Real Estate Investing With Jeff Kaller

Do Homeowners Still Owe Money After a Foreclosure?

Jeff Kaller (FreeShortSaleCourse.com) — Tue, 08 Apr 2008 11:11:12 -0500

Do the homeowners still owe the bank money after a real estate foreclosure? That is up to the bank. When you negotiate a successful short sale, keep in mind that the agreed upon price is payment in full so the title is clear for you to close.

However, the homeowners may still owe the difference between the mortgage balance and the discounted amount. This is called a "deficiency judgment." If granted by the court, this judgment will affect the homeowners and their credit report just as any other judgment.

You can ask the bank to accept "payment in full without pursuit of any deficiency judgment." But the bank does not have to grant your request. Most of the time the banks will not pursue the deficiency judgment, they will just 1099 the homeowner. You need to explain to the homeowners that the discounted amount (the difference between the mortgage balance and the short sale) may be declared as income on their income tax return by means of a "1099."

Since the homeowners have been under such financial duress they probably haven't made much income, a 1099 may not adversely affect them. The homeowners can contact a local tax advisor for more details. Make sure you provide information to the homeowners (Preferably in form of disclosures for you or your company) but do not give any legal or tax advice.

What is a 1099?

1099 forms are used for a number of reasons, though, typically, they are given to independent contractors--also known as "freelancers"--as a record of the income they received from a particular business. So in essences the 1099 are reported as income you received from the bank. You must explain this to your homeowners when discussing a short sale and advise them to speak with an accountant as to how a 1099 will affect them.

Typically, the homeowners are showing no income or have had limited income for quite some time because of the financial hardship they are facing. If this is the case, a 1099 will not affect them.

When we explain the results of the foreclosure sale and the 1099 to the homeowners, they never seem to care. They just want us to stop the foreclosure.

Deficiency judgment

Deficiency judgment is a judgment against a borrower in favor of the lender in an amount equal to the difference between the funds received from a court sale or short sale of a property and the balance remaining on a mortgage or other loan. The bank can seek a deficiency judgment for the shortage on the actual amount received versus the amount that was due.

Likewise, the same judgment can be sought when the property sells at the courthouse for less than what is owed or after the REO department sells the property for less than the full amount.

If the bank does pursue a deficiency judgment, the homeowners may have to file bankruptcy at a later date to remove the judgment. Another option is to short sale the judgment amount at a later date.

It's important for you to know that the lender cannot pursue a deficiency judgment and issue a 1099. They can only do one or the other, not both. If the deficiency is waived as a condition to the short sale, the homeowners will receive a 1099.

If the judgment is not waived, we leave the decision up to the homeowners as to whether to pursue the short sale or not.

It is important to remember as stated earlier, if there is no equity and the property goes to the sheriff's sale, and the bank receives less than what was owed, the bank can still pursue the judgment or issue the 1099.

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here: http://www.freeshortsalecourse.com/

Common Mistake: Not Getting the Deeds

Jeff Kaller (FreeShortSaleCourse.com) — Wed, 27 Feb 2008 11:25:05 -0600

You've probably figured out at this point that you can make a lot of money in a relatively short amount of time by adding short sales to your real estate investing arsenal, and if you haven't started testing the waters already, you're probably raring to go at this point. But remember, any time you can make easy money, it's probably also true that you can easily lose it! Now, you're not a person who likes to lose money, and neither am I, and it's extremely simple to avoid the downside of easy money in this case by remembering one final common short sale mistake: not getting control of the deed.

I've talked a lot about the mindset that a distressed homeowner is probably experiencing at the time of a short sale: distress! And what do high levels of tension and anxiety cause many people to do? Change their minds! You are about to invest a pretty significant chunk of time and effort into a deal that is worth every second and drop of sweat - remember, we put about $28,000 in our pockets in just over a week not too long ago - but you want to be assured that your investment is going to pay off. And if you don't have control of that deed, your homeowner can freak at any time and take it back. They're looking for an out at this point, and if someone else comes along with what sounds like a better deal - not all investors are scrupulous, and some will lie to get their hands on a good deal - they may back out of the negotiations or even replace you with someone else!

Once you've decided to undertake negotiations for a short sale with a lender, the first thing you need to do is get that property under a contract that puts you in control of the deed to the land. Most lenders won't want to waste their time with you if you can't vouch for the security of the negotiations anyway, so it will make your case that much stronger if you can say you are either the owner of the deed or at the very least representing the buyer.

This is one example of how important your relationship with the homeowner is, because many will balk - at least initially - at this vital step. Show them why it's important, and explain the entire process in detail - maybe even show them the checklists that we discussed in the last article so that they can see it's all part of a plan to get them out of debt. And before you agree to let them keep the deed without a contract, imagine how you'll feel when $10,000, $20,000 or even $30,000 walks out the door and into some other investor's portfolio because you didn't protect yourself. So cover your bases - and your assets! - before you invest your valuable time and money in any endeavor.

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here: http://www.freeshortsalecourse.com/

The Secret to Success in Any Area That Real Estate Investors Cannot Afford to Neglect

Jeff Kaller (FreeShortSaleCourse.com) — Thu, 21 Feb 2008 08:40:34 -0600

You probably have - or used to have - a co-worker like Jonathan. He's not really that remarkable. Maybe he spent a couple of years in college, maybe he dropped out before he finished. He's average looking, kind of quiet and doesn't really stand out in a crowd. In fact, you're fairly certain that you're much more knowledgeable than him about your mutual interests and business, and yet, the other day, you and he were talking about your common interests in real estate investing, and it turns out that he's been involved in it for 6 months and has done as much as you did in the past year!

So what gives? Maybe he's an investing whiz, but maybe, he's just doing something you're not. And that something may very well have to do with the way he's thinking about himself, his investments, and his future. It's possible that your outlook on yourself may be holding you back, so consider implementing these positive thinking strategies in all areas of your life - especially your investing portfolio - and get ready to take off!

1. Positive Thinking Is Contagious. If you're positive about your abilities, other people will be too. And the more faith you have in yourself, the more you'll be inspired to fulfill your obligations and take your business and your life to the next level. And as your outlook improves, so will the mindsets of the people around you - so you'll all be supporting each other in individual and group growth!

2. Always use positive words in your inner dialogue. If you constantly reaffirm to yourself that you Will succeed, you're less likely to succumb to feelings of inadequacy that can lead to giving up and letting things slide.

3. Visualize several successive successful outcomes. If your goal is to make a million dollars, that's great. And you need to visualize that outcome With It's Implications constantly.

Not only will this motivate you and maintain your faith, but it will prevent you from stalling upon the attainment of your goal. What will you do with that million? Will that be enough for you to do it once? Don't just think about how to spend it, but imagine how you'll make a (surprise, surprise) POSITIVE impact on your life and the lives of your loved ones with future goals.
The simplest positive steps can drastically alter your life upon implementation. So take control of the things closest to you - your mind and your heart - in order to seize the success you deserve.

