Has it come to the point where you have asked yourself "How can I avoid foreclosure to save my home?" Don't feel alone. There are millions of Americans today facing the same problem.
If you are at this crisis in your life, I know you don't have much time to spend on reading. So we will get straight to the steps you need to save your home.
Step 1: Never avoid the situation. If you avoid making your full house payments, it will catch up with you within 3 months. If you put off the situation and hope it will get better you are only wasting valuable time. As you will see below, every day you are active in getting the situation resolved the easier it will be to avoid any foreclosure of your home.
Step 2: Contact your lender as soon as you know you have a problem.
You may not want to contact your lender because of embarrassment. It is natural to feel this way. It is not going to be on of those fun conversations to have, but avoiding the situation will only cause you more problems in very near future. Lenders don't want to start foreclosure proceedings on you home because of all the expenses involved (court fees, attorney fees, etc.). They would much rather discuss a modified repayment plan. If you don't feel comfortable talking with the lender then you should look into getting a foreclosure specialist to help with the process.
Step 3: Gather all your financial documents. You will need to have your loan number, a month's worth of your most recent paycheck stubs, a list of all your credit card debt, hospital bills etc. You should sit down and create a budget showing your income and expenses for a whole month. You should also prioritize your spending. Cut out the things you don't need, like cable, internet access, etc. The budget will show the lender you have already done some of your homework on how to work out a solution.
Step 4: Respond to any mail or phone calls you receive from your lender. This step is very important. You don't want the lender to think you are trying to avoid the situation. At this point you want to be very cooperative.
Step 5: Know your rights as a borrower. You should find your loan documents and read them. They will tell you what the lender can do if you are unable to make your payments.
Step 6: Determine how much you have in assets. Do you have some jewelry or a second car that you can sell? You may even have a life insurance policy you can cash in. Although these may not increase your cash flow, it will demonstrate to the lender that you are willing to make sacrifices.
Step 7: If you have gotten to this point and don't feel you are able to resolve the situation then you should seek the help of a professional foreclosure counselor. There are many companies that offer free consultations. You are not obligated to use their services, but you can definitely find the answer to your question of "How can I avoid foreclosure?" These professionals have many contacts in the banking market and can often times offer solutions you may not be able to find on your own.
Foreclose on your home is very serious. It can ruin your credit and more importantly ruin you way of life. Don't' become a victim. Find more solutions on how to stop or avoid foreclosure at http://www.foreclosure-free.com
Michelle Travis has over 20 years of experience in the credit and debt industry and works hard to provide solutions for you. If you would like to get more solutions on getting out of debt and credit repair goto http://www.your-credit-solution.com
Article Source: http://EzineArticles.com/?expert=Michelle_Travis
Monday, May 26, 2008
Sunday, May 18, 2008
Real Estate Investing - Flip or buy and hold?
There are many ways to make money in real estate, but all the different methods boil down to two. The big decision in real estate is whether to flip a property for a fast profit or to hold on to the property for long term wealth.
The advantages of a flip are as follows:
You make a fast profit and can move on to the next deal. One of the downsides of holding a property is that you have to be a landlord. There is nothing more difficult to me than being a landlord. When I flip a property I don't have to worry about collecting rent or fixing the property over and over. I don't have to find someone to rent the property. There something to be said about a quick profit.
Finding a property to flip is fairly easy. Ugly properties are not hard to find, especially in the large cities. In Atlanta Georgia there are so many properties available for rehab and not enough investors.
Flipping a property is more interesting than find and hold. If you like excitement then flipping properties is your game. There are good times and bad times that come with flipping properties and it is never boring.
The disadvantages to a flip are as follows:
You will have to pay more taxes when you sell a flip. When you flip a property your profit will be taxed as ordinary income. This can be as much as forty percent of your profit.
Flipping a property means you must keep selling homes. The easy part of flipping is buying the property and then fixing it up. The hard part is selling the property.
The advantages of holding a property are as follows:
If you want long term appreciation then you need to buy and hold. There is no denying that if you buy a property at discount and then put a renter in the property for twenty years that you will have an investment that has appreciated tremendously.
Cash flow will come to the person who holds their properties for a long time. Positive cash flow usually takes time and if you are willing to wait a few years you will have a good monthly income.
The obvious problem with holding properties is being a landlord. If every renter stayed, paid on time, and never destroyed your home, then there would be no problems. Unfortunately you will have to find new tenants often. You will not collect all of the rent you are due. You will have to fix a property every once in a while.
