Was Your Foreclosure Legal?

Originally posted 2009-01-07 10:00:10. Republished by Blog Post Promoter

In the state of Illinois for a foreclosure to happen the lender must follow certain legal steps.

Thirty days prior to the enty of judgment of foreclosure, the owner and all person who have interest in the property will be given notice of the foreclosure.

Then, the lender must initiate a foreclosure complaint or counterclaim and at the same time the foreclosure complaint or counterclaim is entered a constructive notice is sent to all persons claiming interest or have a lien on the property.  The court gathers the information on who has interest or liens on the property from public record and title records. 

The constructive notice has to display the plaintiff’s or plaintiffs’ name, the case number, the court where the claim was filed, the names of the owners of record, the legal description of the property, the address of the property and a description of the mortgage that is being foreclosed on.   All the ladder information has to be correct.  If it is not challenge, the information by filing a response to the complaint.   The response must be filed at the court that the complaint or counterclaim was filed.  It also must be filed within 23 days of receiving the notice. 

If any of your rights are violated during the judiciary process of your foreclosure, you can file a complaint with the Judicial Inquiry Board.  This board is an independent agency that consist of four non-attorneys and three attorneys and two judges.  The primary job of this board is to investigate complaints about the judicial process and determine if futher investigate is necessary.  To find out more about the Judicial Inquiry Board, please visit http://www.state.il.us/jib/faq.htm

Once the judicial process is complete, the notice of sale is done.  The notice of sale must include the following information: 

• the name of the owner and all persons who have interest in the property
• the address and phone number of the owner and all persons who have interest in the property
• a description of the home and all improvements
• the time and place for the sale
• the case title and number and court where the foreclosure proceeding were held
• terms of the sale
• the times specific in the judgement

The sale must be post for three consecutive calender weeks (Sunday through Saturday)  at least one time during each of those three weeks with the first notice to be published not more than 45 days prior to the sale.  The last notice is to be published not less than 7 days prior to the sale. 

The notice of the sale can be listed in the newspaper in the legal section, but it must be listed in the county in which the property is located to be concerned proper notice.  It can also be advertised in the real estate section of the newspaper.  In addition, the court also instructs the lender which newspapers and other publications that the notice must be listed in to fulfill the public notice of the sale. 

In addition, the lender must also give notice to all parties to include the owner and even all parties who did not show up for court who may have interest in the property.  The notice must be given in the manner that the use for service of papers which may include a sheriff or courier notice.  This notifications by mail or courier shall take place in addition to the newspaper notice and shall be done at no more 45 days and not less than 7 days prior to the sale. 

No other notice is required unless the court orders or rules differently. 

The successful bidder shall receive a receipt of sale along with a description of the real estate purchased.  The receipt will show the bid amount, the amount paid, and if necessary the amount still remaining to be paid.   An additional receipt will be give if necessary when the remaining amount is paid. 

Upon full payment, the purchaser or bidder will receive a certificate of sale.  The certificate of sale is recordable.  The certificate of sale will have a description of the property sold, the date of the sale to include the location of the sale, and the amount paid.    The Certificate will further indicate that the sale is subject to court verification.    The recording of the certificate is also required by law under Section 12-121. 

Once recorded and verified, the certificate can be assigned by endorsement. 

Even in a foreclosure proceeding you have rights, please make sure yours was not denied.   The simply fact that the foreclosure was filed is not a violation.  If the payment have not been made as agreed, the foreclosure can be filed according the guidelines set forth in the note.  Most mortgages will default after three consecutive missed payments and then the full amount is accelerated to be now due.  However, if you get back on your feet before the foreclosure proceeding is filed which can take up to 6 months to 9 months after the last missed payment, you can contact the loss mitigation department for your mortgage company to get your payments back on track.  There are options, but you must call the lender’s loss mitigation department not the attorney to exercise your right to redemption if you are financial able to prior to the foreclosure proceeding.

What is Foreclosure?