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here: http://www.freeshortsalecourse.com/

OFTEN IMITATED — NEVER DUPLICATED

Jeff Kaller (FreeShortSaleCourse.com) — Thu, 24 Jan 2008 10:06:11 -0600

Dear Student
I've had the privilege to teach short sales to over 20,000 people in the last 8 years. During that time I personally managed to purchase more than 350 houses from people facing foreclosure. And our team continues to do so every day. This real life momentum has spawned thousands of successful students, and dozens of new short sale experts, who now teach the business while running their own powerful house buying businesses. I'm darn proud of this legacy.

The techniques and strategies you'll find embedded in our seminars and information products on this site were at one time proprietary to only my staff and a few key students. Over the years, we've created and innovated these techniques ourselves. When I first started teaching, no one ever knew what the heck a short sale was. Through our now much expanded network, and open sharing in countless hours of private one on one group masterminds, even visiting large bank mitigation centers across the country, we believe we have assembled the most accurate and practical short sale information available.

Our personal deals and my short sale advisory board, including our on-staff loss mitigators continue to innovate and refine these strategies everyday. And it's my goal to make YOU an expert in this field. Once you take this opportunity and run with it I'll take you places you've never even dreamed of.

STARTLING GOOD NEWS REVEALED!

Amidst today's subprime and prime lender mortgage meltdown, short sales have hit the mainstream. Everybody now knows that short sales are the ONLY way to go in today's market. Interestingly and oddly enough, there are VERY FEW real educated short sale experts. Meaning it's highly likely there is no competition in your area. A short sale professional is someone who uses this concept in real estate as their primary source of income. They don't complain about how tough short sales are, because they understand the parameters, which quickly weds out the time wasters in their deal pipeline. Most investors don't. So they continually bumble about, befuddled and bewildered, thinking short sales are just too time consuming. That's an easy and uncomplicated way to quit.

It's my humble opinion that if you fail to truly learn and utilize short sale investment strategies in your real estate career, you will easily never realize 80% of your income potential. Ask me how I know this... I could name a hundred students in every state who focus exclusively on short sales and preforeclosures as their sole means of income. What's the difference between them and you?

THEY HAVE GAINED OUR KNOWLEDGE, AND NOW IT'S YOUR TURN.

What are you waiting for? I know, you need to make sure this is real. It IS real to those who don't make excuses. I've seen some remarkable lifestyle transformations in so many students - transformations in the mental, spiritual and of course financial states. We celebrated many of these success stories a couple of years ago, when 1 personally flew Donald Trump as our Keynote Speaker, and gave away my $70,000 Hummer to my highest achieving student of the year. So what does this mean to you? Bottom line -- I want you to prosper and continually benefit from the information we provide. And you should stay plugged in to get continual feedback and support through our online membership community. This time tested information will take you to whatever level you want to go, at whatever pace you want.

WHAT'S NEXT FOR YOU?

Many serious investors (and those seriously disgusted with their J.O.B.) jump in and truly commit, by signing up for our five day intensive "Short Sales Exposed" training. If that's your choice, then CONGRATULATIONS! Others will start slowly, by checking our some of our free stuff. My advice is to get started on something, create momentum and make a decision. Get your confidence from those who have already made the journey. Read their letters and listen to their amazing backgrounds - all varied walks of life.

At a minimum, it's recommended you join our monthly membership, which is packed with an onslaught of seriously fabulous online training info, live calls with my negotiators working deals. Seminar excerpts, how-to videos and teleseminars. I extend a personal invitation to one of our national foreclosure workshops. Remember, those who don't understand how to invest in using short sales in today's market are getting left behind. Get yourself into explosive action in 2008, and we'll see you at the top!

To your quantum leap!
Jeff Kaller

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here: http://www.freeshortsalecourse.com/

Why You Will Love Doing Short Sales

Jeff Kaller (FreeShortSaleCourse.com) — Mon, 14 Jan 2008 12:11:57 -0600

Negotiating Short Sales is a great way to supplement your income, or even replace your full-time job with a more lucrative and less time-consuming alternative. But the unlimited potential income is just one of many reasons that you're going to love doing short sales. Here are some other reasons that you may not yet have considered:

1. The "Win-Win-Win" Situation.
When you work with a lender to find an acceptable compromise on a price for a distressed property, you not only are obtaining a great investment property for yourself, you're also helping a distressed homeowner move on with their life without the burden of a foreclosure on their credit and their mind and helping a lender recoup money that they otherwise might have had to wait months or even years to recover - if they ever recovered it at all! Of course, the investment property for you is the driving motivation here, but the other aspects aren't so bad either. The other two parties may not thank you every time (if ever), but you are helping them both make the best of a bad situation, and you should feel better about that the more deals you do.

2. You're Solving Other People's Problems.
And what's more, you're doing it quickly, efficiently and effectively! Obviously, if a person has just agreed to a short sale, their mortgage is not their only problem, but once that particular problem is resolved, their stress-load is ten's of thousands - if not hundreds of thousands - of dollars lighter. And that relief can spur them into the next stage of their life where they'll be able to clean up their messes and start over fresh - and all this without the taint of a foreclosure on their credit.

3. Reliable, Predictable and Repetitious Results.
Once you've mastered the art of short sale dealing, you have a permanent source of income in your repertoire. Short sale deals require you to take a certain number of specific steps, factor in certain and specific aspects of a property, then produce and acceptable offer and walk away with your new investment. Not all your offers will be accepted, and you'll probably turn down some tempting deals because they're just too risky, but once you know how to spot a good deal and negotiate successfully for it, your potential is limitless! Because there will always be foreclosures (it's likely that the number will only increase as more and more people take out variable interest loans with rates they won't always be able to afford) and lenders will always want to recover cold, hard cash.

4. Feeling Good.
I've already discussed how you're helping other people while profiting yourself, but the other thing that's going to make you feel good is your personal satisfaction in a job attempted and completed well. When you close your first deal, you're going to feel like you won a marathon, and when you close your twentieth, you're going to feel even better! Investing in short sales may be a totally new area of endeavor for you, or it may just be a new facet of your real estate investing portfolio, but either way, mastering a new skill and making lots of money at it is incredibly rewarding. And the looks of admiration and even envy on your friends and family's faces when you break the news that you just doubled your annual income with one or two short sales will be - literally - priceless.

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here: http://www.freeshortsalecourse.com/

Are You Doing Anything Exciting For Christmas?

Jeff Kaller (FreeShortSaleCourse.com) — Tue, 18 Dec 2007 11:53:38 -0600

During my flight back from Fort Lauderdale, after my last lecture on Foreclosures for 2008, I was asked "Are you doing anything exciting for Christmas?" What constitutes exciting? If finances aren't a consideration, you can pretty much travel to any destination, not worry about what you're spending or suffering the consequences of being away from your business.

