FREE Special Report On How To Avoid Foreclosure!

Attention Homeowners!

Free Special Report On How To Avoid Foreclosure! 

Any Condition – Any Price Range – Any Area!

Email or call me for more information about the “How to Avoid Foreclosure” informational packet.

Phone: 310-662-1784

Email: aaron@embracevision.com

I’m in the business of buying houses and I might want to buy your house or condo. If you want to sell your house easily, I’ve got the perfect solution.  Normally, selling a house is a costly, complicated and time consuming process.

But I have a much easier solution for you!

I represent a group of private investors who purchase several homes per month in multiple different areas and surrounding neighborhoods. We use private funding, which means there are no banks to wait on or hassle with and we can close quickly.  To be clear, I am not a real estate agent, I am looking TO BUY YOUR HOUSE WITH CASH.

I’m sure you’ll agree we’re in a buyer’s market and getting top dollar for your home is close to impossible. In fact, selling today is a very frustrating experience.  If you want a FAIR MARKET CASH OFFER and the ability to close quickly we can help. 

Your current situation or the condition of your homes doesn’t matter. If you need to move fast, if you are behind on payments, if you are facing foreclosure or bankruptcy, if you are going through a divorce or any other problems that involve your home, we can help right now.

I may be able to buy you house, or maybe not, a lot of it depends on you. However, I can make you a fair market offer.

If you’re looking to solve your problem quickly call me right away at 310-662-1784.

Take care,

Aaron Clendenning

Phone: 310-662-1784

Email: aaron@embracevision.com

Tags: Any Area, Any Condition, Any Price Range, Avoid Foreclosure, Foreclosure, Special Report
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Short Sales Grow as a Cheaper Alternative to Foreclosure

PICTURE: Stephanie and Bob Walker chronicled their home’s short sale in a popular blog called Love in the Time of Foreclosure. (Stephanie and Bob Walker / October 15, 2006)

Love in the Time of Foreclosure

Banks’ resistance to the tricky transactions is softening as the number of distressed properties increases.

February 17, 2010|By Alejandro Lazo – Article was found in the Los Angeles Times.

Nineteen months ago, the recession took Bob Walker’s job. Then, creditors lined up to take the three-bedroom hilltop home that the computer consultant shared with his wife, Stephanie, a playwright still looking for her first break.

Avoiding the stigma and financial fallout of foreclosure became an obsession for the Walkers. They talked to the banks, found multiple jobs, put their Silver Lake house on the market and tried to stitch together a plan to repay their debts. Finally, they turned to a short sale, chronicled in a popular blog: Love in the Time of Foreclosure.

“We really thought that, worst-case scenario, we will sell the house and break even,” Stephanie Walker said. “But it didn’t work. We went into great losses.”

In a short sale the lender lets a homeowner unload a house for less than what is owed on the mortgage. The transaction recognizes that the home isn’t worth what the owner paid for it after more than two years of falling real estate values.

Such deals are appealing to struggling homeowners because they escape weighty house debts — but they don’t get away unscathed. Their credit scores will be damaged, perhaps less severely than in foreclosure, but still badly enough to limit for years their ability to borrow money. There may be tax consequences. And any money invested through down payments and renovations will be lost.

Lenders, which can withhold approval of a short sale if they don’t like the price, have resisted such sales because they are difficult to execute, particularly when multiple creditors and other parties are involved. And short sales lock in losses that might be reduced if the sale is delayed until the market improves.

But that resistance is softening. With more Americans losing jobs and missing mortgage payments, banks and investors increasingly are agreeing to short sales as a less costly alternative to foreclosure.

Short sales approved by Fannie Mae and Freddie Mac, which own 57% of U.S. mortgages, nearly quadrupled in the first nine months of 2009 compared with the same period in 2008. At the nation’s largest mortgage servicers, short sales soared 165% to 74,513 in the first nine months of 2009 from the year-earlier period.

Short sales are still few compared with foreclosures, but policymakers are looking at such sales to shrink the number of bank-owned homes on the market.

Tags: Foreclosure, Love in the Time of Foreclosure, Short Sale
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New FHA Loan Seasoning Guidelines for 2010

There has been a lot of talk recently about the New FHA Loan Seasoning Guidelines for 2010.  For all of those that don’t know what property seasoning is, let me explain.  If a 90 day seasoning period is required, it means that the property can’t be bought and sold within 90 days.  For example, if buyer #1 purchases a property on January 1^st they can’t sell it to buyer #2 until it has “seasoned” for 90 days or until April 1^st. 

