the bathroom and kitchen will help potential buyers to know that the house has had modern plumbing installed and will meet the scrutiny of home inspectors, but the home may also need a complete rewiring of the electric system including the fuse box. Sellers taking a proactive approach to upgrading their older homes and bring them up to code by todays standard will have a greater chance of attracting younger buyers and avoiding paying for potential problems that may arise during the inspection and appraisal of the home.
Sellers in the New Jersey real estate market should also bring in a pest control expert to look over the house and clear it of any potential insect infestations before putting their house up for sale. Because termites are a huge problem in New Jersey it is estimated that eighty-five percent of the homes in the state have termites living in them. Termites eat wood and can create potential problems for owners listing their houses for sale in New Jersey. By calling in an exterminator and controlling any pest problems ahead of time the home seller can save time and the possibility of greater damages that require attention before a potential buyer will complete the sales transaction to buy their home.
After bring the plumbing and electrical up to code through upgrades or remodeling of the house the seller is ready to market their home with the aid of New Jersey realtors that will help them to find homebuyers that are anxious to move into their newly modernized home.
Saturday, September 26, 2009
Inspections Protect Real Estate Buyers by Art Gib
Home inspections are vitally important to the people buying homes that are for sale. A detailed property inspection is a homebuyers protection that everything inside a house works properly and that all electrical and plumbing is up to code and is not only functioning properly, but that it also is installed to specifications. For buyers of homes for sale in New Jersey the added protection of a home inspection means looking for damage that may be caused by insects.
Because many homes listed in the New Jersey real estate market are 40 years old and older, home inspectors are looking into the possibility of termite damage or other burrowing insects that may have entered the homes for sale in NJ. Home inspectors and pest control specialists estimate that 85 percent of the homes in New Jersey have an infestation of termites. While these numbers are conservative there are measures that a homebuyer can take before signing the final paperwork and purchasing a home.
Inspector look for damage to floor joists, rafters in the roof and foundations for signs of infestation then make recommendations based on those findings to the prospective buyer. If a home is in need of repair the inspector can estimate the costs of fixing damages and the homebuyer can negotiate with the home seller to pay for the needed repairs or discount the selling price of the home so that the buyer can cover the expenses themselves. In states like New Jersey where insects are an apparent problem homebuyers can ask for sellers to pay for professional exterminators to clear the property and if the damage is extensive have contractors replace what part of the home is in need of repair.
When buying any house it is important to have an inspector look through the property thoroughly. If the roof shingles are damaged or the attic shows signs of leaking the homebuyer has the option of backing out of the deal and continuing their search for houses for sale in New Jersey or again approaching the seller with a choice to pay for the new roof completely or make allowances to the price of the home.
Inspectors are tough on home sellers because they are working for the best interests of the homebuyers and because if something is overlooked they may held responsible for not disclosing the smallest detail of an inspection. The details covered by home inspectors may be so finite as to nitpick items like a burned out light bulb that should be replaced, and while the seller may be sweating at hearing the report the home buyer can be assured that the home they purchase will be well maintained and have everything working as it should when they move in.
Because many homes listed in the New Jersey real estate market are 40 years old and older, home inspectors are looking into the possibility of termite damage or other burrowing insects that may have entered the homes for sale in NJ. Home inspectors and pest control specialists estimate that 85 percent of the homes in New Jersey have an infestation of termites. While these numbers are conservative there are measures that a homebuyer can take before signing the final paperwork and purchasing a home.
Inspector look for damage to floor joists, rafters in the roof and foundations for signs of infestation then make recommendations based on those findings to the prospective buyer. If a home is in need of repair the inspector can estimate the costs of fixing damages and the homebuyer can negotiate with the home seller to pay for the needed repairs or discount the selling price of the home so that the buyer can cover the expenses themselves. In states like New Jersey where insects are an apparent problem homebuyers can ask for sellers to pay for professional exterminators to clear the property and if the damage is extensive have contractors replace what part of the home is in need of repair.
When buying any house it is important to have an inspector look through the property thoroughly. If the roof shingles are damaged or the attic shows signs of leaking the homebuyer has the option of backing out of the deal and continuing their search for houses for sale in New Jersey or again approaching the seller with a choice to pay for the new roof completely or make allowances to the price of the home.
Inspectors are tough on home sellers because they are working for the best interests of the homebuyers and because if something is overlooked they may held responsible for not disclosing the smallest detail of an inspection. The details covered by home inspectors may be so finite as to nitpick items like a burned out light bulb that should be replaced, and while the seller may be sweating at hearing the report the home buyer can be assured that the home they purchase will be well maintained and have everything working as it should when they move in.
Realtors Encourage Buying Before Prices Rise by Art Gib
The country may be recovering from the real estate crash that dropped the pricing and subsequent values of homes across the country, but the market has not yet begun to make a strong upswing and now is the right time for people to buy a home before the market recovers and prices begin to rise again. For buyers of homes for sale in New Jersey the economy is ripe for picking up a house at a reasonable price. The mortgage companies are beginning to see some rise in interest rates over the past few weeks, but those rates are still competitive at around a six percent fixed for a thirty-year mortgage.
While the price of homes is steady, New Jersey realtors are finding that there are a number of homes for sale that are perfect for buyers in any stage of life. Some sellers that face the unfortunate demise of losing their home as a result of foreclosure are making their homes for sale in New Jersey more affordable for buyers through a short sale of their property. By selling their home at a discounted rate before the banks take possession of the home a seller can escape from the burden of the mortgage that they cannot afford and still keep their credit in tact.