My wife Sofia and our daughter Allie and I have had some amazing trips in the last several years. Our Preforeclosure business has always been good to us. On December 21st, we'll have a closing that should net us just under $150,000...not a bad Christmas present to ourselves.

So lemme see... are we doing anything exciting? We are actually staying home in St. Augustine, Florida, taking early morning walks on the beach while make plans and stretching our imaginations. Sofia's working on a couple of projects with our staff to make things run smoother. I'll meet with my advisory board - nine of my students who've been with me for over 5 years - as we iron out the details on a major project next year... and I'll be working with Jared in my office on a significant web product for early 2008.

Does this sound exciting? Beauty is in the eye of the beholder... business to me IS exciting. The line between work and play does become thoroughly blurred for any true entrepreneur. The blunt truth: for some entrepreneurs their business life is more important than a personal and social life, creating utter annoyance and tension for those around them.

From the outside looking in, it's easy for others to label any determined, passionate entrepreneur as a diseased neurotic workaholic. Endlessly neglecting non-work responsibilities. Not spending enough interesting time with loved ones.

Interestingly, in my travels through Fort Lauderdale, I watched two different couples as we shuttled through the airport, as they got closer to their "exciting" vacation destinations. I saw several underlying "themes" if you will. One lady was making promises to a bill collector on her cell phone. The other couple was engaged in an argument about how much the other was allowed to spend once they arrived at their resort in Lucaya.

So the problem we entrepreneurs face seems to be the biggest secret to ALL - entrepreneurial success. Constant passion, the thrill of the ride, and being emotionally independent from a J.O.B. allow us to crate money on demand. Don't get me wrong... I love to fritter away time, guzzle up my favorite cabernet while watching lifestyle moves... taking my daughter to Juicy Couture, or playing a good long game of Monopoly during the holidays. And I do it all by conscious choice.

An exciting Christmas is a precise decision to be as productive or unproductive as you want.

Here's wishing you an exciting and rewarding Christmas!!

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here: http://www.freeshortsalecourse.com/

Mortgage Meltdown Part One

Jeff Kaller (FreeShortSaleCourse.com) — Tue, 18 Dec 2007 11:16:37 -0600

Usually on Saturday's when I'm not traveling, I have to wake up at 6:00 a.m. to catch one of my favorite shows - High Net Worth. This show profiles entrepreneurs, and how they make their fortunes, and of course what they spend their money on. Mostly all of the entrepreneurs have made their money in real estate, whether it was luxury 100 room boutique hotels, time shares, you name it... One Billionaire, who owns three of the larges time share companies, is building a 90,000 square foot house with 20 kitchens and 30 bathrooms. Another is launching a prototype hotel in space... the idiosyncrasies befuddle me to no end. Like the guy building the largest house in America, yet still drives one of the first cars I used to own - a $12,000 used Lincoln Town Car. Why do they do what they do?

Because they can.

A buddy of mine, who's also a hard money lender and developer, just located a $50,000,000 (yes, million) pool of defaulted notes, then quick turned the mortgages to an investor for a cool couple of points.

Goldman Sachs mortgage department cashed in $2 Billion on the subprime fiasco . The three men responsible for the trade are expected to be paid between $5 and $15 million.

My students are regularly closing consecutive short sales deals...which piece of the mortgage meltdown will you participate in?

On the other side, there's a gajillion people losing their homes, countless others hanging on by the skin of their teeth. What's the difference between both sides? Well, I can tell ya, what's being said by one group versus the other. One side is complaining and whining and proclaiming the unfairness of the situation, all the while doing nothing to improve it.

Maybe they feel unqualified to be on the receiving end. A "stucked-ness" that just keeps them from becoming a successful entrepreneur. Hey, I get it. It's hard to remember your objective of draining the swamp when you're up to your elbows in alligators. I'm just about as unqualified as anybody when it comes to having the "stuff" our society requires to make money.

My parents were missionaries in Brazil, and I knew nothing about the United States until moving here at age seven (and no, I'm not a native Brazilian, my parents are from Tennessee). I never fit in at any schools, and historically made terrible grades - got kicked out of not one, but two colleges. And still, to this day, I am continually reminded that seven years ago, when people saw me launching my woeful speaking career I was undoubtedly the worst speaker they had ever seen.

I can't spell worth a flip, don't know jack about computers, yet in the last 8 years managed to be responsible for the sale of just under $20 million in sales of products and profits relating to real estate, which over my career has launched more than a dozen successful students who now teach short sales, virally spreading my short sale techniques all over the country. Even permanently and continually changing how short sales are done in this country... collectively negotiating over $1 Billion dollars in debt... yet I have no formal training in finance...or for that matter, the field I'm in!

It's important that you understand one thing: the result of your success will be that of decision, not qualification. Get yourself in the game in 2008...the mortgage meltdown undoubtedly will have you standing on one side of the of the line in the sand

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here: http://www.freeshortsalecourse.com/

Preforeclosure Training and Information Perspective

Jeff Kaller (FreeShortSaleCourse.com) — Mon, 10 Dec 2007 19:52:54 -0600

Fundamentally the sure way to find a great real estate deal is to identify a motivated seller in the right market. No doubt a preforeclosure purchase can be a great way to save money on buying a home or investing in real estate.

There are numerous seminars and how-to books that promise to turn even the most raw naïve buyer into a high-powered real-estate investor through the magic of preforeclosed homes. The problem is that instant, no risk, no-strings attached wealth often turns out to be like most things that sound too good to be true...not true! If it were easy money, everyone would be getting rich off of preforeclosures.

Word to the wise, if you are not armed with the latest preforeclosure information and techniques, it is quite possible the investor will become overwhelmed and possibly drown in a sea of financial losses.

It's important to understand that even in a distressed market like today, motivated sellers are aren't going to magically appear and speak directly saying, "I need to sell my house to you and you only."

With more than 1.2 million foreclosure, preforeclosure, bankruptcy, FSBO and tax lien listings, it's important for training in the analysis and search of large and complex databases of foreclosed homes and investment property information. Being able to identify opportunities while researching top lending institutions and government agencies Real Estate Owned; Department of Housing and Urban Development, Department of Veterans Affairs, Fannie Mae, and other government agency and financial institution properties is essential.

A trained investor will know the plus and minuses of private deal "buying equity," i.e. investors pay the owner a fee and then take over the existing debt and the home. This protects the homeowner's credit report from the black mark of foreclosure.

As well knowing that buying equity this way is difficult in a seller's market because the owner could just as easily sell the home and usually pocket a greater amount in appreciation than an investor would be willing to pay.

Buying during the foreclosure period is one of the best ways for anyone to get involved in real estate investing. With a small investment and some specialized knowledge an investor can buy a house at a substantial discount and resell it retail gain up to 15% - 20% profit in the process.

