Land Trust is a Good Option for Investors in This Market

Originally posted 2009-01-29 14:53:45. Republished by Blog Post Promoter

There was a great post at www.whataboutloans.com on the advantages of a land trust.  The post goes on to list advantages to the land trust to include:

• ease of control
• ease of transfer
• privacy of ownership

The article further defines the parties that own and use the trust and their roles in the transaction of a trust in relation to the purchase of real estate. 

Another key advantage to the trust that the article depicts is that the “beneficial interest in a trust is considered to be personal property, not real property. Therefore you can assign your beneficial interest in a trust to another party without a formal closing.”

Remember due to recent changes to Fannie Mae’s financing criteria investors need to reconsider how they take ownership of their new investor property.   Those changes are affecting investors who want to refinance the properties in their portfolio and have those properties under the entity, limited liability corporation (LLC). 

Freddie Mac backs many of the conforming loans on the secondary market, so any changes in the rules is very important and should be headline news; hence, this news release. 

The land trust is the best solution to combat this issue. 

Great News Investors, You Can Finance 10 Properties Again

Originally posted 2009-02-16 08:15:06. Republished by Blog Post Promoter

On March 1, 2009, <a href=”www.taylorbrownrealestatetalks.com”>real estate investors</a> can once again own and finance up to 10 individual properties.  There are restriction reversal, though. 

The restrictions are as follows:

You must have:

1. 720 credit score
2. 25% downpayment for a 1-unit (30% for a 2-4 unit)
3. No mortgage delinquencies in the last 12 months
4. 6 months of reserves for each investment property

Fannie Mae determine that investors can “play a key role in the housing recovery”.   The change of heart came as a result of foreclosure auctions not going as well as hope due to real estate investors not having cash were limited in the number of properties they could own. 

This decision once again allows investors the capital needed to grow their portofolio and create  wealth through their passive income with real estate investing.   Contact us at Taylor-Brown Real Estate and take a look at the real estate investment properties that have a positive cash flow.   Call  219 803 4489 or email Serena at snorbrown@yahoo.com for details.

Today’s special is 16 short sale properties all under $15K with 13 that are occupied with paying tenants.  There is a 17th property, but it is for $25K.  It, too, is occupied with a tentant paying 858 a month.  

Foreclosure – Latest News

Originally posted 2009-12-19 11:41:12. Republished by Blog Post Promoter

Fannie Mae Suspends Foreclosure Evictions | RealEstateRama

WASHINGTON, DC – December 18, 2009 – (RealEstateRama) — Fannie Mae (FNM/NYSE) announced today that it is suspending all foreclosure evictions from December 19, 2009 through January 3, 2010. All owner-occupants and tenants living in …

2009 Developments in Mediation: Foreclosure Mediation Programs …

In light of the subprime mortgage crisis, several states have adopted mediation programs to assist homeowners and lenders reach a solution to a mortgage foreclosure action. Keith Seat, at Mediate.com posted recently an update on …

TenantAccess Offers Solution to Manage Shadow Foreclosure Inventory

TenantAccess says it has an answer to that looming shadow inventory of foreclosures and REOs that so many analysts fear could get in the way of the nation’s housing recovery and lead to a second round of price deterioration for …

BofA, Chase Halt Foreclosure Evictions Until Jan. 3 : HousingWire …

3, 2009, Chase and BofA will postpone foreclosure evictions, according to HousingWire sources. Decisions to suspend foreclosure are common this time of year. This week, BofA’s executive of credit loss mitigation strategies, Jack Shakett …

bubbleinfo.com » Blog Archive » Foreclosure Cancellations

O’Toole, who sells foreclosure data to investors, government agencies and lenders, said that in the short term, fewer foreclosures could help stabilize the housing market and prompt nondistressed property owners to sell and buy another …

Related articles on foreclosure

• Bank Accidentally Sells House as Foreclosure (zillow.com)
• To Foreclose or Not To Foreclose: The Real Deal files a dispatch… (curbed.com)
• It’s OK to Walk Away, A Law Professor Argues (blogs.wsj.com)
• Attempting a Short Sale Can Be Beneficial – Even If It Doesn’t Go Through (heidiwhite.com)
• How to Rent Your Home from Fannie Mae (heidiwhite.com)
• Judge to the Rescue, Wipes Out Struggling Couple’s Mortgage (abcnews.go.com)

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Credit After Foreclosure

Originally posted 2009-04-06 05:00:26. Republished by Blog Post Promoter

Is rebuilding your credit after a tragedy like foreclosure over?   According to an article by an attorney that I found, it may as well be.   He states that due to the removal of sub prime lending a person that had the unfortune of being foreclosed on may have at the very least a three to five year battle to get his or credit back on track.  

Steven Elias goes on to say that consumers have three major things they need to consider if they are going to attempt to become credit worthly after a foreclosure:

• Think of saving instead of spending
• Learn how to live more simply
• Take the slow road to rebuilding credit

If foreclosure can be avoid then it is best to do.  A short sale is an option that you can consider. 

Call your the loss and mitigation department and tell them you would like to do a short sale.   The process for the short sale does not take as long as it use to.  There has been several improvements to the process thanks to Fannie Mae finally stepping up and prompting mortgage companies to eliminate the long process of approval. 

You can find out more about short sale my reading my book “Should I Short Sale My Home“.

Even Fannie Mae is Time Conscience

The number of homeowners in default has led Fannie Mae to experiment with a pre-approval process for a short sale prior to getting an offfer on the property.

If this test works, it will reduce the time necessary to get the short sale approved and make the concept of a short sale more attractive for the seller, Realtor, and more importantly the potential buyer.  Often times,  buyers have passed and not put offer in on homes that were subject to a short sale approval due in part to the longevidity of getting the offer approved.  I am sure that Fannie Mae may have discovered as many Realtor have that the longevidity contributes greatly to the attempted short sale often times going into foreclosure.  When this happens the lender now has the added risk of losing more money by the value being exposed to the downward trend in market value. 

This experiment is hoped to yield a closing process that is closer to that of a traditional conventional mortgage or FHA loan.  Both products can take up to 30 to 45 days to close were as the short sale have taken as long as eight weeks. 

Lastly, this new concept is being experimented upon in hopes to move the market to an upward trend by reducing the amount of properties that are on the market for sale.