Investing With The Stars

Dealing With Short Sales

Dealing with short sales

 

Short sales are becoming much more frequent in the United States, mainly because they are an alternative to foreclosure.  Homeowners who are facing foreclosure are looking for ways to keep from damaging their credit, and a short sale does just that.  Quite basically, a short sale is when the lender agrees to accept an amount less than what is owed on the property loan.  It is important to understand that not all lenders will accept a short sale.  In this article, you will learn some information about short sales and how to deal with the process.

 

If you are considering a short sale, you should first call the lender that is holding your mortgage loan.  You need to specify that you need to speak only to someone who handles the short sales for the company.  Be prepared to be put on hold, transferred, and even disconnected a ton of times before you get to the right person.  You may even have to explain what a short sale is to the person on the other end.  You do not want the general department either.  You should ask to speak directly to the supervisor of the short sales department.

 

Your next step is to send in a written letter of authorization.  This will give the lending company written permission to disclose any pertinent information to the parties that request it.  You should include your name, address, the date, and account number.  You should also have the document notarized, just to be on the safe side.  Make a copy for yourself.

 

Somewhere along the way, you may find that you need a real estate lawyer.  It would be best if you contact one as soon as you start looking into a short sale.  The lawyer can help you through the process.  When you contact a real estate lawyer, you need to ask them to prepare a preliminary net sheet for you.  This document is a bunch of fee calculations that show the price you expect, the costs associated with selling the home, unpaid money you owe, and back payments and late fees.

 

You will also need to provide a written hardship letter.  The best tip that you can get for writing this letter is to be as pitiful as possible, within reason of course.  Do not simply say that you lost your job and cannot pay the full amount.  You need to include other hardships that you have suffered as well as the loan problems.  If you have children, you add them in somewhere as well.  It sounds awful, but you need to play the sympathy card here.

 

In many situations, you cannot sell the home for the amount that is owed.  The market rises and falls so quickly, but when it falls, it stays down for awhile.  This is usually the main reason for a short sale.  It is simply impossible for you to pay the amount that is still owed on the loan because the house will not sell for that much.  In this case, you can obtain a comparative market analysis from the real estate agent.  If you provide this document to the lender with any other documentation that they need, you are more likely to get the short sale approved.

 

Short sales can be a headache, not just for you, but for the real estate agents as well.  There will be tons on paperwork and records that you will need to fill out and send in, but just keep in mind that lenders tend to look at short sales as a way for them to lose money so they will be rather demanding. 

 

Keep your patience and provide what you can. Be sure, better days are ahead………

Sign up for more information at www.investingwiththestars.net/season2

Nancy Geils

How to Make the Real Estate Work in This Recession

If you are looking for some advice on real estate investments, chances are that you have been advised against it. However, I feel, there is no need to be disheartened. You can actually make the current market work to your advantage. The secrets are wholesaling, short selling and good marketing.

 You may wonder what I am talking about. So stay with me for a few more minutes and we will work out how to make this so called down turned market make profits for us.  Let’s start with wholesaling in real estate.

 Wholesaling is good for someone who is efficient at locating prime bargains. If you are not interested in actually investing into a property or house but happen to know just the thing that someone else would love to have, then all you need to do is pass on this great bargain to someone who is looking for it! As a wholesaler you can expect to make a decent profit depending on the house that you pass on to a bargain hunter. You however need to remember to maintain a good margin of profit for the actual buyer as he will have to pay for it and also rehab it to be suitable for resale on the market.

 If you are looking at great properties at bargain prices to add to your portfolio, then you need to check out the pre-foreclosure properties. You could look for bargains at your county.

Recorder’s Office. You could do some research online too, by visiting the official website of A Country Recorder.  You could also do well to check out the classifieds some counties do publish their pre-foreclosure properties there in order to give the home owners a last chance to save their homes.

It may be a great sport to learn how to buy properties but to be successful in the real estate business; you need to know when to exit and how to do it profitably. Plan it in advance so that you can grab a good opportunity when you see one.

Second thing that you need to accomplice is to market yourself properly. If you are in the real estate market as an agent, no one knows it better than you that how hard it is to make a good sale in this market. You need to market yourself really well to be able to profit in this scenario.

When you are looking at paid advertisement, avoid selling yourself or your work. What you need to sell is how the person getting in touch with you can profit. In this recession a person doesn’t need to know how successful you have been in selling a property, what they need to know is how well you know the market and what kind of advantages you offer.

