Your Questions About Foreclosures | foreclosureorder.com

Your Questions About Foreclosures

Your Questions About Foreclosures

John asks…

who do i talk to if i would like to do clean outs and other types of work on foreclosed homes?

i have a general contracting company and would like to generate more income. i used to work for a company that did REO and PPO work so i know what it entails i just don’t know who i should aim my focus at when it comes to advertising and cold sales tactics. any answers would b greatly appreciated

Your Questions About Foreclosures

The Expert answers:

There are tons of people doing the foreclosure clean out business these days due to the high number of foreclosures.

I heard of someone that contacted the BPO or Asset Manager at local (smaller) banks to get leads for doing clean outs. You typically need to give the bank a “quote” of what you’d charge…obviously, the messier the house, the more you’d charge. But, it can be very, very lucrative. I would start with the smaller banks and call them or send them letters/emails stating you’d like to inquire about them using your company’s clean out service.

Good luck!

Your Questions About Foreclosures

Lizzie asks…

finding rundown and foreclosed homes in baltimore maryland?

for sale by owner or realtor

Your Questions About Foreclosures

The Expert answers:

Ask an agent to give you a list of REO’s that are cash only, those should be the run down ones.

Your Questions About Foreclosures

Daniel asks…

Buying foreclosed homes, fixing them up, then resale them?

My dad had an idea to save up some money over about 5 years or so, between him and his 4 sons….maybe about $50 grand or so would do…(ages of the sons 25, 22 , 20, 18)

Then buy cheaper foreclosed homes, and fix them up ourselves (we all have worked on plenty of homes before) adding bedrooms, baths, and etc..

then turn around and sale it for maybe 35% more than we bought it or at least 10 grand more than we put into the project …and keep doing this over a long period of time, maybe about 20 years

Good Idea or No?

Your Questions About Foreclosures

The Expert answers:

If you can get them at a cheap enough price this could work. Just bear in mind that the real estate market is in the dumps right now and may not recover for a very long time and then only at sharply reduced prices. People are simply not buying. Be prepared to hold a house for a year or two after you have fixed it before it sells.

Your Questions About Foreclosures

Nancy asks…

In CA, when a person forecloses on there home or short sales it- will they be liable for the negative equity?

If someone forecloses there homes or short sales there home, will they or can they be responsible for the negative equity or the negative loss the banks took on the home? What if there was a second mortgage, will they be responsible for the extra dollars or does the bank lose out completely and have no recourse to collect money as the asset was reposessed?

Your Questions About Foreclosures

The Expert answers:

Both judicial and non-judicial foreclosure are available, but the non-judicial deed of trust sale is overwhelmingly preferred.

California has a one-action rule, in which a lender must elect one action to take against the borrower if the borrower defaults. If the lender forecloses the deed of trust out of court, the lender has chosen one action and may not bring a lawsuit to recover a deficiency, which would be a second action. If the lender chooses to sue the borrower and obtain both a foreclosure order, and if the proceeds of the judicial sale of the real estate are not sufficient to repay the loan balance, then a deficiency for the balance is allowed. Such a suit is permitted as the lender’s one action.

California lenders rarely elect judicial foreclosures.
Debtors may reinstate up to five days before non-judicial foreclosure sale.

No deficiency judgment is permitted after a non-judicial foreclosure or for a foreclosure on a purchase money loan. If the foreclosure is judicial, a deficiency judgment is allowed if the foreclosure was not a purchase money loan. California’s one-action rule requires the lender to foreclosure and sues for a deficiency at the same time. If the lender elects to foreclose only, it can’t elect to sue for a deficiency later on.
Http://www.forecloseddreams.com/california-foreclosure-law

In the case of second mortgages or HELOCs (home equity lines of credit), California law does not protect the borrower from deficiency actions. There is still some question as to whether you create a purchase-money security interest when you buy a home, create a first and second mortgage simultaneously and then default on both mortgages.
Http://www.bankrate.com/brm/news/bankruptcy/20070227_mortgage_foreclosure_deficiency_a1.asp

Your Questions About Foreclosures

Michael asks…

Does listing your house for a short sale stop the loan modification process? With Bank of America?

We have been attempting a loan modification with Bank of America for 6 months. We are no closer to getting any answers from them then we were 6 months ago. We have sent our papers in at least 7-10 times, as requested. They continually tell us they are making progress, then request all the paper work over again. We have been denied once already because they had down we made $20,000 more a year then we really do. We are not sure where they got their numbers from, so we started over. We have gotten several letters in the mail saying our house is going to auction on December 1st. Our B of A contact says to ignore the letters and the latest news was we are approved for trial payments and then the next day we got a letter on our door saying our house was going for Auction, then a few days later another letter in the mail saying they needed all the paper work over again. They feed us a bunch of BS and we have read the horror stories of other people having their homes foreclosed on, without notice. B of A tell us not to worry they are making progress on our loan modification and we will know any day and then weeks go by and guess what they need new paper work. We have consulted with a short sale agent and are setting up a meeting to list out property because we didn’t not want to foreclose on our home, we would much rather short sale. He told us in his experience listing the home for Short Sale does not stop the loan modification process, that we may still get approved for a loan modification before the sale, then we can still stay in our home. B of A continually tell us not to list out house, that it will stop the loan modification process. Our feeling is we really have no choice, we are no closer to a loan modification now then we were 6 months ago. They will most likely continue to delay this process and we will get a notice one day that our house was sold. We have gotten nothing but bad news in the mail from them and nothing but BS over the phone, nothing ever good in writing. We feel they are probably lying because that is all they seem to do. Does anyone know the answer? Will listing our home for a short sale stop the loan modification process with B of A? Especially interested in anyone who works for them in that department or have listed a B of A home that has then still been offered/received a loan modification. We are in California. Thanks.

Your Questions About Foreclosures

The Expert answers:

Tough situation. The short sale agent is right. You can sign on with her to list your house as a short sale, but can’t sell it as a short sale until you get approval from your lender. It is in the lenders best interest to do both, especially in California where lenders have no recourse to collect anything more from a borrower after foreclosure and liquidation. Be tenacious with BOA and continue to call everyday.

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Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures

Your Questions About Foreclosures

Your Questions About Foreclosures