Because banks want to avoid foreclosures that cost them thousands of dollars, they are willing to negotiate with homeowners over the price of their New Jersey real estate property. If a seller that faces the prospect of foreclosure can find someone to buy their house before it is taken away by the bank, the banks are usually willing to accept a lower price for the home and even forgive a portion of the debt owed by the seller. The term short sale refers to the bank and the seller shorting the mortgage loan to sell the home without the bank taking possession of it.
Short sales have become more common in the past year than they ever where before and buyers that have the patience to wait anywhere from four to eight months are finding some sound investment deals for New Jersey real estate. By using the services of New Jersey realtors many investors and homebuyers have been able to find and purchase short sale homes and apartment buildings that have enabled the seller to walk away from their financial pitfall without having any shame or guilt that may have come from being forcibly removed from their home through a foreclosure. With the interest rates still low and the housing market leveling out New Jersey realtors are encouraging their clients to buy homes and make offers today before the prices bounce back and interest rates rise again.
While the price of homes is steady, New Jersey realtors are finding that there are a number of homes for sale that are perfect for buyers in any stage of life. Some sellers that face the unfortunate demise of losing their home as a result of foreclosure are making their homes for sale in New Jersey more affordable for buyers through a short sale of their property. By selling their home at a discounted rate before the banks take possession of the home a seller can escape from the burden of the mortgage that they cannot afford and still keep their credit in tact.
Because banks want to avoid foreclosures that cost them thousands of dollars, they are willing to negotiate with homeowners over the price of their New Jersey real estate property. If a seller that faces the prospect of foreclosure can find someone to buy their house before it is taken away by the bank, the banks are usually willing to accept a lower price for the home and even forgive a portion of the debt owed by the seller. The term short sale refers to the bank and the seller shorting the mortgage loan to sell the home without the bank taking possession of it.
Short sales have become more common in the past year than they ever where before and buyers that have the patience to wait anywhere from four to eight months are finding some sound investment deals for New Jersey real estate. By using the services of New Jersey realtors many investors and homebuyers have been able to find and purchase short sale homes and apartment buildings that have enabled the seller to walk away from their financial pitfall without having any shame or guilt that may have come from being forcibly removed from their home through a foreclosure. With the interest rates still low and the housing market leveling out New Jersey realtors are encouraging their clients to buy homes and make offers today before the prices bounce back and interest rates rise again.
Thursday, September 17, 2009
Make Real Estate Sales in Any Economy by Kevin Wright
The economic state of the real estate industry in the United States is steadily improving. As you are aware, in the past two years the industry has significantly dropped due to the poor economic status of many people and their unwillingness to spend on a new home. When our economy took a plunge many people were scared to put their money back into anything let alone real estate. However, a lot of the same people are seeing that in order for the economy to turn around they need to spend their money. A great way for them to do this while creating a good investment is to buy a home.
In the state of California, one of the largest and most heavily populated states in the country, the median price for a home has risen 1.6% in the past year. This is an opportune time for buyers to buy because the median price for homes is still low. It is also great for sellers because the slow, but steady increase means they can get more for their home. Besides knowing how much you want to spend there are a lot of important factors that play into the sale of a home. Many buyers or sellers aren't aware these complex transactions and they can go through a sale not knowing what they've done.
This is one of the reasons why many agents have had great success using Pre-Listing Packages to propel their sales, listings and referrals. The package introduces you and your company to the client and explains to them how you are best qualified for all their real estate needs. It also educates the client on the home buying and selling process, which many agents neglect. It's the simplest things that can make the biggest impact. The package is similar to a movie trailer that gets you excited about what is to come. By giving a package beforehand, will build instant rapport, credibility, and get the client excited about you and your company.
Have you ever wondered how it is that some real estate agents get sales in good and bad economic times? As you probably know, when the economy is in a recession it's usually a buyers' market, and when it's booming, it's in favor of the sellers. How do you reach the buyer population in a recession and sellers in a flourishing economy? The answer is simple. You provide all sellers with a Pre-Listing Package and buyers with a Pre-Purchase Package. Not many agents know of or utilize this important tool that could skyrocket their sales.
This proven system can potentially increase your sales, listings and referrals in a matter of months. Many homebuyers and sellers go through the transaction without fully understanding exactly what is going on. This is a negative reflection on the agent not to mention bad the client as well. As a real estate professional you can waste a lot of time answering common questions and concerns that could be easily answered in a package. Your time should be spent on finding buyers, sellers and other important tasks. The package should include pertinent disclosures, such as the listing agreement that the client should review and sign. When it's received beforehand they will have a chance to review it first.
This will decrease the time spent at appointments and on phone calls answering common questions from your clients. Sometimes they will even have the disclosures signed before you arrive to the appointment. This is why you want to provide every prospective client with a package a few days prior to the appointment. Its crucial to stay in contact with the client as anything can happen in between the time of meeting them and the appointment. For example, the client could meet another agent or run into a friend who knows another agent that could potentially get them a "better deal".
Real estate agents are usually concerned with avoiding or getting out of a recession. If you were using a Pre-Listing Package, then that wouldn't be the case. In the marketplace, recessions separate the weak from the strong. When things are booming we tend to ignore being proactive and preparation for the recession. Why not be prepared for both buyers and sellers and maximize your sales potential? It's no mystery that persistent and determined agents win. What you do now will have a major effect on your future sales.
It is important to buckle down and be mentally, emotionally and financially prepared for any market. Don't make the mistake of holding out in hopes that a recession will clear someday. You want to succeed in any economy, good or bad. Make sure your Pre-Listing Package contains all the needed information to close the deal. Not all Pre-Listing Packages are the same, which is why you should use a Pre-Listing Package (for sellers) and Pre-Purchase Package (for buyers). Utilizing both will give you enormous leverage in any market by capitalizing on both types of clientele. Whatever your niche market or economic market, providing prospective clients with a professional package is a great way to set you apart and make securing their business much easier. Good luck and much success!!