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here: http://www.freeshortsalecourse.com/

Market to Market Real Estate

Jeff Kaller (FreeShortSaleCourse.com) — Thu, 06 Dec 2007 12:56:34 -0600

Market to Market Real Estate

The glut of foreclosed properties is causing problems for those wanting to sell their homes. It's a good buyer market right now but as far as selling...it's problematic. From July through September of this year, California alone reported one foreclosure filing for every 88 households.

With homeowners facing pre-foreclosures and bank-owned or foreclosed on the rise, nationwide, the American dream of owning a home is being pulled out from under the feet of families from all walks of life. Foreclosures were up 41 percent during 2007's first six months compared to the first half of last year.

With the market as it is, the savvy real estate investor is taking courses and attending seminars. They are schooled on how public court documents provide you with information about homes one month to six months before foreclosure. Knowledge with real "take-away" value is offered by the most sought after courses and teachers. For example, in every state, a legal notice must be filed before a foreclosure can be finalized. Knowing the length of time between the initial legal action and the final resolution varies nationwide, but the procedure is the same. In most states, a forcible detainer is filed. It may indicate the property address, name of the homeowner and amount owed. Armed with the last information for key markets, the well trained investor is aware that this action is filed before the actual foreclosure and gives you enough information to contact the homeowner directly.

The major benefit of buying a pre-foreclosure home is that it's not an emotional event. It's all dollars and cents and the opportunities, we're seeing now some of the most target rich opportunities in years.

The Country Talks

The number of houses selling in middle-America is almost half of what it was two years ago. "It was so hot before a couple years ago, right now it's so dead I'm not seeing the houses move like they were before," say local residents. According to analyst and real estate investors, banks are currently accepting extremely low offers. With foreclosure activity doubling nationwide from the same time period in 2006, mortgage lenders are preparing for even more defaults as adjustable rate loans continue to reset to higher interest rates in the next quarter.

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here: http://www.freeshortsalecourse.com/

Foreclosure Toolbox

Jeff Kaller (FreeShortSaleCourse.com) — Thu, 06 Dec 2007 12:42:04 -0600

The signs are apparent for any homeowner. Home foreclosure is right around the corner if you've fallen behind on repayment of loan and the house is serving as collateral. However there are tools available for these situations. Anyone who is facing the threat of home foreclosure needs loss mitigation services or the short sale option to prevent this from happening.

First line of Defense

Surprisingly, most homeowners and property owners are not aware of this term or the method involved with the process. That is not until they need to hire the service. But once an individual is faced with home foreclosure, there is very little choice but to seek the services of a mitigation specialist. As the sub prime crisis continues, there are an increasingly large number of Americans who are facing this situation.

Loss mitigation is a method through which one can stop the foreclosure of their home. Falling back on repaying the loan can happen due to several reasons. It can be due to some unexpected expense, some unforeseen health condition that requires spending lots of money or may be simply because planning out the monthly budget ended up costing huge amounts of money. Whatever may be the reason for falling behind on the payment of the loan money or the mortgage money, you should immediately approach a specialist's assistance.

Pro Active Choices

The short sale in real estate occurs when the outstanding obligations or loans against a property are greater than what the property can be sold for. Short sales are a way for homeowners to avoid foreclosure on their homes and still be able to pay off their loan by settling with lender.

As always there are a few rules to use. Verify the value of your property. If you are selling the property through an investor, your broker will provide you with an estimate of market value. Determine the amount owed against the property. This will be the total of all loans against the property. Have the investor contact the lender. Some lenders are willing to work with you by reducing the amount owed or making other arrangements. The IRS often gets involved with short sales, because they are seen as a relief of debt and may be treated as income. Check with your accountant.

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here: http://www.freeshortsalecourse.com/

The Good, Bad and Pre-Foreclosure

Jeff Kaller (FreeShortSaleCourse.com) — Tue, 04 Dec 2007 20:51:01 -0600

Just because the housing market is horrible for some and great for others does not mean there are capital gains opportunities in high-yielding Real Estate Investment Trusts (REITs) for everyone. While the idea of making money is good, foreclosure investing might seem appealing but there is a downside. In many cases, foreclosure buyers are seen as the vultures of the real estate world, profiting from others' misfortunes. "There is well a deserved stigma associated with this from the old school of thought, If done honestly and professionally, the process can be a win-win for both buyer and seller.

What is a pre-foreclosure property? It is a house whose owner has gone into default on his or her mortgage payments but one which the lender has yet to repossess. This, according to industry insiders, is the crux of all foreclosure investing. "You are able to leverage an exclusive deal with a motivated seller, before the competition knows about it."

For those who like putting real estate deals together, without being a total financial specialist, the pre-foreclosure system maybe the launching for most. However training is still critical. Trying to figure out someone's financial picture in a few minutes is not the goal. The better real estate training focuses on how to explain why the homeowner selling their house is a good option for you and them.

The training involves the important critical step of how to figure out all the costs involved: repairs, selling, commission, insurance, taxes, title, and escrow fees. At that point, you're ready to approach the bank and test the waters to see if that price matches expectations.

"If you structure the deal in the right way, the owner gets a fresh start and cash at closing. If there is no action, the house would be foreclosed and his credit would be ruined. Investors get a below-market purchase, and they help a homeowner."

The opportunities for those hoping to get into this line of investing have never been better. Foreclosures were up 30% in the third quarter and are nearly double the rate they were a year ago. In fact, August and September had the two highest monthly foreclosure filing totals.

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here: http://www.freeshortsalecourse.com/

State Foreclosures Only Produce More Questions

Jeff Kaller (FreeShortSaleCourse.com) — Mon, 03 Dec 2007 22:36:41 -0600

Nationally, much of the blame for the current housing downturn has been placed on easy access mortgages that targeted many consumers who are now unable to pay.

Although clearly the market is going down, the foreclosure issue is far more complicated to some. Industry insiders who make their living from mortgages say some statistics are multiply by a factor of 2 to the number of foreclosures recorded. A state level mortgage executive clams that federal government is "double dipping" the numbers by counting second mortgages, using an inconsistent sample population from year to year, and counting all the different phases of a foreclosure as new filings. He point is well taken, clearly complicating the issue.

However with more that 5 percent of American homeowners delinquent in their payments, a jump of three-quarters of a percentage point from last year, and the numbers are still staggering. But lately, several options have surfaced to aid the troubled homeowner.

One choice of particular interest is the pre-foreclosure sale, it allows you to sell your home and pay off your mortgage before a foreclosure, thereby preventing damage to your credit rating.
Not your typical real estate investor,"Home owners need to know what terms they have, pre-foreclosure investor want to assist in finding the best option for the plan...the majority of lenders don't want to foreclose." This could be a clear indication for many homeowners facing a possible foreclosure to pull out their mortgage documents and double-check the terms.