 So if you are looking to turn this bleak market into a great advantage for yourself then take a look into wholesaling and short selling of homes. If you are already in the market then go in for ingenious marketing to make yourself heard over the din. Success guarantied. 

For more information on short sales listen to the audio below by America's undisputed #1 expert on Short Sales,Phil Pustejovsky. It is terrific short sale program that I recommend!

If you want a simple, proven way to cash in big on
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Nancy Geils

Investing with the Stars

 

Bankruptcy Buying Home – How to rebuild you credit

Bankruptcy Buying Home – How to rebuild you credit

The good news of having a bankruptcy record on your credit report does not mean you can't buy a home. Believe me or not but people who have gone through bankruptcy have been able to encouraged themselves to build credit by taking on debt again

But the bad news is that the debt will be closely scrutinized and may come in smaller amounts and high interest rates. This usually happens because when you experience bankruptcy you are now tagged as high-risk borrowers.

But these negative thoughts rather facts should not dishearten those with deprived credit account from investigating their home loan options. The conscientious use of credit is the only way up from a bankruptcy filing.

Bankruptcy can provide liberation to people in terrible financial straits by releasing them from the obligation to repay their debts.

It's a drastic move for anyone because a bankruptcy will stay on a person's credit rating for up to 10 years, effectively acting like a warning flag to anyone considering lending that person money or a line of credit.

In order to mitigate the risk of providing that person a loan, the lender will charge higher interest rates than they normally would. For instance, an auto loan that might ordinarily carry six percent interest could come with an interest rate of eight percent or higher.

But, as time passes and small loans and credit card balances are paid off on time, the bankruptcy filing becomes less and less significant to a lender.

Establishing good credit after bankruptcy is essential. The following will help recent bankruptcy filers regain their financial strength:

Pay bills on time. This is the single best thing bankruptcy filers can do to build up their credit rating.

Acquire and use a secured or unsecured credit card. Just don't charge any more than you can afford to pay off each month.

Read your credit report. Errors are possible, and keeping tabs on your progress will help you stay focused on the goal of rebuilding after bankruptcy.

Mortgage companies would want someone with a reassurance that is on safe and responsible track. Many lenders prefer to see three things when considering loaning money to someone following a bankruptcy.

First thing is a long stretch preferably two years or more of on-time bill payments. This may be hard due to the case of reliable income. Likewise, with a steady work history and a down payment, even a small one, it would not be impossible for someone just coming out of bankruptcy to secure 100-percent coverage on a home loan.

A down payment is the second thing and a steady income coming in on third. Well this isn’t much as hard as the first one since. Some lenders will be willing to provide a loan sooner than two years if there is evidence of responsible bill payment on a car or secured credit card plus reliable income.

Just keep in mind that after experiencing bankruptcy buying home is no longer impossible
There are many reasons a person chooses to file bankruptcy. The loss of a job, unexpected medical bills, and overwhelming credit card debt are just a few of the factors that can lead to filing bankruptcy.

The mortgage lending industry has created special loan packages and terms for those who have filed bankruptcy in the past.

Lenders have little to lose in approving a home loan after bankruptcy. With your home serving as collateral for the loan, the lender can feel confident in approving you for a home loan, often soon after your bankruptcy has been discharged.

In summary, cash will solve this problem, for sure. However long it takes to gather that cash is how long it will take to get the house.

Start thinking about how you can make money in your spare time, selling on line at eBay, doing freelance work, or starting your own business.

You can increase your chances by coming into the deal with a lender with as much cash as possible. The more money you can use as a down payment, the less risk for the bank. There is a level where they'll lend you the money because the loan is secured by the house and the house is worth more than the mortgage.

For more real estate information and FREE Training go and sign up for:  investingwiththestars.net/season3.  This is a 12 week free session with real estate experts!

Nancy Geils
Investing with the Stars

Why Use Private Money for Real Estate Investing?

Why Private Money
by Alan Cowgill

This topic is near and dear to my heart. When I started my RE career, I heard about the necessity of finding private lenders. In fact I even found two. But then I stopped. For four years I PROCRASTINATED. I didn't get it!!! For four years I continued to go to banks and jump through their hoops. I also had used hard money lenders, but found them VERY expensive.

It wasn't until I quit my J.O.B. and found that banks wouldn't loan me money that I realized that I needed to bring private lenders into my life quickly.