In the state of California, one of the largest and most heavily populated states in the country, the median price for a home has risen 1.6% in the past year. This is an opportune time for buyers to buy because the median price for homes is still low. It is also great for sellers because the slow, but steady increase means they can get more for their home. Besides knowing how much you want to spend there are a lot of important factors that play into the sale of a home. Many buyers or sellers aren't aware these complex transactions and they can go through a sale not knowing what they've done.
This is one of the reasons why many agents have had great success using Pre-Listing Packages to propel their sales, listings and referrals. The package introduces you and your company to the client and explains to them how you are best qualified for all their real estate needs. It also educates the client on the home buying and selling process, which many agents neglect. It's the simplest things that can make the biggest impact. The package is similar to a movie trailer that gets you excited about what is to come. By giving a package beforehand, will build instant rapport, credibility, and get the client excited about you and your company.
Have you ever wondered how it is that some real estate agents get sales in good and bad economic times? As you probably know, when the economy is in a recession it's usually a buyers' market, and when it's booming, it's in favor of the sellers. How do you reach the buyer population in a recession and sellers in a flourishing economy? The answer is simple. You provide all sellers with a Pre-Listing Package and buyers with a Pre-Purchase Package. Not many agents know of or utilize this important tool that could skyrocket their sales.
This proven system can potentially increase your sales, listings and referrals in a matter of months. Many homebuyers and sellers go through the transaction without fully understanding exactly what is going on. This is a negative reflection on the agent not to mention bad the client as well. As a real estate professional you can waste a lot of time answering common questions and concerns that could be easily answered in a package. Your time should be spent on finding buyers, sellers and other important tasks. The package should include pertinent disclosures, such as the listing agreement that the client should review and sign. When it's received beforehand they will have a chance to review it first.
This will decrease the time spent at appointments and on phone calls answering common questions from your clients. Sometimes they will even have the disclosures signed before you arrive to the appointment. This is why you want to provide every prospective client with a package a few days prior to the appointment. Its crucial to stay in contact with the client as anything can happen in between the time of meeting them and the appointment. For example, the client could meet another agent or run into a friend who knows another agent that could potentially get them a "better deal".
Real estate agents are usually concerned with avoiding or getting out of a recession. If you were using a Pre-Listing Package, then that wouldn't be the case. In the marketplace, recessions separate the weak from the strong. When things are booming we tend to ignore being proactive and preparation for the recession. Why not be prepared for both buyers and sellers and maximize your sales potential? It's no mystery that persistent and determined agents win. What you do now will have a major effect on your future sales.
It is important to buckle down and be mentally, emotionally and financially prepared for any market. Don't make the mistake of holding out in hopes that a recession will clear someday. You want to succeed in any economy, good or bad. Make sure your Pre-Listing Package contains all the needed information to close the deal. Not all Pre-Listing Packages are the same, which is why you should use a Pre-Listing Package (for sellers) and Pre-Purchase Package (for buyers). Utilizing both will give you enormous leverage in any market by capitalizing on both types of clientele. Whatever your niche market or economic market, providing prospective clients with a professional package is a great way to set you apart and make securing their business much easier. Good luck and much success!!
Double Your Income in Real Estate Sales by Kevin Wright
Have you ever wondered what makes some real estate agents succeed where others fail? Remember that doubling your income is all about doubling your business development efforts. If you are serious about doubling your income within the next six months, you must learn how to turn your time and energy into a profit. Once you decide you really want to double your income, don't let anyone or anything stop you from earning it. Marketing yourself as a real estate agent is most crucial to your success. Yet the average agent won't put the time and effort into effective marketing tactics to connect with their clients. Many agents waste a lot of time educating each and every client on the transaction process, answering common questions and giving listing presentations.
You need to be effective and proactive in your approach with all your clients. Why not provide all your clients with a package of information that educates them on the transaction process and the answers to most of their questions about you and your company. Top agents do this and use what is called a Pre-Listing Package. The Pre-Listing Package is the most powerful and important impression you can make on a buyer or seller. The goal of package is to establish credibility and show the prospective client that you are competent, organized and professional before ever meeting with them. Imagine that you just set an appointment with a motivated seller and when you arrive at their home, they already have the listing contract signed! This is not uncommon with real estate professionals that use Pre-Listing Package because they have an advantage and edge over other agents.
You don't have to imagine this if you send a package to all prospects a few days before each and every appointment. This package introduces you and your company and explains to prospective clients how you are best qualified for all their real estate needs. Using a package definitely separates you from the competition. The package establishes rapport and can guarantee listings every time. There is a big difference between real estate agents and real estate professionals. The Pre-Listing Package is that difference, and is a must for all real estate agents.
Having a professional Pre-Listing Package will decrease time spent spend at appointments and increase your listings. You can dramatically increase your listing and sales potential in a matter of months! Using a package is your ticket to real estate success! It provides the foundation for any real estate agent with any income goal who is serious about getting listings. I'm sure you have seen agents who have been working for months or even years and haven't reached their full potential in income or listings. If you haven't seen this, then that agent very well may be you. By using a package you can receive the following benefits:
Sky rocket your income and listings in a matter of months.
Cut your pre-listing presentation appointment time in half.
Establish credibility and rapport with a client before you ever meet.
Show potential clients that you are organized, competent and professional.
Separate yourself from the competition and give yourself an advantage over other "agents" to make an ever-lasting professional impression.