Nationwide, foreclosures continue to be on a steady rise; 36 percent from July to August with an eight-month total of 244,000 foreclosed homes, an increase of 115 percent from last year. Currently, foreclosures are soaring in Maryland, and many of the loans that homeowners are defaulting on are interest-only loans where no principal is paid. For which the interest-only periods have recently ended. Many other borrowers took out adjustable-rate mortgages (ARMs) over the past two years, and now the low initial payment period of the ARMS has ended. In both cases, borrowers are finding themselves equally trapped with higher interest rates that translate into significantly increased monthly mortgage payments that could go even higher.

Government officials are steadily trying to develop ways to assist strapped families, now that the housing boom the nation experienced over the past five years has declined

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Foreclosure Wars

Jeff Kaller (FreeShortSaleCourse.com) — Mon, 03 Dec 2007 22:35:43 -0600

As in any war, the force that's winning will continue to take everything it can from the weaker force until it is halted by a stronger power. In the "foreclosure wars," the battles rage on producing wounded and causalities alike.

The neighborhoods hit the hardest by foreclosures were not always a haven for criminals and despair, but with hundreds of foreclosures, it can destabilize any community. Some neighborhoods around the country have upwards of 800 houses going through foreclosure. Essentially entire streets are being abandoned. And of course crime increases as vacant properties offered shelter to questionable elements.

Standing alone, in many cases, is the help offered by the pre-foreclosure investor. Offering tough-minded negotiation of terms to the lenders has been the role of the investor. Armed with the latest mortgage regulation information and neighborhood comparables, they will work with the distressed homeowner.

U.S. foreclosure filings for August more than doubled from a year ago, data released this week showed, confirming a trend already well understood in many regions throughout the country, and no state wants to wear the mantle "highest foreclosure rates." Complicating the problem is a national housing glut, which makes it harder for struggling owners to sell and pay off their debt. Also, investors who play a big part in supporting the mortgage industry are starting to shy away because of the problems, which will mean less available money to loan.Without question, this economy faces risks of recession; shaky economic signs abound. One indicator of the housing market, permits issued for new homes, has slid to the lowest level in 12 years. And that affects demand for everything consumers buy to furnish new homes, from furniture to appliances. Any recovery is months away because builders are swamped with unsold inventory. And the end is nowhere in sight, either, not with as many as 2 million new foreclosures expected in 2007. But there is also opportunity to directly aid those 2 million homeowners whom face foreclosure this year.

Indeed the first cut in the federal funds rate in more than four years will move to help banks and investors too.

It is important to note that the pre-foreclosure investor takes into consideration the differences between residential families and speculation. Unlike some, the pre-foreclosure investor acknowledges the errant actions of an opportunistic mortgage industry and does not seek take to take advantage of those who can least afford it. Under the guide of a trained pre-foreclosure investor, protection of the homeowner's credit is critical and foremost.

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Preforeclosure Training and Information Perspective

Jeff Kaller (FreeShortSaleCourse.com) — Mon, 03 Dec 2007 22:34:36 -0600

Trying to find a great deal in real estate, even if the market is attractive and competitive it only means bargains do exist. In comparison to most financial portfolios where there's simply too much risk, real estate is still the most attractive path.Fundamentally the sure way to find a great real estate deal is to identify a motivated seller in the right market. No doubt a preforeclosure purchase can be a great way to save money on buying a home or investing in real estate.

There are numerous seminars and how-to books that promise to turn even the most raw naïve buyer into a high-powered real-estate investor through the magic of preforeclosed homes. The problem is that instant, no risk, no-strings attached wealth often turns out to be like most things that sound too good to be true...not true! If it were easy money, everyone would be getting rich off of preforeclosures.Word to the wise, if you are not armed with the latest preforeclosure information and techniques, it is quite possible the investor will become overwhelmed and possibly drown in a sea of financial losses.

It's important to understand that even in a distressed market like today, motivated sellers are aren't going to magically appear and speak directly saying, "I need to sell my house to you and you only." With more than 1.2 million foreclosure, preforeclosure, bankruptcy, FSBO and tax lien listings, it's important for training in the analysis and search of large and complex databases of foreclosed homes and investment property information. Being able to identify opportunities while researching top lending institutions and government agencies Real Estate Owned; Department of Housing and Urban Development, Department of Veterans Affairs, Fannie Mae, and other government agency and financial institution properties is essential.

A trained investor will know the plus and minuses of private deal "buying equity," i.e. investors pay the owner a fee and then take over the existing debt and the home. This protects the homeowner's credit report from the black mark of foreclosure.As well knowing that buying equity this way is difficult in a seller's market because the owner could just as easily sell the home and usually pocket a greater amount in appreciation than an investor would be willing to pay.

Buying during the foreclosure period is one of the best ways for anyone to get involved in real estate investing. With a small investment and some specialized knowledge an investor can buy a house at a substantial discount and resell it retail gain up to 15% - 20% profit in the process.

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here: http://www.freeshortsalecourse.com/

Lien Priority

Jeff Kaller (FreeShortSaleCourse.com) — Mon, 03 Dec 2007 22:33:46 -0600

When you buy a home, the lender who gives you the loan creates a lien on the property, making the property collateral. In case the homeowner does not make the payments for some reason, the home can be sold by the lender so that the loan will be paid. Often there is more than one lien on a property at the same time.

Lien priority comes in regarding the order in which the liens are recorded.
Let's say that John buys a home and the lien for the first mortgage - the main loan from the bank - is recorded in January, 2001. Subsequently, John took a second mortgage - a second loan on the property - and the lien is recorded in November, 2001. In addition, there is also a judgment against the property and it was recorded in July, 2005.

Now, let's say that John has been having a hard time financially during the past eighteen months to two years, and he is behind on the first mortgage about $23,000. He is also behind on the second mortgage about $6,000, and he has the judgment for $2,500 to deal with.
Who has the priority?

We can tell by looking at the dates everything was recorded. This means that if the property gets sold or any money is received, it would go to the first mortgage first in line, since it was recorded first, in January, 2001. If there is enough money left, it would go to the second mortgage since it was recorded second, in November, 2001.

If somehow there is still money left over, it would then go to the judgment, which was recorded in 2005. If there were other judgments, IRS liens, etc., those would be satisfied in order of when they were recorded.

Once this happens, if there is any money left, it could go to the homeowner (since all other liens and loans have been satisfied). If this is being done as part of a short sale, quite often, the lien holders will negotiate the payoff amounts and you will end up making money on the short sale.

Regardless of the type of transaction, liens have an order and a priority. As long as you know the dates and the priority, you will know what to expect and what is expected of you in the sale - even under distress.

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Buying Foreclosures – Be Aware of Pitfalls

Jeff Kaller (FreeShortSaleCourse.com) — Mon, 03 Dec 2007 22:33:00 -0600

There are great benefits to buying foreclosures. For one, you can make money re-selling a foreclosure, especially if you can do it through a short sale.

At the same time, there are some pitfalls that you should be aware of. Often, it is not possible to inspect the property before the auction, so you cannot know what the condition is - at least inside. Hopefully, the auction price will end up low enough so that you can make repairs or upgrades and still make a nice profit.