The decision to flip or hold is a difficult one. I like to do both. If I find a home worth holding I hold it. If the property is too far away or needs too much work to be rental worthy then I will flip the property. Both have their good points and bad. The bottom line is that you need to be comfortable with your decision. Being a real estate investor should be fun first and an investment second. So do what you like most and feel best doing.
Article Source: http://EzineArticles.com/?expert=Max_Suther
The advantages of a flip are as follows:
You make a fast profit and can move on to the next deal. One of the downsides of holding a property is that you have to be a landlord. There is nothing more difficult to me than being a landlord. When I flip a property I don't have to worry about collecting rent or fixing the property over and over. I don't have to find someone to rent the property. There something to be said about a quick profit.
Finding a property to flip is fairly easy. Ugly properties are not hard to find, especially in the large cities. In Atlanta Georgia there are so many properties available for rehab and not enough investors.
Flipping a property is more interesting than find and hold. If you like excitement then flipping properties is your game. There are good times and bad times that come with flipping properties and it is never boring.
The disadvantages to a flip are as follows:
You will have to pay more taxes when you sell a flip. When you flip a property your profit will be taxed as ordinary income. This can be as much as forty percent of your profit.
Flipping a property means you must keep selling homes. The easy part of flipping is buying the property and then fixing it up. The hard part is selling the property.
The advantages of holding a property are as follows:
If you want long term appreciation then you need to buy and hold. There is no denying that if you buy a property at discount and then put a renter in the property for twenty years that you will have an investment that has appreciated tremendously.
Cash flow will come to the person who holds their properties for a long time. Positive cash flow usually takes time and if you are willing to wait a few years you will have a good monthly income.
The obvious problem with holding properties is being a landlord. If every renter stayed, paid on time, and never destroyed your home, then there would be no problems. Unfortunately you will have to find new tenants often. You will not collect all of the rent you are due. You will have to fix a property every once in a while.
The decision to flip or hold is a difficult one. I like to do both. If I find a home worth holding I hold it. If the property is too far away or needs too much work to be rental worthy then I will flip the property. Both have their good points and bad. The bottom line is that you need to be comfortable with your decision. Being a real estate investor should be fun first and an investment second. So do what you like most and feel best doing.
Article Source: http://EzineArticles.com/?expert=Max_Suther
Sunday, May 11, 2008
Real Estate Investing: Buying Property Out of State
Buying property out of your local area where you live is not something that is recommended for the new investor. That’s why we made purchasing our first real estate investment out of state our top priority! Why? Because a set of circumstances presented themselves that made sense for us to follow through on and purchase vacant land several states away. We paid cash for this property at a significantly lower price than market calls for in the area. Additionally, it matched our investment criteria and was a small enough deal for us that it made sense to buy it. Why have we italicized the term “us” thus far? Because this is a topic we believe does not belong on this site, however, we learned alot from the experience and want to share some simple lessons learned in this particular article as well as future articles. Bottom line, we are not recommending people new to real estate investing run out and buy property several hundred miles away!
Information is vital to good, sound real estate investing. No, good information is vital to sound real estate investing. No, actually, you, the buyer, gathering a ton of information about a property you plan to buy, is absolutely necessary in order to increase your odds for success at real estate investing! Phew! Okay, so we got that straight. So how do you get information and how do you get quality information? Do you call a few realtors and ask them about the area? That’s like asking a barber if you need a haircut. What about calling the local chamber of commerce? A local chamber of commerce is a good starting point, but it depends on who you speak with. For instance, you might speak to a person trying to market the area to bring business or improvement to the area. You may or may not get accurate information or the correct data given your investment goals.
Talk to multiple sources. Make several phone calls to different businesses. A reputable developer in the area can be an excellent resource for connecting you to other phone numbers to contact and possibly even some of their personal contacts.
Verify everything! Verify every statement a seller makes. If you can get someone to take pictures of the property you’re buying, that’s very important. If you’re buying vacant land, you’ll want to know if the lot is buildable, in a flood zone, zoning, utilities, sewer, and the surrounding neighborhood and subdivision.
When you contact municipalities, be sure to call back several times if you do not get a cooperative person on the phone. For some reason, people down south are nicer. They tend to spend more time on the phone with you and bear with you while you struggle to put two and two together. Don’t be afraid to let information sink into your head while you’re on the phone and ask the person on the line to wait while you write things down.
