Some home owner’s lose their house to foreclosure when they fall behind on payments.  If the seller doesn’t take the time to do a short sale he/she may run out of time and eventually lose the house to the foreclosure process.  It will take longer with most lender insurer’s such as Fannie Mae and Freddie Mac when it comes to getting a home loan approved in the future than vs. doing a short sale.  If a seller can prevent
a full foreclosure on their record and negotiate with the help of an expert it’s always recommended from the situations and research I’ve done.

Job Losses Growing Will Cause More Foreclosure…

At 7:30 am this morning jobless claims week ending 11/15 just went up significantly up 27,000 to 542,000 lost jobs

That’s the lastest headlines all over the web.   You can read the latest article today I just read today titled No Job, Bad Mortgage, no luck.  This article relates to are recent articles about job losses of the recent unemployed.  Here are some highlights from this recent article:

Because of the growing wave of home owners losing their jobs, this is causing more foreclosures, and banks can’t do much to help these home owners simply because they have zero income.  The banks aren’t offering relief at all.   Mortgage modifications have tried to help in the past by getting home owners loans more in check at the 31% range of DTI.  If there is no income at all, no amount works.   “A record 1.2 million homes were in foreclosure during the second quarter of 2008″  “The unemployment rate is at 6.5%, its highest level in more than 14 years.” “45.5% of all delinquencies reported by Freddie Mac were due to unemployment or the loss of income, according to the company. That’s an increase from 36.3% in 2006.”   Right now a short-term modification or forbearance plan may be made on a case by case basis for each home owner by non profit loan servicers and banks.  Many homeowners are being told on television and in the media to call their lender for help and many feel they aren’t getting it.  The fear of these home owners losing their jobs and going into foreclosure is that it will continue to drive down prices, which in effect will put more homeowners under water which will cause more foreclosure.  Are solution to all of this is for our 3rd party negotiators to help you with your minnesota short sale home.  Contact me today if you owe too much on your home, are behind in payments or in foreclosure.

Real Estate Broker, Ron

Minnesota Short Sale Homes

This article was written by Mario a licensed agent that specializes in mn short sale homes

Your question is more of a marketing question then how to get into pre-foreclosure. My suggestion is to goto barnes and noble and pick up a

couple books on it. You would be suprised on how much there is on this

topic these days. even a couple years ago it was hard to find anything on

them but now it is common knowledge. Reading these forums will get the

majority of your questions answered that come to mind after reading a

couple books and getting the foundation laid.

As for the examples of marketing that you mentioned… To each his own.

Court house works well but you need to have a different message then

everyone else, be consistant at sending the letters, and do mass amounts

because it is a numbers game. Bandit signs work wonders, calling

houses for rent, looking on post sites, and even talking to agents that dont

do shorts because right now agents are sitting down with a lot of

sellers that cant list the traditional way because they owe too much and

the agent doesnt know that they could do a short sale. tell the agent

that you want every contact they get that they can not list because the

seller is upside down and just tell them you have alternative ways of

helping the seller. if the agent cant help them… tell them to at least

let you help them.

Most importantly, before you step into deep water you need to at least

know how to tread water, let alone swim. The worst thing you can do is

get a seller and not have a clue on where to start. so go do a little

reading and research to get comfortable and then start looking for

sellers. I dont agree with being an expert before you start because the only

way you become one is by doing it and messing up from time to time so

dont let research hold you paralized but u need to have a plan. I

always tell people who get stuck in research mode, you goto the library and

i will goto the bank.

Good luck!

Ron did a longer more detailed article at this link for minnesota short sale

Don’t Do MN Foreclosure Leasebacks

This article is written by Mario and agent that does specalize with mn short sale homes

Dont do the lease back for two reasons:

1) depending on your state laws it is sometimes very risk for the buyer

to do it and not come across as a preditor. I live in MN and we have

so many stupid laws to protect people but at the same time it is because

some people take advantage of and screw people that are already down

and out. In our state it is Very hard to do a foreclosure bailout

legally and usually not even worth it because they regulate how much you can

charge in interest and term and reapercussions and even how much more

you can sell it back to them for that it just takes the money out of it

and lets the seller/tenant walk all over you if they choose. Now

remember it’s not like someone is looking over your shoulder to make sure you

are doing it legally but at the same time all it takes is a

seller/tenant with a victom mentality to turn around and say that you were using

preditory tactics to steal their house and you have a mess on your

hands.

2)If they are that far behind right now with their BANK then why would

they hesitate to not pay you when they know you will make the mortgage

payment either way because it effects you. Now i am also not telling

you that the seller/tenant deliberately didnt make their mortgage payment

but there is a reason lenders look at credit reports… it shows thier

track history and the level of risk a lender is taking when giving

them a line of credit. You need to pay attention to the persons history.

if he is still in the same line of work and has no other form of income,

it is simply a matter of time before this person hits the same

financial situation again but this time you are the “bank” and you are the

jerk that has to evict them from their own house.

Lease backs are very risky and i have friends that did them for a while

and will never do them again because of the amount of times that

people they were trying to help turned around and screwed them and stayed in

the house as long as they could to make the situation even harder on

the investor.

Do it right and buy it outright from him and if you want to deal with a

tenant, put one in that has a good track record of paying thier bills.

that is y it is so important to ask them what their plan is if they

are not going to sell, because that is most likely their only option

besides foreclosure.

Ron did a longer more detailed article at this link for minnesota short sale

Buy a Foreclosed Home: Abandoned Homes

You should check out my other Foreclosure Posts on the topic of buy a foreclosed home

Abandoned Homes  Have you seen this on money.com cnn’s site?

Rundown vacant homes are costing cities and lenders so much money right now.  From lawns that need to be mowed, to boarding up the house, to vandalism.  These houses just sit and sit the whole time during the long foreclosure process.

There is trash and long weeds everywhere, and no one is taking care of these homes. It’s really bad in Detroit and around Cleveland and in many parts of Ohio right now.  It’s ruining communities in these other cities in different parts of the US. Some of these same cities are having a hard time cutting back jobs on people right now. Unemployment is on the rise.

The communities are getting upset and want the homeowners in foreclosure or the lenders to pay to keep up the properties because the cities can no longer afford it.  The article states this “Cleaning up a yard filled with trash can cost $1,000, he said, and boarding up an empty house runs about $500.”

I heard a city in California went bankrupt the other day, the entire city.  This article talks about other houses in good shape in the neighborhood going down in value due to the just a few bad apples that really are in bad shape that cause problems in neighborhoods and looting, etc.

Some of these properties can be in this condition for years.    If you want to read this article here it is in it’s entirety

http://money.cnn.com/2008/05/30/real_estate/high_maintenance_properties/index.htm?postversion=2008060217