One situation to look carefully at is finding out who is living in the house. When the house is vacant, it is easier to deal with; however, if someone is living there you will have to figure out how to get them to move out. Sometimes the former owners are not in the home; however their friends and relatives can be staying there. Often, there is a renter who has been unaware of the fact that the house is in foreclosure.

These can be sticky situations. A good way to deal with getting the people to move can be to help them in some way. You might have to pay part of their moving costs or deposits on a new place to live. This may end up being part of the cost of doing business, and will result in a smoother move, rather than a battle.

If you choose not to assist whoever is in the house, you may have to evict them. This can be tricky, and should be left to an attorney who is experienced in evictions, unless you have the experience yourself. Be aware that if you evict people, they can become quite upset and drag the process out, as well as do damage to the property, which can cost you more money in repairs. Between the attorney costs, the eviction battle and the repairs, it can be wise to at least figure out if helping offset the tenant's moving expenses would be less expensive and less aggravating in the long run.

Homes that are purchased at foreclosure are purchased "as is." Since you have no idea what the condition is, it is good to be prepared for various issues. Often when the homeowner has given up because they are losing their home, they no longer keep the house in good repair. If something breaks, they do not invest in fixing it. If they are angry or in dire straits, they can damage the home further, sometimes by selling everything from bathroom fixtures to ceiling fixtures to kitchen cabinets and appliances. It is good to be aware of these issues so that you are not stunned if this happens.

Most foreclosures require the average amount of work to get them ready for rental, sale or short sale. However, it is good to be aware of the pitfalls and to talk to experts in the field who can guide and prepare you, especially on your first few deals. If you ask questions, do the research and stay aware, you can avoid - or deal effectively with - the pitfalls and still make a good profit.

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Essential Steps in a Short Sale

Jeff Kaller (FreeShortSaleCourse.com) — Mon, 03 Dec 2007 22:32:19 -0600

Short Sales are great opportunities for substantial investments and they are extremely effective in discounting loans in real estate transactions. However, unless you work through the appropriate steps in a short sale, you can find yourself in big trouble.

For instance, one critical step in a short sale is to get the deed from the homeowner. There are some sound reasons for this. There is always a fifty-fifty chance that the homeowners will change their minds or want to cancel the deal, most likely because they want to re-negotiate or they are scared. If you don't have the deed, there is a good potential for them to back out after you have put a great deal of time and energy into working on their property. If you don't have the deed and this situation comes up, it could cost you thousands and thousands of dollars. Only when the homeowner has signed the deed over to you are you in control of the property, and you can begin working with the bank.

Another step is that of calling the bank. It is important that you do this in such a way that you do not sound inexperienced. When you call the bank to request the short sales packet, you will probably be asked some questions, including whether or not you are a real estate broker, agent, etc. Let them know that you represent or you are the homeowner and need the packet. They will arrange to send it to you and when you receive it, the packet will explain precisely what you will need to do to complete your short sale successfully.

As you work on the short sale, make sure to send the lender everything they request. These items can include a letter explaining the hardship (why the homeowners have not been making the mortgage payments), bank records, pay stubs and more. When you send these items, do so right away, especially if the auction on the house is close. If the auction is getting too close you can ask for an extension. You will receive the extension if the lender feels that the offer on the property is solid and legitimate.

The Broker's Price Opinion (BPO) is another crucial step in a short sale. This is the opinion as to what the house is worth. It is to your advantage that the BPO comes out as low as possible. Also, the more expensive home you invest in, the deeper your discounts will be, therefore, the larger your profit will be.

These are just a few steps that are extremely important in a short sale. Others are important, as well, but without the steps listed here being performed correctly, you run the risk of losing money and/or losing the deal altogether. By including these steps, you have the foundation for a solid short sale that will make you a solid profit.

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Georgia Closings on My Mind

Jeff Kaller (FreeShortSaleCourse.com) — Mon, 03 Dec 2007 11:41:02 -0600

And the deluge is still to come. That's the word on the "street" from the industry professionals. The main reason is because interest rates on adjustable rate mortgages (ARMs) are about to reset in coming months - to double, triple or quadruple from those low teaser rates. Throw in a credit crunch that will close off most opportunities to refinance to falling housing prices, and it's likely that hundreds of thousands more will face foreclosure. Most will not be able to find help, and the foreclosure rate could climb even higher than the projected for closing 2007.

Reaction from state and federal officials continues to give lenders and loan services the benefit of the doubt in the form of voluntary compacts and agreements to pick up the pace and increase the volume of loan modifications. But it's unclear what those things will accomplish.

In Georgia, on average, foreclosure rates in the metro Atlanta area is significantly higher than rates in neighboring areas." Last year, Fulton County, home of the city of Atlanta, had the most foreclosures with a total of 11,437. DeKalb County was close behind with 9,327 foreclosures. In total, there have been 41,312 foreclosures in the metro Atlanta area for 2007.

To almost every housing counseling hotline in the region, the phone calls are incessant. The average foreclosure prevention counseling agency, is answering 150 calls a week from borrowers, far more than it can actually help. Nationwide, the wait time to see a counselor used to be one day, now the homeowner in need can expect to wait one week.

"Interestingly enough, foreclosures in Georgia are considered to be non-judicial foreclosures, which do not involve a judge . It's important to remember that pre-foreclosure sales are quite possible due to full public disclosure of the homeowner's information including the date, amount of debt, property address, name of borrower, deed book and page of security deed, lender name and attorney information. The key to succeeding is to be persistent and understand that the pre-foreclosure business requires a great deal of work and patience.

Seminar training from professionals is the best method to find pre-foreclosures. "You need quality real estate training and education from a real-world hands on professional to work with you. The real estate market is in the midst of a major correction and opportunities must be recognized first.

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What Must be Disclosed in a Real Estate Transaction?

Jeff Kaller (FreeShortSaleCourse.com) — Mon, 03 Dec 2007 11:40:15 -0600

On the surface, disclosure might seem very basic. A potential buyer is entitled to know when the house was originally built, what materials the roof is made out of and how many square feet the house and property are. Though these are all important facts to know regarding your purchase of a home, there is much more information that must be disclosed.

A buyer is entitled to seller disclosures, including material facts, deaths on the property and recent repairs. In addition, there are Property Disclosure Statements required by law in most states. This is a statement the seller must complete. In California, the Property Disclosure Statement is required by Civil Code and is called a Transfer Disclosure Statement.

A home buyer is also entitled to paperwork called he HUD-1. This is a settlement statement showing line item charges. The HUD-1 was created in an effort to simplify the disclosure of closing costs and it does so line by line so that the parties to the transaction are aware of all charges.

There should be a disclosure regarding any homeowner' association before your client makes the purchase. Aside from the disclosure, help your client ask the right questions, such as what the association's policies are and how stable they are financially.