Eliminate presentation anxiety and nervousness.
Earn double the referrals.
There is certain information that must be included in your package to make it most effective. Also realize that every top real estate professional is well scripted, and this is one of the main reasons that they are confident and get listings. Review your package along with practicing a script so you can develop the confidence and get the income and listings you deserve. Whatever your market niche, providing prospective clients with a professional Pre-Listing Package is a great way to set you apart and make securing their business much easier. Good luck and much success!
You need to be effective and proactive in your approach with all your clients. Why not provide all your clients with a package of information that educates them on the transaction process and the answers to most of their questions about you and your company. Top agents do this and use what is called a Pre-Listing Package. The Pre-Listing Package is the most powerful and important impression you can make on a buyer or seller. The goal of package is to establish credibility and show the prospective client that you are competent, organized and professional before ever meeting with them. Imagine that you just set an appointment with a motivated seller and when you arrive at their home, they already have the listing contract signed! This is not uncommon with real estate professionals that use Pre-Listing Package because they have an advantage and edge over other agents.
You don't have to imagine this if you send a package to all prospects a few days before each and every appointment. This package introduces you and your company and explains to prospective clients how you are best qualified for all their real estate needs. Using a package definitely separates you from the competition. The package establishes rapport and can guarantee listings every time. There is a big difference between real estate agents and real estate professionals. The Pre-Listing Package is that difference, and is a must for all real estate agents.
Having a professional Pre-Listing Package will decrease time spent spend at appointments and increase your listings. You can dramatically increase your listing and sales potential in a matter of months! Using a package is your ticket to real estate success! It provides the foundation for any real estate agent with any income goal who is serious about getting listings. I'm sure you have seen agents who have been working for months or even years and haven't reached their full potential in income or listings. If you haven't seen this, then that agent very well may be you. By using a package you can receive the following benefits:
Sky rocket your income and listings in a matter of months.
Cut your pre-listing presentation appointment time in half.
Establish credibility and rapport with a client before you ever meet.
Show potential clients that you are organized, competent and professional.
Separate yourself from the competition and give yourself an advantage over other "agents" to make an ever-lasting professional impression.
Eliminate presentation anxiety and nervousness.
Earn double the referrals.
There is certain information that must be included in your package to make it most effective. Also realize that every top real estate professional is well scripted, and this is one of the main reasons that they are confident and get listings. Review your package along with practicing a script so you can develop the confidence and get the income and listings you deserve. Whatever your market niche, providing prospective clients with a professional Pre-Listing Package is a great way to set you apart and make securing their business much easier. Good luck and much success!
Monday, September 14, 2009
Forensic Loan Auditing by Terry Robinson
What is Forensic Loan Auditing?
Forensic loan auditing refers to examining all the documents related to your loan. The resulting analysis helps the attorney by providing increased leverage when negotiating better loan terms or while filing a foreclosure prevention lawsuit or any other related legal proceedings.
There is a low level of auditing and a more complete high level auditing which you should be aware of.
1. TILA/RESPA or Low Level Auditing
This is a typical auditing that most companies do. A lot of it is based on software programs and is intended to identify TILA or RESPA violations and achieve "loan rescission" (cancellation of the loan). However to cancel the mortgage the borrower will return the loan amount taken from the lender subtracting the payments made up-to-date and other costs of the loan. This is also called tendering an offer.
Rescission basically restores the situation between the lender and the borrower as it was before the loan. The catch is most borrowers are often in no position to tender an offer. Lenders and financial institutions understand this all too well. In most cases rescission is quite ineffective in protecting the interests of the borrowers.
2. Predatory Lending Audit
This is an advanced loan audit that analyzes everything related to a loan. Apart from TILA and RESPA violations, it seeks to identify various other violations which let the attorneys prevent foreclosures and file lawsuits.
Since this process requires a a high degree of knowledge with a variety of provisions of the law and also the possible postures that lenders may take to defend their positions, very few companies are qualified to do a quality loan audit.
Many loan fraud investigations fall into this category. These auditing practices evolve rapidly over time due to revisions in the relevant laws and better and superior tactics employed by lenders and financial institutions.
The best way to know if you have been a victim of loan fraud or predatory lending is through a thorough and professional forensic loan audit. A forensic loan auditor must play the role of a detective with a keen eye to the details.
Each real estate filing is covered by various consumer protection laws both at the state and federal levels. The auditor must be able to find the applicability of such laws to your file which may or may not be patently obvious to a normal eye. What to Look for in an Auditor?
A forensic loan auditor must be adept at scrutinizing all forms, documents, loan processes, lender and loan officer practices. This demands a close familiarity with all laws relevant to loans. Software programs are essentially useless because many lenders have already mastered the art of making their loans appear as 'in compliance' with TILA and RESPA with most of the software applications available in the market.
It needs a trained eye and precision focus to perform a forensic audit by hand. It takes approximately 6 months to train a qualified forensic loan auditor.
While interviewing an auditor keep the following things in mind:
1. What is the experience of the auditor in performing forensic loan audits?
2. How and why did the auditor enter forensic loan auditing?
3. What is the background of the auditor? Did he or she ever testify in a court?
4. How does the auditor perform auditing? By hand or through software?
5. How knowledgeable is he or she about various codes and laws relevant to loans?
6. What is his or her approach toward loan modifications?
7. What kind of support does the auditor offer to the attorney arguing the case in the court?
It is very important that you identify the right kind of auditor to support your file. The practices and strategies being employed in the loan modification and foreclosure cases are changing every day and attorneys of the lending institutions can be quite creative at trouncing your case. Therefore, your auditor must stay a 'step ahead' with loan auditing if you are to prevail against the opposition. What Should Your Audit Look for?