When I took that step, everything changed for the better.

What are some of the advantages of using private money for your real estate investments? Well, if you haven't decided whether or not to use private money, I decided to lay it on the line here for everyone to see.

• Fast & you can buy at a discount


• No credit check & doesn't show up on your credit report


• Unlimited funds


• Control, you set the rules


• Help friends, family & meet a great group of people


• Get some of your profit when you buy


• Cash flow


• Flexible


• Can make offers with confidence


• Can structure quick and more profitable exit strategies


• Saves you money


• Cheaper than a partner


• Fund the purchase of defaulted paper


• It is the foundation for a very profitable brokerage business

In this business when a deal comes along you have to move fast. Many investors have watched a deal slip through their hands while they waited for the bank to approve their loan. Once you have private money available, that won't happen to you! You can make an offer knowing you can go ahead and set a closing date. Meanwhile, your competition is wondering how you did it so quickly!

For more information on Alan Cowgill go to: www.investingwiththestars.net/alan.htm

Nancy Geils
Investing with the Stars

Two Major Benefits of Having Private Lenders, By Alan Cowgill

I started my business by using banks, savings, credit cards, lines of credit, creative techniques with sellers (like land contracts or lease/options), and partners. But, once I was self-employed, I was concerned that it was going to be harder to get loans to purchase properties.

I had always been unhappy about how long the banks take to get the job done. I had it take 4-1/2 months on a house without a furnace. The bank didn't know if they wanted to make a loan on that kind of house, but that is what my rehab business is all about. Buy 'em ugly, cheap and fix 'em. Just think, if I would have used a private lender on the above deal, I could have bought, fixed & sold the house and pocketed $20,000 by the time I got to the closing table with the bank.

Click here for more info on Alan Cowgill:  www.investingwiththestars.net/alan.htm

With private lenders, I have the funds available all the time. When a good deal comes my way, I can grab it because I know the money is waiting for me. While my competitors are scrambling around applying at the bank, I've made an offer and closed the deal. My rehab crew is all over the property like ants before the competition knows what happened. I love having private lenders for my business.

So, a major benefit is SPEED to purchase a property.

Let's look at another major benefit of having private lenders. My first private lender was my Mother. My Dad had passed away in 1989 and Mom had insurance money. She proudly invested it on bank certificates of deposit (CDs). When I became a real estate investor, I learned about finding private lenders and so I talked to Mom about it. She loaned me $5,000 and received 10% interest in return. I paid her monthly just like her bank did with her CDs. She was delighted and so was I.

As my use of private lenders increased, I learned that some of them didn't need monthly payments and so I started to structure my loans so there was no payment until the property is sold.

This is a huge benefit... Think about what this has done to improve my monthly cash flow. Now my Mom will always get monthly payments from me because she is retired and depends on that income BUT anyone who can wait on their money, I'll let the money accrue. So the second major benefit is improved cash flow because you don't have to make monthly mortgage payments but just let the interest accrue.

For more information or to get Alan Cowgill's Program go to:  www.investingwiththestars.net/alan.htm

Nancy Geils
Investing with the Stars

NEWS FLASH! Investing With The Stars, Season 3, Real Estate Training

Monroe, CT, July 7,  On December 2008 , Investing With The Stars, Inc. opened the doors of ‘Investing With The Stars’  Season 3 and within a month had thousands of subscribers.  Members are treated to expert real estate speakers sharing their secrets and strategies on how to invest in today’s market!  A 12 week  series of webinars are set up weekly and offered to members to listen in the comfort of their home and learn.  The tremendous success of “Investing with the Stars”, Season 1 and 2  was unprecedented!

“These webinars and teleseminars were so fun and fact filled with so many secrets I was able to implement and make money right away!” said S. Slabicki. 

“We want our members to learn from all the experts who are out there doing what they teach! They are actually walking the walk and talking the talk”, said Nancy Geils, President of Investing with the Stars. The best thing that can happen is that they’ll tell their friends how much we’ve contributed to their success! 

We are opening the doors on Investing with the Stars, Season 3 on July 23, 2009!  You can sign up at www.http://investingwiththestars.net/season2 .  We are featuring the top “Stars” who are real estate millionaires and teaching you how to be the next with their many secrets.  

To  Reserve your spot for these FREE Webinars just go now to: http://www.investingwiththestars/season3

 

 

Internet Marketing Basics Training!