There is also a Preliminary Title Report or Title Commitment, which should contain any information regarding easements. In the event that anyone plans to put a pool in the back yard, it is important that you find out about any easements or rights of way, as an easement can stop the plans to build the pool, a fence, and various other additions.

In addition, it is important that any covenants, conditions and restrictions (CC&Rs) be disclosed. CC&Rs are a matter of public record and affect the way the property can be used. It is important that these be researched and that you are aware of the ramifications regarding the house/property you are planning to purchase.

Another group of disclosures involve protecting you from various substances and hazards. There is a lead-based paint disclosure, which gives the buyer 10 days to inspect for lead-based paint unless both parties agree to waive this right. Lead-based paint was banned in 1978; however, even though a property was built after 1978 does not mean that it is lead-free.

Two other disclosures that are important are the radon gas test and toxic mold test. Radon gas has been linked to deaths from cancer and can contaminate the property's water sources. There are websites that describe radon testing in depth and explain how and why the test should be conducted. Toxic mold is another very important matter. Toxic mold is insidious - it is often not seen and there is not always an odor to it. Testing is usually simple and reasonably inexpensive. It is extremely important that these tests be performed and disclosed, since some issues with mold can be excluded from your homeowner's insurance policy, and even worse, pre-existing mold can keep you from getting homeowner's insurance in many cases.

Three more items that should be disclosed are termite inspections, powder post beetle inspections and fumigation tent facts. Termite inspections are a normal part of the process of buying a home. Power post beetles are not as well known. These are a specific type of beetle that eats wood. It is important to get the information about termite and post beetle inspections and how to inspect for damage before the deal is finalized.

The last item is extremely important. Natural Hazard reports disclose various conditions that could affect the property, such as whether the property is subject to shifting sands, fires, flooding or lies on a fault line. It is important to be aware of all this information before you finalize the purchase.

Whether you are closing a conventional sale or a short sale, make sure you have the reports and information you need to make a good decision that will put money in your pocket rather than cost you expenses that can turn a good moneymaking deal into an unnecessary loss.

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here: http://www.freeshortsalecourse.com/

Pre-Foreclosure Calls from the Voters

Jeff Kaller (FreeShortSaleCourse.com) — Mon, 03 Dec 2007 11:39:31 -0600

Citizens are calling on the Governors of many states to be part of the mortgage solution by ensuring that all homeowners facing foreclosure can obtain desperately-needed assistance and stay in their homes.

According to the New York State Banking Department's report the 2007 Spring Review, more than 50,000 foreclosures were reported in New York for 2006, which was a 40% increase from the previous year. 49,000 foreclosures were filed in New York during the first six months of 2007. This foreclosure rate is highest in the sub prime market, particularly for loans carrying adjustable rate mortgages.

Opportunities and Caveats

With the ongoing foreclosure flood rising and expected to crest in 2008 and 2009, Pre-Paid Legal Services, Inc., a lawyer referral service, is taking measures to better educate its sales force on how the company's legal membership can assist homeowners."If you are in the market and pursuing purchasing a pre-foreclosed property, there is a lot you should know if you have never done it before Yes, there are tons of great deals to be had in the market these days, but there are different stages of foreclosure and the more you know, the more you can protect yourself."

Pre-foreclosure is when the homeowner still owns the property and knows there is potential for foreclosure. They're likely not current on their payments and are in danger of destroying their credit and losing any equity they have. Buying at this stage is tough - the sellers may be on a deadline and things have to happen quickly. The sellers will be extremely motivated and may work out a short sale if the bank allows and they can find a buyer fast enough.

The Need for Training and Education

Some lenders, with their own agenda, say short sales take time because of negotiations required with multiple parties and the process required to calculate just who's losing what in the deal. Frequently the wait is too much for buyers, who end up walking away. After all, the market is loaded with other houses, frustrated Realtors note. Many agents tell of banks rejecting a short-sale offer they made for a buyer on a house in pre-foreclosure, only to see the house go into foreclosure and back to the bank, and then reappear on the market later at an even lower price. However, this is a matter of opinion depending who you ask.

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here: http://www.freeshortsalecourse.com/

Indications of Home Market Foreclosures Slowing In Some Areas

Jeff Kaller (FreeShortSaleCourse.com) — Mon, 03 Dec 2007 11:38:42 -0600

We've heard many times from several sources that a mix of adjustable-rate mortgage resets, a softening housing market and the collapse of the sub prime mortgage market has forced many more homeowners into foreclosure. However there is some promising light in this scenario even though generally it's hammering the nation.

Pre-foreclosure filings were down 4 percent in October compared to August nationwide. Where lenders have repossessed the property, REO's, were down 12 percent. Overall nine states showed a drop in per-capita homes lost to foreclosure. Technically, a comparison of pre-foreclosure filings with homes actually going back to mortgage lenders indicates a slowing of the mortgage meltdown in some parts of the country. But there are still a vast number of desperate homeowners seeking an exit strategy

Back to Harsh Reality

Foreclosures and pre-foreclosure sales are weighing down the real estate market in Worcester, Mass. This working-class bedroom community of Boston is feeling the full effects of the downturn in housing and credit squeeze on borrowers. Worst hit are buyers who bought homes in the past three years with little or no money down. "There is no room for error, lenders still aren't doing enough to help financially strapped customers.

Deals are Deals

An investor and hard money lender in northern Florida who says he has bought and sold more than one thousand properties in the Bay area sold off his inventory during the boom of 2005. But, now he says it may be time to get back in the market. He says there are good deals in desirable neighborhoods adding, "...between now and probably the end of 2008 you're going to have some ideal times for the picking."

However, homes priced under $300,000 are still moving, if they're in good condition, says a number of real estate agents in Florida. The market for homes at $500,000 to $600,000 is much weaker. "People who don't need to sell now should hunker down for the winter and wait for hopefully a better market in the spring," stated the agent.

Even with estimates that lenders are accepting losses of about 10%, on average, in the short sales and following an abrupt end of a home buying and borrowing spree earlier this decade there is more evidence of banks being tremendously cooperative and letting people out of their loans.

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here: http://www.freeshortsalecourse.com/

Foreclosure Fields

Jeff Kaller (FreeShortSaleCourse.com) — Mon, 03 Dec 2007 11:37:45 -0600

Without question, this economy faces risks of recession; shaky economic signs abound. One indicator of the housing market, permits issued for new homes, has slid to the lowest level in 12 years. And that affects demand for everything consumers buy to furnish new homes, from furniture to appliances. Any recovery is months away because builders are swamped with unsold inventory. And the end is nowhere in sight, either, not with as many as 2 million new foreclosures expected in 2007. But there is also opportunity to directly aid those 2 million homeowners whom face foreclosure this year.