A forensic loan audit involves reviewing all loan documentation, terms and conditions of the loan, compliance of the loan with various state and federal laws, fees charged at all stages of the loan, loan fraud, deception, bait and switch and other loan fraud practices. The auditing should also review foreclosure documents and relevancy of servicing and pooling agreements.
A quality loan audit must address the following important issues while submitting a report. This is by no means an exhaustive list, but these are the most common issues to be addressed by a loan audit.
1. Loan Fraud
You can be deceived at many levels. Loan fraud is quite subtle and the auditor should be able to identity all the nuances in the papers. Lying about various terms and conditions of the loan, false statement of income and loan applications, forgery of the documents, and backdating the documents are some common practices in the loan fraud.
2. Misrepresentation
To entice the borrower to take the loan, brokers and officers may make false claims, statements, and representations, either orally or in written form, that are in contradiction with what is drafted in the loan documents. The loan documents might also be misrepresented to mislead the borrower to take a loan that is not in the best interests of the borrower.
3. Deceptive Practices
Did the loan officers deceive the borrower? Were all loan documents consistent with UDAP (Unfair and Deceptive Codes and Practices) codes? The auditor must observe with great care the documents for any possible violation of UDAP Law. Deceptive yield spread premiums and misleading negative amortization loans are two of the most commonly employed deceptive practices by the lenders and the loan officers.
4. Breach of Contract
A loan document is a contract to which both the broker and the borrower must abide. Whether it is calculating the interest rates or stating penalties, the broker must be fair in providing accurate and truthful information to the borrowers. The auditor must check for any possible violations in this area. What Should an Audit Report Tell You?
After the investigation an audit summary is compiled which details various aspects of the loan and any violations discovered. The report should clearly explain all the results of the forensic loan audit performed, all State and Federal Law violations found, the actual terms and conditions of the loan, hidden fees and the commissions earned by your lender or broker.
These results are forwarded to an attorney who will use the report to support your case in a court of law. A competent auditor helps your attorney stop the foreclosure and save your home. So choose your auditor carefully by using some due diligence and a little logic and reasoning.
Forensic loan auditing refers to examining all the documents related to your loan. The resulting analysis helps the attorney by providing increased leverage when negotiating better loan terms or while filing a foreclosure prevention lawsuit or any other related legal proceedings.
There is a low level of auditing and a more complete high level auditing which you should be aware of.
1. TILA/RESPA or Low Level Auditing
This is a typical auditing that most companies do. A lot of it is based on software programs and is intended to identify TILA or RESPA violations and achieve "loan rescission" (cancellation of the loan). However to cancel the mortgage the borrower will return the loan amount taken from the lender subtracting the payments made up-to-date and other costs of the loan. This is also called tendering an offer.
Rescission basically restores the situation between the lender and the borrower as it was before the loan. The catch is most borrowers are often in no position to tender an offer. Lenders and financial institutions understand this all too well. In most cases rescission is quite ineffective in protecting the interests of the borrowers.
2. Predatory Lending Audit
This is an advanced loan audit that analyzes everything related to a loan. Apart from TILA and RESPA violations, it seeks to identify various other violations which let the attorneys prevent foreclosures and file lawsuits.
Since this process requires a a high degree of knowledge with a variety of provisions of the law and also the possible postures that lenders may take to defend their positions, very few companies are qualified to do a quality loan audit.
Many loan fraud investigations fall into this category. These auditing practices evolve rapidly over time due to revisions in the relevant laws and better and superior tactics employed by lenders and financial institutions.
The best way to know if you have been a victim of loan fraud or predatory lending is through a thorough and professional forensic loan audit. A forensic loan auditor must play the role of a detective with a keen eye to the details.
Each real estate filing is covered by various consumer protection laws both at the state and federal levels. The auditor must be able to find the applicability of such laws to your file which may or may not be patently obvious to a normal eye. What to Look for in an Auditor?
A forensic loan auditor must be adept at scrutinizing all forms, documents, loan processes, lender and loan officer practices. This demands a close familiarity with all laws relevant to loans. Software programs are essentially useless because many lenders have already mastered the art of making their loans appear as 'in compliance' with TILA and RESPA with most of the software applications available in the market.
It needs a trained eye and precision focus to perform a forensic audit by hand. It takes approximately 6 months to train a qualified forensic loan auditor.
While interviewing an auditor keep the following things in mind:
1. What is the experience of the auditor in performing forensic loan audits?
2. How and why did the auditor enter forensic loan auditing?
3. What is the background of the auditor? Did he or she ever testify in a court?
4. How does the auditor perform auditing? By hand or through software?
5. How knowledgeable is he or she about various codes and laws relevant to loans?
6. What is his or her approach toward loan modifications?
7. What kind of support does the auditor offer to the attorney arguing the case in the court?
It is very important that you identify the right kind of auditor to support your file. The practices and strategies being employed in the loan modification and foreclosure cases are changing every day and attorneys of the lending institutions can be quite creative at trouncing your case. Therefore, your auditor must stay a 'step ahead' with loan auditing if you are to prevail against the opposition. What Should Your Audit Look for?
A forensic loan audit involves reviewing all loan documentation, terms and conditions of the loan, compliance of the loan with various state and federal laws, fees charged at all stages of the loan, loan fraud, deception, bait and switch and other loan fraud practices. The auditing should also review foreclosure documents and relevancy of servicing and pooling agreements.
A quality loan audit must address the following important issues while submitting a report. This is by no means an exhaustive list, but these are the most common issues to be addressed by a loan audit.