Hi Everyone,

So many of you have expressed interest to me in learning Internet Marketing. I have searched for the perfect two teachers who I think you will really like.  They are friends of mine who were former school teachers and now "teach" the basics and how to get started in internet marketing.  Watch this webinar on Wednesday, you'll love it!  Here's what they wrote...

Do you get tired of hearing how everyone else - except you!
- is making a fortune on the Internet?

Have you been watching and reading and studying - but still don't know how to put all the pieces together?

Are you just tired of feeling like you're "missing something" since everyone tells you how Easy it is?

Well, let me invite you to a special $1 webinar on Wednesday, July 8th - just for you!

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Connie Ragen Green and I are teaming up to bring you this webinar, which will walk you through the absolute basics of getting started. We'll put it out in such a way that there is no way you can be confused by the end of the webinar!

Here's why. Connie is a former teacher. She loves helping people get started and does a lot of hand-holding for her students and clients. She is great at making sure that no question goes unanswered. Connie has built a successful online business in three years - so she still remembers the confusing options you often have to face.

Like Connie, I'm also a former teacher - although I've always taught adults. I've helped thousands of people get their start online in the past 12 years and I have a track record of successful coaching clients to prove it. I have developed numerous programs to support you in your quest for Online Success.

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We decided to join forces for this program to be sure that everyone has the chance to become successful online. Now we're not promising you'll learn everything in one webinar.

This is just the start of a unique program we'll be telling you about. But you'll learn enough the first night to get you started.

So join us for our $1 webinar. And before you ask - this is a one-time fee, with no further obligation, no recurring payment, no 15 more pages of one-time offers. This a one dollar webinar. Period.

Sign up here:  http://budurl.com/qa9m

I will be there too!

Nancy Geils
Investing with the Stars

What is a Principal Balance Reduction?

What is a Principal Balance Reduction?

 There are many different things that can affect the balance of your mortgage loan, either increasing it or decreasing it.  It is important that you understand what these things are so that you have a better idea of where your money is going.  Let's go over the basics first and then we will address the topic of principal balance reduction.

 

What is the principal and how does it affect my loan balance?

The amount that you initially borrow and has to repay is the principle amount. It excludes the fees and interest amount. For example, if your mortgage loan is $200, 000 and you put $10,000 down; your principal is the amount that is left -- $190,000.  However, the principal amount fluctuates depending on the nature of your loan package

 

Fixing predatory lending incidences

Principal balance reductions are rare and usually only done by the lender.  These reductions are used to deal with predatory lending.  Since predatory lending is difficult to pinpoint before the deal is finished, the situations usually arise when borrowers have realized that something is not right.  The immediate fix to the situation is for the lender to try to repair the problem so that the borrower does not lose their home for something that was not their fault.  The result is usually a principal balance reduction.

 

Reduction vs. tolerance

There are two very similar and confusing term that are related to your principal balance: principal reduction and principal forbearance.  Principal reduction is when the lender actually permanently reduces the amount of principal that you owe.  Principal forbearance is more complicated.

 

Principal forbearance is more like a temporary reduction.  You receive a principal reduction but only for a short period.  You will still owe the amount that was reduced.  It will eventually have to be repaid.

 

The goal of principal balance reductions

The objective of principal balance reduction is to allow the borrower to pay in smaller and affordable payments.  The lenders generally go with principal balance reduction when homeowner is in danger of foreclosure or has defaulted on two or more payments.

For more information go to www.investingwiththestars.net/rei

You will find more real estate information on a 10 CD Set which explains

every aspect of real estate investing from the Real Estate Experts!

Nancy Geils

 

 

INVESTING WITH THE STARS, SEASON 3 FREE WEBINAR SERIES!

Thier formulas will be revealed...

 

 

I am so excited to be launching my 3rd Season
of Investing with the Stars Advance Real Estate Training Series!

This message is time sensitive so please

read the entire message right now.

 

It ALL starts Thursday, July 23 at 9PM EST, and

6PM Pacific- all the registration info is here:

 

But, before I get too far into it

I'm going to start backwards and

let you know up front that this

opportunity will NOT cost you one

single thing - NOT a penny!

 

http://investingwiththestars.net/season3

Now on to the good stuff:

 A few friends of mine have been working

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...and force them to finally reveal their Biggest

most profitable secrets for investing in real estate.

 

But here's the real kicker...

 

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This is your chance to eavesdrop on

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I'm flattered to have been invited to

share my strategies during this one

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by registering your spot now below.