FHA (Federal Housing Administration) loans had a 90 day property seasoning duration last year and it looked like that would continue into 2010 as well.  This made it difficult for Short Sale investors to perform A-B-C transactions.  The A-B-C transaction is typically used by investors because it makes negotiations with the lenders much easier and more efficient.  Let me explain an A-B-C transaction.  The “A” party would be the distressed home owner that is currently in pre-foreclosure, the “B” party would be the real estate investor and the “C” party would be the end buyer.  A real estate investor goes in and works with the distressed home owner’s lender to negotiate a payoff authorization.  The investor has more leverage with the lender by offering a cash purchase.  Subsequent to the payoff authorization the investor will start looking for an end buyer.  As you can see, the investor performed a valuable service to the distressed homeowner, the original lender and the end buyer.  Let’s take a look at how the short sale investor provides a valuable service.

1. Distressed Home Owner – They are behind on their payments, typically in pre-foreclosure.  They are in position to lose their home to foreclosure, destroy their credit and continue along a bad path in a difficult time in their life.  The short sale investor helps them out of their foreclosure problems with much less affect to their credit and pocket book.  Also, the investor will have access to additional resources and often times can help the distressed home owner find a new place to live.
2. Foreclosing Lender – The bank doesn’t want to take back the property because they are in the business to lend money, not own real estate.  If they go through with the foreclosure process there is a risk that the property will not be purchased at auction.  That means it will go back to the bank and become an REO property.  This means additional holding costs, selling costs, repair costs, lending restrictions due to the additional liability and not to mention headaches for the lender.  Once they finally get rid of the property, they are getting rid of it for a discount.  By accepting a discount with the investor during the short sale process they save a lot of additional costs and headache.
3. End Buyer – The end buyer will typically have a chance to purchase the property at a discount as well.  Investors are looking to sell the properties quickly and to do so, they offer discounts.  A new home owner will not only get a great property but they will also get instant equity in their new home.

Last year, Short Sale Investors had to find end buyers that could qualify outside of the FHA loan program due to enforcement of a 90 day seasoning period.  Starting February 1, 2010 the 90 day seasoning period for FHA Loans will be lifted until February of 2011.  To read more about the change check out the following HUD article.

HUD – New FHA Loan Seasoning Guidelines for 2010 

This was great news for the investors and end buyers alike!  Here are a few more articles about FHA Loans for you to check out…

FHA Loan Pros & Cons

FHA Official Website

Aaron Clendenning

aaron@embracevision.com

Posted in Real Estate News | 10 Comments »

Real Estate Investment

If you have decided to sell your house, how can you turn your house into the most valuable asset? Before selling real estate, it is important to read the ten keys to boosting profit. You should read these low cost tips and you will manage to enhance the overall income return when you sell your house.

How do we know? Everybody knows that most houses would sell more quickly and for a better value if the real estate agent had followed some reasonable, proved real estate tips. If a house is already a showcase, it simplifies the job of the buyer. When some buyer does not like your house for various reasons, an agent will bring other buyers back to the house. In a community of real estate agents everybody very quickly gets to know about a ready showcase house.

First Impressions – It is very important and should not be overlooked in any case. This tip that I am going to share with you is similar to that concept that is called Curb Appeal. It is the very first feeling that a buyer gets from your house. So, take into account, that the buyer’s first impression starts forming as he walks up to the front door and to the moment when the door first opens. So, make sure that you front door is tidy, as it is an entrance into your house. Make your front door sparkle. If the door needs repainting or refreshing, make sure that you have done that.

If you have a plate on your house with your family name, remove it. Even if it is just on the mailbox. You can always put it back once you move. You should make your house anonymous, so that the buyer should have an impression as if the house already belongs to him.

Check if the key fits properly and the lock works easily. When a home buyer visits your house, the agent uses the key from the lock box. Just imagine if there are some problems with your lock and everybody is standing and waiting, your prospective buyer will get negative impression.

The next thing to be considered is an entry way. Make sure there are no shoes or other clutter in the foyer, it also affects the first impression of your potential buyers.

Take into account that in any real estate market, especially in a buyer’s market there is a strong competition and your house should compete with many other houses in your neighbourhood. If your house is competitive your prospective buyer can be easily turned into a buyer.

But, bear in mind that first impression can be spoiled, if the rest of your house is not presentable. A lot of property buyers would like to know what trade-offs to make, how much money to allocate to get their home ready to list and sell. The main thing is that you should think like the buyer, stroll across the street from your house and walk up to the front door, fix all the things that you would like to see repaired or improved if you are planning to buy your own house.

Now Denver real estate search is easy and convenient as never before. Please visit this web site and you will get shortcut not only to Denver real estate quotes and listings, but also a nice looking online map with the best Denver real estate area propositions – zoom in and see.

Tags: Denver, Denver real estate, real-estate
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Obama Administration Continues to Encourage Short Sales; However . . .

I’ve always said that Short Sales are good for the economy and good for the country.  The Administration continues to agree.  The Treasury promulgated final guidelines to urge servicers to follow through with short sales as an alternative to foreclosure for those homeowners that don’t qualify for a modification.