Originally posted 2009-02-11 11:04:33. Republished by Blog Post Promoter

Foreclosure takes place when the deed is foreclosed through court action. It takes court action to <a href=”www.taylorbrownrealestatetalks.com”>foreclosure</a> on a home. 

 

The borrower uses his or her home as security or collateral for a mortgage. If the lender does not pay as agreed the lender can accelerate the mortgage and then places a lien on the property. Along those same lines, however, when the borrower pays off the loan, the lender gives the borrower a satisfaction of mortgage. The satisfaction of mortgage removes the lien on the property.

 

The <a href=”www.taylorbrownrealestatetalks.com”>foreclosure</a> progress begins with the lender’s attorney filing a summons and a complaint to the borrower and any other parties that may have rights in the property.  A trial is held, but once the borrower is notified the borrower has twenty days to respond to the complaint.  The borrower can challenge the lender on the foreclosure lawsuit.  If the borrower challenges the foreclosure, the court has 40 days to respond back to the borrower.  Each challenge must be related to the mortgage <a href=”www.taylorbrownrealestatetalks.com”>foreclosure</a>.  This process can go back and forth between the lender and the borrower as long as the borrower finds something incorrect information in the complaint. This, of course, slows the <a href=”www.taylorbrownrealestatetalks.com”>foreclosure</a> proceedings because it must be hear in court.  By virtue of the back and forth of this procedure many homeowners can stay in their homes for months often years after they have stopped paying their mortgage.

 

Make the Bank Produce the Note When You are Being Foreclosed On

Originally posted 2011-09-04 08:46:19. Republished by Blog Post Promoter

Real Estate Investing Is It a Cash Cow or Dud

Originally posted 2011-08-31 12:01:08. Republished by Blog Post Promoter

Is real estate investing still a good way to make money?  To answer this question, we will examine what occassional debt  such as credit cards can do to your financial future.

Most people use a credit card like it is a never ending money tree and spend, spend, spend.  If this occurs, you will never achieve wealth.  Here is why.  If that credit card’s interest rate is eighteen percent, you are paying eighteen dollars, for every one hundred dollars you spend.  The latter is an example of “living rich while growing poor.”

The objective in growing rich is to use the concept that the rich use.  It is, use OPM, other people’s money, to become financial free.

The steps are simple.  Reduce consumer debt.  Next, build assets through homeownership, save money, and invest.  Third, borrow against those assets to increase your net worth.

A critical requirement of OPM is that the moeny acquired needs to be used to maintain and/or improve your wealth.  In other words, it is not wise to use your newly acquired funds to purchase stock because the stock may be a higher risk proposition than real estate.

After all, real estate can reduce in value, but it will never be worth zero, unlike stock.  Yes, real estate is always  worth something even if there is no structure on the land.

The land, the dirt, the trees, the air, is all worth something.  So, next time you have some extra money do your homework and consider real estate as your

Types of Ownership Deeds

Originally posted 2008-11-29 13:58:08. Republished by Blog Post Promoter

There are different types of ownership deeds you may receive as a real estate investor.  The types of ownership deeds are general warranty deed, sheriff’s deed, quit claim deed, special warranty deed, tax deed, trustee deed, and certificate of title.

It is important to understand that no matter which ownership deed you receive it is best to have title insurance on it.

Title insurance is a policy that guarantees that the title for the property is clear of liens and/or judgments.  It also guarantees that the owner of the property has the right to sell the property.

The title insurance protects the owner and the new owner from losses that may arise from unknown or undisclosed defects in the pas chain of title.  Unlike most insurance, title insurance is paid in an one time installment at the closing.  This one time fee protects your interest as the new owner and your heirs interest for as long as you own the property.

The title policy is insured by the title company.  The title company will provide legal defense against any and all challenges to the title and reimburse the owner against any losses as a result of hidden or unknown defects in the owner’s rights.

Now, that we understand what the title insurance is.  Let’s examine the different types of ownership deeds.

