Real Estate and Beyond Blog: Asia

RULES OF ENGAGEMENT AT ARIZONA FORECLOSURE AUCTIONS BE INFORMED AT ALL TIMES

I am sure many of you are having auctions in your local area. I wanted to repost my findings to share with the AR community. I will be closing on an auction property for my buyer with private money. Then, use the equity spread for their down payment. Please share with other professionals.

Benefits for the Seller to sell property at an Auction:

• Get the highest amount for the property since buyers compete against one another. People do not like to lose so they end up over bidding. Emotions take over the common sense side of the business. The auction creates excitement at the same time. 
• The auction is fast and delivers immediate results properties close within 30 days. It provides quick losings for the seller. Auctions have the marketing down to the science to bring large crowed.
• he starting price is low leaving it to the auctioneer to start driving up the price as people bid against each other. The auction sells properties for much more than was expected by the seller.
• The carrying cost of the property is decreased compared to traditional listing since the property is sold 30 days after auction. These costs included the following: taxes, utilities, insurance, landscaping, etc.
• Property is being sold AS-IS. This is a huge advantage to the seller. Seller and buyer waive all contingencies on the property.
• Seller is able to accept their bottom price at auction. The minimum bid is set before the auction date.
• Seller is always in control of his/her property. This eliminates negotiations between seller and buyer in a traditional real estate method. This method takes time and money.
• An Auction company will walk a seller from A to Z through the entire process including at closing.

Benefits for Buyers to Purchase at Auction:

• Buyer is setting own market Market Value on property at purchase. Buyer is not relying on realtor or appraiser to set the price. 
• Avoids long negotiations between Seller and Buyer. One can have it NOW. Most auctions last less than two hours depending on number of properties that day. 
• Auctions set a level playing field for every buyer. The highest bidder wins. 
• Auctions allow ample time for buyers to review property and do any research on the property so one is prepared at auction. One should only bid to their maximum. A bidder must avoid getting caught up in the moment. Common sense must prevail at Auction and not one's emotions.    

START NEW YEAR OFF WITH REPAIRING ONES CREDIT SCORE

When considering purchasing your first home, whether you get the mortgage or not, may depend on your credit score.  Your score is determined by a network of credit reporting agencies, that either share information with, or are owned by, three major credit bureaus. The credit bureaus take the information reported by the agencies and turn it into one report.  This is your credit report and is what lenders use to determine whether or not to issue mortgages or other loans.

It's a good idea to  inorder to know where you stand before you get too far in the home buying process, that way you can be aware of problems before they jump up and derail your plans.

Getting copies of your credit reports is easy. You can request a copy from each of the three major national credit bureaus: Equifax, Experian and TransUnion. Checking your credit can cost you as much as $9 per report, although it differs from state to state.

If you applied for a loan and were turned down, you are entitled to a FREE COPY of your credit report, but you must request a copy by writing the correct credit bureau within 30 days of the rejection. With your request, you should include a copy of the declined loan application.

You can also get a free report if you are unemployed, planning to apply for jobs in the next 60 days, receiving public welfare assistance or believe the credit file contains mistakes resulting from fraud.

To obtain a copy of your credit report, call the number of the proper credit bureau and follow their directions, or order it online. If you write, you will need to include your full name, date of birth, current and former address, Social Security number, your spouse's name and your phone number. Each person requesting the report should sign the request.

When planning to buy a home, you should check your credit at least three to six months before you apply for a mortgage.

Once you get the report, you should make sure the following information is correct:

• Your name, or names if you are or were married
• Social Security number
• Date of birth
• Addresses of places you've lived
• Names of places you've worked
• Pending accounts and accounts that have been closed

Nothing has been on the report longer than is allowed by law:

-- Bankruptcies must be taken off your credit history after 10 years.
-- Suits and judgments, arrest records, and most other kinds of unfavorable information must be dropped after seven years. Tax liens must be dropped seven years after the lien is paid in full.

· Records of delinquent payments or other problems (i.e., make sure they aren't mistakes)

Any error that you find must be investigated by the credit bureau and with the creditor who supplied the data. The bureau will remove any errors a creditor admits are there. If you disagree with the findings, you can file a short statement in your record giving your side of the story. Future reports to creditors must include this statement or a summary of it.

Be certain to be careful about applying for additional credit when you're about to apply for a mortgage. When the mortgage company checks your report they can find out who else has been checking your report and determine what, when and how you have been applying for credit. That means if you have been getting turned down and are desperately applying for credit all over town your potential mortgage company will know, and might turn your loan down because of it.

MORTGAGE  FRAUD INCREASES FHA TO VERIFY PRIMARY HOME BUYER LIVES AT PROPERTY

The real estate industry continues to develop changes on a weekly basis. It seems that mortgage fraud is on the rise. One would think with all the new laws that mortgage fraud would increase. People always try to get away with things until they get caught. I would everyone to do it right the first time. I turn down deals when the person wants to purchase a home under FHA. Then, that person wants to rent out the house. That is considered FRAUD. i politely turn down that business. I do not want to encourage that type of business practice.

So, I was reading an interesting article how FHA is experiencing an increase with mortgage fraud. They have caught several people purchase a home under the pretense of being the primary home buyer. This person closes on the deal. Then, FHA inspector knocks on the door to find out a different person lives at the house. This is considered fraud. So, the article continues to hint that the may require banks to hire third party companies to verify that the person doing the FHA loan will be the person living in that home. Wow, we can see a whole new industry develop like we have witnessed with BPOs.

WHO WANT TO START A THIRD PARTY VERIFICATION COMPANY WITH ME?

MULTIPLE STREAMS OF CASH FLOW.

PHOENIX RENT TO OWN PROGRAM EVERYONE NEEDS A SECOND CHANCE

Phoenix continues to experience a high foreclosure rate as banks continue to foreclosure on homes. Yes, homes continue to be sold at the Arizona Trustee Sales.The last of the ARMs will become due at the end of 2012. Homeowners continue to fail in obtaining loan modifications from their bank. It was announced Friday that the Government is willing to enact principal reduction plans. However, we need to read the fine print. The Home Affordable program only helped a little over 400,000 homes while experts estimate that 11 million households are under water.

Did you ever wonder what happens to people who get foreclosed upon? Do they rent apartments or homes? They rent homes. Actually, rent to own homes are a high commodity because there are so many people that need this service. People need a second chance in life. Who do they call? I have developed the Phoenix Rent To Own Program to assist people who need this type of service. How does one start over? It starts with having professional people in your life. We have professionals on our team to assist one during hard times. We have a credit restoration company who will work with people to restore ones credit. Praxis Credit Consulting is the best in the business.

I am sure many people have questions when it comes to rent to own. How does it work? Please visit our exclusive site at www.JustRentToOwn.com dedicated to educate rent to own candidates. Please read over our Frequently Asked Questions. This section was developed to make this rent to own program more accessible to people.

LEARN THE DIFFERENCE BETWEEN LEASE PURCHASE AND A LEASE OPTION

QUALIFY TODAY FOR A RENT TO OWN HOME IN THE GREATER PHOENIX AREA