 

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Nancy Geils

Owner and Founder

 

 

P.S. Not sure if this is for you? I understand

your hesitation. But consider this:

Think about all the top investors

you know for a moment.

 

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Five sure shot ways to attract home buyers

Five sure shot ways to attract home buyers

 

If you are a seller, in an effort to sell your house you need to present your home in such a way that it makes an irresistible impression in buyer's mind. But how does one bring that wow factor in his / her home? Let me guide you………….

 

Some basics of home improvement

For starters, begin with making your house clean. Remove all the clutter and personal photos from your home. Get that paint job and repairs done to deck it all up. And do not forget that aromatic smell which has to come from your house to linger on potential buyers. Large kitchens, great storage space, bright rooms and openness of the floor plans with proper finishing are the things buyers look for in a home normally.

 

Some not to miss tips

This is inline with the industry opinion. This year alone, Americans may spend close to $217 billion in remodeling of their homes. Well, if you are one of them keep these five tips in mind

 

1. Preserve nature. Buyers nowadays are looking for homes which have energy efficient products and attractive household items like better insulation, caulking, skylights, replaced old window etc.

 

2. To give your home new life, try adding wider baseboard and a fresh coat of paint. For making a difference to your doors and windows frame them. It really works and your home is ready to wow buyers.

 

3. When you are getting a paint job done look for colors which generally appeal to buyers. You can have the color of your choice till the time you are planning not to sell it anyways. So when you are painting it will a mind to sell it, try to make it as appealing as possible for potential buyers Try textured paint, accented walls or go for faux finishing to give your home a 'not to be missed' look.

 

4. Do not miss the flooring. Dirty, torn or chipped flooring are huge turnoffs. You can go in for wood flooring, tiles or just a new carpet to complete the look.

 

5. You can even add a deck. This can be a great value add for your home as buyers are happy to buy a home in which they do not have to spend extra money on customization to suit their needs.

 

So, here you go. All the best in your pursuit in creating the wow factor on the buyer’s mind. Go for it; you can do it.

For more articles and FREE Webinars go to www.investingwiththestars.net/season3

Nancy Geils

Founder/Owner

WHAT IS A LOAN MODIFICATION?

Loan Modification

 

Loan modification may sound simple when reading its definition; you only need to modify your existing mortgage terms to a more agreeable and affordable new contract.  Before any loan modification begins its process, you need to qualify for the loan modification program – this can be possible depending on your present financial hardship.  Loan modification has helped a lot of Americans; if you are one of the many homeowners who want to avoid or stop foreclosure, this may just be your saving grace.  If the process goes smoothly – you can get your existing loan modified fast and get your finances back on track.

 

Sometimes though, loan modification is not as simple as that.  Most lenders are not too willing to work with you and restructure your mortgage to make your life easier.  Instead, they will make it harder for you – especially if you have a weak case.  That is why it is important to get yourself the advice of a good loan modification attorney to help you negotiate your way through the loopholes.  Here is a guide to show you how to deal with your lenders and how to get the best agreement in loan modification.

 

How it works

Consultation.  This is the process where you consult with an attorney and sell your case to them.  A lot of loan modification companies offer free consultation – they will evaluate your situation and determine if loan modification is indeed the solution to your financial problem. 

 

Documentation.  If and when the loan modification attorney finds you suitable for the loan modification program, they will require you to fill out applications and present financial documents. 

 

These are usually included in the requirement list:

- Proof of income

- A hardship letter requesting for a loan modification and explaining your situation.

- At least four (4) months bank statements.

- A monthly expense sheet; a breakdown of all your expenses such as food and utilities.

- 2 years W2 forms.

- Most recent mortgage statement.

- 2 years income tax returns.

 

These documents are required by the loan modification attorney to best evaluate and deal with your situation – how to approach your lender and their initial loan modification proposal.  Also, by reviewing all documentation, loan modification attorneys can also spot violations of the TILA (Truth in Lending Act) and RESPA (Real Estate Settlement Procedures Act), which they can use as leverage during negotiations.

 

Negotiations. At this point, your loan modification attorney will begin negotiations with your existing lender on modifying your loans.  A competent loan modification attorney should negotiate aggressively until your lender makes an offer that will suit your financial capacity.  Proposals can be brought back and forth until both parties are agreeable to the new contract.

Nancy Geils

Investing with the Stars

www.investingwiththestars.net/season2