As an investor, you may come to own your property through a special warranty deed.

Let examine what happens to get you the special warranty deed.  First, there is a sheriff’s deed issued by a judge.  This is issued by a judge to satisfy a judgment or lien.  This takes place in a foreclosure.

Before we get to the sheriff’s deed or special warranty deed, the mortgage company receives a certificate of title after the foreclosure.    This is how the property is conveyed to the mortgage company.  Ater the mortgage company acquires the sherriff’s deed, they must convey a warranty of ownership to the new owner.  The mortgage company does this through a special warranty deed.  Be aware, that a special warranty deed only warrants back to the mortgage company’s ownership not any further.  Remember, until the last payment the mortgage company really owns the property.  You, as the owner, has insurable interest.  Insurable interest is your right or benefit that you have in the property.  Mening as long as the mortgage payment is current your interest is still there.  Once you are late or not able to pay your interest is superceded by the mortgage company.  However, you can still protect your interest in the property if your situation or ablility to pay has now changed for the better visit www.freedomforeclosure.com/taylorbrown to find out how.

Other forms of deeds include a tax deed.  A tax deed is given if the homeowner has not paid their property taxes and someone else pays those taxes for the homeowner. This person receives this document when paying taxes on the behalf of the homeowner at a tax sale.

Still yet, there is another type of deed.  It is a trustee deed.  A trustee deed is used to convey a property out of a trust.

The next type of deed is a quit claim deed.  A quit claim deed is used to release whatever interest the owner has in the proeprty to someone else.

The deed that offers the most protection is the general warranty deed or warranty deed.  This deed warrants against all defects in chain of ownership before or after ownership of the property.

Related Deed Articles

• TaxDeedLists.com Helps Investors Explore Emerging Careers in Property Investments (prweb.com)
• The Statutory Warranty Deed: What You Should Know as the Seller (raincityguide.com)
• Fannie Mae Announces Deed for Lease Program (raincityguide.com)

Get Your Copy of “Should I Short Sale My Home”

Originally posted 2009-03-16 16:50:31. Republished by Blog Post Promoter

 

 

 

 

Click this link http://www.lulu.com/content/paperback/shouldisalemyhome/6381193

From: The Desk of Serena Brown, 4:33pm

 

If you are interested in selling your home using a short sale then learning an effective and efficient way to accomplish that goal is a much needed skill.

 

The single biggest complaint homeowner has is knowing how the short sale process works, and if the short sale will stop the foreclosure process.

 

As a homeowner who is facing the scariest and worst market for selling a home in decades it is important to have a guide along the way that help you understand what will or will not happen when and if you get a buyer for your home. 

 

As a homeowner, it is reasonable to want to understand the tax laws to avoid capital gain or loss.  It is equally reasonable for a homeowner to want to be able to sell his or her home before the sheriff sale. 

 

As a homeowner, the short sale and the pending foreclosure can become overwhelming.  In order to make the short sale an easier process it is important to understand the process and the options and choices that the homeowners have during the process. 

 

There is an amazing new book “Should I Short Sale My Home.”  It covers nearly everything you need to know about the short sale process and the effects the sale has on your federal income taxes.

 

Imagine having knowing how to get your home sold before the sheriff’s sale.  Would that be nice?  And can you imagine how great you’ll feel to have a clear and precise package to present to the lender to get the home sold before it is foreclosed on. 

 

Just a few weeks from now you will understand what a short sale is and what happens if you are an insolvency homeowner who sold your home in a short sale.

 

Did you hear that sold your home in the short sale?  Some homeowners list his or her home and it does not sell before the foreclosure, and the homeowner does not understand why the home did not sell.

 

And it’s not like any book you may have read on short sale of home before foreclosure, the book gives you all of the recent changes to the law that helps the insolvent homeowner and helps the homeowner understand the process of the short sale.

 

Why?