1. Loan Fraud
You can be deceived at many levels. Loan fraud is quite subtle and the auditor should be able to identity all the nuances in the papers. Lying about various terms and conditions of the loan, false statement of income and loan applications, forgery of the documents, and backdating the documents are some common practices in the loan fraud.
2. Misrepresentation
To entice the borrower to take the loan, brokers and officers may make false claims, statements, and representations, either orally or in written form, that are in contradiction with what is drafted in the loan documents. The loan documents might also be misrepresented to mislead the borrower to take a loan that is not in the best interests of the borrower.
3. Deceptive Practices
Did the loan officers deceive the borrower? Were all loan documents consistent with UDAP (Unfair and Deceptive Codes and Practices) codes? The auditor must observe with great care the documents for any possible violation of UDAP Law. Deceptive yield spread premiums and misleading negative amortization loans are two of the most commonly employed deceptive practices by the lenders and the loan officers.
4. Breach of Contract
A loan document is a contract to which both the broker and the borrower must abide. Whether it is calculating the interest rates or stating penalties, the broker must be fair in providing accurate and truthful information to the borrowers. The auditor must check for any possible violations in this area. What Should an Audit Report Tell You?
After the investigation an audit summary is compiled which details various aspects of the loan and any violations discovered. The report should clearly explain all the results of the forensic loan audit performed, all State and Federal Law violations found, the actual terms and conditions of the loan, hidden fees and the commissions earned by your lender or broker.
These results are forwarded to an attorney who will use the report to support your case in a court of law. A competent auditor helps your attorney stop the foreclosure and save your home. So choose your auditor carefully by using some due diligence and a little logic and reasoning.
10 Common Traits of Real Estate Billionaires by Kelly
According to Forbes magazine's 2005 annual list of "The world's richest People"; the real estate investing billionaires have a lot of things in common. This can't be a coincidence. Let's look at some of those similarities.
For Sale by Owner
1. Go commercial. Residential properties seem to stay out of the interest in the billionaire's perspective. They usually go for office buildings, shopping centers and apartment buildings. This strategy seems very popular for the wealthiest man in American real estate, Donald Bren.
This billionaire made a lot of his money as chairman of The Irvine Company. This real estate investment company is famous for developing quality communities like the 93,000-acre Irvine Ranch in Orange County. Donald Bren is the 6th wealthiest real estate billionaire and the 122nd richest man in the world with a worth op approximately $4.3 billion.
2. Do more than invest. Most people buy property and then hope and pray that the property will appreciate in value. Improvements are very important. This can easily link into the term "flipping houses" which can result in astronomical capital gains.
3. See the property not for what it is, but what it could be. If you buy a office building, it doesn't mean that an office building is the best use of that property. It is very important to know the area, the market surrounding the area and future tendencies. It becomes very important to think outside the box to sniff out possibilities.
4. Be relentless & tenacious. Billionaires don't let obstacles or pitfalls keep them from achieving their goals. A lot of billionaires have gone bankrupt more than once. What makes them different is they used the failure as inspiration to do it better. The concept: "Failure is just another form of learning" comes to mind.
5. Have a thick skin. Other people can be resentful and jealous of successful people. Be strong against criticism, don't let it skew the path to your goals. The thing that I have found is that the people who are always skeptical or pessimistic are usually the ones that know very little about the subject. Next time people have a pessimistic view about real estate, just ask them how many properties they own.
6. Have superior information. The power of information lies not in what you know but in what you dont know and how quickly you can gain the knowledge of what you don't know. If you do more research than your competitor, you will have the upper hand in any deal.
Sell Your Home in 21 Days
7. Don't accept the cards you are dealt with. According to Forbes, two-thirds of billionaires who made their cash in real estate where self made. This means that they didn't inherit it or won a lottery. They used their heads and made thinks happen.
8. Live in California. U.S. billionaires who made their fortune in real estate, 7 out of the 21 lived in Atherton, Newport Beach, Stockton, Palo Alto or Illinois. That's one-third of them.
9. Get, & stay, married. Of the 43 real estate billionaires whose marital status is known, 37 are married, 5 divorced & 5 widowed. Makes me think of the quote: "behind every successful man is a more successful woman" and visa versa.
10. Get the education. 26 Real estate billionaires' education is known. Out of those, 20 have got at least a college degree, 3 have got high school diplomas, and 3 were high-school dropouts. This is not to say you can't get rich without a degree, but it should make you think.
For Sale by Owner
1. Go commercial. Residential properties seem to stay out of the interest in the billionaire's perspective. They usually go for office buildings, shopping centers and apartment buildings. This strategy seems very popular for the wealthiest man in American real estate, Donald Bren.
This billionaire made a lot of his money as chairman of The Irvine Company. This real estate investment company is famous for developing quality communities like the 93,000-acre Irvine Ranch in Orange County. Donald Bren is the 6th wealthiest real estate billionaire and the 122nd richest man in the world with a worth op approximately $4.3 billion.
2. Do more than invest. Most people buy property and then hope and pray that the property will appreciate in value. Improvements are very important. This can easily link into the term "flipping houses" which can result in astronomical capital gains.
3. See the property not for what it is, but what it could be. If you buy a office building, it doesn't mean that an office building is the best use of that property. It is very important to know the area, the market surrounding the area and future tendencies. It becomes very important to think outside the box to sniff out possibilities.
4. Be relentless & tenacious. Billionaires don't let obstacles or pitfalls keep them from achieving their goals. A lot of billionaires have gone bankrupt more than once. What makes them different is they used the failure as inspiration to do it better. The concept: "Failure is just another form of learning" comes to mind.