With home prices dropping in markets on both coasts, there no longer appears to be a viable prediction that stands up to logical thinking. When someone sells in today's market, they are willing to accept a loss. In most cases the seller doesn't feel bad about it. As a national real estate investor I sense that the boom in prices has long been disconnected from the actual utility of a single-family dwelling, and as I train my students, you are able to recognize the differences and have a plan in place ready to execute."

Options Rooted In Results

Training and education are central to recognizing pre-foreclosure opportunities. For example by requesting the lender discount what is owed on their payoff, large spreads of equity can be created on houses that are over leveraged with loans. .In the world of pre-foreclosures investing, having the information of where to research and the understanding of how to assess public records is an acquired skill through proper training and instruction. Knowledge of what new foreclosures are being filed in your respective county gives you the inside track as to which new properties are available is very beneficial.

Learning how to buy directly from property owners whose mortgage loans are in default is a learnable skill. With the help of seminars, conferences and books, property investing can be a very lucrative profession. The goal of a pre-foreclosure education is to identify the most valuable properties and control every step of the procedure

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here: http://www.freeshortsalecourse.com/

Revenue Streams from Far Corners

Jeff Kaller (FreeShortSaleCourse.com) — Mon, 03 Dec 2007 11:35:47 -0600

Providers of mortgage information and services are now promoting Pre-Foreclosure solutions as part of their total business model. A number of professionals, including attorneys and lenders see the pre-foreclosure market as the next title wave of property investment opportunities.

The supply of homes coming on the market suggests that inventory has a long term continue growth forecast. The average county system has more than 6,200 homes in pre-foreclosure, which is an increase of 72 percent since August of this year. Many of these homes have not hit the market yet, so they are not counted in the inventory stockpile. In addition, there are countless others that haven't even shown up on the foreclosure landscape yet.

The new Pre-Foreclosure training provides evaluation skills for residential properties. A good seminar includes search techniques, vesting information, open liens, judgments and pending law suits as well as tax information and myriad of other data." "By gaining access to this type of information in today's market at this time, as the investor, you are meeting the needs of the foreclosure market by providing a consistent product nationwide," states Kaller. A proven foreclosure consultant training program shows how to represent home owners in pre-foreclosure situations and also how to work with mortgage lenders and banks.

There has been a nationwide surge of mortgage industry professionals to receive training and advance education in pre-foreclosure consulting techniques. Today's competitive real estate demands high level pre-foreclosure specialists trained in consulting and focused services. Even established real estate firms report that most of the requests for training to start pre-foreclosure consulting departments come from real estate mortgage industry brokers and loan officers mortgage professionals. Industry wide, they now desire to add pre-foreclosure consulting services to their businesses for obvious reasons.

Pre-foreclosure solutions are especially beneficial when a borrower is in financial distress. Aside from the monetary gain from pre-foreclosure investments, market professionals agree that being able to help homeowners keep their homes and stopping foreclosures adds value to service offerings and creates goodwill. Typically, the pre-foreclosure consultant works directly with the financial institutions to stop foreclosures on behalf of the homeowner. Additionally, analysts indicate that many former mortgage industry professionals often find that providing add on pre-foreclosure consulting services can be a fresh start and new career opportunity to work in an industry that you are already familiar with.

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here: http://www.freeshortsalecourse.com/

Investors Road to Pre-Foreclosure

Jeff Kaller (FreeShortSaleCourse.com) — Mon, 03 Dec 2007 11:34:51 -0600

What comes to mind when describing your feelings about today's real estate investment market? Would it be a combination of depression, frustration and confusion? Should it instead be excitement with moments of optimism? Either way, at sometime you've may have experienced most, if not all of these feelings depending on whom you listen to.

Most importantly, it could be your source of favorite media focusing in on one particular issue on a given day. Recognizing the basis of their intent, you may even experience opinion swings of 180 degrees, all in the same day.

However volatile, most of the time in today's sub-prime meltdown and market depression, the distressed home owner can expect to gain very little from the foreclosed sale of their home. Often the loan amount still owed is greater than the value of the house. That creates a text-book pre-foreclosure "short sale" situation in which some banks will negotiate a price less than what is owed on the mortgage in order to get some return on property. But the transaction usually must happen very quickly to make it worthwhile for the bank to agree to the sale.
The most attractive opportunity to buy a foreclosure is the pre-foreclosure stage. This phase occurs before the property is at the courthouse auction and post-foreclosure, also known as REO (real estate owned), when the property is in the hands of the lenders. Bypass the auction if new to buying foreclosures.

If you're successful, you often can get a discounted property, gain instant equity, and save cash on upfront costs. But before you jump on a pre-foreclosure, it's important to be financially prepared and have a well-tested strategy for closing the deal.

Pre-foreclosure buying Basics

This involves buying the house from the property owners, who understand they're in danger of losing their house, their credit and any equity they may have built up. The inventory of new homes for sale is adding to the existing cache of unsold homes. However, the good news is that there are a finite number of these homes in production and the end of the conveyor belt is getting closer every day.

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here: http://www.freeshortsalecourse.com/

High Tech Market

Jeff Kaller (FreeShortSaleCourse.com) — Mon, 03 Dec 2007 11:33:56 -0600

There are many advantages for investing in a pre-foreclosure property and now there are just as many methods of purchasing. Online only auctions provide a vital tool to investors of real estate.

Fundamentals

At the pre-foreclosure stage, the owner is about to lose the ownership of the property and the lender will soon take possession of the property and sell it at market price. The owner can repay the loan until the day when the house is being foreclosed. The lender usually tries to offer the home owner many possibilities to avoid foreclosure. As a last resort, most people try to sell their home to any buyer just to avoid foreclosure. If you know how and where to look for a pre-foreclosure home, the owner will surely pay attention to your offer, no matter how low it is. In some cases, the owner is willing to drop the normal price to 50%. The advantage of buying a pre foreclosure home over a foreclosure home is that there is very little to no competition.
Pre foreclosures can be profitable. With proper training, just about anyone can start searching for this type of real estate and make a profit. The only difference between pre- foreclosure houses and normal houses is the price and pre-foreclosures are a huge investment opportunity for real estate business men.

"Even though I train my students to get into the market before the online auction, it is very important to know the process on both ends. Standard procedures are the real estate foreclosures will be selling through online bidding, and contracts will be written following the close of the bids."

The auction method of marketing was chosen by the seller to liquidate all the property in inventory. In today's environment, auctions have the best chance of producing the highest price with the best contract terms, given that buyers and sellers are in position to take advantage of the market.

Commercial and residential properties ranging from new homes to proposed multi-family apartments and tracts with industrial zoning and approved environmental permitting in place have taken center stage on exclusive online auction event.

As always, when you step into the foreclosure arena, be careful. It is important to acquire training from a real estate pre-foreclosure specialist on the real estate market in your area. At the very least, you will learn to invest with integrity.

P.S. If you haven't signed up for my Free Short Sale Course yet, then youare really missing out, go here: http://www.freeshortsalecourse.com/