To encourage servicers to accept a short sale, the Treasury is offering incentive payments of $1,000 per completed short sale.  Seconds (and other junior lien holders) will be paid to release their liens, up to $3,000 of the short sale proceeds as long as the primary investor agrees to share the earnings, and for this the government will pay the first up to $1,000.

In the program, the Seller/Homeowners will get up to $1,500 to help with relocation, and must be fully released from any future liability.  The Treasury’s program – called “Home Affordable Foreclosure Alternatives Program” or HAFA was initially announced back in May but it has taken several months to announce the final plan that was just released.

Prior to moving forward with a foreclosure, the borrower must be considered for the HAFA short sale program which requires the servicer to obtain an independent value of the property and requires that the lender respond to a Short Sale offer within 10 days!

There is more good news for real estate agents (no surprise – as they are a very well organized lobby) – the program prevents services from forcing agents and brokerages to reduce their commissions as a prerequisite for approving the short sale and requires that properties be listed prior to short sale approval.

The BIG HOWEVER . . . some “bad news” for real estate investors.  A Short Sale Agreement under HAFA must contain a restriction that a purchaser may not sell the property within 90 calendar days of closing.  Is this the end for short sale investors?  It will certainly be a big topic inside the RE$ource Vault, but in short, remember, the HAFA guidelines do not apply to all short sales and lenders have been and will continue to do short sales outside of HAFA.

I’ve always said that if a house can “solve its own problem” by simply being listed with a competent agent and the investor is not adding any value to the transaction, the investor should not be involved anyway.  HAFA appears that it may streamline the process for those short sales that can and should be approved directly from a borrower to an end user purchaser when a real estate agent can handle everything themselves.  This will be a good thing for the overall economy and therefore the future of real estate investing and our country.

However, there will continue to be millions of potential short sales that do not fit the guidelines and/or will not be able to “fix themselves” without the involvement of a competent investor (a move back to the days of “ugly, weird, haunted, or high-end”).  Where an investor can add value, contribute, and construct deals that would not happen without them, there will continue to be an abundance of opportunity.

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Just Walk Away??? – Negative Equity Homes

I’m sure by now you are familiar with the terms Foreclosure and Short Sale!  Our economy hasn’t provided a lot of options for people caught in a home when you consider the dwindling home values.  First American CoreLogic reported that the percentage of homes with negative equity jumped to 23% in the third quarter of 2009.  That means one out of every four homes in America owe more on their mortgage than the value of the property.  There are a lot more interesting facts located in this Wall Street Journal article, http://embracevision.com/1_in_4_Borrowers_Underwater. 

What are your options?  I really only see three options to this current problem…

Option #1:  Attempt to obtain a Loan Modification.

This is not an easy option because a lot of lender’s won’t approve modifications.  Also, depending on the amount of negative equity in the property, principal reduction will be required.  Ask yourself, should the bank take a discount on the loan so you can remain in the home?  Depending on how well you can explain this to the Lender will most likely determine the outcome of their decision!

Option #2: Work with an Investor or Real Estate Agent to pursue a Short Sale

This option also requires the Lender to accept a discount on the property.  However, banks are more likely to accept a short sale when a loan modification won’t work.  Also, if the homeowner doesn’t need to stay in their property, it might be more beneficial to them to work with a professional on a short sale.  Going through a short sale will help to save complete devastation of the borrower’s credit and can get them started on the right path for their next home in the near future.

Option #3: Just walk away…

This is the easiest option a homeowner can look at up front.  However, the outcome of walking away and going into foreclosure can hold a heavy burden.  The burden for the homeowner is the demise of their credit and their dismal hopes for owning a home anytime in the near future.  The burden for the Lender is the high cost of going through the foreclosure process.  The home will be vacant much longer, which means more damage.  Also, they will need to hire a professional to market and sell the property.  All of this extra cost along with the discount on the property value doesn’t look very appealing to the Lending Institutions. 

My opinion, for what it’s worth, do something…do anything…just DON’T walk away!

Thanks for taking the time to check out my article and as always, feel free to email me so we can chat!

Aaron Clendenning

aaron@embracevision.com

Posted in Real Estate News | 2 Comments »

Judicial vs. Non-Judicial States: Foreclosure Investing

Have you ever wondered what foreclosure law your state abides by?  Have you ever wondered what foreclosure law other states use?  Well, I put together a list of all 50 states that I’m sure you would love to take a look at. 

What does it all mean?

Judicial Foreclosure – This is when the courts have to get involved and the foreclosure has to go through the legal system.  This is typically a longer and more difficult process to deal with. 

Non-Judicial Foreclosure – This is when the courts don’t get involved and the foreclosure stays out of the legal system.  This is typically a shorter and easier process to deal with.