 

Simply, every section in the book is there because you asked for it.  Well, not “you” really.  But from real live questions.  Questions from people who have tried to sell their properties and sold their properties using a short sale, and the homeowner wants to make sure all the capital gain or loss is not going to negative affect him or her at tax time.   Questions from homeowners who wanted to know if they can ever own a home again after selling their home using a short sale.  A face to face question and answer section was completed.

 

And imagine the selling your home before the sheriff sale.  You can definitely do that.  Imagine being in control of selling your home.  Some homeowners are able to buy a home in 4 to 6 years after the short sale.  Not bad just for selling your home before the sheriff sale, huh?

 

·        You can save your family from the embarrassment of the foreclosure process

·        You can save on federal income taxes by proving that you are insolvent due to job loss, medical bills, etc.

·        You could take save your credit from the foreclosure

 

Would that be a great lifestyle or what?  That’s what this brand new book gives you the knowledge of the short sale process and the hope of selling your home before the sheriff’s sale and being able to purchase a home in the future. 

 

To get your paper back copy today for only $15.00 click on this link or get a downloadable copy for only $8.00 of  “Should I Short Sale My Home”  http://www.lulu.com/content/paperback/shouldisalemyhome/6381193

 

 

 

 

What Does Mortgage APR Indicate?

Originally posted 2009-12-02 05:00:48. Republished by Blog Post Promoter

This post is written by Steven Parker.  Steven Parker is a financial writer and contributor for the last five years.  He specializes in mortgage and real estate industry and has written many articles on mortgage, reverse mortgage, loan modification, foreclosure and many more.

Mortgage APR or Annual Percentage Rate helps you to assess the total cost of the loan in percentage. For instance, if your mortgage attracts a rate of 10%, it means that you will be required to shell out USD$10 for every USD$100 you borrow yearly. Borrowers usually try to get a mortgage loan that has the lowest APR.

Mortgage APR however doesn’t affect your monthly mortgage payments. This is because your monthly mortgage payments take into account the interest rate and not the mortgage APR.

What does mortgage APR include?

The APR includes the following in its calculations-

• Pre-paid interests
• Points
• Underwriting fees
• Loan processing fees etc.
• Fees for preparing documents
• Private mortgage insurance

In addition to the above, under certain circumstances, the following fees may be included too. They are –

• Credit life insurance
• Loan application fee

Fees excluded from APR calculation

The mortgage APR doesn’t take into account the following types of fees in its calculation-

• Appraisal fees
• Notary fees
• Attorney fees
• Transfer taxes
• Fees from Escrow and Title
• Credit Reporting fees
• Recording fees
• Home Inspection fees etc

In other words, the mortgage APR helps you to find out the amount you have to pay as closing cost. It is mandatory as per Federal Truth in Lending Laws that the lender has to disclose the mortgage APR to the borrower.

It is important that you compare the rates from lender to another. You can also compare the Annual Percentage Rate online. It helps you to shop around for the correct deal. It is also important to remember that getting a low mortgage APR doesn’t necessarily mean that you are getting a good deal. Read the fine print before signing the agreement when you opt for a mortgage.

What is Involved in Applying for a Short Sale

Originally posted 2008-12-21 11:14:05. Republished by Blog Post Promoter

If you feel that you qualify for a short sale contact the loss and mitigation department for your lender. Once you contact the lender’s loss and mitigation department ask for a short sale package. Most lender have financial forms that the lender needs filled out. In order for the short sale to be successful, the home must be listed. Contact a Realtor that is skilled with working with short sales.

A complete package consist of:

• financial documents from the seller/owner.  I am sure, as a seller/owner you may be wondering what is included in the financial documents.  The items are:

1. W-2 or 1099

2. pay stubs

3. lender financial documents (This document is a written verison of above information ie listing of income, name, address, phone number, etc)

4. authorization letter (allows the Realtor to speak to lender on your behalf)

5. hardship letter from seller/owner (this letter will explain why the seller/owner got behind on payment of mortgage)

• listing agreement with brokerage
• purchase agreement

1. purchase agreement must have proof of funds whether it is a pre-approval letter from a lender or proof of cash to purchase the property

• HUD-1  The HUD-1 is a settlement statement that itemizes all the charges for both the buyer and the seller.  This documents gives the lender an overview of funds needed to sell the property.