5. Have a thick skin. Other people can be resentful and jealous of successful people. Be strong against criticism, don't let it skew the path to your goals. The thing that I have found is that the people who are always skeptical or pessimistic are usually the ones that know very little about the subject. Next time people have a pessimistic view about real estate, just ask them how many properties they own.
6. Have superior information. The power of information lies not in what you know but in what you dont know and how quickly you can gain the knowledge of what you don't know. If you do more research than your competitor, you will have the upper hand in any deal.
Sell Your Home in 21 Days
7. Don't accept the cards you are dealt with. According to Forbes, two-thirds of billionaires who made their cash in real estate where self made. This means that they didn't inherit it or won a lottery. They used their heads and made thinks happen.
8. Live in California. U.S. billionaires who made their fortune in real estate, 7 out of the 21 lived in Atherton, Newport Beach, Stockton, Palo Alto or Illinois. That's one-third of them.
9. Get, & stay, married. Of the 43 real estate billionaires whose marital status is known, 37 are married, 5 divorced & 5 widowed. Makes me think of the quote: "behind every successful man is a more successful woman" and visa versa.
10. Get the education. 26 Real estate billionaires' education is known. Out of those, 20 have got at least a college degree, 3 have got high school diplomas, and 3 were high-school dropouts. This is not to say you can't get rich without a degree, but it should make you think.
Thursday, September 10, 2009
How To Invest In Canada Real Estate With No Money Down. by Ozzy
How To Invest In Canada Real Estate With No Money Down.
INVEST IN REAL ESTATE
"Discover How To Make Enormous Real Estate Cash Profits Without Using Any Of Your Own Money - Even In This Economy?!..."
IN THIS 70 MINUTE 'INSIDERS-ONLY' LIVE WEBINAR ($197 VALUE),
You will ALSO discover...
* Trent's little "trick" that got him a $3,000,000.00 property for no money down (use this shockingly simple tactic to start making massive real estate profits for yourself!)
* Trent's Recession-Proof system that can make you 100% or more return per year on your money... now you can say goodbye to your job and finally enjoy more money, more time and more freedom!
* How to earn $150,000.00 to $350,000.00 per year as a full-time real estate investor... And how you can start this week... without any previous experience or money!
If it was impossible for you to fail, what would you attempt to do?
How is this possible, you ask?
Attend the webinar to find out!
Why Is Trent Doing This?
INVEST IN REAL ESTATE
Trent has been a real estate investor for several years. And it has changed his life completely.
He used to live from paycheck to paycheck while both he and his wife struggled month after month only to make ends meet.
It seemed that the bills kept stacking up while they worked, worked and worked night and day - barely finding time to even breathe... much less to take time off.
But from following successful mentors, his situation literally transformed - and almost overnight!
Now he spends a lot of time with his wife and two kids, without any financial worries what-so-ever.
He has a very comfortable multi-six-figure income and loves what he does!
Up to now, he has only mentored his close friends and family.
And now he wants to help others who are dead-serious about wanting to make a change.
INVEST IN REAL ESTATE
How To Invest In Canada Real Estate With No Money Down.
INVEST IN REAL ESTATE
"Discover How To Make Enormous Real Estate Cash Profits Without Using Any Of Your Own Money - Even In This Economy?!..."
IN THIS 70 MINUTE 'INSIDERS-ONLY' LIVE WEBINAR ($197 VALUE),
You will ALSO discover...
* Trent's little "trick" that got him a $3,000,000.00 property for no money down (use this shockingly simple tactic to start making massive real estate profits for yourself!)
* Trent's Recession-Proof system that can make you 100% or more return per year on your money... now you can say goodbye to your job and finally enjoy more money, more time and more freedom!
* How to earn $150,000.00 to $350,000.00 per year as a full-time real estate investor... And how you can start this week... without any previous experience or money!
If it was impossible for you to fail, what would you attempt to do?
How is this possible, you ask?
Attend the webinar to find out!
Why Is Trent Doing This?
INVEST IN REAL ESTATE
Trent has been a real estate investor for several years. And it has changed his life completely.
He used to live from paycheck to paycheck while both he and his wife struggled month after month only to make ends meet.
It seemed that the bills kept stacking up while they worked, worked and worked night and day - barely finding time to even breathe... much less to take time off.
But from following successful mentors, his situation literally transformed - and almost overnight!
Now he spends a lot of time with his wife and two kids, without any financial worries what-so-ever.
He has a very comfortable multi-six-figure income and loves what he does!
Up to now, he has only mentored his close friends and family.
And now he wants to help others who are dead-serious about wanting to make a change.
INVEST IN REAL ESTATE
How To Invest In Canada Real Estate With No Money Down.