It pays to prepare for phone calls. Write down questions. It pays to have a questionnaire available. If you use ours feel free to make it your own. If you do not understand a terminology you can contact us or look it up online at any real estate investment website. Log all of your phone contacts and write down names and extensions of helpful people.
Another good source of information will be the local paper of that area. There you will find classifieds and legal notices which can give you an idea how business is growing and where and when foreclosure auctions are to take place. As you compile more places to follow up with from simply reading the paper, make sure you actually follow up! Many newspapers have websites, but you will not get the same information you will with the actual paper.
Additionally, you may also look into local real estate investor clubs and organizations. Here you will find possible online access to localized forums where you can chat and post questions, possibly make contacts and get further information. Local real estate investment clubs will help to get your foot in the door with other investors. This is important as you can learn what to do…and what not to do.
It cannot be stressed enough that is is very important to log everything you do. Make sure you write it down somewhere so that you may refer back to your notes on paper, rather than in your head. Hopefully, what you write, who you talk to and what you read will allow you to make wise decisions when considering your investment strategies for out of town real estate.
©2006 noobdogs.com
Noobdogs.com offers a place for fellow new investors in real estate to ask questions and get good, sound information they can understand. Noobdogs.com is owned and operated by AmeriCountry Realty Group LLC. Founded in 2006 by Tom McGiveron, a Behavior Specialist and entrepreneur, noobdogs.com is becoming the premier site for new investors to achieve success in personal development and real estate investment.
Article Source: http://EzineArticles.com/?expert=Thomas_McGiveron
Information is vital to good, sound real estate investing. No, good information is vital to sound real estate investing. No, actually, you, the buyer, gathering a ton of information about a property you plan to buy, is absolutely necessary in order to increase your odds for success at real estate investing! Phew! Okay, so we got that straight. So how do you get information and how do you get quality information? Do you call a few realtors and ask them about the area? That’s like asking a barber if you need a haircut. What about calling the local chamber of commerce? A local chamber of commerce is a good starting point, but it depends on who you speak with. For instance, you might speak to a person trying to market the area to bring business or improvement to the area. You may or may not get accurate information or the correct data given your investment goals.
Talk to multiple sources. Make several phone calls to different businesses. A reputable developer in the area can be an excellent resource for connecting you to other phone numbers to contact and possibly even some of their personal contacts.
Verify everything! Verify every statement a seller makes. If you can get someone to take pictures of the property you’re buying, that’s very important. If you’re buying vacant land, you’ll want to know if the lot is buildable, in a flood zone, zoning, utilities, sewer, and the surrounding neighborhood and subdivision.
When you contact municipalities, be sure to call back several times if you do not get a cooperative person on the phone. For some reason, people down south are nicer. They tend to spend more time on the phone with you and bear with you while you struggle to put two and two together. Don’t be afraid to let information sink into your head while you’re on the phone and ask the person on the line to wait while you write things down.
It pays to prepare for phone calls. Write down questions. It pays to have a questionnaire available. If you use ours feel free to make it your own. If you do not understand a terminology you can contact us or look it up online at any real estate investment website. Log all of your phone contacts and write down names and extensions of helpful people.
Another good source of information will be the local paper of that area. There you will find classifieds and legal notices which can give you an idea how business is growing and where and when foreclosure auctions are to take place. As you compile more places to follow up with from simply reading the paper, make sure you actually follow up! Many newspapers have websites, but you will not get the same information you will with the actual paper.
Additionally, you may also look into local real estate investor clubs and organizations. Here you will find possible online access to localized forums where you can chat and post questions, possibly make contacts and get further information. Local real estate investment clubs will help to get your foot in the door with other investors. This is important as you can learn what to do…and what not to do.
It cannot be stressed enough that is is very important to log everything you do. Make sure you write it down somewhere so that you may refer back to your notes on paper, rather than in your head. Hopefully, what you write, who you talk to and what you read will allow you to make wise decisions when considering your investment strategies for out of town real estate.
©2006 noobdogs.com
Noobdogs.com offers a place for fellow new investors in real estate to ask questions and get good, sound information they can understand. Noobdogs.com is owned and operated by AmeriCountry Realty Group LLC. Founded in 2006 by Tom McGiveron, a Behavior Specialist and entrepreneur, noobdogs.com is becoming the premier site for new investors to achieve success in personal development and real estate investment.
Article Source: http://EzineArticles.com/?expert=Thomas_McGiveron
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