Armed with the above information, the lender makes a decision on the offer that the buyer submitted.  Remember a short sale allows the seller/owner to avoid foreclosure. The short sale also is often less than what the seller/owner owes to the lender.  It also allows the lender to prevent holding cost, attorney fees, etc. Holding cost for the lender is preservation of the asset or home until there is a buyer.  To preserve the home, the lender must secure the home from theft, keep the plumbing from freezing and bursting, etc.

There has been a lot of interest in this article lately, so I wanted to bring to the attention of readers my recent article that accompanies this article.   It is entitled “How to Fight for Your Home.”

This article will show what action need to be taken legally if you are in a foreclosure when you file for your short sale.

Related articles

• Avoid Short Sale Problems in Carmel Valley | Carmel Valley Avoid Short Sale Problems (ladyyalda.wordpress.com)
• How to Fight for Your Home (taylorbrownrealestatetalks.com)

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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Tips for Buying Property During a Recession

Buying Properties During Recession: Do’s and Dont’s

Purchasing real estate is no laughing matter – whether the economy’s doing well or it’s experiencing recession. It’s a well-known fact that buyers are in a better position to purchase real estate during a recession. However, there are still some risks involved. So how do you make sure you’re still getting the best real estate deal during the recession times? Here are some tips that you can make use of:

Don’t come undone with your own expectations.

Determining whether you have gotten yourself a good deal in buying real estate, or simply just about anything, depends on your priorities. We all differ in priorities, that’s a fact. So if you’d like to make sure you satisfy yourself, get your own expectations in check. Creating a checklist can help you here. Finding a property to buy with a checklist handy can greatly facilitate the process.

Don’t be too you-you-you.

Sure, you were advised to know your priorities and to create a checklist to boot. However, flexibility can also get you a long way. Be objective with your judgments and take a hard look at the property you are planning to buy. Think hard and see if you are actually being too choosy to the point of being impractical. Would you like fancy or functional? Is it comfy or uber-elegant? How about trying to meet in the middle? Have you asked for suggestions from experts of family or friends with experience? Do they agree with you? Although you do not need to wipe your slate clean and accommodate all their opinions, are your expectations realistic enough and what about your budget? Remember it is recession.

Don’t be over-confident during a real estate recession.

Many think that since it is recession, they can just buy and buy and buy properties. Although many property sellers are usually on the lower part of the scale during these times, not all deals are the best ones. You still need to be as careful as ever in purchasing real estate.

Before pursuing a short sale…

Many would pursue a short sale trying to grab a good deal. However, before you buy a property with a price that seems too low for the location, asking your agent to investigate if it is a short sale won’t hurt. This is important since you should not just make an offer on a pre-foreclosure, short sale property.

Beware during recession since there are not too many fish in the sea
Er, properties to buy. Home sellers do know that during a recession, they may not be able to sell their properties for a better price. This means that they would have to wait longer to put their home out on the market. There may be properties for sale, but they get bought quicker, too. It would be helpful if you are prepared enough to make a purchase without dilly-dallying if you really are into it.

Recession or not…

Your decision should not be clouded in buying a property. Always shop for the lowest price, which fortunately is more attainable during recession for buyers. However, do not forget that the lowest-priced property is not necessarily the best one.

In summary, there are some advantages to buying a home during recession. However, if you do not really have the budget or are not that well-educated in the real estate industry, do not feel pressured to jump in.

 

Related articles

• Buying Real Estate in Another State, City, or Country. Is it Wise? (taylorbrownrealestatetalks.com)
• Real Estate Investment Tips (taylorbrownrealestatetalks.com)

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