Saturday, September 5, 2009
Guide To Make Lots Of Money Turning Over Real Estate by John-David Basson
earning profits with real estate flipping is truly possible. It isn't the best thing in the world to do, but with a bit of talent and information you can become a hit in this niche of the property industry. The thing that you need to remember is that an investment in any sort of real estate is a risk. If you're expecting to come out on top every time you are not being realistic. And this holds true for making profits with real estate flipping in particular. The way that you make cash by flipping real estate is kind of straightforward. But do not just search by price . If you do this you may end up buying something that has no potential at all . From there, the very next step is to fix the property up to make sure that it meets all of the codes, and that somebody would really wish to purchase it. Ultimately, the profit generating step of the method. You will sell the property for as much money as you can. To calculate your total profits, all you've got to do is subtract the buying price and the money you put into the home from the selling price . This may tell you how much you have made with the particular exchange. Those are the 3 simple steps to making money with real estate flipping. Some folk make the error of being blinded by all of the money that will be made. Even though this is a nice thing, it shouldn't be the only thing on your mind. Overall, making profits with real estate flipping may or may not be good for you. Jax StatesReal estate investment
Wednesday, September 2, 2009
Real Estate Investing Strategies 101 by Chad DeBolt
If you entered your e-mail address into even one website offering an investing course, e-book, webinar or the like, than you probably get bombarded with offers everyday selling the latest and greatest real estate investing technique. In all honesty I don't mind receiving these types of e-mails and am actually on several peoples list. Some are good, some bad and some are just ok. The point to all of this is that there are tons of ways to make money in real estate and for the most part all of the strategies are legitimate and worth learning about. Here at Homes For Investors however we only focus on three types of real estate investing, well four actually but we only teach three. The three strategies we encourage our clients to use are:
Buy and Hold
Buy Fix and Sell
Rent to Own
These techniques are timeless. They worked decades ago and will work decades from now. They are the foundation in which all other techniques are built from. Let's take a look at each technique briefly and identify the attributes of each.
Note In future sections of this series we will get into great detail about each one of these strategies, for now though, just the basics.
Buy and Hold This is certainly not the quickest way to wealth but it is definitely one of the safest and easiest strategies to implement. Buying and holding a property is simply when you acquire a property for the purposes of renting it out and using the monthly rental income collected to offset your expenses associated with owing the property. In a perfect world your monthly rental income will cover all of the expenses plus leave you with a positive cash flow. This strategy is not to be used until you have adequate cash reserves as getting a part time job to pay for your rental property is no fun. Ask me how I know!
Buy Fix and Sell Buying fixing and selling goes by many names. It's commonly called flipping and sometimes called retailing. When using this strategy you identify a property located in an area that has a high likelihood of appealing to an owner occupant. You acquire the property for as cheaply as possible and renovate it, bringing it up to acceptable market standards. Once complete you market the property or hire a real estate agent. The objective is to sell the property to a willing and able buyer as quickly as possible and for the highest possible sale price, therefore maximizing your profit.
Rent to Own The Rent to Own strategy is a hybrid of the Buy and Hold strategy and the Buy Fix and Sell strategy. When using this technique you are offering your property to a tenant / buyer [tenant today - buyer tomorrow] on a lease agreement while simultaneously giving them an option to purchase the property for a predetermined sale price and for a predetermined amount of time. This is not the time or place to get into great detail but please realize right here and now that only a percentage of these deals actually come to fruition. The deals that don't close either end up being converted to a Buy and Hold rental or vacated, spruced back up and set up on a Rent to Own agreement all over again.
These three strategies alone are enough to build a lifetime of real estate deals. In fact most old school investors only use these techniques. Most balk at some of the more creative techniques used today. If you are new to the business I would recommend you learn the ins and outs of these techniques as they are absolutely the basis for all other techniques out there. If you master these the rest will come easy.
Since 1999 I have been using these exact techniques in conjunction with my wholesaling business. Lately, last 3 years or so I have been concentrating more on Buy and Hold and Buy Fix and Sell but Rent to Own is a very viable strategy as well, just not one I've been using lately. The next 3 lessons are focused on the details of each one these strategies so stay tuned and happy investing! .
Buy and Hold
Buy Fix and Sell
Rent to Own
These techniques are timeless. They worked decades ago and will work decades from now. They are the foundation in which all other techniques are built from. Let's take a look at each technique briefly and identify the attributes of each.
Note In future sections of this series we will get into great detail about each one of these strategies, for now though, just the basics.
Buy and Hold This is certainly not the quickest way to wealth but it is definitely one of the safest and easiest strategies to implement. Buying and holding a property is simply when you acquire a property for the purposes of renting it out and using the monthly rental income collected to offset your expenses associated with owing the property. In a perfect world your monthly rental income will cover all of the expenses plus leave you with a positive cash flow. This strategy is not to be used until you have adequate cash reserves as getting a part time job to pay for your rental property is no fun. Ask me how I know!
Buy Fix and Sell Buying fixing and selling goes by many names. It's commonly called flipping and sometimes called retailing. When using this strategy you identify a property located in an area that has a high likelihood of appealing to an owner occupant. You acquire the property for as cheaply as possible and renovate it, bringing it up to acceptable market standards. Once complete you market the property or hire a real estate agent. The objective is to sell the property to a willing and able buyer as quickly as possible and for the highest possible sale price, therefore maximizing your profit.
Rent to Own The Rent to Own strategy is a hybrid of the Buy and Hold strategy and the Buy Fix and Sell strategy. When using this technique you are offering your property to a tenant / buyer [tenant today - buyer tomorrow] on a lease agreement while simultaneously giving them an option to purchase the property for a predetermined sale price and for a predetermined amount of time. This is not the time or place to get into great detail but please realize right here and now that only a percentage of these deals actually come to fruition. The deals that don't close either end up being converted to a Buy and Hold rental or vacated, spruced back up and set up on a Rent to Own agreement all over again.
These three strategies alone are enough to build a lifetime of real estate deals. In fact most old school investors only use these techniques. Most balk at some of the more creative techniques used today. If you are new to the business I would recommend you learn the ins and outs of these techniques as they are absolutely the basis for all other techniques out there. If you master these the rest will come easy.
Since 1999 I have been using these exact techniques in conjunction with my wholesaling business. Lately, last 3 years or so I have been concentrating more on Buy and Hold and Buy Fix and Sell but Rent to Own is a very viable strategy as well, just not one I've been using lately. The next 3 lessons are focused on the details of each one these strategies so stay tuned and happy investing! .
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