For more information about the difference between Judicial and Non-Judicial Foreclosure check out this website www.embracevision.com/JudvsNonJud.

Mortgage – This is the document used to purchase a house in a judicial state.  It acts as the security instrument for the property.

Deed of Trust – This is the document used to purchase a house in a non-judicial state.  It acts as the security instrument for the property.

For more information about the difference between Mortgage and Deed of Trust documents, check out this website www.embracevision.com/MortvsDeed.

Some states are both Judicial and Non-Judicial and you will need to check into the jurisdiction in your area to find out which method will be used.

Thank you,

Aaron Clendenning

aaron@embracevision.com

Posted in Real Estate News | 2 Comments »

Short Sales: A Step by Step Process

Short Sale Help - The Easy Button

Short Sales: A Step by Step Process

With the foreclosure rates as high as they are today a lot of home owners and investors are looking for a way to save their credit and get out of their homes or investments without completely breaking the bank.  When in reality, breaking the bank is what they should be doing! 

Let’s first go over the foreclosure process or timeline.  The first step of foreclosure is referred to as pre-foreclosure.  This is the time period when the homeowner starts to miss payments on their mortgage.  After a certain amount of payments have been missed, typically 3 months or 90 days, a notice of default or lis pendens is issued to the home owner.  This marks the transition from pre-foreclosure to full on foreclosure.  During foreclosure, the bank will set a date to sell the house at a public auction.  This time period varies drastically between different states and different banks.  Once the house goes to auction, if no one bids on the house the bank takes over the property and it becomes a REO (Real Estate Owned) Property.  Short sales are most common during the foreclosure stage but can occur during pre-foreclosure as well. 

You might be asking yourself: Why would the banks accept a discount on their loan?  Banks are not in business to own real estate, they are in the business of arbitrage and because of this they will accept considerable discounts on properties so they don’t have to take them back on their books.  Also, for every non-performing asset on a bank’s books, they have to keep cash reserves of seven times the value of the non-performing asset.  In order to get a short sale offer approved, you need to follow a step by step process.  Below I will outline what I feel are the necessary steps required to secure successful short sale deal which is then wholesaled to an end buyer.

Step 1:  Locate Sellers

You need to acquire leads of homes that are currently in distress.  This means they are in either pre-foreclosure or foreclosure.  You can pay companies to generate these leads for your or you can do the grunt work and find the leads yourself.

Step 2:  Evaluate the Deal

Just because you will be picking up this property for a discount on the current mortgage, doesn’t always mean it will be a good deal.  Short selling is an acquisition strategy.  Just keep in mind that everything else still needs to be in place once you have the property.

Step 3:  Seller Sign Documents – Get the Deed

You should meet with the home owner at a title company and go through the necessary paperwork required in order to get started.  It is very important to get the deed so you have legal standing in the deal.

Step 5:  Submit an Offer to the Bank

This is by far the most important step in the short sale process.  If your offer isn’t perfect, the loss mitigation specialist assigned to your file will simply place it at the bottom of their stack.  That is the last thing you want to happen!  Their stacks are VERY large and it could take weeks or months before they get back to your file.

Step 6:  Schedule a BPO with the Bank

The bank will require a BPO (Brokers Price Opinion) to be performed on the property in order to establish a current fair market value for the property.  This BPO agent works for the bank but will do their best to establish a fair price for the house.

Step 7:  Follow Up with the Bank

It is important to consistently follow up with the bank and make sure they have everything they need.  The saying goes; the squeaky wheel always gets fixed.  Keep in mind, the loss mitigation specialist’s time is valuable.  So, in your follow up make sure not to waste their time.

Step 8:  Market the Property

In order to insure a quick turn around on the property it is important to begin marketing for the property during the negotiations with the bank.  At the same time, make sure the future buyer is fully aware that the sale of the house is dependent on the acceptance of your offer to the bank.

Step 9:  Get a Payoff Letter from the Bank

This is the letter from the bank accepting your offer to purchase the property and payoff the loan.

Step 10:Accept an Offer on the Property

Now that you have the banks approval you can accept an offer from a new buyer.  This is where your due diligence will come into play along with your exit strategy.  There will be more steps in the process if you are planning to fix the house yourself instead of wholesaling the property.

Step 11:Shedule the Closing with the New Buyer

You need to close with both the original home owner as well as the new end buyer.  In some states this can be done with a double close, but in other state the double close is no longer allowed. 

Step 12:Cash the Check

Now that your deal is complete, hopefully everything went according to plan and you can deposit a sizeable check into your bank account!  It’s very important to know that there is considerable risk with Real Estate Investing and not all deals go according to plan.

This is a very broad stroke of what goes into a Short Sale deal.  If you would like to learn more about short sales and see examples and strategies put in place on actual deals, feel free to contact me at aaron@embracevision.com.

Posted in Real Estate News | 14 Comments »